CH 2. The Evolution of Management

Why were the classical approaches criticized as a whole?

1. They ignored the relationship between the organization and its external environment 2. They usually stressed one aspect of the organization or its employees at the expense of other considerations

Can a Bureaucracy be efficient and productive?

Yes, bureaucracy can be efficient and productive however it is not suitable for every organization.

Who is the main person associated with Bureaucracy?

Max Weber

Hawthorne Effect

People's reactions to being observed or studied resulting in superficial rather than meaningful changes in behavior

Were Scientific management principles widely embraced?

Absolutely, a good example of the application of scientific management is the factory Henry Ford built to produce the Model T. Productivity and efficiency in manufacturing improved dramatically.

Do bureaucratic organizations exist today despite being a classical approach?

Yes, many organizations today are bureaucratic.

How is Quantitative Management used in the real, modern world?

It is used more as a tool to make decisions. Rather than the numbers making the decision they supplement the decision. Many managers will use results that are consistent with their experience, intuition, and judgement but they often reject results that contradict them. This may be due to lack of training but is more likely due to the decisions that managers facing are non-routine and unpredictable.

Who are the main people associated with Scientific Management?

- Frederick Taylor - Henery L Gantt - Frank B. Gilbreth - Lillian Gilbreth

Henri Fayoli in Administrative Management

-Henri Fayol was a french mining engineer/executive that published a book based on his management experiences. - Identified 5 functions and 14 principles of management (which he wanted applied flexibly as apposed to being treated as universal truths) -

How have computers affected Quantitative Management?

Computers facilitated the development of specific quantitative management such as statistical decision theory, linear programming, queuing theory, simulation, forecasting, inventory modeling, network modeling and break even analysis. Organizations apply these techniques in many areas including production and quality control

Why is the Organizational Behavior perspective criticized?

Organizational Behavior perspective was criticized for its limited perspective

What did critics say about Administrative Management?

- Critics noted that the perspectives and recommendations that built Admin Management might not work in all situations. Different types of personnel, industry conditions and technologies may affect the appropriateness of these principles.

Important contingencies include...

1. Circumstances in the organization's external environment 2. The internal strenghts and weaknesses of the organization 3. The values, goals, and attitudes of managers and workers in the organization 4. The types of tasks, resources and technologies the organization uses

What are the 5 Classical Approaches of Management?

1. Systematic Management 2. Scientific Management 3. Bureaucracy 4. Administrative Management 5. Human Relations

Bureaucracy

A classical management approach emphasizing a structured, formal network of relationships among specialized positions in the organization.

Administrative Management

A classical management approach that attempted to identify major principles and functions that managers could use to achieve superior organizational performance. The Administrative Management emphasized the perspective of senior managers within the organization and argued that management was a profession that could be taught. Emphasizes management as a profession.

Human Relations

A classical management approach that attempted to understand and explain how human psychological and social processes interact with the formal aspects of the work situation to influence performance. First major approach to emphasize informal work relationships and worker satisfaction Human relations proponents argued that managers should stress primarily employee welfare, motivation, and communication. They believed social needs mattered more than economic needs. Therefore, management must gain the cooperation of the group and promote job satisfaction and group norms consistent with the goals of the organization.

5 characteristics of an effective bureaucracy

Division of labor - tasks, assignments, and authority are clearly specified. Authority - A chain of command or hierarchy is well established. Qualifications - Employees are selected and promoted based on merit. Ownership - Managers, not owners, should run the organization. Rules - Impersonal rules should be applied consistently and fairly.

Other than Henri Fayoli what other executives contributed to the administrative management literature?

- Chester Barnard who outlined the role of the senior executive: formulating the purpose of the organization, hiring key individuals, and maintaining organizational communications. - Mary Parker Follett who extended Barnard's work by emphasizing the continually changing situations than managers face. Two of her key contributions being the notion that managers desire flexibility and the differences between motivating groups and individuals (laying the groundwork for the modern contingency approach)

What did the critics say about Scientific Management?

- Critics claimed that Taylor ignored many job-related social and psychological factors by emphasizing only money as a worker incentive. - Production tasks were reduced to a set of routine, machine-like procedures that lead to boredom, apathy, and quality control problems. - Unions Strongly opposed scientific management techniques because they believed management might abuse their power to set the standards and the piecerates, thus exploiting workers and diminishing their importance. - Although scientific management resulted in intense scrutiny of the internal efficiency of organizations, it did not help managers deal with broader external issues such as competitors and gov regulations, especially at the senior management level.

Who are the main people associated with the Organizational Behavior perspective?

- Douglas McGregor; Theory X and Theory Y, marked the transition from human relations - Chris Argyris; recommended greater autonomy and better jobs for workers - Rensis Likert; stressed the value of participative management.

Big Data

- Falls under Quantitative Management - A broad term for datasets so large or complex that traditional data processing applications are inadequate. - Used to analyze patterns in structured and unstructured data - Only as good as the data points themselves

Who is Abrham Maslow?

- Famous contributor to the field of human relations - Maslow's 5 levels of needs -Managers can facilitate this process and achieve organizational goals by removing obstacles and encouraging behaviors that satisfy people's needs ans organizational goals simultaneously

Scientific Management [Detailed]

- Fredric Taylor discovered that production and pay were poor, inefficiency and waste were widespread, and most companies had unused potential and in response Scientific Management was born. - Scientific management advocated for the application of scientific methods to analyze work and determine how to complete production tasks efficiently. - Fredric Taylor identified 4 principles of scientific management; 1. Management should develop a precise, scientific approach for each element of each job to replace general guidelines. 2. Management should scientifically select and place each worker so that the right person has the job. 3. Management should cooperate with workers to ensure that jobs match plans and principles. 4. Management should ensure an appropriate division of work and responsibility between managers and workers. - After the one best way to preform the job was identified, Taylor stressed the importance of hiring and training the proper worker to do that job. - Frederick Taylor advocated for the standardization of tools, the use of instruction cards to help workers, and breaks to eliminate fatigue. - Another Key element of Frederick Taylor's approach was the piecerate system (a pay system: workers paid based on output/performance) -Henry L Gantt (protege of Frederick Taylor) expanded the piecerate system to frontline managers, rewarding them for the productivity of their subordinates. Also known for the Gantt chart, which helps plan projects by task and time to complete those tasks. - Frank B and Lillian Gillbreth were a productive husband and wife team. - Frank Gillbreth had "work smarter, not harder" approach where he developed a system to reduce costs and increase worker productivity and his analysis led to more bricks being laid. Also used "motion studies" to find the most efficient way to complete tasks. - Lillian Gilbreth known as the "mother of modern management" and focused less on the technical and more on the human side of management. She was interested in how job satisfaction motivated employees, how motion studies could be used to help disabled individuals preform jobs and how fatigue and stress affected workers well-being and productivity. - Scientific management principles were widely embraced. One example of this is the factory Henry Ford built to produce the Model T. - Productivity and efficiency in manufacturing improved dramatically and the piecerate system gained wide acceptance because it closely aligned effort and reward. - Taylor also emphasized the need for cooperation b/w management and workers. The concept of a management specialist gained prominence.

Who is Frank B. Gilbreth

- Husband to Lillian Gilbreth - Strong believer in Federick Taylor's philosophies, while working as a supervisor of bricklayers - Developed a system to reduce costs and increase worker productivity by showing how employees could work smarter, nor herder. - Reduced bricklayer motions form 18 to 4, allowing worker productivity to increase from 1,000 to 2,700 bricks a day. - "motion studies" used to identify and remove wasteful movements

Who is Federick Taylor?

- Identified the four principles of Scientific Management - Forerunner of scientific management after discovering that production and pay were poor. inefficiency and waste were widespread, and most companies had unused potential. - Advocated for the application of scientific methods to analyze work and to determine how to complete production tasks efficiently (Scientific Management). - Piecerate system - Emphasized the need for cooperation between management and workers.

Why might bureaucracy not be the most appropriate model for a certain industry?

- Organizations/departments that need rapid decision making and flexibility may suffer under a bureaucratic approach - Some people may not perform their best with excessive bureaucratic rules and procedures.

What are Henri Fayoli's 5 functions and 14 principles of management?

- Planning - Organizing - Commanding - Coordinating - Controlling

Who is Henery L Gantt?

- Protege of Frederick Taylor - Believed in Scientific Management and the need for management and labor to cooperate. - Expanded on the piecerate System by suggesting frontline supervisors should receive a bonus for each of their workers who completed their assigned daily tasks. - Gantt Chart = Helps employees and managers plan projects by task and time to complete those tasks

What are the 4 Contemporary Approaches to management?

- Sociotechnical Systems Theory - Quantitative Management - Organizational Behavior - Systems Theory

What did the critics have to say about human relations?

- The belief that "a happy worker is a productive worker" was too simplistic - While scientific management overemphasized the economic and formal aspects of the workplace, human relations ignored the more rational side of the worker and the important characteristics of the formal organization. - Despite this, human relations was still a step in the right direction as it prompted managers and researchers to consider the psychological and social factors that influence performance.

What are some shortcomings of bureaucracy?

- The shortcomings mainly stem from faulty execution of bureaucratic principles rather than the approach itself... - Too much authority may be vested in too few people; the procedures may become the ends rather than the means; or managers may ignore appropriate rules and regulations. - One advantage of a bureaucracy-its stability- can also be a problem being that once a bureaucracy is established, dismantling it is very difficult.

Systematic Management

- The systematic management approach built specific procedures and processes into operations to ensure coordination of effort. - Emphasized economical operations, adequate staffing, maintenance of inventories to meet consumer demand, and organizational control. - These goals were achieved by; Careful definition of duties and responsibilities; Standardized techniques for performing these duties; Specific means of gathering, handling, transmitting, and analyzing information; Cost accounting, wage, and production control systems to facilitate internal coordination and communications. - The demand from the Industrial Revolution (19th Century) forced systematic management to emphasize internal operations, focusing on internal issues of efficiency. Labor was poorly organized and managers were more oriented towards things than people. - Failed to lead to widespread production efficiency.

Theory X

- Theory X managers assume workers are lazy and irresponsible and require constant supervision and external motivation to achieve organizational goals - Known as the 'self-fulfilling prophecy' because when the manager treats employees as lazy, unmotivated and in need of tight supervision the employees will eventually fulfill these expectations. - This cycle can have many negative implications for managers, employees and organizations

Theory Y

- Theory Y managers assume employees want to work and can direct and control themselves. - McGregor advocated for this perspective, suggesting that managers who encourage participation and allow opportunities for individual challenge and initiative would achieve superior performance

Who is Lillian Gilbreth?

- Wife to Frank Gilbreth - " Mother of Modern Management " - PhD in psychology and taught at Purdue (first female in the engineering school) - Eventually focused less on the technical and more on the human side of management. - She was interested in how job satisfaction motivated employees, how motion studies could be used to help disabled individuals perform jobs, and how fatigue and stress affected workers' well-being and productivity.

Bureaucracy according to Max Weber

-Max Weber who was a German socialist, lawyer and social historian believed that bureaucracy was the ideal, model approach for management. - Weber believed bureaucratic structures can eliminate the variability that results when managers in the same organization have different skills, experiences, and goals. - Weber emphasized a structured, formal network of relationships among specialized positions in an organization. - Rules and regulations standardize behavior, and authority resides in positions rather than in individuals. As a result the organization need not rely on a particular individual, but will realize efficiency and success by following the rules in a routine and unbiased manned. - Believed bureaucracies are especially important because they allow large organizations to preform the many routine actives necessary for their survival. - Bureaucratic positions foster specialized skills, eliminating many subjective judgments by managers.If the rules and controls are established properly they should be unbiased in their treatment of people, both customer and employees.

What were the 4 principles of Scientific Management, identified by Frederic Taylor?

1. Management should develop a precise, scientific approach for each element of each job to replace general guidelines. 2. Management should scientifically select and place each worker so that the right person has the job. 3. Management should cooperate with workers to ensure that jobs match plans and principles. 4. Management should ensure an appropriate division of work and responsibility between managers and workers.

Book definition of Scientific Management

A classical management approach that applied scientific methods to analyze and determine the "one best way" to complete production tasks.

Sociotechnical Systems Theory

An approach to job design that attempts to redesign tasks to optimize operation of a new technology while preserving employees' interpersonal relationships and other human aspects of the work. Suggests that organizations are effective when their employees (the social system) have the right tools, training, and knowledge (the technical system) to make products/services that are valued by customers The researchers believed that workers should be given the freedom to correct problems at early stages of the production process rather than after products were made, when errors would create waste.

Is the Sociotechnical Systems Theory model in use today?

Yes for example with the company Oracle Utilities Opower that combines "Big Data" with customer behavior to provide visually appealing feedback and save clients money in energy and customer service time.

Quantitative Management

a contemporary management approach that emphasizes the application of quantitative analysis to managerial decisions and problems. Helps a manager make decisions by developing formal mathematical models of the problem. Numbers generally dictate decision making

Organizational Behavior

a contemporary management approach that studies and identifies management activities that promote employee effectiveness by examining the complex and dynamic nature of individual, group, and organizational processes Seeks to understand and ultimately improve employees attitudes and behaviors at work More to productivity than social and psychological factors (HR) consistently emphasized development of the organization's human resources to achieve individual and organizational goals.

Systems Theory

a theory stating that an organization is a managed system that changes inputs into outputs. Organizations are open systems, dependent on inputs form the outside world and transform these into outputs that (ideally) meet the market's needs. Emphasizes that an organization is one system in a series of subsystems

Contingency Perspective

an approach to the study of management proposing that the managerial strategies, structures, and processes that result in high performance depend on the characteristics, or important contingencies, or the situation in which they are applied. refutes universal principals of management by stating that a variety of factors, both internal and external, may affect the organizations performance There is NO "one best way" to manage/organize because circumstances vary.

Maslow's Hierarchy of Needs

physiological, safety, love/belonging, esteem, self-actualization