Mana Chapter 2 Powerpoint

8/10/2019 Mana Chapter 2 Powerpoint

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Management 3e - Chapter 2

List the characteristics and principles ofeach of the three classical managementapproaches.

Describe the principles of the variousbehavioural management approaches.

Explain the foundations of modern

management thinking.

Chapter 2 Learning Objectives

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Management

How do you think the roles of managershave changed and will be changing in thefuture.

How do you think the management ofpeople has changed?

WHY?

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KPMG Survey, Journal ofEngineering , Dec 2013.

Over 90 Percent of U.S. Companies Are ChangingExisting Business Models

More than 9 out of 10 - to meet customer demands,embrace and leverage disruptive technologies, andremain competitive in the global business landscape

Executives from more than 900 U.S.-based

multinational companies - 93 percent oforganizations are changing business models.

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Reasons for business model changes

changing customer focus and buying patterns

new technologies

domestic competition

a changing global environment

balancing growth with shrinking budgets, whileraising efficiency, foreign competitors, awidening global footprint and industryconsolidation

51 percent say their organization's transformationapproach continually aligns their business modelwith their strategy

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Management 3e - Chapter 2

Major branches in the classical approach to management.

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Classical Management Approaches


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Scientific management(Frederick Taylor)

Workers were taught and helped by supervisors to alwaysdo their jobs in the right ways

To improve the productivity time study

Develop rules of motion, standardized work implements,

and proper working conditions for every job.

Carefully select workers with the right abilities for the

job.

Carefully train workers and provide proper incentives.

Support workers by carefully planning their work and

removing obstacles.

Make results-based compensation a performance

incentive

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Scientific management (the Gilbreths)

Motion study

Science of reducing a job or task to its basic

physical motions.

Eliminating wasted motions improves

performance.

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1. Division of labour- specialization

2. Authority- managersright to give orders

3. Discipline- obedience and respect

4. Unity of command- employee reporting to 1 manager

5. Unity of direction- single plan

6. Subordination of individual interests- work issues

7. Remuneration- fair compensation

8. Centralization- decision making at the top

9. Scalar chain- formal chain of command

10. Order- place for everything11. Equity- kind and fair treatment

12. Personnel tenure- lifetime employment

13. Initiative- work with energy

14. Esprit de corp- harmony and morale9

Classical Management ApproachesAdministrative principles (Henri Fayol)



Administrative principles (Henri Fayol) rules of management:

Foresight to complete a plan of action for thefuture.

Organizationto provide and mobilize resourcesto implement the plan.

Command to lead, select, and evaluate workers toget the best work toward the plan.

Coordination to fit diverse efforts together and

ensure information is shared and problems solved. Control to make sure things happen according to

plan and to take necessary corrective action.

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Administrative principles (Henri Fayol) key

principles of management:

Scalar chainthere should be a clear and unbroken

line of communication from the top to the bottom ofthe organization.

Unity of commandeach person should receive

orders from only one boss.

Unity of direction one person should be in charge ofall activities with the same performance objective.

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Bureaucratic organization (Max Weber)

Bureaucracy

An ideal, intentionally rational, and very

efficient form of organization.

Based on principles of logic, order, and

legitimate authority.

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Characteristicsof bureaucraticorganizations: Clear division of labour

Clear hierarchy ofauthority

Formal rules andprocedures

Impersonality

Careers based on merit

Possibledisadvantages of

bureaucracy: Excessive paperwork or red

tape

Slowness in handling problems

Rigidity in the face of shiftingneeds

Resistance to change

Employee apathy

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Behavioural Management - HumanResource approaches include:

Folletts notion of organizations as communities

Hawthorne studies

Maslows theory of human needs

McGregors Theory X and Theory Y

Argyrisstheory of adult personality

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Behavioural Management Approaches



Foundations in the behavioural or human resourceapproaches to management

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Organizations as Communities(Mary ParkerFollett)

Groups and human cooperation:

Groups are mechanisms through which individualscan combine their talents for a greater good.

Organizations are cooperating communities ofmanagers and workers.

Managers job is to help people in the organizationcooperate and achieve an integration of interests.

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Hawthorne studies Initial study examined how economic incentives

and physical conditions affected worker output.

No consistent relationship found.

Psychological factors influenced results.

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Hawthorne studies(cont.) Employee attitudes, interpersonal relations and

group processes.

Some things satisfied some workers but notothers.

People restricted output to adhere to groupnorms.

Lessons from the Hawthorne Studies:

Social and human concerns are keys to

productivity. Hawthorne effect people who are singled

out for special attention perform as expected.

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Maslows hierarchy of human needs.

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Maslows theory of human needs Deficit principle

A satisfied need is not a motivator of behaviour.

Progression principle

A need becomes a motivator once the precedinglower-level need is satisfied.

Both principles cease to operate at self-actualizationlevel.

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23Management 3e - Chapter 2

McGregors Theory Xassumes that workers:

Dislike work

Lack ambition

Are irresponsible

Resist change

Prefer to be led

McGregors Theory Yassumes that workers are:

Willing to work Capable of self control Willing to accept responsibility Imaginative and creative

Capable of self-direction

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Implications of Theory X and Theory Y: Managers create self-fulfilling prophecies.

Theory X managers create situations where workersbecome dependent and reluctant.

Theory Y managers create situations where workersrespond with initiative and high performance.

Central to notions of empowerment and self-management.

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Argyrisstheory of Adult Personality

Classical management principles and practices inhibitworker maturation and are inconsistent with the

mature adult personality.

Taylor no self-actualization

Weber dependent and passive workers

Fayol psychological failure

Management practices should accommodate the

mature personality by:

Increasing task responsibility

Increasing task variety

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Management science or operationsresearch

The scientific applications of mathematicaltechniques to management problems

Mathematical forecastingmakes futureprojections useful for planning

Inventory modelingcontrols inventoriesmathematically

Linear programmingcalculates how toallocate scarce resources among competing uses

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Modern Management Foundations


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Management science or operations research Queuing theory allocates service

personnel/workstations to minimize service cost andcustomer waiting time

Network modelsbreak large tasks into smallercomponents for better coordination

Operations management is the study of howorganizations produce goods and services most

efficiently and effectively

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Organizations as Systems System

Collection of interrelated parts that function

together to achieve a common purpose.

Subsystem

A smaller component of a larger system.

Open systems

Organizations that interact with theirenvironments in the continual process of

transforming resource inputs into outputs.

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Organizations as complex networks of interactingsubsystems.

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Contingency thinking Tries to match managerial responses with

problems and opportunities unique to differentsituations.

Especially individual or environmentaldifferences.

No one best way to manage.

Appropriate way to manage depends on thesituation (strategy, environment, technology, size,age)

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Quality management Managers and workers in progressive organizations are

quality conscious.

Quality and competitive advantage are linked.

Total quality management(TQM)

Comprehensive approach to continuous quality

improvement for a total organization.

Creates context for the value chain.

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Cases

Adapting to a Workforce without

Borders

Which implications of todaysworkplace do

you find in this article? Which management approaches are used

in hiring?

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Cases


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Cases

GOOGLE

Which management approaches areapplied at GOOGLE?

Which elements of change in the

organizations can we see at GOOGLE? Which of the skills of Katz do GOOGLEs 8

key behaviors correspond to?

How do yo think GOOGLE is an example ofhigh-performance organization?

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Preparations for Next Week

Schermerhorn & Wright Chapter 3

Sobeys Without Sobey, Canadian Business,

Mar. 2014, 87 (2) Drinking Up, Forbes, Oct. 30, 2006

Right Up the Middle: How the Israeli

Firms Go Global, HBR, May 2014

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Mana Chapter 2 Powerpoint

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