What is it?

What are its measures

Bad Mgmt

What Mgmt Does

How it Does It

Interdisciplinary

Classical Management

Taylor's Scientific Approach

AdministrativePrinciples

(Fayol)

Weber's Bureaucracy

Taylorian Management

• develop a science for every job– standardize– proper working conditions– rules of motion (eliminate unnecessary movement)

• match ability to job requirements

• train workers

• provide incentives to encourage cooperation with "the science of work"

• support workers by planning their work

Fayol’s Universal Principles• Division of work

• Authority parallels Responsibility

• Discipline (obedience)

• One boss per employee

• Coordinated Efforts via unifying direction

• Subordination of individual's interest

• Pay = Contribution

• Centralization of Command

• Scalar Chain of Command

• Order through things and people in proper place

• Kindness and Justice = Equity ==> Loyalty

• Stability & Tenure provides time to learn the job

• Management initiative to carry out plans

• Espirit de Corps = harmony leads to success

Fayol’s Four (Admin) Functions of Management

• Planning• Organizing• Directing/Leading• Controlling

Weber’s Bureaucratic Organization

• Division of Labor• Hierarchy of Authority• Formal rules and procedures• Impersonality• Merit-based selection &

promotion• Managers are career employees

Exercise: Under the Classical Approach…

• Why management? What is the purpose of management?

• What would managers do? What functions do they perform and how would they execute them?

Causes of Behavioral Approach

• Unionization

• Hawthorne Studies

• Industrial Humanism

Mary Parker Follett

• Cooperation is Central• Create Feelings of Collective

Responsibility• Business Problems are Inter-

related• Business should consider the

Public Good

McGregor’sTheory X vs Theory Y

• dislike work• lack ambition• irresponsible• resistant to

change• prefer to be led,

than to lead

• willing to work• capable of self-

control• willing to accept

responsibility• imaginative and

creative• capable of self-

direction

Exercise: Under the Behavioral Approach…

• Why management? What is the purpose of management?

• What would managers do? What functions do they perform and how would they execute them?

Systems Approach

• Fayol’s Universal Theory & Taylor’s Approach are at base Reductionistic

– The enterprise is not a collection of functions

• It’s a System: A dynamic whole

– a collection of components standing in mutual relation. Interdependent actions or activities functioning as one toward a common objective/purpose

Chester I. Barnard & Systems

• All Organizations are Cooperative Systems

• Managing Organizations Require– Willingness to Serve– Sharing a Common Purpose– Communication– Paying Attention to Worker Motivation

Exercise: Under the Systems Approach…

• Why management? What is the purpose of management?

• What would managers do? What functions would they perform and how would they execute them?

With Systems Thinking

• Management can’t Focus on Just One Thing

• Management can’t Ignore Internal-External Connections

• Management must Seek to Develop and Understand Relationships

Exercise: How do these principles of the Classical Approach fit today?

• Weber's Bureaucracy: The top directs and controls the lower

• Taylor's principle that workers will be more productive & efficient as tasks become more specialized—a greater division of work

• The Classical belief in “economic man”

• Fayol's assertion that efficiency results as work is centrally planned

Ouchi’s Theory Z

• Intent to develop mutual loyalty• Basic Principles

– Lifetime employment– Job rotation & broad career

experience– Shared information– Collective decision making– Quality emphasis

Quality Approaches• Ouchi’s Theory Z• Shewhart—Systems & SPC• Deming—System, SPC, Knowledge, Leadership• Ishikawa—Problem Solving & Prevention• Juran—Quality Planning• Feigenbaum—TQC: Company-wide quality• Crosby– Zero Defects, cost of poor quality

Deming’s Role of Manager of People• Explains the aim of the system & how their work supports it

• Facilitates cooperation==>optimization

• Creates for everybody interest & challenge & joy in work

• Is an unceasing learner & encourages others

• Is coach & counsel, not judge

• Understands the interaction between people & the system

• Utilizes ‘personhood’, knowledge, authority in that order

• Studies results to improve the system

• Creates trust & an environment for innovation

• Does not expect perfection

• Listens & learns w/o passing judgment

• Seeks to understand those being managed

• Understands the benefits of cooperation & the losses from competition

Management’s New Directions

• Organizational Learning– Organization is a “living & thinking system”– Focus on the “collective” aspects– Focus on the “mental” aspects

• Chaos Theory– Organization as a dynamically complex system—no

real predictability– Seek to understand and learn from the multitude of

behavior (outcome) patterns

Group Discussion

• What is the relationship among Quality Management, Management of Living Systems and Management of Chaos?

What is it?

What are its measures

Bad Mgmt

What Mgmt Does

How it Does It

Interdisciplinary

Exercise: Best Attributes• Make a list of behavioral attributes that

describe the best manager• Share the list with your group &

develop a common list• Describe the typical manager

according to or relative to the various management theories we've discussed– Classical– Behavioral– Quality (I.e. Deming)

Classical/Taylorian

Fayol's Admin Mgmt

Behavioral

Systems Approach

ContingencyEmerging Theories

Assumptions About People

Classical/Taylorian

Fayol's Admin Mgmt

Behavioral

Systems Approach

ContingencyEmerging Theories

Assumptions About People