EVOLUTION OF MANAGEMENT THEORIES
(CLASSICAL ERA) (MODULE 2)
SCIENTIFIC MANAGEMENT
The Importance of Management Theories
Management
theories
help
organizations to focus, communicate, and
evolve. Using management theory in the
workplace allows leadership to focus on their
main goals.
List of Scientific Management Pioneers
Fredrick Taylor - 4 Principles of Scientific
Management
Henry Gantt - Gantt developed four Individual
and Notable Contributions to Management
Frank & Lilian Gilbreth - The Management
Theory of Frank and Lilian Gilbreth
Charles Bedaux - Bedaux unit or "B"
Industrial management
is a branch of engineering which
facilitates creation of management system and
integrates the diverse engineering processes.
Industrial Management deals with industrial
design, construction, management, and
application of science and engineering principles
to improve the entire industrial infrastructure
and industrial processes.
Industrial Management focuses on the
management of industrial processes. Industrial
Managers can be said to be responsible for
proper and the most efficient interaction of 4Ms:
Man, Material, Machine and Method (which
every organization needs).
Fredrick Taylor
•
Father of Scientific Management
•
Scientific Management also known as
Taylorism in which it was first advocated
by F. Taylor.
•
Taylorism was first used at United States
Steel Manufacturer (Bethlehem Steel)
•
Frederick Taylor himself initially called
his method “shop management”.
Robert Owens - Five Visionary Approaches
Adam Smith - DIVISON OF LABOR
Charles Babbage - Babbage and operations
management
History of Scientific Management
The Midvale Steel Company, "one of
America's great armor plate making plants," was
the birthplace of scientific management. In 1877,
Frederick W. Taylor started as a clerk in Midvale,
but advanced to foreman in 1880.
As foreman, Taylor was "constantly
impressed by the failure of his [team members]
to produce more than about one-third of [what
he deemed] a good day's work". Taylor
determined to discover, by scientific methods,
how long it should take men to perform each
given piece of work; and it was in the fall of 1882
that he started to put the first features of
scientific management into operation.
2 Techniques that He Introduced
Time Study
A methodical way to observe and
measure your employees’ work rate using a time
device.
Motion Study
Science of eliminating wastefulness
resulting from ill-directed and inefficient motion.
How does he come up with the Idea?
While working as an employee in Steel
Manufacturer, he observes that the managers
barely knew anything about how specific jobs
were performed, so he was inspired to create his
own theory. F. Taylor conduct an experiment
which start on how to improve shoveling
efficiency by designing new shovels that were
optimize for different materials. In this
experiment he observed that the amount of pig
iron the workers were able to transport almost
tripled.
1. Select method based on science, not
“rule of thumb”
2. Assign workers job based on their
Aptitudes
3. Monitor worker performance
4. Properly divide the workload between
managers and workers
Select method based on science, not “rule of
thumb”
There is only one way to maximize
efficiency by using scientific method to
determine the “one best way” to do the job.
Assign workers job based on their Aptitudes
Instead of randomly assigning workers to
any open job, assess which one are most capable
of each job and train them to work at peak
efficiency.
Monitor worker performance
between
Managers should plan and train, while
workers should implement what they have been
trained to do
Henry Gantt
•
He was born in Calvert
Maryland, United States.
Henry Gantt graduated with a Bachelor’s
degree from McDonogh School, United
States in 1878.
Then he went on to the Stevens Institute
of Technology (New Jersey, United
States) to obtain his Master’s degree in
Engineering (Mechanical Engineering).
After obtaining this degree Henry Gantt
worked as a teacher or professor until
1887.
How does he come up with the Idea?
From 1887 Henry Gantt chose a new
challenge and joined Midvale Steel Company in
Philadelphia, United States. His manager
Frederick Taylor involved Gantt in a number of
large infrastructure projects.
Henry Gantt worked for Midvale Steel
Company until 1893.
Because of his belief that worker and
employee morale was a key factor in effective
management, Gantt became an early
spokesperson for the Human Relations School of
Management as well as the Social Responsibility
of Business.
Gantt developed four Individual and Notable
Contributions to Management
Task and Bonus System
Assess your worker efficiency and
provide additional instruction when necessary to
guarantee they are working productively.
workload
•
•
4 Principles of Scientific Management
Properly divide the
managers and workers
•
County,
Perspective of the Worker
Gantt realized that his system offered
little incentive to do more than just meet the
standard. He subsequently modified it to pay
according to time allowed, plus a percentage of
that time if the task were completed in that time
or less.
Gantt Chart
A Gantt chart is a commonly used
graphical depiction of a project schedule. It's a
type of bar chart showing the start and finish
dates of a project's elements such as resources,
planning, and dependencies.
Social Responsibility of Business
●
Motions to lay a brick reduced to 4 from
18
Lillian Evelyn Moller Gilbreth
●
(born May 24, 1878, Oakland, California,
U.S.—died January 2, 1972, Phoenix,
Arizona),
●
Occupation:
Management
●
-Earned undergraduates and graduate
degrees from the University of
California-Berkly.
●
Enrolled un a Ph. D. program at the
University of California.
●
Mother of modern management and
industrial engineering
Ergonomics
Expert,
Consultant, Professor
BRICKLAYING
He believed passionately that businesses
and companies had a social responsibility
towards the people they employed and the local
community.
Frank & Lilian Gilbreth
Frank Bunker Gilbreth Sr.
●
●
(born July 7, 1868, Fairfield, Maine,
U.S.A—died June 14, 1924, Montclair,
N.J.)
Occupation: Builder, Industrial Engineer,
Management Consultant
●
Contributor to scientific management
and pioneer of motion study
●
Refuse a place in MIT to work as a
laborer
●
His first job apprentice brick layer
●
He was able to lay 2700 bricks per day
compared to others who were laying an
average of 1000 bricks per day.
THE MANAGEMENT THEORY OF FRANK AND
LILLIAN GILBRETH
REDUCE THE NUMBER OF MOTIONS IN A TASK
TO INCREASE EFFICIENCY
FOCUS ON THE INCREMENTAL STUDY OF
MOTIONS AND TIME TO UNDERSTAND AN
ENTIRE TASK.
THE GOAL OF INCREASED EFFICIENCY IS BOTH
INCREASED PROFIT AND GREATER WORK
SATISFACTION.
THE GILBRETHS USED NEW TECHNOLOGIES
SUCH AS FILM TO BREAK MOTIONS DOWN INTO
INCREMENTAL PARTS, WHICH THEY CALLED
“THERBLIGS”.
THERBLIGS ARE CLASSIFIED INTO EFFECTIVE
AND
INEFFECTIVE:
Charles Bedaux
•
(born Oct. 26, 1887, Charonton, near
Paris, France—died Feb. 18, 1944,
Miami, Fla., U.S.), French-born American
efficiency engineer who developed the
Bedaux plan for measuring and
compensating industrial labour.
Bedaux unit or "B"
Bedaux claimed to have discovered a
method by which he could calculate the exact
amount of rest required for any given task. By
combining work and rest in the correct
proportions,
Bedaux could formulate a common
measure for all human labor, which he called the
Bedaux unit or "B, " equal to the amount of work
that should be performed in one minute.
ROBERT OWEN
•
Robert Owen was born May 14, 1771,
Newtown, Wales—died November 17,
1858.
•
in 1790, he became the joint owner of a
textile factory in Manchester.
•
Owen bought a Mill in New Lanark in
1799.
•
From the start of a series of reforms led
to Owen being labelled variously as a
social reformer, a socialist, an
educational reformer, and a utopian (by
Marx and Engels!)
•
His reforms were to include taking no
children into the mill, creating the first
night school in the world, for his
workers, starting what became the basis
of the British Co-operative movement,
and founding the Grand National
Consolidated Trades Union in 1834.
•
He also tried in 1815 and failed to
introduce new legislation to improve
working conditions nationally.
Five Visionary Approaches
Humanistic Management
Owen recognised that, in his rapidly
mechanising industry, machines would never
attain a greater importance than the people who
worked them.
Abandoning Command and Control
Owen preferred to manage his workers,
rather than issue commands. And to help him, he
started selecting his managers on merit and
giving them training
Empowerment
●
A mathematician, philosopher, inventor
and mechanical engineer. Babbage is
known as the patron saint of operations
research and management science.
Charles Babbage is also known as a
father of computer.
●
In 1822 he invented difference machine
which was a mechanical calculator.
●
In 1833 he invented another device in
the calculator which is still a basic
element in the modern computers
Okay, so he would never have used this
modern buzzword, but he firmly believed in the
value of giving his managers real autonomy.
Change Management
Not only did Owen understand the value
of winning trust from his workers before trying to
impose change; he actively sought out influential
individuals among them to help build and
disseminate his case: what we call ‘change
champions
Babbage and operations management
Performance Monitoring
Every day, supervisors would assess the
work of their workers, and award a colour code
which would be displayed on a wooden block (his
‘silent monitor’) for all to see. Peer pressure and
pride are powerful motivators
Adam Smith
•
(Baptized June 5, 1723, Kirkcaldy, Fife,
Scotland—died July 17, 1790, Edinburgh)
•
Lifetime 67 years of age
•
The Father of Capitalism
•
Occupation:
Economist,
Philosopher, Professor
•
Wrote The Wealth of Nations (1776)
•
The general popularity today of job
specialization is undoubtedly due to
Adam Smith’s view about DIVISON OF
LABOR.
Writer,
Division of Labor
DIVISION OF LABOR – is the breakdown of jobs
into narrow, repetitive tasks.
•
Pin Industry
Charles Babbage (1792–1871)
Babbage's most successful book, "On the
Economy of Machinery and Manufacturers",
published in 1832, described the tools and
machinery used in English factories.
He showed that reducing the tasks of
manufacturing to their simplest activities
increases the numbers of people who can do
them and, thus, reduces the average wage which
needs to be paid.
Incentives of Scientific Management
Scientific management is a costly system
and a huge investment is required in
establishment
of
planning
dept.,
standardization, work study, training of workers.
Time Consuming
Criticisms of Scientific Management
Unemployment
Workers feel that management reduces
employment opportunities from them through
replacement of men by machines and by
increasing human productivity less workers are
needed to do work leading to chucking out from
their jobs.
Exploitation
Workers feel they are exploited as they
are not given due share in increasing profits
which is due to their increased productivity
Monotony
Due to excessive specialization the
workers are not able to take initiative on their
own.
Weakening of Trade Union
To everything is fixed & predetermined
by management. So it leaves no room for trade
unions to bargain as everything is standardized,
standard output, standard working conditions,
standard time etc.
Over speeding
the scientific management lays standard
output, time so they have to rush up and finish
the work in time.
Employer’s Viewpoint
Expensive
Scientific management requires mental
revision and complete reorganizing of
organization. A lot of time is required for work,
study, standardization & specialization. During
this overhauling of organization, the work
suffers.
Deterioration of Quality
Deteriorated quality means the state of
being worse or inferior in quality, value,
condition, or character.
BUREAUCRATIC AND ADMINISTRATIVE
MANAGEMENT (MODULE 2)
FAYOLISM - Principles are based on
personal experiences.
MAX WEBER
•
•
•
•
•
TAYLORISM - Are based on experiments
and observations.
(1864 - 1920) was born in Erfurt, Prussia
German sociologist, Philosopher
Scientific management theorist.
Bureaucracy, Bureaucratic Theory
INDUSTRIAL
CAPITALISM
IS
AN
ECONOMIC SYSTEM WHEREIN THE
INDUSTRY IS CONTROLLED BY PRIVATE
ORGANIZATIONS WITH THE GOAL OF
MAKING MONEY.
WHEN WEBER TRAVELED TO THE
UNITED STATES IN THE YEAR 1904, HE
WITNESSED CAPITALISM AS FULL OF
INNOVATION AND COMPETITION
•
THE ORIGIN OF THE THEORY OF
BUREAUCRACY.
•
QUALIFICATIONS AND COMPETENCE
ARE THE ONLY BASIS FOR HIRING AND
THE PROMOTION OF WORKERS.
JAMES D. MOONEY
Executive, Engineer
•
•
•
–
Corporate,
(FEBRUARY 10, 1861 -DECEMBER 22,
1921 (AGED 60)
ONE OF THE EARLY LEADERS IN
MANAGERIAL THEORY.
THREE PRIMARY PRINCIPLES THAT MAKE
COMPANIES
DISTINCTIVE
SOCIAL
ENTITIES.
PRIMARY PRINCIPLES THAT MAKE
COMPANIES
DISTINCTIVE
SOCIAL
ENTITIES.
COORDINATION
To Mooney, this is a fundamental
element in any organization’s functionality.
HIERARCHY
HENRI FAYOL
•
•
•
•
•
•
Coal mine Engineer, Director
(1841 – 1925) was born in Istanbul,
Turkey. He was a French coal-mine
engineer, director of mines and modern
management theoretician.
“father of modern management.”
‘École Nationale Superieure des Mines’
academy in Saint-Étienne.
Compagnie
de
Commentry
Fourchambeau
Decazeville
in
Commentry
In 1916 he published his first book,
Administration Industrielle et Generale
(General and Industrial Management)
wherein he introduced the term
“fayolism.”
WHAT ARE THE DIFFERENCES BETWEEN
FAYOLISM AND TAYLORISM?
Every organization needs this in order to
know who’s who, who’s above who, who’s below
who, and who one answers to.
FUNCTIONAL DIFFERENTIATION
In every organization, there has to be
different departments that have specializations
dedicated towards making an organization
thrive.
LUTHER GULICK
Luther Gulick is an American political
scientist who was a professional in public
administration. He drew inspiration for this
theory from Henri Fayol's principles.
Developed Departmentation and the
Principles of Homogeneity (4P’s)
Purpose, Process, Person, and Place
Luther Gulick believed organizations can
have more success managing projects if they
apply seven elements, represented by the
POSDCORB acronym.
POSDCORB
“Bro, chinita daw si official president”
1. Planning – Any manager worth his salt must
plan things out for the future of their company.
2. Organizing – To Gulick, organizing is the basic
element of any human endeavor involving more
than one person.
3. Staffing – Gulick emphasizes the need for
staffing, which is placing people in jobs where
they are to excel and where they can provide the
most for their company or organization.
4. Directing – According to Gulick, directing is
setting into motion whatever plans have been
made by the company; it is a continuous process.
5. Coordinating – Any manager must ensure that
the various parts of work are related. Gulick
stated that the best way coordination is fostered
is through a strict hierarchical system.
6. Reporting – According to Gulick, reporting is
keeping those to whom the executive is
responsible informed as to what is going on,
which thus includes keeping himself and his
subordinates informed through records,
research and inspection.
7. Budgeting – According to Gulick, budgeting,
with all that goes with budgeting in the form of
fiscal planning, accounting and control.
Budgeting holds the greatest influence over
general prosperity within an organization.
MARY PARKER FOLLET
Follet is also known as the “mother of
modern management.”
She believed that management was “the
art of getting things done through people.”
Mary Parker Follett published several
texts in reference to business administration and
organization management.
Her three best-known works are The
Speaker of The House of Representatives, The
New State, and Creative Experience.
FOLLET’S TRILOGY
THE
SPEAKER
OF
REPRESENTATIVES
THE
HOUSE
OF
Follett's analysis is deeply influenced by
a preoccupation with the British model of
Cabinet government, structural failures of the
checks and balances system, and centralization
of power in the hands of the Speaker.
THE NEW STATE
This book is wherein Follet described an
organic form of democracy based on
spontaneous organization along natural
neighbourhood lines.
CREATIVE EXPERIENCE
This expanded on the social and
psychological implications of her earlier work,
setting forth an idealistic interpretation of
individual responsibility and the creative
interaction of people and groups toward a
constructive synthesis of views and goals.
“Leadership is not defined by the exercise of
power but by the capacity to increase the sense
of power among those led.”
FOLLET HAS 4 PRINCIPLES
1. Direct contact between employees and
managers helps organizations avoid conflict and
misunderstandings. Holding regular meetings or
discussing assignments in person is a simple way
to practice this principle.
2. Early stages: Managers should learn and
master coordination straightaway. No employee
should feel less important than the next; each
has a significant role that complements others.
3.
Reciprocal relationship: Every worker,
regardless of their level in the hierarchy, is
responsible for pulling their weight and
integrating with the rest of the organization. No
one person should be trying less or more than
another – it’s a team effort.
4. Continuous process: Managers must maintain
coordination. Don’t just learn these principles
and forget about them; channel them in
everything you do.
ADMINISTRATIVE
MANAGEMENT
AND
BUREAUCRATIC
According
to
Edubirdie
(n.d.),
administrative
management
or
the
administrative management theory concentrates
on all the organization and management terms
of businesses.
According to Ojha (2022), administrative
management theory attempts to find a rational
way to design an organization as a whole.
3 PRINCIPAL IDEAS OF MANAGEMENT
UNITY OF COMMAND
this is the belief that management
should be consistent in directions given to their
workers.
ESPRIT DE CORPS
This refers to the cohesion of workers in
a given unit or department, to their commitment
to their individual goals and to their coworkers
even in the face of adversity, and to the pride
that one feels by being a member of the
organization.
JUSTICE WITHIN AN ORGANIZATION
An organization must decide issues fairly
and equitably.
Henri believed that segregating work in
the workforce amongst the workers will enhance
the quality of the product.
DISCIPLINE
It is the core value for any project or any
management. Good performance and sensible
interrelation make the management job easy
and comprehensive.
Employees’ good behaviour also helps
them smoothly build and progress in their
professional careers.
UNITY OF COMMAND
This means an employee should have
only one boss and follow his command.
If an employee has to follow more than
one boss, there begins a conflict of interest and
can create confusion.
UNITY OF DIRECTION
This means all the people working in a
company should have one goal and motive which
will make the work easier and achieve the set
goal easily.
SUBORDINATION OF INDIVIDUAL INTEREST
This indicates a company should work
unitedly towards the interest of a company
rather than personal interest.
Be subordinate to the purposes of an
organization. This refers to the whole chain of
command in a company.
REMUNERATION
This plays an important role
motivating the workers of a company.
in
FAYOL’S 14 PRINCIPLES OF MANAGEMENT
Remuneration can be monetary or nonmonetary. Ideally, it should be according to an
individual’s efforts they have put forth.
DIVISION OF WORK
CENTRALIZATION
In any company, the management or any
authority responsible for the decision-making
process should be neutral.
However, this depends on the size of an
organisation. Henri Fayol stressed on the point
that there should be a balance between the
hierarchy and division of power.
SCALAR CHAIN
Fayol, on this principle, highlights that
the hierarchy steps should be from the top to the
lowest.
ESPRIT DE CORPS
It is the responsibility of the
management to motivate their employees and
be supportive of each other regularly.
Developing
trust
and
mutual
understanding will lead to a positive outcome
and work environment.
FIVE FUNCTIONS OF MANAGEMENT
•
PLANNING
•
ORGANIZING
This is necessary so that every employee
knows their immediate senior also they should
be able to contact any, if needed.
•
STAFFING
•
CONTROLLING
ORDER
•
DIRECTING
A company should maintain a welldefined work order to have a favourable work
culture.
The positive atmosphere in the
workplace will boost more positive productivity.
EQUITY
All employees should be treated equally
and respectfully.
It’s the responsibility of a manager that
no employees face discrimination.
STABILITY OF TENURE OF PERSONNEL
An employee delivers the best if they
feel secure in their job.
It is the duty of the management to offer
job security to their employees.
INITIATIVE
Employees should be given the
necessary level of freedom to create and carry
out plans.
The management should support and
encourage the employees to take initiatives in an
organization. It will help them to increase their
motivation and morale.
BUREAUCRATIC MANAGEMENT
STUDY.COM
Bureaucratic management is a theory of
management with its most distinguishing feature
being the chain of command, like the military.
Direction, policies and procedures flow from top
to bottom through layers of management down
to the lowest levels of the organization.
EDUBIRDIE (N.D.)
Bureaucratic management concentrates
mainly on rules and regulations made by the
company to make the work more efficient.
According to Max Weber, bureaucratic
management is the best way to make human
activities organized and efficient.
OJHA (2022)
The bureaucratic management theory,
introduced by Max Weber stated that to manage
an organization efficiently, it is essential to have
a clear line of authority along with proper rules,
procedures and regulations for controlling each
business operation
SIX PRINCIPLES OF IDEAL BUREAUCRACY
1. Specialization: This means that there should
be specific duties for specific roles within the
organization; these specific roles are usually
given based on merit and capabilities of an
individual.
delivery of public services by reducing
bureaucratic red tape, preventing graft and
corruption, and providing penalties therefor.
2. Formalized Rules: Formalized rules are also
known as policies and procedures. In order to
maintain control within an organization, these
policies and procedures are implemented to gain
an idea of what can be and what should not be
done within an organization
BUREAUCRATIC CRITICISMS
3. Hierarchical Structure: For bureaucracies, any
organization must have a hierarchical structure
wherein all managerial levels and positions can
be seen. There should be a clear leader at the
top, with subordinates, going on until the very
bottom of the chain.
MASYADONG STRICT
Well-trained Employees: Like any well-oiled
machine, organizations must also have gears, or
employees that allow them to run efficiently and
effectively. Managers must be trained to be able
to do their jobs, as well as their subordinates.
5. Managerial Dedication: Regardless of the
situation, regardless of what may be happening
within or outside of the organization, your
manager has to be giving their 100%, 100% of the
time.
6. Impartiality of Management: Managers must
know to keep their personal belongings,
thoughts, interests, and activities separate from
the items, goals, visions, and activities of
whatever they may be governing.
RED TAPE
Red tape is excessive regulation or rigid
conformity to formal rules that is considered
redundant and hinders or prevents action or
decision-making.
Examples include filling out paperwork,
obtaining licenses, having multiple people or
committees approve a decision and various lowlevel rules.
The Anti-Red Tape Act of 2007: Is a law passed
by the Philippine Congress which articulates the
government’s call to improve efficiency in the
1.) The bureaucratic management theory given
by Max Weber has highly rigid and strict
regulations to follow for the employees and the
managers.
2.) Informal groups such as contractors play a
significant role in most business organizations,
but they are not important to Max Weber’s
management theory.
ISOLATED ANG ORGANIZATION.
3.) The Weberian model of bureaucracy requires
paperwork which contributes to a huge waste of
money, effort, and time that could instead be
used for managing an organization.
NAGKUKULANG SA PANSIN
4.) A large number of rules and formalities tend
to delay the decision-making process and,
thereby, important business tasks.
TIME IS WASTED.
SUMMARY
What were the contributions of Fayol and
Weber?
Fayol introduced to us the concept of
Administrative Management, and Weber; the
bureaucratic process.
What problems did they address?
•
The lack of a proper method of
management
•
The lack of knowledge regarding
employee satisfaction
•
The lack of order in any
workplace.
THE MED-KIT ANALOGY
Fayol focused mainly on the order of
what things must be done in order for an
organization to work past their problems.
•
Weber focused mainly on the rules and
policies that have to be implemented for those
organizations to keep on surviving.
•
HUMAN
(MODULE 3)
RELATIONS
MOVEMENT
•
CLASSICAL THEORY VS. NEO CLASSICAL THEORY
OF MANAGEMENT
•
•
Management thoughts are the outcome
of research, studies, and results in the
field of management.
Neo-classical theory is an extension of
Classical theory of management
•
Classical Theory
Workers are driven by incentives.
Task and organization.
Neo-Classical Theory
•
•
•
Employees are driven by elements such
as job satisfaction.
People component
Response to the limitations of classical
management theories.
Four combinations of a group norm in relation
to its cohesiveness:
1. Low norm and low cohesiveness
2. Low norm and high cohesiveness
3. High norm and low cohesiveness
4. High norm and High cohesiveness
•
GEORGE ELTON MAYO
Born: December 26, 1880, Adelaide, Australia
Died: September 7, 1949, Guildford, United
Kingdom
•
•
•
•
•
Associate Professor of Industrial
Research at Harvard University
Founder of Industrial Sociology and the
"Human Relations Movement"
Australian psychologist
Father of Neo-Classical Approach
He was the leader of the team that
conducted Hawthorne Experiments at
the Hawthorne plant of Western Electric
Company in Chicago, US from 1927-1932
Elton Mayo came over the concept that
people need of relations to foster in an
organization.
Hawthorne studies were conducted by
Elton Mayo, Fritz Roethlisberger
(Sociologist), and William J. Dickson in
the 1920' s with the workers at the said
company.
George Elton Mayo (1880-1949) is
widely recognized as the progenitor of
the human relations movement in
management and his work laid the
foundations for later management and
organizational thinking.
Mayo ' s management theory states that
employees are motivated far more by
relational factors such as attention and
camaraderie than by monetary rewards
or environmental factors, such as
lighting, humidity and more.
•
Mayo concluded that productivity partly
depended on the informal social
patterns of interaction in the work
group. Mayo, in communicating to
business leaders, advanced the idea that
managers who understand the nature of
informal ties among workers can make
decisions for management' s benefit.
Mayo introduced the Human Relations
School of thought, which focused on
managers taking more of an interest in
the workers, treating them as people
who have worthwhile opinions and
realizing that workers enjoy interacting
together.
•
•
Logical factors were far less important
than emotional factors in determining
productivity efficiency
The human relations theory is the
ideology that emphasizes the need to
prioritize satisfaction among workers.
•
What is an example of the Mayo theory?
•
•
•
•
For example, if a manager can make
a good relationship with employees,
they will likely respond by giving
hard work and effort.
Psychology of Pierre Janet, London:
Greenwood Press, 1972; Routledge,
reprint edition 2013.
The Human Problems of an
Industrial Civilization, Routledge,
reprint edition 2003.
Critical Evaluations in Business and
Management, Ed. John Cunningham
Wood, Michael C. Wood, 2004.
In 1937, Roethlisberger and William John
Dickson published the first comprehensive
findings of the Hawthorne experiments.
WILLIAM JOHN DICKSON (1904-1973)
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•
•
•
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Former professor at Harvard Business
School
He was a social scientist, management
theorist at the Harvard Business School
One of the key contributors of the
Hawthorne Effect
Saw the human relations movement as
an approach to studying and
understanding organizations, as a
diagnostic and investigatory tool.
Roethlisberger, F.J. & Dickson, W.J.
(1939) Management and the worker: an
account of a research program
conducted by the Western electric
company, Hawthorne works, Chicago.
Harvard University Press, Cambridge,
MA.
Roethlisberger, Fritz Jules (1941)
Management
and
Morale.
Roethlisberger, F.J. (1968) Man in
Chief of Employee Relations Research
Department, West Electric Company,
Hawthorne Works
Died on June 02, 1973 in Strathpeffer,
Scotland.
WILLIAM JOHN DICKSON (1904-1973)
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Fritz Roethlisberger
Born: October 29, 1898, New York, New York,
United States Died: May 17, 1974,
Massachusetts, United States
organization, Belknap Press of Harvard
University Press, Cambridge, MA.
Roethlisberger, F.J. (1977) The elusive
phenomena.
An
autobiographical
account of my work in the field of
organizational behavior at the Harvard
Business School. Harvard Business
School Pr, Cambridge, MA.
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Involved in the Hawthorne Experiment
as an interviewer for a study of industrial
relations conducted by Prof. Fritz J.
Roethlisberger of Harvard Graduate
School of Business Relations.
He worked with Professor Roethlisberger
and both published the book
“Management and the Worker” (1939).
HAWTHORNE EXPERIMENT
Hawthorne Experiments/Studies refer
to a set of experiments that were conducted
before second world war in the USA. These
studies played a major role in emphasizing the
human dimension in an organization during the
times when the evolution of different
managements thoughts was taking place.
Elton Mayo wanted to prove that
motivation was influenced by more than just
monetary gains or money. Mayo had a strong
belief that employee motivation was much more
complex than solely being influenced by money
and he wanted to find out what this was to help
businesses get the most out of their employees.
Mayo initially believed that employee
motivation was influenced by physical factors
such as:
1. Change in Working Conditions
2. Rest Breaks
3. Working Hours
PART 1: ILLUMINATION EXPERIMENT
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To find out how varying levels of amount
of light at the workplace (a physical
factor) affected productivity.
To study the effect of illumination on
productivity.
Assumption was that higher illumination
increases productivity.
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A group of six women were selected. The
output depended on the speed and
continuity with which the women
worked.
RELAY ASSEMBLY TEST ROOM EXPERIMENT
The experiment started with introducing various
changes (duration ranged from 4-6 weeks).
Changes:
1. Incentive system was changed.
2. Two, five minute rest.
3. The rest period was reduced to 5 minutes but
frequency was increased.
ILLUMINATION EXPERIMENT
4. The number of rest was reduced to two of 10
minutes each.
They conducted this experiment into two
separate groups:
5. Changes in working hours and workday were
introduced.
1. Experimental Group (exposed to varying
illumination)
CONCLUSION OF PART 2:
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2. Control Group (constant illumination)
CONCLUSION OF PART 1:
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The researchers found that as they
increased the illumination in the
experimental group, both groups
increased production.
When the intensity of illumination was
decreased, the production continued to
increase in both groups.
The production in the experimental
group only decreased when the
illumination was decreased to the level
of moonlight.
Part 2: Relay Assembly Test Room Experiment
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To study the effect of hours of work and
rest on output.
It was designed to determine the effect
of changes in various job conditions on
group productivity.
The researchers set up a relay assembly
test room, which involved assembly of
telephone relays.
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As each change was introduced,
absenteeism
decreased,
morale
increased, and less supervision was
required.
The researchers decided to revert back
to original position, that is no rest and no
benefits. Surprisingly,
productivity
increased further instead of going down.
PART 3: MASS INTERVIEWING PROGRAMME
The Study of Human Behavior in the Company.
2 TYPES OF INTERVIEW
1.) Direct Interviewing -Employees were asked a
certain question and they had to answer either
yes or no.
2.) Non-Directive Interviewing -Employees were
asked open-ended question and they had to
answer freely.
PART 4: BANK
EXPERIMENTS
WIRING
OBSERVATION
Analyze the functioning of a small group and its
impact on individual behaviour.
WORKERS GAVE RESTRICTED OUTPUTS DUE TO
THE FOLLOWING:
1.) Fear of Unemployment- If there would be
more production per head, some of the workers
would be put out of employment.
2.) Fear of Raising the Standards - Workers
thought that if they reached the standard set by
the management, they would again raise the
standard.
3.) Protection of Slower Workers- The workers
were friendly on and off the job. The faster
workers protected slower workers by not overproducing.
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Since people interact with one another
and have social needs at work,
interpersonal relationships must also be
a part in employee motivation.
Social pressure will produce teamwork
and positive employee attitudes and
behaviors.
Supervisors and Managers
Ensure effective management and supervision
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Managers and supervisors also impact
employee motivation.
Worker’s behavior and feelings origins
from their supervisors.
Authoritarian leadership style was
substantially less effective than a more
democratic/participative approach.
4.) Satisfaction on the part of managementManagement seemed to accept a lower
production rate as no one was fired for restricted
outputs.
Supervisors and Managers
HUMAN RELATIONS MOVEMENT
Managers and Supervisors:
Hawthorne Effect
The Hawthorne Effect is a term used to explain a
shift in a person ' s conduct brought on by their
awareness of being inspected.
KEY PRINCIPLES OF HUMAN RELATIONS
Four “Actors” in Human Relations Theory
1.
2.
3.
4.
1. Understand Psychology Are sensitive to
employees’ individual and group needs.
2. Communicate Effectively
3. Are supportive and motivating
4. Empower employees and allow for some
degree of autonomy/control
The Organization
The Employee
Group of Employees
Supervisors and Managers
The Organization
Establish effective organizational conditions
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The Employee
TREAT EMPLOYEES WELL AS AN INDIVIDUAL
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Employee
motivation
is
largely
influenced by each person as an
individual.
Businesses should take into account
individual aspects and how to affect
them in order to boost motivation.
Group of Employees
Promote
positive
relationships
group
values
and
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The organization houses and controls
the underlying conditions for all of the
aforementioned
parties
and
interactions.
Must create working conditions that
allow for/promote increased individual
and group attitudes toward work.
CONTRIBUTIONS
1. A business organization is basically a social
system. It is not just a techno-economic system.
2. The employer can be motivated by
psychological and social wants because his/her
behaviour is also influenced by feelings,
emotions, and attitudes. Thus, economic
incentives are not the only method to motivate
people.
3. Management must learn to develop
cooperative attitudes and not rely merely on
command.
4. Participation becomes an important
instrument in human relations movement. In
order to achieve participation, effective two-way
communication network is essential.
5. Productivity is linked with employee
satisfaction in any business oraganization.
Therefore, management must take greater
interest in employee satisfaction.
6. Group psychology plays an important role in
any business organization. We must therefore
rely more on informal group effort.
7. The neo-classical theory emphasizes that man
is a living machine and he is far more important
than the inanimate machine. Hence, the key to
higher productivity lies in employee morale. High
morale leads in higher outputs.
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PRINCIPLES OF HUMAN RELATION
1. Recognition and Appreciation.
2. Workers are human beings.
3. An organization works not only through
formal relations but also through informal
relations.
4. Workers need a high degree of job security
and job satisfaction.
5. Workers want good communication from the
managers.
6. In any organization, members do not like
conflicts and misunderstandings.
ABRAHAMH.MASLOW
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7. Workers want freedom. They do not want
strict supervision.
8. Employees would like to participate in
decision-making, especially, in those matters
affecting their interests.
CRITICISMS
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Lack of Scientific Validity
The human relationists drew
conclusions from Hawthorne’s
studies. These conclusions are based
on clinical insight rather than on
scientific evidence.
Over-Emphasis on Group
- The human relations approach overemphasizes the group and group
decision-making.
Over-Stretching of Human Relations
- It is assumed that all organizational
problems are amenable to solutions
through human relations.
Limited Focus on Work
- The human relations approach lacks
adequate focus on work.
Over-Stress on Socio-Psychological
Factors
- The human relations approach
undermines the role of economic
incentives in motivation and gives
excessive stress on social and
psychological factors.
Conflicts Between Organizational and
Individual Goals
- It views the conflict between the
goal of the organization and those
individuals as destructive.
American psychologist and philosopher
Self-actualization theory of psychology
Born: April 1, 1908, in New York Died:
June 8, 1970, in Menlo Park California
Studied Law at City College of New York
Studied psychology at the University of
Wisconsin
Studied Gestalt psychology at the New
School for Social Research in New York
City
POPULARLY KNOWN FOR:
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Hierarchy of needs
Founder of humanistic psychology
Peak experiences
Self-actualization
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Deficiency Needs (D-needs)
• Concerned with basic survival
and physiological needs
• Behaviors associated with these
needs are seen as “deficiency”
motivated, as they are a means
to an end.
Growth Needs (B-needs)
• More psychological and are
associated with realizing an
individual’s full potential and
needing to “selfactualize”.
• Achieved
more
through
intellectual
and
creative
behaviors.
HIERARCHYOFNEEDS
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• Physiological Needs
Biological requirements for human
survival
• Safety Needs
People want to experience order,
predictability, and control in their
lives.
• Love and Belongingness
Needs Belongingness refers to a
human
emotional need
for
interpersonal
relationships,
affiliating, connectedness, and being
part of a group.
• Esteem Needs
Include self-worth, accomplishment,
and respect.
• Self-actualization
Highest level in Maslow’s hierarchy,
and refer to the realization of a
person’s potential, self-fulfillment,
seeking personal growth, and peak
experiences.
Cognitive Needs
- Knowledge and understanding,
curiosity, exploration, need for
meaning and predictability.
Aesthetic Needs
- Appreciation and search for
beauty, balance, form, and etc.
Transcendence Needs
- A person is motivated by values
that transcend beyond the
personal self.
ADAMSMITH:
TheFatherofEconomics
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Adam Smith, (baptized June 5, 1723,
Kirkcaldy, Fife, Scotland—died July
17, 1790, Edinburgh).
Scottish social philosopher and
political economist, instrumental in
the rise of classical liberalism.
In 1776 published “ The Wealth of
Nation” an important work of
economic and social theory by Adam
Smith. In this book, he analyzed the
relationship between work and the
production of a nation ' s wealth.
He supported and recommended
the idea of “division of labor” (Job
Specialization) to increase the
productivity.
He is more properly regarded as a
social philosopher whose economic
writings constitute only the
capstone to an overarching view of
political and social evolution.
Adam Smith was the first person to
identify specialization and the
division of labor as the main drivers
of productivity.
He also conceptualized the “invisible
hand principle” which explains how,
under the proper set of incentives,
selfinterested
individuals
are
directed to pursue activities that
benefit the whole of society
DIVISIONOFLABOR
The separation of a work process into a
number of tasks, with each task performed by a
separate person or group of people.
Smith’s contributions provide a
foundation for the division of labor and
demonstrate the importance of establishing the
right “institutions” within a firm, calling it a fair
reward system.
WEALTHOFNATIONS
The Wealth of Nations—first published
in 1776, during the Scottish Enlightenment and
Agricultural Revolution—is Smith’s seminal
work, in which he analyzes what constitutes the
wealth of a country and reasons why certain
nations obtain more per capita wealth than
others.
CHESTERIRVINGBARNARD
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Born: November 7, 1886
Died: June 7, 1961, at New York City
American business executive, public
administrator, and sociological theorist
CONTRIBUTION:
Three Aspects of Communication:
1. Formal Channels of Communication
2. Understand these channels
3. Make it short and direct
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Smaller Organizations act with less
formality
Efficiency - how quickly you can do
something with few resources
Effectiveness - making the choices to do
the right things in the right way to serve
the organization
MaryParkerFollet
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American author and sociologist
Born: September 3, 1868, at Quincy
Massachussetts
Died: December 18, 1933, at Boston,
Massachusetts
CONTRIBUTION:
WAYS TO RESOLVE CONFLICTS
1. DOMINANCE
- One party should dictate the
term of arrangement
2. COMPROMISE
- Neither side gets exactly
everything its want and the best
is obtain a result that each can
agree too
3. INTEGRATION
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Each party states its preference
and attempts to reach an
agreement