CLASSICAL MANAGEMENT
SCIENTIFIC APPROACHES
http://www.youtube.com/watch?v=vsSjsnny8JQ
Requirements for a “Profession”
Formal education requirement for entry
System of accreditation or licensing
Clearly defined clients
Profession-wide code of ethics
“Classical Approach” - Frederick Taylor
Four Guiding Principles:
Proper working implements, conditions & rules of motion: develop a science for every job
Select right worker with right abilities
Train worker & give incentive to co-operate: piece-rate pay
Give necessary support (E.G., REST PERIODS).
Francis & Lillian Gilbreith
Time & Motion Studies: reduce a job to its physical motions i.e. bricklayers
Soldiering: working below capability
“Cheaper by the Dozen”
Concept still being used today
The Original “Efficiency Experts”
Conclusions of Scientific Approach
A use results-based compensation
B design jobs to maximize a person’s performance potential
C carefully select people
D train people to perform to the best of their abilities
E provide workers with supervisory support
HENRY GANTT
Believed in offering bonuses for work performance
Introduced the GANTT chart
The GANTT chart is a planning, monitoring, and control mechanism which is quite simple in concept but a powerful tool
Basically more complex projects are systematically broken down and plotted across time
ADMINISTRATIVE “Make every employee an Owner”
Henry Fayol - Rules & Duties Of Mgmt.
foresight: complete a plan
organization: provide resources needed to implement plan
command: get the best out of people
coordination: ensure subunits fit together
control: verify progress, take action
Henry Fayol - continued
Fayol’s Mgmt. Principles:Scalar chain: clear chain of
commandUnity of command: receive
directions from one person
Unity of direction: one person in charge of all related activities
Mary Parker FollettConcerned with administration
Proposed: 1) Employee-ownership2) Proposed a systems theory
point of view 3) Believed in corporate social
responsibility
Profit Sharing
Gain Sharing
Bring in improvements
Greed/Ethics
Unions
CLASSICAL APPROACH; BUREAUCRATIC ORGANIZATION
Max Weber
Weber’s View of Bureaucracy:clear division of labourLots of rules – Military based Jobs filled with expertsHierarchy of authoritycareers based on merit
WEBERS IDEAL BUREAUCRACY
Advantages EfficientFairConsistentPredictableRational
WEBERS IDEAL BUREAUCRACY
Disadvantages Too much Red Tape slow to react to change Rigid in shifting
customer needs & wants
Not spontaneous
BEHAVIOURAL MANAGEMENT APPROACH
Theory: Hawthorne
Turning point in Management studies focusing on social & human concerns vs technical
Started Human Relations movement where productivity improved with good people skills
Evolved into O.B.
Hawthorne Effect
Lessons from Hawthorne StudiesA looked at people’s feelingsB if singled out for special attention people will
perform as expectedC set stage for study of OB (organizational
behaviour: study of individuals and groups in an organization
ABRAHAM MASLOW HIERARCHY OF NEEDS:
NeedsFive Levels
1) Self-Actualization
2) Esteem
3) Social
4) Safety
5) Physiological
ABRAHAM MASLOW HIERARCHY OF NEEDS:
Lessons from Maslow
Managers who satisfy human needs will achieve productivity
DEFICIT PRINCIPLE : Satisfied needs are not motivators
PROGRESSION PRINCIPLE: Higher order needs are activated only when lower order needs have been satisfied
McGregor : Theory X & Y
Theory X: Worker dislike job, lack ambition, resist change, are followers & irresponsible
Theory Y: Employee participation, involvement, empowerment, self-management.
McGregor : Theory X & YLessons from Theory X and Theory Y
A subordinates can act in ways that confirm a manager’s expectation
B Theory X Mgrs: overly directive, narrow and control-oriented
C Theory X Mgrs: give subordinates more participation, freedom and responsibility in their work
McGregor : Theory X & YLessons from Theory Y assume workers are:
Willing to workWilling to accept responsibilityCapable of self-directionCapable of self inner controlCapable of imagination
QUANTITATIVE MANAGEMENT Foundation: Mathematical techniques can be
used to improve managerial decisions
3 Characteristics:1) focus on decision making where mgmt must take
action
2) economic decision criteria ( costs, revenues, ROI)
3) involve mathematical models that follow sophisticated rules & formulas ; need computer models to run
USE OF REGRESSION ANALYSIS:
POSSIBLE FACTORS:
1) SALES EXPERTISE;
2) EXISTING COMPETITION
3) CLIMATE/ENVIRONMENT
4) STORE LOCATION
5) LOCALE (URBAN SUBBURBAN, RURAL)
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