LECTURE 2 (a)

ninth edition

Management Yesterday and Today: Traditional and Contemporary Issues and Challenges
*** (.... Slide 1 101 only)

STEPHEN P. ROBBINS

MARY COULTER

School Management & Supervision PowerPoint Presentation by Charlie Cook The University of West Alabama SGDU5033

Learning Outcomes
After following this lecture, you should be able to:
 Justify the importance of history and theory to management and discuss precursors to modern management theory.  Summarize and evaluate the classical perspective on management, including scientific and administrative management, and note its relevance to contemporary managers.  Summarize and evaluate the behavioral perspective on management, including the Hawthorne studies, human relations movement, and note its relevance to contemporary managers.
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Learning Outcomes (contd)

After following this lecture, you should be able to:
 Summarize and evaluate the quantitative perspective on management, including management science and operations management, and notes its relevance to contemporary managers.  Discuss the systems and contingency approaches to management and explain their potential for integrating the other areas of management.  Identify and describe contemporary management issues and challenges.

Lecture Outline
The Role of Theory and History in Management
 The Importance of Theory and History  Precursors to Management Theory

The Behavioral Management Perspective (contd)

 The Behavioral Management Perspective Today

The Classical Management Perspective

 Scientific Management  Administrative Management  The Classical Management Perspective Today

The Quantitative Management Perspective

 Management Science  Operations Management  The Quantitative Management Perspective Today

The Behavioral Management Perspective

 The Hawthorne Studies  The Human Relations Movement

Contemporary Management Issues and Challenges

 Contemporary Applied Perspectives  Contemporary Management Challenges
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The Importance of Theory and History

Why Theory?
Theory a coherent set of assumptions which explain the relationship between 2 or more observable facts A theory is a conceptual framework for organizing knowledge and providing a blueprint for action. Management theories, used to build organizations, are grounded in reality. Most managers develop their own theories about how they should run their organizations.

Why History?
An awareness and understanding of important historical developments in management are also important to contemporary managers in furthering the development of management practices and in avoiding the mistakes of others in the past.
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Why Study Management Theory

We have stated that the world we live in is a complex one theories help us make sense of that complexity. Management is a complex issue management theory helps us to make sense of the complexities. Theories provide a stable focus for understanding what we experience and provides criteria for determining what is relevant e.g. for a business to be viable a good product and compliant workforce are essential. Theories enable us to communicate efficiently and move into more complex relationships with others. Theories enable us to continue learning about our world. Theories have boundaries i.e. there is only so much that can be covered by any particular theory.

Management: Science or Art?

The Science of Management
Assumes that problems can be approached using rational, logical, objective, and systematic ways. Requires technical, diagnostic, and decision-making skills and techniques to solve problems.

The Art of Management

Decisions are made and problems solved using a blend of intuition, experience, instinct, and personal insights. Requires conceptual, communication, interpersonal, and time-management skills to accomplish the tasks associated with managerial activities.

Precursors of Management Theory

Management in Antiquity
D Greeks

C Babylonians

G Venetians

B Egyptians

E Romans

A Sumerians

F Chinese

3000 B.C.

2500 B.C.

2000 B.C.

1500 B.C.

1000 B.C.

500 B.C.

A.D.500

A.D.1000

A.D.1500

A Used written rules and regulations for governance B Used management practices to construct pyramids C Used extensive set of laws and policies for governance D Used different governing systems for cities and state

E Used organized structure for communication and control F Used extensive organization structure for government agencies and the arts G Used organization design and planning concepts to control the seas

Historical Background of Management

Ancient Management
 Egypt (pyramids) and China (Great Wall)  Venetians (floating warship assembly lines)

Adam Smith
 Published The Wealth of Nations in 1776 Nations


Advocated the division of labor (job specialization) to increase the productivity of workers

Industrial Revolution (18th century)

 Substituted machine power for human labor  Created large organizations in need of management

2007 Prentice Hall, Inc. All rights reserved.

Contemporary Management Issues and Challenges

How management theory and practice has evolved over time
The Classical Perspective The Behavioral Perspective The Quantitative Perspective The Systems Perspective The Contingency Perspective Theory Z and the Excellence Perspective Contemporary Applied Perspectives Senge Covey Peters Porter Adams Kotter Hamel
1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

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The Historical Perspective

Behavioral Viewpoint Classical Viewpoint
Emphasis on ways to manage work more efficiently Emphasis on importance of understanding human behavior & motivating & encouraging employees toward achievement

Quantitative Viewpoint
Applies quantitative techniques to management

Scientific Management
Emphasized scientific study of work methods to improve productivity of individual workers Proponents: Frederick W. Taylor Frank & Lillian Gilbreth

Early Behaviorists
Proponents: Hugo Munsterberg, Mary Parker Follet, Elton Mayo

Management Science
Focuses on using mathematics to aid in problem solving and decision making

Human Relations Movement

Proposed better human relations could increase worker productivity Proponents: Abraham Maslow Douglas McGregor

Operations Management
Focuses on managing the production and delivery of an organizations products or services more effectively

Administrative Management
Concerned with managing the entire organization Proponents: Henry Fayol, Max Weber

Behavioral Science Approach

Relies on scientific research for developments theory to provide practical manager tools

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An Integrative Framework of Management Perspectives

Systems Approach
Recognition of internal interdependencies Recognition of environmental influences Classical Management Perspectives Methods for enhancing efficiency and facilitating planning, organizing, and controlling Behavioral Management Perspectives Insights for motivating performance and understanding individual behavior, groups and teams, and leadership Recognition of the situational nature of management Response to particular characteristics of situation Quantitative Management Perspectives Techniques for improving decision making, resource allocation, and operations

Contingency Perspective

Effective and efficient management

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Classical Management Theory

A theory that focused on finding the one best way to perform and manage tasks

Classical Management Theory

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Early Management Pioneers

Robert Owen (17711858)
British industrialist who was one of the first managers to recognize the importance of human resources/ modern personnel management. Implemented better working conditions, set a minimum age for child labor, provided meals, and reduced work hours.

Charles Babbage (17921871)

Noted English mathematician who focused on creating efficiencies of production through the division of labor, cooperation between management and labor, and the application of mathematics to management problems. Wrote On the Economy of Machinery and Manufactures. - In 1832, published On the Economy of Machinery and Manufactures - Concluded that definite management principles existed: -with broad applications -determined by experience - Principle of the division of labor amongst the persons who perform the work

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Historical Management Perspective: Classical Viewpoint

The Classical Viewpoint: emphasized finding ways to manage work more efficientlytwo branches: Scientific and Administrative

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Classical Management Perspective

Consists of two different viewpoints:
Administrative Management A theory that focuses on managing the total organization. Scientific Management Concerned with improving the performance of individual workers (i.e., efficiency). Grew out of the industrial revolutions labor shortage at the beginning of the twentieth century.

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Classical Management Perspective (cont d) Administrative Management Theory

Focuses on managing the whole organization rather than individuals. Henri Fayol (18411925)

Was first to identify the specific management functions of planning, organizing, leading, and controlling Wrote General and Industrial Management. Helped to systematize the practice of management.

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Classical Management Proponents

Lyndall Urwick
Integrated the work of previous management theorists.

Max Weber
His theory of bureaucracy is based on a rational set of guidelines for structuring organizations.

Chester Barnard
Wrote The Functions of the Executive. Proposed a theory of the acceptance of authority (by subordinates) as the source of power and influence for managers.

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Administrative Management
Administrative Management:
concerned with managing the total organization (all organizations)

Among the pioneering theorists were Henry Fayol & Max Weber
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Administrative Management (contd)

Henri Fayol
 Believed that the practice of management was distinct from other organizational functions  Developed fourteen principles of management that applied to all organizational situations

Max Weber
 Developed a theory of authority based on an ideal type of organization (bureaucracy)


Emphasized rationality, predictability, impersonality, technical competence, and authoritarianism

2007 Prentice Hall, Inc. All rights reserved.

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Fayols Administrative Theory

Henri Fayol (1841-1925) (1841 General and Industrial Management  Principles and Elements of Management - how managers should accomplish their managerial duties  PRIMARY FOCUS: Management (Functions of Administration)  More Respect for Worker than Taylor  Workers are motivated by more than money  Equity in worker treatment  More PRESCRIPTIVE  Believed specific management skills could be learned and taught
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Fayols Administrative Theory

Positioned communication as a necessary ingredient to successful management Application in the Modern Workplace  Fayols elements of management are recognized as the main objectives of modern managers  Planning - more participatory  Organizing - human relationships and communication  Especially applicable for large organizations (military)(education)

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Henry Fayol & the Functions of Management

Henry Fayol was the first to systematize management
management behavior he was the first to identify the major functions of management: planning, organizing, leading, controlling, as well as coordinating
Planning
You set goals and decide how to achieve them

Organizing
You arrange tasks, people, & other resources to accomplish the work

Controlling
You monitor performance, compare it with goals and take corrective action as needed

Leading
You motivate, direct & otherwise influence people to work hard to achieve the organizations goals

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And the principles are.

Division of Labor: Specialization increases output by making employees more efficient Authority: Managers must be able to give orders. Authority and responsibility go together Discipline: Employees must obey and respect the rules of the organization. Unity of Command: every employee should receive orders from only ONE superior. Unity of Direction: Each group of organizational activities that has the same objective should be directed by one manager using one plan.
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And the principles are.

Subordination of Individual Interests to the General Interests: the greater good. The organizations interests come first. Remuneration: workers must be paid a fair wage for their services. Centralization: degree to which subordinates are involved in decision making. What works best for the organization? Centralized: management-driven. Decentralized: subordinate-driven
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And the principles are.

Scalar chain: line of authority from top management to the lowest ranks. Communications should follow this chain whenever possible. Order: People and materials should be in the right place at the right time. Equity: Managers should be kind and fair to their subordinates

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And the principles are.

Stability of Tenure of Personnel: High employee turnover is inefficient. Initiative: Employees who are allowed to originate and carry out plans will exert high levels of effort. Esprit de Corps: Promoting team spirit will build harmony and unity within the organization.

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Webers Theory of Bureaucracy

Max Weber (1864-1920) (1864German Sociologist Theory of Social and Economic Organization (1947) Principles and Elements of Management - describe an ideal or pure form of organizational structure (general policy and specific commands PRIMARY FOCUS: Organizational Structure Worker should respect the right of managers to direct activities dictated by organizational rules and procedures More DESCRIPTIVE
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Webers Theory of Bureaucracy

Bureaucracy allows for the optimal form of authority - rational authority Three types of Legitimate Authority
Traditional Authority - past customs; personal loyalty Charismatic Authority - personal trust in character and skills Rational Authority - rational application of rules or laws
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Webers Theory of Bureaucracy

Tenets of Bureaucracy Rules Specified sphere of competence Hierarchy Specialized Training Workers do not own technology No entitlement to official position by incumbent Everything written down Maintenance of ideal type - bureaucracy

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Webers Five Principles of Bureaucracy

Authority is the power to hold people accountable for their actions. Positions in the firm should be held based on performance, not social contacts. Position duties are clearly identified so that people know what is expected of them. Lines of authority should be clearly identified such that workers know who reports to who. Rules, standard operating procedures (SOPs), and norms guide the firms operations.
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Webers Theory of Bureaucracy

Application in the Modern Workplace Large organizations guided by countless rules are bureaucracies Linked with inefficient, slow-moving organizations Organizations have several characteristics of bureaucracies To Weber, this represented an ideal or completely rational form of organization Used to describe a structure based on the sociological concept of rationalization of collective activities Had NONE of the negative connotations the terms has today (red tape, etc.)
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Weber Webers Ideal Bureaucracy

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Bureaucracy
Characteristics of an Ideal Bureaucracy Clear division of labor: Jobs are well defined, and labor: workers become highly skilled at performing them. Clear hierarchy of authority and responsibility are well defined, and each position reports to a higherhigherlevel one. Formal rules and procedures: Written guidelines procedures: describe expected behavior and decisions in jobs; written files are kept for historical record. Impersonality Rules and procedures are impartially and uniformly applied; no one gets preferential treatment. Careers based on merit: Workers are selected and merit: promoted on ability and performance; managers are career employees of the organization.
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Webers Principles of Bureaucracy

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Why bureaucracy still going strong?

Most successful organizational form Large size loves bureaucracy Bureaucracy is efficient Western values fit bureaucracy Todays changes overstated? Professional bureaucracy can be adaptive Bureaucracy supports control or top managements interests

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Bureaucratic organization (Max Weber) Possible disadvantages of bureaucracy:

Excessive paperwork or red tape Slowness in handling problems Rigidity in the face of shifting needs Resistance to change Employee apathy (discriminate)
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Classical Management Perspective Today Contributions

Laid the foundation for later developments. Identified important management processes, functions, and skills. Focused attention on management as a valid subject of scientific inquiry.

Limitations
More appropriate approach for use in traditional, stable, simple organizations. Prescribed universal procedures that are not appropriate in some settings. In some cases, employees are viewed as tools rather than as resources.

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The Problem with the Classical Viewpoint

The classical viewpoint tends to be too mechanistic: mechanistic it tends to view humans as cogs within a machine, not taking into account the importance of human needs
McDonald s, Pizza Hut
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Scientific Management
Scientific Management:
emphasized the scientific study of work methods to improve the productivity of individual workers. Scientific Management Theory body of principles that addresses the efficiency of workers

Two of its chief proponents were Frederick W. Taylor, & Frank and Lillian Gilbreth
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Steps in Scientific Management

1 Develop a science for each element of the job to replace old rule-of-thumb methods 2 Scientifically select employees and then train them to do the job as described in step 1 3 Supervise employees to make sure they follow the prescribed methods for performing their jobs 4 Continue to plan the work, but use workers to get the work done

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Scientific Management Theory

Frederick Taylor (18561915)
Considered the Father of Scientific Management. Replaced old rule-of-thumb methods of how to do work with scientifically-based work methods to eliminate soldiering where employees deliberately worked at a pace slower than their capabilities. Believed in selecting, training, teaching, and developing workers. Used time studies of jobs, standards planning, exception rule of management, slide-rules, instruction cards, and piecework pay systems to control and motivate employees. Organisations described as machine-like, concerned with continuous processing and mass production. Top down approach to planning, monitoring and controlling work.

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Scientific Management Theory

Frederick Taylor (18561915)
Published Principles of Scientific Management (1911)

The theory of scientific management Using scientific methods to define the one best way for a job to be done: Putting the right person on the job with the correct tools and equipment. Having a standardized method of doing the job. Providing an economic incentive to the worker.

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Scientific Management Theory (SMT)

At the time Taylor felt that the success of these principles required a mental revolution on the part of management and worker. Rather that focus on profit both management and labour should focus on increasing production. SMT is based on production time-line studies finding the quickest and best method to perform each component of a task. In this way the amount of work that an employee was able to perform with the amount of materials and equipment available was established. Employers are encouraged to pay the more productive workers at a higher rate differential rate system
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Taylor Taylors 4 Ps of Management

1. Develop a science for each element of an individuals work, which will replace the old rule-of-thumb method. 2. Scientifically select and then train, teach, and develop the worker. 3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 4. Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers.
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Classical Management Perspective

Other Scientific Management Pioneers
Frank and Lillian Gilbreth Frank reduced the number of movements in bricklaying, resulting in increased output of 200%. Both developed techniques and strategies for eliminating inefficiency. Lillian made substantive contributions to the fields of industrial psychology and personnel management. Focused on increasing worker productivity through the reduction of wasted motion. Developed the micro chronometer to time worker motions and optimize work performance

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Frank and Lillian Gilbreth

Refined Taylors work and made many improvements to the methodologies of time and motion studies.
Time and motion studies
Breaking up each job action into its components. Finding better ways to perform the action. Reorganizing each job action to be more efficient.

Also studied worker-related fatigue problems workercaused by lighting, heating, and the design of tools and machines.
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Classical Management Perspective

- Frank and Lillian Gilbreth (contd) Felt that the aim of Scientific Management was to help workers reach their full potential as human beings Focused on fatigue and motion studies in order to promote the workers welfare Every motion that was eliminated helped reduce fatigue using movie cameras tried to ascertain the most economical motions for each task result: upgrade performance and reduce fatigue Argued the motion studies would raise worker morale due physical benefits and managements concern for worker

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Classical Management Perspective

Other Scientific Management Pioneers
Henry Gantt Was an early associate of Fredrick Taylor. Colleague of Taylor, later a consulting industrial engineer, became skeptic of SMTs differential rate system Developed other techniques, including the Gantt chart, to improve working efficiency through planning/scheduling. Felt that the differential rate system had too little motivational impact. Moved away from authoritarian management

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Classical Management Perspective

Each workers progress was recorded in a bar chart and rated publicly Developed the Gantt chart for production scheduling The Gantt chart became the basis for the Critical Path Method (CPM) developed by Du Pont and Program Evaluation and Review Technique (PERT) developed by the US Navy CPM and PERT are typically used to assist in planning, managing and controlling complex organizations

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Classical Management Perspective

He suggested the following: Assigning a number of tasks to each worker and rewarding them if they completed their daily tasks. In addition the supervisor would earn a bonus for each worker that achieved his daily target He felt that this would encourage supervisors to train workers to do a better job Harrington Emerson Advocated job specialization in both managerial and operating jobs.

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Scientific Management (contd) (cont

How Do Todays Managers Use Scientific Today Management?
 Use time and motion studies to increase productivity  Hire the best qualified employees  Design incentive systems based on output

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Limitations of Scientific Theory

SMT led to dramatic increases in production and higher pay for some. Trade unions opposed SMT they felt that working efficiently would exhaust all the work available and lead to retrenchments Critics of SMT felt that it put workers under to perform in unrealistic time expectations this exploitation led to more workers joining trade unions This led to decades of distrust between labour and management ( the relationship issue)

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Historical Management Perspective: The Behavioral Viewpoint

Behavioral Viewpoint:
emphasized the importance of understanding human behavior and motivating employees toward achievementdeveloped over three phases: early behaviorism, the human relations movement, & behavioral science

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Behavioral Management Perspective Behavioral School of Management

An organization was viewed as a social system of people-to-people and people-towork networks in which employees have both social needs and the desire to make meaningful contributions toward the accomplishment of organizational goals.

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Behavioral Management Perspective

Behavioral Management
Emphasized individual attitudes and behaviors, and group processes. Recognized the importance of behavioral processes in the workplace.

Hugo Munsterberg (18631916)

A German psychologist, considered the father of industrial psychology, wrote Psychology and Industrial Efficiency, a pioneering work in the practice of applying psychological concepts to industrial settings.

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Behavioral Management Perspective

Mary Parker Follett (18681933) - Recognized the importance of the role of human behavior in
the workplace. - Focused on how organizations cope with conflict and the importance of sharing goals. - Emphasized the need to discover and enlist individual and group motivation. - The first principle for individual and group success is the capacity for organized thinking

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The Early Behaviorists: Munsterberg Hugo Munsterberg & The First Application of Psychology to Industry 1. Study jobs and determine which Munsterberg felt psychologists could 2. contribute to industry in three ways:
people are best suited to specific jobs Identify the psychological conditions under which employees did their best work Devise management strategies to influence employees to follow the managements interests

3.

Industrial Psychology

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The Early Behaviorists: Follett (cont d) Mary Parker Follett & Power Sharing Among Employees & Managers Follett thought organizations should become more democratic, with managers and employees working cooperatively
Self-managed teams, worker empowerment
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1. Organizations should be operated as communities with managers and subordinates working together in harmony 2. Conflicts should be resolved by having the managers and workers talk over differences and find solutions that would satisfy both parties: integration 3. The work process should be under the control of workers with relevant knowledge rather than of managers who should act as facilitators

The Early Behaviorists: Elton Mayo & the Supposed Hawthorne Effect
Elton Mayo and his colleagues conducted studies at Western Electrics Hawthorne Plant and began with an investigation to see if different lighting affected workers productivity
1. In later experiments, variables such as wage levels, rest periods and length of the work day were varied 2. Worker performance seemed to increase over time leading Mayo and his colleagues to hypothesize the Hawthorne Effect 3. That employees worked harder if they received added attention, if they thought managers cared about their welfare and that supervisors paid attention to them 4. They succeeded in drawing attention to the social man and how managers using good human relations could improve worker productivity

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The Early Behaviorists: Elton Mayo & the Supposed Hawthorne Effect
5. Emphasises social relations and psychological needs at work (Mayo, Elton Mayo and his 1945); colleagues conducted 6. Depends on collaboration, co-operation studies at Western and motivation of employees; Electrics Hawthorne 7. Established relationships between job satisfaction, team work and the output Plant and began with an or the quality of work done.

investigation to see if different lighting affected workers productivity

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Behavioral Management Perspective (cont d) The Hawthorne Studies

Conducted by Elton Mayo and associates at Western Electric (19271935) Illumination studychanges in workplace lighting affected both the control group and the experimental group of production employees. Group study the effects of a piecework incentive plan on production workers. Workers established informal levels of acceptable individual output. Over-producing workers were labeled rate busters and underproducing workers were considered chiselers. Interview program Confirmed the importance of human behavior in the workplace.
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The Hawthorne Studies

A series of productivity experiments conducted at Western Electric from 1927 to 1932. Experimental findings
Productivity unexpectedly increased under imposed adverse working conditions. The effect of incentive plans was less than expected.

Research conclusion
Social norms, group standards and attitudes more strongly influence individual output and work behavior than do monetary incentives.
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The Hawthorne Studies Hawthorne experiments

a Western Electric factory, late 1920s experiment to find optimal level of lighting work groups of 6, in separate rooms: experimental group & control group
 no change in lighting for control group

findings:
 increasing brightness raises productivity  reducing brightness raises productivity  members of the control group also increased productivity outcome of first experiments: puzzled engineers next round of studies: try to understand whats going on in these groups  change work schedules: length & timing of breaks  production kept going up, even when back to the original (no rest break) schedule
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The Hawthorne Studies (contd) Hawthorne experiments

further investigation showed that  work teams regulated the pace of work of their members
 the group raised its productivity  because it felt involved in the project, and listened to  because the experimental conditions presented it with a challenge

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The Hawthorne Studies (contd)

lessons  for managers, the importance of  teams, not just individuals  workers arent machines, they make choices, and their choices are affected by how others treat them  expert-specified tasks still have a lot of room for improvement (slack), and workers often know where that slack is  these findings contributed to the development of the human relations approach to management  for researchers  people participating in an experiment are likely to behave differently than they do at other times (Hawthorne effects)

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Mayo found that within the formal organizations there were informal organizations. Within these informal organizations, there were:
Norms: The way we do things around here. Grapevines: The way information traveled through the organization Informal leaders Cliques Informal norms: No squealing! No rate busting! Be a regular guy! Dont make me look bad!

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Behavioral Management Perspective Today Contributions

Provided important insights into motivation, group dynamics, and other interpersonal processes. Focused managerial attention on these critical processes. Challenged the view that employees are tools and furthered the belief that employees are valuable resources.

Limitations
Complexity of individuals makes behavior difficult to predict. Many concepts not put to use because managers are reluctant to adopt them. Contemporary research findings are not often communicated to practicing managers in an understandable form.

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The Human Relations Movement

The Basic Premises of the Human Relations Movement
people respond to their social environment motivation depends more on social needs than on economic needs satisfied employees work harder then unsatisfied ones

This perspective represented a fundamental shift away from the philosophy and value of scientific management and classical organizational theory.

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The Human Relations Model

Worker Satisfaction

leads to . . .
A management model that views the employee as socially motivated and operates from the assumption that a social need-satisfied worker is a productive worker.

Enhanced Worker Performance

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Individual Needs and Motives Supervisor Social Context Task

The Human Relations View of Management

Individual Responses
Source: Van Fleet, David D., Contemporary Management, Second Edition. Copyright 1991 by Houghton Mifflin Company. Used with permission.

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Behavioral Management Perspective (cont d) Human Relations Movement

Grew out of the Hawthorne studies. Proposed that workers respond primarily to the social context of work, including social conditioning, group norms, and interpersonal dynamics. Assumed that the managers concern for workers would lead to increased worker satisfaction and improved worker performance.

Abraham Maslow (1908-1970)

Advanced a theory that employees are motivated by a hierarchy of needs that they seek to satisfy.

Douglas McGregor (1906-1964)

Proposed Theory X and Theory Y concepts of managerial beliefs about people and work.
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The Human Relations Movement: Pioneered by Maslow & McGregor Human Relations Movement: proposed that better human
relations could increase worker productivity

Abraham Maslow & the Hierarchy of Needs One of the earliest to study motivation, Maslow proposed his hierarchy of human needs in 1943.

1. What motivates you? Food, Security, Love, Recognition, Selffulfillment? 2. Probably all of these, though some more than others 3. Maslow proposed that the needs are physiological, safety, social, esteem, and self-actualization.

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Maslow s hierarchy of human needs.

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Abraham Maslows Hierarchy

General Examples Self-fulfillment Status Friendship Stability Shelter

Organizational Examples

Selfactualization Esteem Belonging Safety Physiological

Based on needs satisfaction

Challenging Job Job Title Friends Retirement Plan Wages

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The Human Relations Movement: Douglas McGregor (1906-1964) (1906Articulated basic principles of human relations theory The Human Side of Enterprise (1960, 1985) To understand human behavior, one must discover the theoretical assumptions upon which behavior is based Especially interested in the behavior of managers toward workers Every managerial act rests on assumptions, generalizations, and hypotheses--that is to say, on theory . . . Theory and practice are inseparable. Two Objectives: - Predict and control behavior - Tap Unrealized potential Theory X - Classical Theory Theory Y - Human Relations Theory FOCUS: Managers assumptions about HUMAN NATURE

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Theory X and Theory Y

Douglas McGregor proposed the two different sets of assumptions about workers.
Theory X assumes the average worker is lazy, dislikes work and will do as little as possible.
Managers must closely supervise and control through reward and punishment.

Theory Y assumes workers are not lazy, want to do a good job and the job itself will determine if the worker likes the work.
Managers should allow workers greater latitude, and create an organization to stimulate the workers.

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Theory X and Theory Y (cont d) McGregors The Human Side of Enterprise

Separated managers into two beliefs / styles
1.Theory X Managers 1.Theory
Believe employees generally dislike work, lack ambition, act irresponsibly, resist change and prefer to follow. Use classical directive command and control style

2.Theory Y Managers 2.Theory

Believe employees are willing to work, capable of self control and self direction, responsible and creative Use behavioral participative style

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Theory X and Theory Y

Theory X Assumptions 1. People do not like work and try to avoid it. 2. People do not like work, so managers have to control, direct, coerce, and threaten employees to get them to work toward organizational goals. 3. People prefer to be directed, to avoid responsibility, and to want security; they have little ambition. Theory Y Assumptions 1. People do not naturally dislike work; work is a natural part of their lives. 2. People are internally motivated to reach objectives to which they are committed. 3. People are committed to goals to the degree that they receive personal rewards when they reach their objectives. 4. People seek both seek responsibility and accept responsibility under favorable conditions. 5. People have the capacity to be innovative in solving organizational problems. 6. People are bright, but under most organizational conditions their potentials are underutilized.
Source: Douglas McGregor, The Human Side of Enterprise, Copyright 1960 by McGraw-Hill. Reprinted by permission of The McGraw-Hill Companies.

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The Human Relations Movement: Douglas McGregor & Theory X versus Theory Y

Theory X
Pessimistic negative view towards workers Workers are irresponsible Workers are resistant to change Workers lack ambition, hate to work Workers would rather be led than lead

Theory Y
Optimistic positive view of workers: human relations proponents view Workers are capable of accepting responsibility Workers are capable of selfdirection Workers are capable of selfcontrol Workers are capable of being imaginative and creative

Source: Douglas McGregor, The Human Side of Enterprise, Copyright 1960 by McGraw-Hill. Reprinted by permission of The McGraw-Hill Companies.

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Implications of Theory X and Theory Y

Managers create self-fulfilling prophecies (predictions) Theory X managers create situations where workers become dependent and reluctant. Theory Y managers create situations where workers respond with initiative and high performance.

Central to notions of empowerment and selfmanagement.

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Curing Theory X People

    

Hourly Wages Counseling Punishment Routine Tasks/Jobs Training

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Tips for Dealing with Theory X People

   

Carrot & Stick Techniques Close Supervision Punishment Making Connections

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Contributions and Limitations of the Behavioral Management Contributions

Raised awareness of the need to design open, flexible organizations Introduced the growth needs model of the employee

Limitations
Lacks a language for communicating its ideas to managers Havent gotten top managements attention and respect Persistence in the belief that there is one best way to manage

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The Behavioral Science Approach

Behavioral Science relies on
scientific research for developing theories about human behavior that can be used to provide practical tools for managers. Combination of classical organization thought and human relations approach + propositions drawn from psychology, sociology, political science, and economics Its focus: Work behavior in formal organizations.

Psychology, sociology, anthropology, and economics

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The Behavioral Science Influence

Behavioral science movement A movement that stressed the need to conduct a systematic and controlled field and laboratory studies of workers and their motivation, attitudes, and behavior. Introduced the growth model of the employee. The movement eventually gave rise to organizational behavior as a discipline.

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Behavioral Sciences Approach

Develops theories about human behavior based on scientific methods & study. Sub-field of the Humanistic Perspective. Applies social science in an organizational context. In understanding employees draws from economics, psychology, sociology.

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Behavioral Science Principles

1. 2. 3. 4. 5. Shared participation in problem solving is basis for growth, development, and contribution Mutual trust and respect underpins productive human relationships Open communication supports mutual understanding Conflict management by direct problem-solving confrontation promotes personal health Responsibility for ones own actions stimulates initiative

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The Problem with the Behavioral Viewpoint:

-Vague (unclear) & simplistic, satisfying does not guarantee higher morale and productivity

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Quantitative Management Perspective

Quantitative School
Emphasized mathematical approaches to management problems

Quantitative Management
Emerged during World War II to help the Allied forces manage logistical problems. Focuses on decision making, economic effectiveness, mathematical models, and the use of computers to solve quantitative problems.

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Quantitative Management Perspective (cont d) Management Science

Focuses on the development of representative mathematical models to assist with decisions.

Operations Management
Practical application of management science to efficiently manage the production and distribution of products and services.

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Quantitative Approach to Management

Quantitative Approach
 Also called operations research or management science  Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems  Focuses on improving managerial decision making by applying:


Statistics, optimization models, information models, and computer simulations

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Quantitative Management Perspective Today Contributions

Developed sophisticated quantitative techniques to assist in decision making. Application of models has increased our awareness and understanding of complex processes and situations. Has been useful in the planning and controlling processes.

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Quantitative Management Perspective Today (cont d) Limitations

Quantitative management cannot fully explain or predict the behavior of people in organizations. Mathematical sophistication may come at the expense of other managerial skills. Quantitative models may require unrealistic or unfounded assumptions, limiting their general applicability.

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The Systems Approach

Systems System Defined Approach

The theory that an organization comprises various parts that must perform tasks  A set of interrelated andnecessary for the survival and proper a interdependent parts arranged in manner that produces afunctioning of the system unified whole.

Basic Types of Systems  Closed systems Are not influenced by and do not interact with their environment (all system input and output is internal). A system that does little or no interacting with its environment and receives little feedback  Open systems  Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments. A system that operates in continual interaction with its environment


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The Systems Approach

Based on the idea that organisations can be visualised as systems System: A set of interrelated parts that operate as a whole in pursuit of common goals.

Developed through the sciences of Biology and Physical Science

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Resources Human Materials Equipment Finance Information

Abilities Planning Organising Leading Control Technology

Outcomes Products Services Profit & Losses Employee Growth & Satisfaction

Inputs

Transformation Processes

Outputs

Feedback from Environment

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The Systems Perspective of Organizations

Inputs from the environment: material inputs, human inputs, financial inputs, and information inputs Transformation process: technology, operating systems, administrative systems, and control systems Outputs into the environment: products/services, profits/losses, employee behaviors, and information outputs

Feedback

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The Systems Perspective

Synergy
Subsystems are more successful working together in a cooperative and coordinated fashion than working alone. The whole system (subsystems working together as one system) is more productive and efficient than the sum of its parts.

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The Systems Perspective (cont d) Entropy a sense of adaptability

A normal process in which an organizational system declines due to failing to adjust to change in its environment Entropy can be avoided and the organization re-energized through organizational change and renewal.

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Implications of the Systems Approach

Coordination of the organizations parts is organization essential for proper functioning of the entire organization. Decisions and actions taken in one area of the organization will have an effect in other areas of the organization. Organizations are not self-contained and, selftherefore, must adapt to changes in their external environment.

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Schools as Social Systems

A bounded set of elements (subsystems) and activities that interact and constitute a single social entity (Hoy & Miskel, 1991).

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Basic Assumptions for Social Systems Model (Hoy and Miskel) 1. Social systems are comprised of interdependent parts, characteristics, and activities that contribute to and receive from the whole. When one part is affected, a ripple goes through the social system. Example: Decreased funding from the ministry; increased class size. Social systems are goal-oriented, and indeed they have multiple goals. Example: Student learning is our main goal, but we have many other goals discipline, balancing the budget, etc. Social systems are peopled. Different roles in the school: principal, teacher, students, community, etc.

2.

3.

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Basic Assumptions for Social Systems Model (Hoy and Miskel) contd
4. Social systems are structured modern bureaucracy 5. Social systems are normative. People are expected to act in a certain way. Example: How should new teachers act? 6. Social systems are sanction bearing: Norms are reinforced with reward and punishment. What happens when a teacher or a student is late to school? 7. Social systems are open systems: Schools are impacted by values of community, by politics, and by history.
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Key Elements of the School as a Social System Hoy & Miskel (2004)

Structure: Roles are expectations of positions that are

arranged in a hierarchy.

Individual: The individual is a key unit in any social system;

regardless of position, people bring with them individual needs, beliefs, and a cognitive understanding of the job.

Culture: Represents the unwritten feeling part of the

organization: its shared norms and values

Politics: Informal power relations that develop

spontaneously.

Core: The teaching-learning process is the technical core of

schools.

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Key Elements of the School as a Social System Hoy & Miskel (2004) contd Environment: Everything outside the organization; source
of inputs

Outputs: The products of the organizations, e.g. educated

students

Feedback: Communication that monitors behavior, e.g. state

test scores, community feedback

Effectiveness:
outcomes

Congruence between expected and actual

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Environment
Social, legal, economic, political, demographic, and technological trends Constituencies and stakeholders: parents, taxpayers, unions, regulatory agencies, colleges and universities, state legislatures, accrediting agencies, and educational associations

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A Social Systems View of the Individual in a School Organization

Community

School Dept. or Grade Level

Work Group

Individual
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The Contingency Approach

Contingency Approach Defined A viewpoint that argues that appropriate managerial action depends on the circumstances of the situation. In other words ..

there is no single right way to manage

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The Contingency Approach

Contingency View Appropriate managerial action depends on situation

Situation A

Universal Management Principals

Situation C

Situation B
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The Contingency Approach

Contingency Approach Defined
 Also sometimes called the situational approach. It depends upon what in what way  There is no one universally applicable set of management principles (rules) by which to manage organizations.  Organizations are individually different, face different situations (contingency variables), and require different ways of managing.  To identify which technique will, in particular situation, under particular circumstances and at a particular time best contribute to the attainment of goals. For Examples: Unskilled workers work simplification Skilled workers job enrichment might be effective

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The Contingency Perspective

Universal Perspectives
Include the classical, behavioral, and quantitative approaches. An attempt to identify the one best way to manage organizations.

The Contingency Perspective

Suggests that each organization is unique. The appropriate managerial behavior for managing an organization depends (is contingent) on the current situation in the organization. Approaches depend on the variables of the situations

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The Contingency Perspective

Draws on all past theories in attempting to analyze and solve problems Is integrative Summarized as an it all depends device Tells managers to look to their experiences and the past and to consider many options before choosing Encourages managers to stay flexible

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The Contingency Perspective (cont d)

An Integrative Framework
Is a complementary way of thinking about theories of management. Involves the recognition of current system and subsystem interdependencies, environmental influences, and the situational nature of management.

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The Contingency Perspective (cont d)

Problem or Situation

Important Contingencies

Solution or Action A

Solution or Action B

Solution or Action C

Source: Van Fleet, David D., Contemporary Management, Second Edition. Copyright 1991 by Houghton Mifflin Company. Used with permission. 2115

Popular Contingency Variables

Organization size
As size increases, so do the problems of coordination.

Routineness of task technology

Routine technologies require organizational structures, leadership styles, and control systems that differ from those required by customized or nonroutine technologies.

Environmental uncertainty
What works best in a stable and predictable environment may be totally inappropriate in a rapidly changing and unpredictable environment.

Individual differences
Individuals differ in terms of their desire for growth, autonomy, tolerance of ambiguity, and expectations.
2007 Prentice Hall, Inc. All rights reserved. 2116

Contemporary Management Issues and Challenges (cont d) Contemporary Applied Perspectives

William Ouchis Theory Z, Peters and Watermans In Search of Excellence Popular authors: Senge, Covey, Porter, Kotter, and Hamel

Contemporary Management Challenges

Acute shortages of labor in high-technology job sectors Management of an increasingly diverse workforce Rapid and constant environmental and technological change Complex array of new ways of structuring organizations Increasing globalization of markets Renewed importance of ethics and social responsibility Quality as the basis for competition Shift to a predominately service-based economy
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Integrating Perspectives for Managers

Systems Perspective
A system is an interrelated set of elements functioning as a whole.

Open system
An organizational system that interacts with its environment.

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Integrating Perspectives for Managers (cont d)

Closed system
An organizational system that does not interact with its environment.

Subsystems
A system within another system. Their importance is due to their interdependence on each other within the organization.

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Contemporary Management Issues and Challenges

Acute labor shortages in high-technology job sectors and an oversupply of less skilled labor An increasingly diverse and globalized workforce The need to create challenging, motivating, and flexible work environments The effects of information technology on how people work The complex array of new ways of structuring organizations

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Contemporary Management Issues and Challenges (cont d)

Increasing globalization of product and service markets The renewed importance of ethics and social responsibility The use of quality as the basis for competition The shift to a predominately service-based economy

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Current Trends and Issues (contd) (cont

Quality Management
 A philosophy of management driven by continual improvement in the quality of work processes and responding to customer needs and expectations  Inspired by the total quality management (TQM) ideas of Deming and Juran  Quality is not directly related to cost  Poor quality results in lower productivity

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What is Quality Management? Intense focus on the customer. Concern for continual improvement Process-focused. Improvement in the quality of everything. Accurate measurement. Empowerment of employees.

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Comparing Theories
Classical Behavioral Management Science Systems Theory Sociotechnical Theory Contingency Theory
Attempts to develop the best way to manage in all organizations by focusing on the jobs and structure of the firm.

Attempts to develop a single best way to manage in all organizations by focusing on people and making them productive.

Recommends using math (computers) to aid in problem solving and decision making. Manages by focusing on the organization as a whole and the interrelationship of its departments, rather than on individual parts. Recommends focusing on the integration of people and technology.

Recommends using the theory or the combination of theories that best meets the given situation.

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Discussion Discussion
Break into four groups: Taylor, Fayol, Gullick and Weber Refer to the power point notes you have been given to examine a classical organizational theorists principles Consider what you discussed about each principle Analyze how the theorists beliefs exist, dont exist, or are modified within todays educational world Please have someone take notes on your work Lead a discussion of how your theorists ideas relate to the current system of educational management.

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