The History of Management Appendix Chapter One McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. F.W. TAYLOR and SCIENTIFIC MANAGEMENT • Scientific Management -- Studying workers to determine the most efficient ways of doing things and then teaching those techniques. • Three Key Elements to Increase Productivity 1. Time 2. Methods of Work 3. Rules of Work 1-2 F.W. TAYLOR and SCIENTIFIC MANAGEMENT 1. Study how a job is performed. • Gather time & motion information. • Check different methods. 2. Codify the best method into rules. 3. Choose workers whose skill matches the rules. 4. Establish a fair level of performance and pay. 1-3 WEBER’S BUREACRATIC THEORY 1. In a bureaucracy, a manager’s formal authority derives from the position he or she holds in the organization. 2. In a bureaucracy, people should occupy positions because of their performance, not because of their social standing or personal contacts. 3. Each position’s formal authority and task responsibilities should be clearly defined. 1-4 WEBER’S BUREACRATIC THEORY 4. Authority can be exercised efficiently when positions are arranged in a clear organizational hierarchy, so employees know who to report to and who reports to them. 5. Managers must create a well defined system of rules and standard operating procedures, so that they can effectively control behavior within an organization. 1-5 TIME-MOTION STUDIES Frank & Lillian Gilbreth • Time-Motion Studies -- Studies of which tasks must be performed to complete a job and the time needed to do each task. • Led to the development of the Principle of Motion Economy -- Every job can be broken down into a series of elementary motions; developed by Frank and Lillian Gilbreth. 1-6 MARY PARKER FOLLETT • “Authority should go with knowledge… whether it is up the line or down.” • Humanized Taylor’s work • Advocated Self-Managed Teams • Anticipated Empowerment HAWTHORNE STUDIES: PURPOSE AND RESULTS • Researchers studied worker efficiency under different levels of light. • Productivity increased regardless of light condition. • Researchers decided it was a human or psychological factor • Hawthorne Effect- People act differently when they know they are being studied. THEORY X AND THEORY Y • Douglas McGregor proposed managers had two different sets of assumptions concerning workers. • Their attitudes about motivating workers was tied to these assumptions. • McGregor called them Theory X and Theory Y. ASSUMPTIONS of THEORY X MANAGERS • Workers dislike work and seek to avoid it. • Workers must be forced or threatened with punishment to get them to perform. • Workers prefer to be directed and avoid responsibility. • Only effective motivators are fear and money. ASSUMPTIONS of THEORY Y MANAGERS • People like work, it’s a part of life. • Workers seek goals they are committed to. • Commitment to goals depends on perceived rewards. • People can use creativity to solve problems. • Intellectual capacity is only partially realized. • People are motivated by a variety of rewards. THEORY Z • William Ouchi researched cultural differences between the U.S. (Type A) & Japan (Type J) • Type J is committed to the organization and the group, while Type A is focused on the individual • Theory Z is the hybrid approach of both types MASLOW’S HIERARCHY of NEEDS * Motivation and Maslow’s Hierarchy of Needs LG3 * 10-13 MASLOW’S THEORY of MOTIVATION * Motivation and Maslow’s Hierarchy of Needs LG3 * • Hierarchy of Needs – A theory of motivation based on unmet human needs from basic physiological needs to safety, social and esteem needs to self-actualization needs. • Needs that have already been met do not motivate. • If a need is filled, another higher-level need emerges. 10-14 HERZBERG’S MOTIVATING FACTORS *Herzberg’s Motivating Factors LG4 * • Herzberg’s research centered on two questions: - What factors controlled by managers are most effective in increasing worker motivation? - How do workers rank job-related factors in order of importance related to motivation? 10-15 HERZBERG’S MOTIVATORS and HYGIENE FACTORS Motivators Work itself Achievement Recognition Responsibility Growth and advancement *Herzberg’s Motivating Factors LG4 * Hygiene Factors Company policy and administration Supervision Working conditions Interpersonal relations Salary, status and job security 10-16 *Herzberg’s JOB CONTENT Motivating Factors LG4 * • Herzberg found job content factors were most important to workers – workers like to feel they contribute to the company. • Motivators -- Job factors that cause employees to be productive and that give them satisfaction. 10-17 *Herzberg’s JOB ENVIRONMENT Motivating Factors LG4 * • Job environment factors maintained satisfaction but did not motivate employees. • Hygiene Factors -- Job factors that can cause dissatisfaction if missing but that do not necessarily motivate employees if increased. 10-18 * GOAL-SETTING THEORY Goal-Setting Theory and Management by Objectives LG6 * • Goal-Setting Theory -Setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated. 10-19 APPLYING GOAL-SETTING THEORY * Goal-Setting Theory and Management by Objectives * LG6 • Management by Objectives (MBO) -- Involves a cycle of discussion, review and evaluation of objectives among top and middle-level managers, supervisors and employees. • Managers formulate goals in cooperation with everyone. • Need to monitor results and reward achievement. 10-20