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P.O.M CHAPTER 3

Chapter Overview

  • Subject Name: Principles of Management

  • Code: 3

  • Credit Hours: 3

  • Chapter: Behavioral Perspective

  • Institution: Lincoln University College

Historical Background of Management

  • Ancient Management:

    • Development of early management practices seen in construction such as the Egyptian pyramids and the Great Wall of China.

    • Venetians created floating warship assembly lines.

  • Adam Smith (1776):

    • Authored 'The Wealth of Nations,' marking a shift to structured economic practices.

  • Industrial Revolution:

    • Triggered the need for more formal management practices due to increased scale of production.

Classical and Neo-Classical Approaches

  • Classical Systems:

    • Scientific Management: Optimization of work processes.

    • Administrative Management: Focused on the organization structure and function.

    • Bureaucratic Management: Established formal hierarchical structures.

  • Neo-Classical Systems:

    • Emphasized human behavior in management with behavioral management perspectives, contrasting quantitative and systems approaches.

Job Specialization and Production

  • Adam Smith's Findings:

    • Distinguished between craft production (all steps by one worker) and factory production (specialization).

    • Factory production resulted in higher productivity due to focus and skill enhancement through division of labor.

Scientific Management Theory

  • Emergence of Modern Management:

    • Late 19th century focused on satisfying customer needs and increasing worker efficiency through machinery.

  • Frederick W. Taylor:

    • Often called the father of scientific management, published "Principles of Scientific Management" in 1911.

    • Defined scientific management as a systematic study of relationships between people and tasks aimed at optimizing efficiency.

Taylor’s Scientific Management Principles

  • 1. Develop science for each job:

    • Replace rule-of-thumb with scientifically validated methods.

  • 2. Scientifically select and train workers:

    • Implement formal selection processes and comprehensive training programs.

  • 3. Cooperation between management and workers:

    • Ensure alignment and adherence to scientific principles to facilitate productivity.

  • 4. Divide responsibilities:

    • Balance workload effectively between management and workers to maximize efficiency.

Problems of Scientific Management

  • Implementation Issues:

    • Focused only on output, without accounting for worker satisfaction.

    • High specialization led to boredom, resulting in distrust of management practices.

    • Workers might underperform, leading management to rely on machinery.

The Gilbreths: Advancements in Scientific Management

  • Frank and Lillian Gilbreth's Contributions:

    • Improved the methods of time and motion studies:

      • Break down actions into components.

      • Discover better performance methods.

      • Reorganize actions for efficiency.

  • Focus on Worker Well-Being:

    • Addressed fatigue, work environment issues, and advocated for better conditions (e.g., lunch breaks).

Administrative Management

  • Max Weber's Bureaucratic Management:

    • Promoted a formal organizational structure to achieve effectiveness.

    • Identified seven key characteristics of bureaucracy, ensuring jobs are well-defined and standardized roles are followed.

Fayol’s Principles of Management

  • Henri Fayol's 14 Principles:

    1. Division of Labor: Enables specialization but avoids excessive specialization.

    2. Authority and Responsibility: Balances formal and informal authority.

    3. Unity of Command: Employees should report to one manager.

    4. Line of Authority: Clear chain of command.

    5. Centralization: Authority rests at the top.

    6. Unity of Direction: Align activities towards common goals.

    7. Equity: Fair treatment of employees.

    8. Order: Proper organization to place employees where they can be most effective.

    9. Initiative: Encourage innovation.

    10. Discipline: Enforce rules and structures.

    11. Remuneration of Personnel: Fair compensation impacts success.

    12. Stability of Tenure: Long-term employment is beneficial.

    13. General Interest: The organization's interest is prioritized over individual interest.

    14. Esprit de Corps: Fostering strong team spirit.

Behavioral Management Perspective

  • Core Ideals:

    • Focuses on human behavior in management.

    • Mary Parker Follett emphasized collaborative decision-making and employee involvement in work improvement.

The Hawthorne Studies

  • Overview:

    • Conducted at Hawthorne Works from 1924-1932, assessing productivity under varying light levels.

    • Found that the attention given to workers, not lighting variations, enhanced productivity (Hawthorne Effect).

Mayoism Principles

  1. Humanistic supervision plus morale equals productivity.

  2. Work is inherently a group activity.

  3. Humor and camaraderie are beneficial in the workplace.

  4. Management should avoid micromanagement.

  5. Supervisors should act more as friends than as bosses.

Limitations of Behavioral Approaches

  • Recognizes complexity of human behavior.

  • Highlights challenges in motivation, especially in dull work environments.

  • Workers can discern genuine interest from management, affecting morale.

Theory X and Theory Y

  • Douglas McGregor's Concepts:

    • Theory X: Assumes workers are lazy and need strict oversight.

    • Theory Y: Assumes workers are self-motivated and thrive in a supportive environment.

  • Management Implications:

    • Different approaches stem from these assumptions, impacting management style and structure.

Maslow's Hierarchy of Needs

  • Levels of Needs:

    1. Physiological needs

    2. Safety needs

    3. Love/Belonging

    4. Esteem needs

    5. Self-actualization

Management Science Approach

  • Focuses on quantitative techniques to optimize resource use.

  • Involves methodologies like simulation, linear programming, and Total Quality Management (TQM).

Systems Considerations

  • Differentiates between open and closed systems:

    • Open Systems: Interact with environment; adopt flexibility.

    • Closed Systems: Self-contained; face risks of ineffectiveness.

Organization-Environment Theory

  • Explores how organizations interact with internal and external forces.

  • Stages of organizational production: Input, Conversion, Output.

Contingency Theory

  • States there is no one best way to manage.

  • Advocates for flexibility to adapt to environmental changes and situational variables.

Popular Contingency Variables

  • Organization Size: Larger enterprises face greater coordination challenges.

  • Routine Technology Needs: Different structures and leadership styles are needed for varied tasks.

  • Environmental Uncertainty: Approaches effective in stable environments may fail amid rapid changes.

  • Individual Differences: Recognizes varied employee needs and growth desires.