CLASSICAL MANAGEMENT
SCIENTIFIC APPROACHES
http://www.youtube.com/watch?v=vsSjsnny8JQ
Requirements for a “Profession”
Formal education requirement for entry
System of accreditation or licensing
Clearly defined clients
Profession-wide code of ethics
“Classical Approach” - Frederick
Taylor
Four Guiding Principles:
Proper working implements, conditions & rules of
motion: develop a science for every job
Select right worker with right abilities
Train worker & give incentive to co-operate: piece-rate
pay
Give necessary support (E.G., REST PERIODS).
Francis & Lillian Gilbreith
Time & Motion Studies: reduce a job to its physical
motions i.e. bricklayers
Soldiering: working below capability
“Cheaper by the Dozen”
Concept still being used today
The Original “Efficiency Experts”
Conclusions of Scientific
Approach
A use results-based compensation
B design jobs to maximize a person’s performance
potential
C carefully select people
D train people to perform to the best of their abilities
E provide workers with supervisory support
HENRY GANTT
Believed in offering bonuses for work performance
Introduced the GANTT chart
The GANTT chart is a planning, monitoring, and control
mechanism which is quite simple in concept but a
powerful tool
Basically more complex projects are systematically
broken down and plotted across time
ADMINISTRATIVE
“Make every employee an Owner”
Henry Fayol - Rules & Duties Of Mgmt.
foresight: complete a plan
organization: provide resources needed to implement
plan
command: get the best out of people
coordination: ensure subunits fit together
control: verify progress, take action
Henry Fayol - continued
Fayol’s Mgmt. Principles:
Scalar chain: clear chain of
command
Unity of command: receive
directions from one person
Unity of direction: one person in
charge of all related activities
Mary Parker Follett
Concerned with administration
Proposed:
1) Employee-ownership
2) Proposed a systems theory
point of view
3) Believed in corporate social
responsibility
Profit Sharing
Gain Sharing
Bring in improvements
Greed/Ethics
Unions
CLASSICAL APPROACH;
BUREAUCRATIC ORGANIZATION
Max Weber
Weber’s View of Bureaucracy:
clear division of labour
Lots of rules – Military based
Jobs filled with experts
Hierarchy of authority
careers based on merit
WEBERS IDEAL BUREAUCRACY
Advantages
Efficient
Fair
Consistent
Predictable
Rational
WEBERS IDEAL BUREAUCRACY
Disadvantages
Too much Red Tape
slow to react to change
Rigid in shifting customer
needs & wants
Not spontaneous
BEHAVIOURAL MANAGEMENT
APPROACH
Theory: Hawthorne
Turning point in Management studies focusing on social
& human concerns vs technical
Started Human Relations movement where productivity
improved with good people skills
Evolved into O.B.
Hawthorne Effect
Lessons from Hawthorne Studies
A looked at people’s feelings
B if singled out for special attention people will perform as
expected
C set stage for study of OB (organizational behaviour: study
of individuals and groups in an organization
ABRAHAM MASLOW HIERARCHY OF
NEEDS:
Needs
Five Levels
1) Self-Actualization
2) Esteem
3) Social
4) Safety
5) Physiological
ABRAHAM MASLOW HIERARCHY OF
NEEDS:
Lessons from Maslow
Managers who satisfy human needs will achieve
productivity
DEFICIT PRINCIPLE : Satisfied needs are not motivators
PROGRESSION PRINCIPLE: Higher order needs are
activated only when lower order needs have been
satisfied
McGregor : Theory X & Y
Theory X: Worker
dislike job, lack
ambition, resist change,
are followers &
irresponsible
Theory Y: Employee
participation,
involvement,
empowerment, selfmanagement.
McGregor : Theory X & Y
Lessons from Theory X and Theory Y
A subordinates can act in ways that confirm a manager’s
expectation
B Theory X Mgrs: overly directive, narrow and controloriented
C Theory X Mgrs: give subordinates more
participation, freedom and responsibility in their
work
McGregor : Theory X & Y
Lessons from Theory Y assume workers are:
Willing to work
Willing to accept responsibility
Capable of self-direction
Capable of self inner control
Capable of imagination
QUANTITATIVE MANAGEMENT
Foundation: Mathematical techniques can be used to
improve managerial decisions
3 Characteristics:
1) focus on decision making where mgmt must take action
2) economic decision criteria ( costs, revenues, ROI)
3) involve mathematical models that follow sophisticated
rules & formulas ; need computer models to run
USE OF REGRESSION ANALYSIS:
POSSIBLE FACTORS:
1) SALES EXPERTISE;
2) EXISTING COMPETITION
3) CLIMATE/ENVIRONMENT
4) STORE LOCATION
5) LOCALE (URBAN SUBBURBAN, RURAL)
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