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.