The History of Management Appendix Chapter One Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

The History of Management

AppendixChapter One

Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

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

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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.

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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.

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TIME-MOTION STUDIESFrank & 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 efficiencyunder different levels of light.

• Productivity increased regardlessof light condition.

• Researchers decided it was ahuman or psychological factor

• Hawthorne Effect- People actdifferently when they know they arebeing 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

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*MASLOW’S

HIERARCHY of NEEDSLG3

Motivation and Maslow’s Hierarchy of Needs

10-13

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*MASLOW’S

THEORY of MOTIVATION

• 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.

LG3

Motivation and Maslow’s Hierarchy of Needs

10-14

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*HERZBERG’S

MOTIVATING FACTORS

• Herzberg’s research centered on two questions:

LG4

Herzberg’s Motivating Factors

- 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

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*HERZBERG’S MOTIVATORS and

HYGIENE FACTORSLG4

Herzberg’s Motivating Factors

Motivators Hygiene Factors

Work itself Company policy and administration

Achievement Supervision

Recognition Working conditions

Responsibility Interpersonal relations

Growth and advancement

Salary, status and job security

10-16

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*JOB CONTENT

• 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.

LG4

Herzberg’s Motivating Factors

10-17

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*JOB ENVIRONMENT

• 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.

LG4

Herzberg’s Motivating Factors

10-18

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*GOAL-SETTING THEORY

• Goal-Setting Theory -- Setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated.

LG6

Goal-Setting Theory and Management by Objectives

10-19

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*APPLYING GOAL-SETTING

THEORY

• 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.

LG6

Goal-Setting Theory and Management by Objectives

10-20