Post on 04-Apr-2018
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Classical management theories
By:Er. Azhar Shaikh
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Main idea
of classical organizational theory
There is one best way to perform a task
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Classical organizational theory
espouses two perspectives:
Scientific managementfocusing on the management of
work and workers
Administrative management - addressing issues
concerning how overall organization should be structured
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Administrative Management Theory
Scientific Management Theory
Behavioral Management Theory
Management Science Theory
Organizational Environment Theory
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Frederick Taylor
Taylor is born in Pennsylvania on March 20,1856
After studying in Europe, he plans to go to
Harvard, but does not pass the entrance exams
Instead Taylor works as a pattern maker at a
pump manufacturing company in Philadelphia
Later, he studies mechanical engineering atStevens, finishing in just three years.
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Midvale Steel Company
Taylor begins working for the Midvale steel Company in1878.
While there he succeeds in doubling the work of his men,
is soon promoted to foreman As foreman, he begins studying productivity as a means
of measuring of manufacturing.
Later he becomes the chief engineer at Midvale.
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Ingenuity and Accomplishments
Creates systems to gain maximum efficiency fromworkers and machines in the factory.
Focuses on time and motion studies to learn how to
complete a task in the least amount of time. Becomes consulting engineer for many other companies
PublishesThe Principles of Scientific Management
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Key Points of
Scientific Management
1. Scientific Job Analysisobservation, data gathering, andcareful measurement determine the one best way toperform each job
2. Selection of Personnelscientifically select and then
train, teach, and develop workers3. Management Cooperationmanagers should cooperatewith workers to ensure that all work is done in accordancewith the principles of the science that developed the plan
4. Functional Supervisingmanagers assume planning,
organizing, and decision-making activities, and workersperform jobs
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Demise of Scientific Management
In hands of business
Scientific Management = tool to exploit labor
By 1915growing labor against Taylorism
Union members/100 workers: 1880=1.8; 1900=7.5;1914=10.5
Congress investigates and US Commission on
Industrial Relations issues Hoxie Report (1915)
declaring Scientific Management as exploitive of labor.
It will influence Management thoughtbut Scientific
Management is deaduntil rediscovered in Japan
the 1970/s wave of Quality Management
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Management of the Organization While in the US Management focuses on individual at
work
In Europe early theory (that in 1930s will become part of
American management) focuses on the organization
Administrative Management Theory.
Max Weber (German)focuses on bureaucracy as a
formal organization to gain efficiency.
Henri Fayol (French)focuses on 14 principles of
Administration as One Right Way
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Henri Fayol
Engineer and French industrialist
In France works as a managing director in coal-mining
organization
Recognizes to the management principles rather thanpersonal traits
While others shared this belief, Fayol was the first to
identify management as a continuous process of
evaluation.
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Fayols 5 Management Functions
Fundamental roles performed by all managers:Planning
Organizing
Commanding
Coordinating
Controlling
Additionally Fayol recognizes fourteen principles that should guidethe management of organizations.
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Fayols 14 Principles:
1. Division of Workimproves efficiency through a reduction ofwaste, increased output, and simplification of job training
2. Authority and Responsibilityauthority: the right to give orders
and the power to extract obedienceresponsibility: the
obligation to carry out assigned duties
3. Disciplinerespect for the rules that govern the organization
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4. Unity of Commandan employee should receive orders from onesuperior only
5. Unity of Directiongrouping of similar activities that are directed
to a single goal under one manager
6. Subordination of Individual Interests to the General Interestinterests of individuals and groups should not take precedence
over the interests of the organization as a whole.
7. Remuneration of Personnelpayment should be fair and
satisfactory for employees and the organization8. Centralizationmanagers retain final responsibilitysubordinates
maintain enough responsibility to accomplish their tasks
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9. Scalar Chain (Line of Authority)the chain of command from theultimate authority to the lowest
10. Orderpeople and supplies should be in the right place at theright time
11. Equitymanagers should treat employees fairly and equally
12. Stability of Tenure of Personnelmanagerial practices thatencourage long-term commitment from employees create a stableworkforce and therefore a successful organization
13. Initiativeemployees should be encouraged to develop and carryout improvement plans
14. Esprit de Corpsmanagers should foster and maintainteamwork, team spirit, and a sense of unity among employees
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Time and Motion Study
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Frank and Lillian Gilbreth
Frank Gilbreth engineer; pioneered Scientific Methods inbricklaying.
Member of Taylor Society (SAM)
Lillian Gilbreth engineer/industrial psychologist (PhD);stress and fatigue
Together 12 Children Cheaper by the Dozen
Time and motion studies Breaking up each job action into its components
(Therblig). Finding better ways to perform the action. Reorganizing each job action to be more efficient.
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Time and Motion Study:
Defined
A method created to determine the correct
time it takes to complete a certain task A method to establish the one best way to
perform a task
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Time and Motion Study:
Purposes
To end goofing off and to establish what
constituted a fair days work To make sure that the job being evaluated does
not include any unnecessary motion by the
worker
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Time and Motion Study:
History
Frederick W. Taylor and his followersdeveloped and refined the Time Study
Frank B. Gilbreth and his wife Lilliandeveloped and refined the Motion Study
Historically the two studies are discussedindividually, today they generally are
discussed as one
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Time and Motion Study:In your
Organization
Historically: T&M Studies
were used in the
manufacturing industry to
evolve pay scales with the
thought that money was
the only motivation for
work
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Time and Motion Study:
Objective
The objective of the Time and Motion Study is to determine a
normal or average time for a job, by using observers torecord exactly how much time is being devoted to each task.
Example for a an effective time & motion study utilization
(Unknowingly)
http://media/AZZ%20SANDISK/CMP%20Management%20Theories/Fastest%20ROTI%20(Episode%202).mp4http://media/AZZ%20SANDISK/CMP%20Management%20Theories/Fastest%20ROTI%20(Episode%202).mp4http://media/AZZ%20SANDISK/CMP%20Management%20Theories/Fastest%20ROTI%20(Episode%202).mp4http://media/AZZ%20SANDISK/CMP%20Management%20Theories/Fastest%20ROTI%20(Episode%202).mp47/30/2019 Cmp Module i
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Webers Principles of Bureaucracy1. Formal authority comes from ones organizational
position (Bureaucracy = rational power)
2. Positions should be held based on merit, not social
standing or personal contacts. (Break with traditionalpower)
Each positions responsibilities and relationship to other positionsshould be clearly specified. (Roles)
Authority in a bureaucracy is hierarchical power.
Formalization = well-defined system of rules (SoPs), operating procedures, and norms = control via rational
power.
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The Hawthorne Studies: New
DirectionThe Hawthorne Experiments were a series of studies intoworker productivity performed at the Cicero plant beginning in1924 and ceasing in 1932, initially conducted by the NationalResearch Council and later by Western Electric and HarvardUniversity
Illumination Studies, 1924 -1927: Does Use of Electric LightsIncrease Productivity?
Hypothesis: Increased illumination is correlated with higherproductivity.
Finding: No relationship
Hawthorne effect or "halo effect Researcher
affects outcome (bias)
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2nd
Hawthorne ExperimentRelay Assembly Test Room Experiments, 1927-1929 Harvard researchteam set up experiment with 5 females from Relay Assembly area totest impact of incentives and work conditions on worker fatigue
There is no conclusive evidencethat these affected fatigue or
productivity.
Productivity and worker
satisfaction increase when
conditions are improved
and made worse.
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3rd
Hawthorne ExperimentMica-Splitting Test group, 1928 1930Relationship between work conditions andproductivity, by maintaining a piece-rate incentive
system and varying work conditions
Productivity increased by about 15% andresearchers concluded that productivity was
affected by non-pay considerationsConclusion: social dynamics were the basis
of worker performance.
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Hawthorne InterviewsPlant-wide Interview program, 1928-1931
1. Western Electric implemented a plant-wide
survey of employees to record their concerns andgrievances. From 1928 to 1930, 21,000employees were interviewed.
2. Data supported the research conclusion that
work improved when supervisors began to payattention to employees, that work takes place in asocial context in which work and non-workconsiderations are important, norms and groups
matter to workers.
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Hawthorne : Final ExperimentBank Wiring Observation group, 1931-1932The final test studying 14 male workers in the BankWiring factory to study the dynamics of the group when
incentive pay was introduced.There was no effect. Why?
Work group established a work norm a shared
expectation about how much work should be
performed in a day and stuck to it, regardless of
pay.
The conclusion: informal groups operate inthe work environment to manage behavior.
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Hawthorne Experiments -
ImportanceChanged perspective in management from Taylors engineeringapproach to a social sciences approach, leading to "HumanRelations" approach and, later, "Organization Behavior"approach:
Engineering approach subordinated to social sciencesManagers = leaders, motivators, communicators
At one time major contributors to Management theory worked onHawthorne experiments.
Elton Mayo - Human Relations
approach (to 1950s). Mayos viewslead to the construction of manager
as a leader.
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McGregor: Theory X, Theory YThere are two ways of perceiving people at work:Theory Y:Work is as natural as play or rest- not disliked..
Workers will exercise self-direction and
self-controlMeeting goals is satisfying and motivating. .
Workers seek responsibility. ...
Workers will be creative and are willing to do more.
Theory X:The average human inherently dislikes to work
So, people must be coerced, controlled, directed.Workers prefer this but want security.
The average worker is only partially utilized.
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Management Science ApproachPost World War II British use of mathematics,Operations Research, in military operations findapplications in US post war industrial
development.Quantitative management use ofmathematic models, linear programming,simulation systems and chaos theory to solvemanagement problems.
Operations management techniques used toanalyze all aspects of the production system.
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Management Science Approach-
Cont.Total Quality Management (TQM) analyzinginput, conversion, and output to increase productquality.
Management Information Systems (MIS) provides information vital for effective decisionmaking
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Systems Approach
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Mary Parker Follett
The Humanizing of Management
and focus on collaboration.Taylor ignored the human side of the work,Follett argued:Organizations are an interdependence of people.
People have own interests but also share commongoals which should be the basis of conflict resolution.
Use of power/coercion creates conflict. Peoplewill defer to the facts of a situation for authority.
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Contingency ApproachThere is no one best way.Organizing (and other) decisions that match the demands of the environmentprovide adaptation.
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So-What does a manager do?It depends on where they are in the organization:
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What do Top Managers Do?Myth FactWork is reflective andinvolve systematic planning.
Work is action oriented, stressedimmediate response, and work wasVaried.
No Regular Duties Duties are ritual and ceremonial,negotiations, and processing softinformation
Relies on formal MIS for
decision-making
Favor verbal, immediate information even
informal, soft data which is processed intocoherent picture
Management is aScience
Source: Mintzberg: The Managers Job
Relies on judgment and intuition toMake decisions
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Business Process
Reengineering
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Outsourcing
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Outsourcing
Outsourcing is the act ofone company contractingwith another company toprovide services thatmight otherwise beperformed by in-houseemployees
K l d M t
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Knowledge Management
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