Theories 4 8

8/6/2019 Theories 4 8

http://slidepdf.com/reader/full/theories-4-8 1/11

1880 – 1949

The Hawthorne effect refers to a phenomenon which is thought to occur when people observed

during a research study temporarily change their behavior or performance (this can also bereferred to as demand characteristics). Others have broadened the definition to mean that

 people’s behavior and performance change following any new or increased attention. TheHawthorne studies have had a dramatic effect on management in organizations andunderstanding the impact of different factors in the workplace.

The purpose of the original experiments was to study the effect of lighting on workers’

 productivity. When researchers found that productivity almost always increased after a change in

illumination, no matter what the level of illumination was, a second set of experiments began,supervised by Harvard University  professors Elton Mayo, Fritz Roethlisberger, and William J.

Dickson.

They experimented on other types of changes in the working environment, using a study group

of five young women. Again, no matter the change in conditions, the women nearly always produced more. The researchers reported that they had accidentally found a way to increase

 productivity. The effect was an important milestone in industrial and organizational psychology

and in organizational behavior, bringing awareness to the impact of social factors andsocialization in the workplace. In this way, management and researchers alike recognize that

 people are essentially social beings, and their relationships with others are highly significant in

everything that they do.

However, some researchers have questioned the validity of the effect because of theexperiments’ design and faulty interpretations. Thus, the Hawthorne effect refers not only to the

findings relating to productivity, but also to the issue of people's behavior being changed by the

experimental study itself, which confounds the factors under investigation.

Definition

The Hawthorne experiments sought to determine the motivating factors behind success and

 productivity in the work place. The hypothesis focused on economic factors being the biggest

8/6/2019 Theories 4 8

http://slidepdf.com/reader/full/theories-4-8 2/11

contributor to work place success.[1] However, the results suggested different factors were

important.

Social factors of the employment itself were found to be the biggest motivator in job performance, mainly how much attention was being paid to individual employees. The

Hawthorne effect is, essentially, the positive effect on a person or group's behavior fromknowingly being watched. It is a positive effect because when a person suspects they are being

observed, they are more prone to act at a higher level of efficiency than they normally act.[2]

Another way to interpret this is the failure on the part of the experimenters to identify that their 

observation or experiment is motivating the subjects to act differently than they normally do;

they act in a way that they think the scientists want them to act.[3]

They experimented on other types of changes in the working environment, using a study groupof five young women. Again, no matter the change in conditions, the women nearly always

 produced more. The researchers reported that they had accidentally found a way to increase

 productivity. Hence the term ‘Hawthorne Effect’.

In other words: the Hawthone studies gave scientific evidence of the fact that attention is a

resource worth managing. In an earlier post I have argued that Time, Money and Manpower are

not the only resources you should be managing. Management is the art of working with people,

so it is pretty useful to know what drives people. The answer to this question is attention andfeedback on results. That is because every human being has a fundamental need to be proud of 

what he or she is doing. Spening attention means granting them that opportunity.

The one thing you need to know about the Hawthorne effect is that it is by far the most

mentioned management term used by academics. However, to the same extent that this term isabundant in management books, the concept of attention management is underdeveloped.

Attention Management is at ground zero as you are reading this, although the scientific evidenceis gathering dust for almost 80 years now. There is still some work at hand if we want to make itto the league of Money, Time and Manpower.

illespie, G., “Manufacturing Knowledge, A History of the Hawthorne Experiments”, Cambridge

University Press, 1991

Mayo, E., “The Human Problems of an Industrial Civilisation”, Macmillan, 1933; 2nd ednHarvard University, 1946

8/6/2019 Theories 4 8

http://slidepdf.com/reader/full/theories-4-8 3/11

Peter Ferdinand Drucker (November 19, 1909 – November 11, 2005) was a writer,

management consultant, and self-described “social ecologist.”[1] His books and scholarly and popular articles explored how humans are organized across the business, government and the

nonprofit sectors of society.[2] He is one of the best-known and most widely influential thinkers

and writers on the subject of management theory and practice. His writings have predicted manyof the major developments of the late twentieth century, including privatization and

decentralization; the rise of Japan to economic world power; the decisive importance of 

marketing; and the emergence of the information society with its necessity of lifelong learning.[3]

In 1959, Drucker coined the term “knowledge worker " and later in his life considered knowledge

work productivity to be the next frontier of management.[4]

Management by Objectives (MBO) is a process of defining objectives within an organization

so that management and employees agree to the objectives and understand what they need to doin the organization.

The term "management by objectives" was first popularized by Peter Drucker in his 1954 book 

'The Practice of Management'.[1]

The essence of MBO is participative goal setting, choosing course of actions and decisionmaking. An important part of the MBO is the measurement and the comparison of the

employee’s actual performance with the standards set. Ideally, when employees themselves have

 been involved with the goal setting and choosing the course of action to be followed by them,they are more likely to fulfill their responsibilities.

According to George S. Odiorne, the system of management by objectives can be described as a

 process whereby the superior and subordinate managers of an organization jointly identify its

common goals, define each individual's major areas of responsibility in terms of the resultsexpected of him, and use these measures as guides for operating the unit and assessing the

contribution of each of its members.[2]

8/6/2019 Theories 4 8

http://slidepdf.com/reader/full/theories-4-8 4/11

Unique features and advantages of the MBO process

The basic principle behind Management by Objectives (MBO) is for employees to have a clear understanding of the roles and responsibilities expected of them. They can then understand how

their activities relate to the achievement of the organization's goal. MBO also places importance

on fulfilling the personal goals of each employee.

Some of the important features and advantages of MBO are:

1. Motivation – Involving employees in the whole process of goal setting andincreasing employee empowerment. This increases employee job satisfactionand commitment.

2. Better communication and Coordination – Frequent reviews and interactionsbetween superiors and subordinates helps to maintain harmoniousrelationships within the organization and also to solve many problems.

3. Clarity of goals4. Subordinates tend to have a higher commitment to objectives they set for

themselves than those imposed on them by another person.5. Managers can ensure that objectives of the subordinates are linked to the

organization's objectives

Steps In Management By Objectives Planning :-

1. Goal setting: The first phase in the MBO process is to define the organizational

objectives. These are determined by the top management and usually in consultation with

other managers. Once these goals are established, they should be made known to all the

members. In setting objectives, it is necessary to identify "Key-Result Areas' (KRA).2. Manager-Subordinate involvement: After the organizational goals are defined, the

subordinates work with the managers to determine their individual goals. In this way,everyone gets involved in the goal setting.

3. Matching goals and resources: Management must ensure that the subordinates are

 provided with necessary tools and materials to achieve these goals. Allocation of 

resources should also be done in consultation with the subordinates.4. Implementation of plan: After objectives are established and resources are allocated, the

subordinates can implement the plan. If any guidance or clarification is required, they can

contact their superiors.5. Review and appraisal of performance: This step involves periodic review of progress

 between manager and the subordinates. Such reviews would determine if the progress issatisfactory or the subordinate is facing some problems. Performance appraisal at thesereviews should be conducted, based on fair and measurable standards.

8/6/2019 Theories 4 8

http://slidepdf.com/reader/full/theories-4-8 5/11

8/6/2019 Theories 4 8

http://slidepdf.com/reader/full/theories-4-8 6/11

operational administrative decision should be correct and efficient, and it must be practical to

implement with a set of coordinated means.

Any decision involves a choice selected from a number of alternatives, directed toward anorganizational goal or subgoal. Realistic options will have real consequences consisting of 

 personnel actions or non-actions modified by environmental facts and values. In practice, someof the alternatives may be conscious or unconscious; some of the consequences may be

unintended as well as intended; and some of the means and ends may be imperfectlydifferentiated, incompletely related, or poorly detailed.

The task of rational decision making is to select the alternative that results in the more preferred

set of all the possible consequences. This task can be divided into three required steps:

1. the identification and listing of all the alternatives;2. the determination of all the consequences resulting from each of the alternatives; and

3. the comparison of the accuracy and efficiency of each of these sets of consequences.[13]

Any given individual or organization attempting to implement this model in a real situation

would be unable to comply with the three requirements. It is highly improbable that one couldknow all the alternatives, or all the consequences that follow each alternative.

The question here is: given the inevitable limits on rational decision making, what other 

techniques or behavioral processes can a person or organization bring to bear to achieve

approximately the best result? Simon writes:

“The human being striving for rationality and restricted within the limits of his

knowledge has developed some working procedures that partially overcome these

difficulties. These procedures consist in assuming that he can isolate from the rest of theworld a closed system containing a limited number of variables and a limited range of 

consequences.”[14]

Administrative Behavior, as a text, addresses a wide range of human behaviors, cognitive

abilities, management techniques, personnel policies, training goals and procedures, specialized

roles, criteria for evaluation of accuracy and efficiency, and all of the ramifications of communication processes. Simon is particularly interested in how these factors directly and

indirectly influence the making of decisions.

Weaving in and out of the practical functioning of all of these organizational factors are two

universal elements of human social behavior that Simon addresses in Chapter VII—The Role of Authority,[15] and in Chapter X—Loyalties, and Organizational Identification.[16]

Authority is a well studied, primary mark of organizational behavior, and is straightforwardly

defined in the organizational context as the ability and right of an individual of higher rank todetermine the decision of an individual of lower rank. The actions, attitudes, and relationships of 

the dominant and subordinate individuals constitute components of role behavior that can vary

widely in form, style, and content, but do not vary in the expectation of obedience by the one of 

8/6/2019 Theories 4 8

http://slidepdf.com/reader/full/theories-4-8 7/11

superior status, and willingness to obey from the subordinate. Authority is highly influential on

the formal structure of the organization, including patterns of communication, sanctions, and

rewards, as well as on the establishment of goals, objectives, and values of the organization.

Decisions can be complex admixtures of facts and values. Information about facts, especially

empirically proven facts or facts derived from specialized experience, are more easilytransmitted in the exercise of authority than are the expressions of values. Simon is primarily

interested in seeking identification of the individual employee with the organizational goals andvalues. Following Lasswell[17]  he states that “a person identifies himself with a group when, in

making a decision, he evaluates the several alternatives of choice in terms of their consequences

for the specified group”.[18] A person may identify himself with any number of social,geographic, economic, racial, religious, familial, educational, gender, political, and sports

groups. Indeed, the number and variety are unlimited. The fundamental problem for 

organizations is to recognize that personal and group identifications can either facilitate or obstruct correct decision making for the organization. A specific organization has to deliberately

determine and specify in appropriate detail and clear language its own goals, objectives, means,

ends, and values.

Chester Barnard  pointed out that “the decisions that an individual makes as a member of anorganization are quite distinct from his personal decisions”.[19] Personal choices may determine

whether an individual joins a particular organization, and continue to be made in his or her 

extra–organizational private life. But, as a member of an organization, that individual makesdecisions not in relationship to personal needs and results, but in an impersonal sense as part of 

the organizational intent, purpose, and effect. Organizational inducements, rewards, and

sanctions are all designed to form, strengthen, and maintain this identification.

The correctness of decisions is measured by two major criteria:

1. adequacy of achieving the desired objective; and2. the efficiency with which the result was obtained. Many members of the organization

may focus on adequacy, but the overall administrative management must pay particular 

attention to the efficiency with which the desired result was obtained.

Simon's contributions to research in the area of decision-making have become increasinglymainstream in the business community thanks to the growth of management consulting.

Decision making by Herbert Simon starts by gathering the informations about that decision. We

need to know as much as we can about subject of decision. After we have as many informations

as possible, we will be able to develop many alternatives. With other words we will be able tosee which decisions we can make about given problem. We need to consider as many

alternatives as possible in order to make a good and right decision.

Once we have all possible alternatives by our mind gathered and thinked through, we needto select one. We need to decide which one is the best one. As a last step we need to implement

that decision into given problem. I know this is very short explanation but i do not know how

8/6/2019 Theories 4 8

http://slidepdf.com/reader/full/theories-4-8 8/11

else to explain it. This is how Herbert Simon described decision making in his work 

Administrative Behavior. He even won a Nobel prize for it!

Mintzberg’s Ten Management Roles are a complete set of behaviours or roles within a

 business environment. Each role is different, thus spanning the variety of all identifiedmanagement behaviours. When collected together as an integrated whole (gestalt), the

capabilities and competencies of a manager can be further evaluated in a role-specific way.

The Ten Management Roles

The ten roles explored in this theory have extensive explanations which are briefly

developed here:

* Figurehead: All social, inspiration, legal and ceremonial obligations. In this light, the manager 

is seen as a symbol of status and authority.* Leader: Duties are at the heart of the manager-subordinate relationship and include structuring

and motivating subordinates, overseeing their progress, promoting and encouraging their 

development, and balancing effectiveness.

* Liaison: Describes the information and communication obligations of a manager. One mustnetwork and engage in information exchange to gain access to knowledge bases.

* Monitor: Duties include assessing internal operations, a department’s success and the problems

and opportunities which may arise. All the information gained in this capacity must be stored andmaintained.

* Disseminator: Highlights factual or value based external views into the organisation and to

subordinates. This requires both filtering and delegation skills.* Spokesman: Serves in a PR capacity by informing and lobbying others to keep key

8/6/2019 Theories 4 8

http://slidepdf.com/reader/full/theories-4-8 9/11

stakeholders updated about the operations of the organisation.

* Entrepreneur: Roles encourage managers to create improvement projects and work to delegate,

empower and supervise teams in the development process.* Disturbance handler: A generalist role that takes charge when an organisation is unexpectedly

upset or transformed and requires calming and support.

* Resource Allocator: Describes the responsibility of allocating and overseeing financial,material and personnel resources.

* Negotiator: Is a specific task which is integral for the spokesman, figurehead and resource

allocator roles.

As a secondary filtering, Mintzberg distinguishes these roles by their responsibilities towardsinformation. Interpersonal roles, categorised as the figurehead, leader and liason, provide

information. Informational roles link all managerial work together by processing information.

These roles include the monitor, the disseminator and the spokesperson. All the remaining rolesare decisional, in that they use information and make decisions on how information is delivered

to secondary parties.

Mintzberg’s Managerial Roles

Category 

Role 

Activity

Examples Informational 

Monitor  

Seek and acquire work-related information

Scan/read trade press, periodicals, reports; attend seminars and

training; maintain personal contacts 

Disseminator  

Communicate/ disseminate information to others within the organization 

Send memos and reports; inform staffers and subordinates of decisions

Spokesperson 

Communicate/transmit information to outsiders 

Pass on memos, reports and informational materials; participate in

conferences/meetings and report progress

Interpersonal 

Figurehead  

Perform social and legal duties, act as symbolic leader

Greet visitors, sign legal documents, attend ribbon cutting ceremonies,

host receptions, etc. 

8/6/2019 Theories 4 8

http://slidepdf.com/reader/full/theories-4-8 10/11

Leader  

Direct and motivate subordinates, select and train employees 

Includes almost all interactions with subordinates 

Liaison 

Establish and maintain contacts within and outside the organization 

Business correspondence, participation in meetings with representativesof other divisions or organizations.

Decisional 

Entrepreneur 

Identify new ideas and initiate improvement projects 

Implement innovations; Plan for the future 

Disturbance Handler  

Deals with disputes or problems and takes corrective action 

Settle conflicts between subordinates; Choose strategic alternatives;

Overcome crisis situations 

Resource Allocator 

Decide where to apply resources

Draft and approve of plans, schedules, budgets; Set pr

The organizational configurations framework of Mintzberg is a model that describes six

valid organizational configurations:

1. Entrepreneurial organization

2. Machine organization

3. Professional organization

4. Diversified organization5. Innovative organization

6. Missionary organization

Regarding the coordination between different tasks, Mintzberg defines the followingmechanisms:

1. Mutual adjustment, which achieves coordination by the simple process of informal

communication (as between two operating employees)

2. Direct supervision, is achieved by having one person issue orders or instructions toseveral others whose work interrelates (as when a boss tells others what is to be done, one

step at a time)3. Standardization of work processes, which achieves coordination by specifying the

work processes of people carrying out interrelated tasks (those standards usually being

developed in the technostructure to be carried out in the operating core, as in the case of 

the work instructions that come out of time-and-motion studies)4. Standardization of outputs, which achieves coordination by specifying the results of 

different work (again usually developed in the technostructure, as in a financial plan that

8/6/2019 Theories 4 8

http://slidepdf.com/reader/full/theories-4-8 11/11

specifies subunit performance targets or specifications that outline the dimensions of a

 product to be produced)5. Standardization of skills (as well as knowledge), in which different work is coordinated

 by virtue of the related training the workers have received (as in medical specialists - say

a surgeon and an anesthetist in an operating room –responding almost automatically to

each other’s standardized procedures)6. Standardization of norms, in which it is the norms infusing the work that are controlled,

usually for the entire organization, so that everyone functions according to the same set

of beliefs (as in a religious order)

According to the organizational configurations model of Mintzberg each organization can

consist of a maximum of six basic parts:

1. Strategic Apex (top management)

2. Middle Line (middle management)

3. Operating Core (operations, operational processes)

4. Technostructure (analysts that design systems, processes, etc.)5. Support Staff (support outside of operating workflow)

6. Ideology (halo of beliefs and traditions; norms, values, culture)