http://www.netmba.com/mgmt/scientific/ http://www.mindtools.com/pages/article/newTMM_Taylor.htm Classical Schools of Thought: Scientific Management Intro F.W. Taylor Scientific Management - Evolved in the late 19th & early 20th century - Perspective emerges from the industrial revolution & centers on theories of efficiency - Towards the end of 19th century, factory production became pervasive, time for large scale organizations & production - People have been looking ways to increase productivity - During this period, work was performed by skilled craftsmen who had learned their jobs in lengthy apprenticeships - In 1911, Frederick Winslow Taylor published his work, The Principles of Scientific Management - With a background in Mechanical Engineering, Taylor had emphasized on ‘Efficiency’ - Advanced his career at a US steel manufacturer, designed workplace experiments - Explained how application of scientific method to the management of workers could improve productivity - Converted skilled crafts into a series of simplified jobs 1 http://www.netmba.com/mgmt/scientific/ http://www.mindtools.com/pages/article/newTMM_Taylor.htm Classical Schools of Thought: Scientific Management Soldiering Taylor observed the phenomena of workers purposely operating below their capacity; - Universally held belief among workers that of they became more productive, fewer of them would be needed & jobs would be eliminated - Non- incentive wage systems, encouraged lower productivity. Employee received the same wages irrespective of how much they produced - A fear that faster pace would become the new standard . If employees were paid by the quantity they produce, they fear that management would decrease their per- unit pay, if the quantity increases - Workers relied on rule of thumb method rather than on optimal work To counter soldiering & to improve efficiency, Taylor began to conduct experiments to determine the best level of performance for certain jobs, and what was necessary to achieve this performance. 2 http://www.netmba.com/mgmt/scientific/ http://www.mindtools.com/pages/article/newTMM_Taylor.htm Classical Schools of Thought: Scientific Management Time Studies/ Time & Motion Studies Pig Iron - Taylor argued that most basic task could be planned in a way that dramatically could improve productivity - Initiative & incentive method offered an incentive to increase productivity but placed the responsibility on the worker to figure out how to do it - Taylor performed experiments that he called ‘Time Studies’ If workers were moving 12.5 tons of pig iron everyday, they could be incentivized to move 47.5 tons per day but that would depend on their own wits. They would get exhausted in few hours & fail to reach the goal - Conducting experiments to determine the amount of resting that was necessary, using stop watch - Worker’s managers could determine the optimal timing of lifting & resting, so that the worker could move 47.5 tons per day Not all workers were physically capable of moving 47.5 tons of pig iron per day. Only 1/8th of workers had the physical capabilities to do the same. This example suggests that ‘workers should be selected according to how well they are suited for a particular job’. 3 http://www.netmba.com/mgmt/scientific/ http://www.mindtools.com/pages/article/newTMM_Taylor.htm Classical Schools of Thought: Scientific Management Science of Shoveling The optimal weight that a worker should shovel is 21 pounds. - The shovel should be sized to a weight of 21 pounds, so that workers could easily lift the iron - Factory provided the workers with optimal shovels The result was a three fold increase in productivity & workers were rewarded with pay increases. Taylor believed in ‘A fair Day’s Pay for a Fair Day’s Work’ Taylor’s Principles of Scientific Management After several years of experiments, Taylor proposed four principles of Scientific Management; 1. Replace rule of thumb method with methods based on a scientific study of tasks 2. Scientifically select, train & develop each worker rather than passively leaving them to train themselves 3. Cooperate with the workers to ensure that the scientifically developed methods are being followed 4. Divide work nearly equally between managers & workers, so that the managers apply scientific management principles to planning the work & the workers actually perform the tasks 4 http://www.netmba.com/mgmt/scientific/ http://www.mindtools.com/pages/article/newTMM_Taylor.htm Classical Schools of Thought: Scientific Management Critiques of Scientific Management - Increased the monotony of work - Core job dimensions of; - Skill variety - Task identity - Task significance - Autonomy - Feedback All were missing from the picture of scientific management - Use of stop watches were not accepted by workers in many US factories. It led to a strike in one of the factories where ‘Taylorism’ was practiced. - Complaints were registered that Scientific Management was dehumanizing 5 Classical Schools of Thought: Gantt Chart What - Is a bar chart - Developed by Henry Gantt - In the year 1910s - Illustrates project schedule (start date, finish date, activities involved in the project) - Measures planned and completed work along each stage of production, based on time instead of quantity, volume, or weight How Schedule for Blood Donation Camp in the Campus on December 25, 2014 Dec-14 S.No Activity I week 1 Venue 2 Logistics 3 Marketing 4 Doctors 5 Drinking Water Area 6 Ambulance II week III week IV week 6 http://www.cliffsnotes.com/more-subjects/principles-of-management/the-evolution-of-management-thought/classical-schools-of-management Classical Schools of Thought: Bureaucratic Management Background Bureaucracy - Max Weber disliked that many European organizations were managed on a “personal” family‐like basis and that employees were loyal to individual supervisors rather than to the organization - He believed that organizations should be managed impersonally having a formal organizational structure, where specific rules were followed 1. A well‐defined hierarchy: - Structured positions - Higher positions to supervise & control lower positions - Clear chain of command 2. Division of labor and specialization: - Specialized roles & responsibilities - Expertise in any particular task 3. Rules and regulations: - SOP (Standard Operating Procedures) 4. Impersonal relationships between managers and employees: - No favoritism and personal prejudice to influence decisions making 5. Competence: - Competence should be the basis for all decisions made in hiring, job assignments, and promotions 6. Records: - Maintenance of files regarding all activities 7 http://danawilliams2.tripod.com/authority.html Classical Schools of Thought: Bureaucratic Management Traditional Authority - Ability & right to rule is passed down - Tends to be irrational and inconsistent - Maintains Status Quo Forms of Authority Charismatic Authority - A leader whose mission and vision inspire others - A head of a new social movement - Example: Martin Luther King, Mahatma Gandhi Legal rational Authority - Empowered by a formalistic belief in the content of the law - Obedience is given to a set of rational principles - Example: Bureaucracy, Modern States 8 http://www.mindtools.com/pages/article/henri-fayol.htm https://managementinnovations.wordpress.com/2008/12/04/henri-fayols-14-principles-of-management/ Classical Schools of Thought: Administrative Management Background Fayol's 14 Principles of Management - Henri Fayol was born in Istanbul in 1841 - When he was 19, he began working as an engineer at a large mining company in France. - He eventually became the director, at a time when the mining company employed more than 1,000 people - Fayol developed 14 most important principles of management Essentially, these explained how managers should organize and interact with staff - Fayol's "14 Principles" was one of the earliest theories of management to be created 1. Division of Work – When employees are specialized, output can increase because they become increasingly skilled and efficient 2. Authority – Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility 3. Discipline – Discipline must be upheld in organizations, but methods for doing so can vary. Penalties should be applied, if not followed. 4. Unity of Command – Employees should have only one direct supervisor 5. Unity of Direction – Teams with the same objective should be working under the direction of one manager, using one plan. This 9 will ensure that action is properly coordinated http://www.mindtools.com/pages/article/henri-fayol.htm Classical Schools of Thought: Administrative Management Fayol's 14 Principles of Management 6. Subordination of Individual Interests to the General Interest – The interests of one employee should not be allowed to become more important than those of the group. This includes managers 7. Remuneration – Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensation 8. Centralization – This principle refers to how close employees are to the decision-making process. It is important to aim for an appropriate balance 9. Scalar Chain – Employees should be aware of where they stand in the organization's hierarchy, or chain of command 10. Order – The workplace facilities must be clean, tidy and safe for employees. Everything should have its place 11. Equity – Managers should be fair to staff at all times, both maintaining discipline as necessary and acting with kindness where appropriate 12. Stability of Tenure of Personnel – Managers should strive to minimize employee turnover. Personnel planning should be a priority 13. Initiative – Employees should be given the necessary level of freedom to create and carry out plans 14. Esprit de Corps – Organizations should strive to promote team 10 spirit and unity http://www.mindtools.com/pages/article/henri-fayol.htm http://en.wikipedia.org/wiki/Fayolism Classical Schools of Thought: Administrative Management Fayol's 6 Functions of Management 1. Forecasting 2. Planning: What, When, Why, Where, Who, How 3. Organizing: raw materials, tools, capital and human resources. Identifying responsibilities, grouping them into departments or divisions, and specifying organizational relationships 4. Commanding: Managers need to implement the plan. They must have an understanding of the strengths and weaknesses of their personnel. Leading people in a manner that achieves the goals of the organization requires proper allocation of resources and an effective support system. 5. Coordinating: to harmonize all the activities to facilitate organizational success. Communication is the prime coordinating mechanism 6. Controlling: Monitoring function that evaluates quality in all areas . Ensuring high-quality performance and satisfactory results while maintaining an orderly and problem-free environment 11 http://education-portal.com/academy/topic/behavioral-school-of-management-theory.html http://education-portal.com/academy/lesson/neo-classical-theory-of-management-the-human-relations-approach.html https://www.boundless.com/management/textbooks/boundless-management-textbook/organizational-theory-3/behavioral-perspectives-30/the-human-side-hawthorne-170-8381/ Behavioral Perspective: Human Relations Approach: Elton Mayo Background Hawthorne Studies: Conclusions - In the early 1920s, a shift began towards human side & social needs of the employees - Neo classical theories answered questions related to the best way to motivate, structure, and support employees within the organization - Classical theories created an attitude among managers that employees were nothing more than an accessory to a machine - It was unrealistic to expect standardization among emotional beings 1. Workers' attitudes are associated with productivity 2. Workplace is a social system and informal group’s influence could exert a powerful effect on individual behavior 3. Style of supervision is an important factor in increasing workers' job satisfaction - Began in 1924 till 1930s with the workers at the Hawthorne plant of the Western Electric Company - Elton Mayo & Roethlisberger are the main names associated with it -The studies originally looked into whether workers were more responsive and worked more efficiently under certain environmental conditions, such as improved lighting - Studies found that workers were more responsive to social factors; such as people they worked with in a team, the amount of interest their 12 managers had in their work http://www.business.com/management/management-theory-of-mary-parker-follett/ http://womenshistory.about.com/od/business/p/m_p_follett.htm Behavioral Perspective: Mary Parker Follett Mary Parker Follett - Power: “Power Over” & “Power With”, differentiate coercive power from participative decision making - True leaders create group power, rather than expressing personal power - Conflict resolution through Integration 13 http://education-portal.com/academy/lesson/chester-barnard-informal-organizations-and-acceptance-theory.html Behavioral Perspective: Chester Barnard Acceptance Theory to Authority - Manager's authority rests on workers' acceptance of his right to give orders and to expect compliance - There are a reasons for this expectation: • Workers will be rewarded for compliance • There will be discipline for non-compliance • Workers respect the manager for his experience -Effective & Efficient Organizations: When organizations meet their goals on time, its effective. Efficient means the degree to which the organization can satisfy the motives of its employees Informal & Formal Organizations - Formal organizations operate under a set of rules and policies designed to carry out the organizational purpose - Organizations are made up of groups of individual workers. Naturally, these individual workers form informal social groups that become the informal organization. The informal organization exists within a larger formal organization 14 http://www.simplypsychology.org/maslow.html Behavioral Perspective: Hierarchy of Needs: Abraham Maslow Reputation: how other people see them, fish for compliments Esteem needs- achievement, mastery, independence, status, dominance, prestige, selfrespect, respect from others Social Needs/ Love and belongingness needsfriendship, intimacy, affection and love, from work group, family, friends, romantic relationships Safety needs- protection from elements, security, order, law, stability, freedom from fear Biological and Physiological needs- air, food, drink, shelter, warmth, sleep Basic level of survival What we think of ourselves, Self confidence we have, Internal environment, 50% of people are satisfying our internal needs Self-Actualization needs- realizing personal potential, self-fulfillment, seeking personal growth and peak experiences 15 http://www.businessballs.com/mcgregor.htm http://www.accel-team.com/human_relations/hrels_03_mcgregor.html Behavioral Perspective: Theory X-Y: Douglas McGregor Theory X Assumptions - The average person dislikes work and will avoid it as much as one could - Most people must be forced with the threat of punishment to work towards organizational objectives -The average people prefers to be directed; dislikes responsibility - Wants security above all else - Theory X managers, do not give their staff the opportunity to explore so that they behave in an expected fashion Theory Y Assumptions - Control & punishments are not the only ways to make people work - Man will direct himself if he is committed to the aims of the organization - If a job is satisfying, then the result will be commitment to the organization - The average man learns under proper conditions, to accept & carry out responsibility - Imagination & creativity can be used to solve large number of problems 16 http://pespmc1.vub.ac.be/systheor.html Systems Theory What - Systems theory (new way of conceptualizing and studying organizations) was proposed in the 1940's by the biologist Ludwig von Bertalanffy - Real systems are open to, and interact with, their environments - There happens continual evolution - Rather than reducing an entity (e.g. the human body) to the properties of its parts - Systems theory focuses on the arrangement of and relations between the parts which connect them into a whole (holism) - Systems concepts include: system-environment boundary, input, output, process, state, hierarchy, goal-directedness, and information Structure of an Organization as Per Systems Theory Input Explanation Output Resources(Goods ,Funds, People) Services(Financial consulting, Legal) Process Systems return product to the environment - Synergy - Interdependence - Interconnection - within the org. - B/w the org.- env. - Org. as organism Feedback Environment Positive Negative 17 Systems Theory Properties of System Environmental Interaction - Open system’s interaction with the outside environment - Parts that make up a system are interrelated Differentiation Classical Theory - Worker as a tool for improving efficiency - Not applicable to tasks that are not simple & homogeneous - Increased LaborManagement conflict & strengthening of labor union Synergy Entropy - When all - The tendency for organizational subsystems work together making the whole greater than the sum of it’s parts systems to decay over time Humanistic Theory - Manipulating people to comply with management directives, instead of understanding human behavior & mankind desirable changes in the org. - Overemphasized human needs, & not on org. tasks & process Systems Theory - Provides an analytical framework for viewing an org. in general (organism) - Recognizes; 1. Interdependence of personnel 2. Impact of environment on organizational structure and function 3. Affect of outside stakeholders 18 on the organization Systems Theory Characteristics of Organization - Role of Communication: - Inter communication: exchange information b/w organization & environment - Intra communication: exchange information within various systems - Types of Subsystems: - Production (technical) Subsystems - concerned with outputs, eg; assembly line - Supportive Subsystems - ensure production inputs are available, eg; import raw material, Procurement - Maintenance Subsystems - social relations in the system, eg; HR - Adaptive Subsystems - monitor the environment and generate responses, eg; PR - Managerial Subsystems - coordinate, adjust, control, and direct subsystems, eg; Senior Management - Boundaries: - Physical Boundary - prevents access (security system) - Linguistic Boundary - specialized language (jargon) - Systemic Boundary - rules that regulate interaction (titles) - Psychological Boundary - restricts communication (stereotypes, prejudices) 19 Contingency Approach Contingency Approach - Research conducted in the 1960s and 1970s focused on situational factors that affected the appropriate structure of organizations and the appropriate leadership styles for different situations - There is no one best way to manage - To be effective, planning, organizing, leading, and controlling must be tailored to the particular circumstances faced by an organization - Stable Environment: Centralization, formalization, standardization, and specialization - Paul Lawrence and Jay Lorsch- suggest that organizational units operating in differing environments develop different internal unit characteristics, and that the greater the internal differences, the greater the need for coordination between units - Joan Woodward- financially successful manufacturing organizations with different types of work technologies; 1. unit or small batch 2. large-batch or mass-production 3. continuous-process differed in the number of management levels, span of management, and the degree of worker specialization 20 Contingency Approach Contingency Approach Contingency Perspective & Leadership http://www.referenceforbusiness.com/management/Comp-De/Contingency-Approach-to-Management.html http://www.mindtools.com/pages/article/fiedler.htm - Organizational Size- Small organizations can behave informally while larger organizations tend to become more formalized. Small Organization: owner of a may directly control most things Large organizations: complex and indirect control mechanisms, specialized staff, units, and jobs. - Fred Fiedler, in the 1960s and 1970s, was an early pioneer in this area - Task-oriented or relationship oriented leadership - Fiedler believed that leadership style is fixed, and it can be measured using a scale he developed called Least-Preferred Co-Worker - The scale asks you to think about the person who you've least enjoyed/ most enjoyed working with The model says that task-oriented leaders usually view their LPCs more negatively, resulting in a lower score. He said that low LPCs are very effective at completing tasks. They're quick to organize a group to get tasks and projects done. Relationship-building is a low priority. However, relationship-oriented leaders usually view their LPCs more positively, giving them a higher score. These are high-LPC leaders. High LPCs focus more on personal connections, and they're good at avoiding and managing conflict. They're better able to make complex decisions. 21 http://asq.org/learn-about-quality/total-quality-management/overview/overview.html Total Quality Management Contingency Approach Elements of TQM - Total Quality Management (TQM) is a management approach that originated in the 1950s & gained momentum in 1980s - All members of an organization participate in improving processes, products, services, and the culture in which they work - ‘Customer Satisfaction’ is the end result - Customer Satisfaction - Employee Involvement: Styles of Leadership, Employee relating to co. vision & mission, flow of communication, proper environment to work, self managed work teams - Process centered - Integrated systems: horizontal processes interconnected. Eg; HR process of ‘PMS’- Individual Goal Setting – Manager Goal Setting – Mid year review – Departmental Discussion – Calibration Meeting (HR) – Final review - Strategic and systematic approach: To achieving an organization’s vision, mission, and goals, the formulation of a strategic plan that integrates quality as a core component - Continual Improvement - Fact based decision making - Communication 22 https://www.deming.org/theman/theories/fourteenpoints Total Quality Management 14 Principles of TQM By W. Edward Deming - Create loyalty of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs - Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change - Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product - Move towards a single supplier for any one item, on a long term relationship of loyalty & trust - Improve constantly the system of production & service to improve quality & productivity - Institute training on the job - Institute Leadership. The aim of leadership should be to help people & gadgets to do a better job - Drive out fear. So that everyone can work effectively for the company - Break down barriers between department. People in research, design, production must work as a team, to foresee problems - Eliminate work standards (quotas)/ Eliminate management by objectives (numbers, numerical goals). Substitute leadership for both 23 https://www.deming.org/theman/theories/fourteenpoints Total Quality Management 14 Principles of TQM By W. Edward Deming - The responsibility of workers must be changed from number to quality - Institute a vigorous program of education & self improvement - Transformation is everybody’s job 24 http://www.mindtools.com/pages/article/theory-z.htm Theory Z: William Ouchi Background Theory Z - Back in the '70s and '80s, Japanese organizations were arguably the most productive and efficient in the world - The secret to their success was how they were managing their people – Japanese employees were engaged, empowered, and highly productive - Ouchi first wrote about Theory Z in his 1981 book, "Theory Z: How American Management Can Meet the Japanese Challenge." He created the theory after conducting research designed to help American companies compete with Japanese businesses - A Strong Company Philosophy and Culture: The company philosophy and culture needs to be understood and embodied by all employees, and employees need to believe in the work they're doing - Long-Term Staff Development and Employment: The organization and management team has measures and programs in place to develop employees. Employment is usually long-term, and promotion is steady and measured. This leads to loyalty from team members. - Consensus in Decisions: Employees are encouraged and expected to take part in organizational decisions. - Generalist Employees: Because employees have a greater responsibility in making decisions, and understand all aspects of the organization, they should be "generalists." However, employees are still expected to have specialized career responsibilities. 25 http://www.mindtools.com/pages/article/theory-z.htm Theory Z: William Ouchi Theory Z - Concern for the Happiness and Well-Being of Workers: The organization shows sincere concern for the health and happiness of its employees, and for their families. It puts measures and programs in place to help foster this happiness and well-being - Informal Control with Formalized Measures: Employees are empowered to perform tasks the way they see fit, and management is quite "hands off." However, there should be formalized measures in place to assess work quality and performance - Individual Responsibility: The organization recognizes the contributions of individuals, but always within the context of the team as a whole 26 http://www.change-management-coach.com/kurt_lewin.html Unfreeze – Change – Free: Kurt Lewin Kurt Lewin Details - Kurt Lewin emigrated from Germany to America during the 1930's - Recognized as the "founder of social psychology” - Highlights his interest in the human aspect of change, factors that influence people to change Stage 1: Unfreeze - This stage is about getting ready to change - It involves getting to a point of understanding that change is necessary - Force Field Analysis: Change is all about weighing up the 'pro's' and 'con's' and deciding if the 'pro's' outnumber the 'con's' before you take any action - If there are more ‘cons’ to change than the motivation to change would be low - This first 'Unfreezing' stage involves moving ourselves, or a department, or an entire business towards motivation for change Stage 2: Change - Change is not an event but a process (transition- the inner movement or journey we make in reaction to a change) - People are 'unfrozen' and moving towards a new way of being - Hardest stage, as people are unsure or fearful - Support is really important in the form of training, coaching, and expecting mistakes as part of the process 27 - Communication is an important aspect to keep people together http://www.change-management-coach.com/kurt_lewin.html Unfreeze – Change – Free: Kurt Lewin Details Stage 3: freeze - This stage is about establishing stability once the changes have been made - The changes are accepted and become the new norm - People form new relationships and become comfortable with their routines 28 http://kalyan-city.blogspot.com/2010/06/management-by-objectives-mbo-peter.html MBO: Peter Drucker MBO - The genesis of MBO is attributed to Peter Drucker who has explained it in his book 'The Practice of Management‘ in 1954 - Objectives should not be imposed on subordinates but should be decided collectively by a concerned with the management - It is a demanding and rewarding style of management - MBO is based on the assumption that people perform better when they know what is expected of them and can relate their personal goals to organizational objectives - It is a result-oriented philosophy and offers many advantages such as employee motivation, high morale, effective and purposeful leadership and clear objectives before all concerned persons - MBO involves the establishment of goals by managers and their subordinates acting together, specifying responsibilities and assigning authority for achieving the goals and finally constant monitoring of performance 29 http://www.simplypsychology.org/cognitive-dissonance.html Cognitive Dissonance: Leon Festinger Details - Festinger's (1957) cognitive dissonance theory suggests that we have an inner drive to hold all our attitudes and beliefs in harmony and avoid disharmony (or dissonance) - According to Festinger, we hold many cognitions about the world and ourselves; when they clash, a discrepancy is evoked, resulting in a state of tension known as cognitive dissonance - The situation can be divided into three main areas: - Forced compliance behavior - Decision-making - Effort - Dissonance can be reduced in one of three ways: - Change one or more of the attitudes - Acquire new information - Reduce the importance of the cognitions 30 https://hbr.org/1973/05/how-to-choose-a-leadership-pattern Leadership Pattern: Robert Tannenbaum & Warren H. Schmidt Details - How to Choose a Leadership Pattern” describes ”democratic management” and devises a leadership continuum ranging from authoritarian to democratic (1958) Boss centered Leadership Subordinate centered Leadership Use of authority by the manager Manager makes decision & announces it Manager sells discussion Area of freedom for subordinates Manager presents decision & invites questions Manager presents tentative decisions subject to change Manager presents problem, gets suggestion s, makes decision Manager defines limits, asks group to make decision Manager permits subordinat es to function within limits defined by superior 31 Transactional Analysis: Eric Berne Transactional Analysis Ego State Parent Child Adult http://www.businessballs.com/transact.htm http://www.ericberne.com/transactional-analysis/ - Eric Berne, in his book Games People Play (1964), identified three ego states for studying the psychology of human relationships -Transactional Analysis is the method for studying interactions between individuals - A consistent pattern of feeling and experience directly related to a corresponding consistent pattern of behavior - Berne defined the three ego states as: Parent, Adult, and Child - Represents a massive collection of recordings in the brain of external events - The majority of the external events experienced by a child are actions of the parent, the ego state was appropriately called Parent - Parent is our 'Taught' concept of life - Our internal reaction and feelings to external events - Our internal reaction and feelings to external events - Child is our 'Felt' concept of life - Our 'Adult' is our ability to think and determine action for ourselves - The Adult allows the young person to evaluate and validate Child and Parental data - Adult is our 'Thought' concept of life 32 Organization • http://www.uk.sagepub.com/upmdata/27411_7.pdf 33