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)