Chapter II

Evolving Management Approaches and Behavioral Management

PrefaceEven diverse fields and management thoughts are integrated in Management Innovation and Organization Development, Behavioral Management Thoughts are one of those that play key roles, especially teamwork and behaviors, in both fields. Also, some contemporary thoughts and theories contribute to shape them up and build over the rusty management orthodoxies as well.

Objectives

After studying the chapter, students should be able to..•Describe evolution of management approaches and list the major phrase of such approaches and theories•Explain how the behavioral management theories is so important to management innovation and organization development•Explain what Mary Parker Follett’s management thoughts yield on the fields of management innovation and organization development•Explain the roles of behavioral management theories in the fields of management innovation and organization development

Evolution of Management Theory: contributions of thought to Management Innovation & Organization Development

Job Specialization

Adam Smith (1723-1790)Realized that job specialization resulted in much higher efficiency and productivity• Breaking down the total job allowed for

the division of labor in which workers became very skilled at their specific tasks.

Job Specialization

Scientific Management

• Characterized by a worker-task relationship, with efficiency as its primary goal

• Associated with the industrial era in Europe and the U.S.

• Defined by Fredrick W. Taylor (1856-1915)

Taylor’s Principles:

1. Study the way workers perform tasks and experiment with ways of improving them

2. Determine rules and SOPs that govern task performance

3. Select and train (according to the rules) the worker for the task

4. Establish a performance standard, and develop a pay system that rewards above-standard performance

How were these applied? What were some side-effects?

• Managers didn’t always reward increased output

• Jobs became dull or stressful• Increased turnover• Workers restricted output

(sandbagging)

Followers of Taylor

• Frank (1868-1924) and Lillian (1878-1972) Gilbreth

• Time-and-motion study

• Also studied job fatigue

Administrative Management Theory

Concerned with how to design the organizational structure for high efficiency and effectiveness

Max Weber (1864-1920): Principles of Bureaucracy

1. Manager’s formal authority derives from his position

2. People should occupy positions because of performance, not social standing

3. Each person’s formal authority and responsibilities should be clearly specified

4. Positions should be arranged hierarchically

5. Managers should create a well-defined system of rules, SOPs, and norms

Henri Fayol (1841-1925) Principles of Management• Division of labor• Authority and

responsibility• Unity of command• Line of authority• Centralization• Unity of direction• Equity

•Order•Initiative•Discipline•Remuneration of personnel•Stability of tenure of personnel•Subordination of personal interest•Esprit de corps

Behavioral Management Theory

Mary Parker Follett (1868-1933)• “Authority should go with

knowledge”• First advocate of empowerment, self-

managed teams

Behavioral Management Theory• Hawthorne studies• Human relations movement• The workings of the informal

organization (norms)• Organizational behavior

Theory X and Theory Y

Douglas McGregor (1906-1964)• Theory X/ Theory Y• Believed that one or the other

assumption tended to drive managerial behavior in a particular organization

• What are examples?

Theory X and Theory Y

Management Science TheoryGenerally, a quantitative approach• Quantitative management

(modeling, simulation, queuing theory)• Operations management (production)• Total quality management (TQM) • Management Information Systems

(MIS)

Organizational Environment Theory (1960s) :Open Systems View

Closed System

• System that operates as though it is self-contained

• Likely to experience entropy and disintegrate

Contingency TheoryThe idea that the organizational structures and control systems are contingent on characteristics of the external environment

Contingency Theory

Mechanistic structures:• Central authority• Clear tasks and rules• Close supervisionOrganic structures:• Decentralized• More authority to middle and line

managers• More cross-functioning and

empowerment

Contingency TheoryThe idea that the organizational structures and control systems are contingent on characteristics of the external environment

Thoughts of Contribution Management Innovation

Behavioral Management Thought•Mary Parker Follett (1868-1933)“Authority should go with knowledge”First advocate of empowerment, self- managed teamsManagement Science Theories•Quantitative Approaches; TQMOrganization Environment Theory•Close systemsContingency Theory•Organizational theory, design, and changes

• Commitment to a big management problem

• Novel principles that illuminate new approaches

• A deconstruction of management orthodoxies

• Analogies from a typical organizations that redefine what’s possible.

Thoughts of Contribution Organizational Development

Behavioral Management Thoughts•M.P. Follett’s thought•Hawthorne studies•Human relations movement•The workings of the informal organization (norms)•Organizational behavior

• Application of behavioral science techniques to improve an organization’s health and effectiveness through its ability to cope with environmental changes, improve internal relationships, and increase learning and problem-solving capabilities