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CLASSICAL MANAGEMENT
Scientific Management
Taylors scientific management sought efficiency in job performance. Administrative principles describe managerial duties and practices. Webers bureaucratic organization is supposed to be efficient and fair.
Classical Contributions
Classical approach
The term used to describe the hypotheses of the scientific management theorists and the general administrative theorists.
Scientific management theorists Fredrick W. Taylor, Frank and Lillian Gilbreth, and Henry Gantt General administrative theorists Henri R. Fayol and Max Weber
Emphasis is on: a. rationality b. making organizations and workers as efficient as possible.
Scientific Management
Scientific Management: The systematic study of the relationships between people and tasks for the purpose of redesigning the work process for higher efficiency.
Frederick W. Taylor
The Principles of Scientific Management (1911) Advocated the use of the scientific method to define the one best way for a job to be done Believed that increased efficiency could be achieved by selecting the right people for the job and training them to do it precisely in the one best way. (specialization)
Scientific Management
Frederick W. Taylor
To motivate workers, he favored incentive wage plans.
Separated managerial work from operative work. Also known as Taylorism, an adaption study in globalization. Taylors model being utilized by firms around the world.
4. Support workers by planning and assisting their work by the job science.
Elements of Scientific Management: The techniques which Taylor regarded as its essential elements or features are:
Scientific Task and Rate-setting, work improvement, etc. Planning the Task. Vocational Selection and Training Standardization (of working conditions, material equipment etc.) Specialization Mental Revolution.
Mental revolution
They did not allow workers to share in increased output. Specialized jobs became very boring, dull. Workers ended up distrusting Scientific Management.
Workers could purposely under-perform Management responded with increased use of machines.
Benefits / Advantages of Scientific Management 1. Application and use of scientific methods. 2. Wide scope for specialization and accurate planning. 3. Minimum wastages of materials, time and money. 4. Cordial relations between workers and management. 5. Benefits to workers (higher wages and less burden of work), management (cost reduction, better quality productions) and consumers (superior goods at lower prices)
Managerial Qualities
Physical Qualities (appearance, health, etc) Mental qualities (judgement, adaptability, etc) Moral Qualities (firmness, initiative, loyalty, etc) Educational Qualities (general acquaintance with background of management) Technical Qualities (related to functions to be performed) Experience (arising from work itself)
2. Authority - Managers must be able to give orders, and authority gives them this right. 3. Unity of command - Every employee should receive orders from only one superior. 4. Unity of direction
- Organization have single plan of action to guide managers and workers.
12. Stability of tenure of personnel - orderly personnel planning - human resource management.
Basis Meaning
Unity of command It implies that a sub-ordinate should receive orders & instructions from only one boss. It is related to the functioning of personnels.
Unity of direction It means one head, one plan for a group of activities having similar objectives. It is related to the functioning of departments, or organization as a whole. It is necessary for sound organization.
Nature
Necessity
It is necessary for fixing responsibility of each subordinates. It avoids conflicts, confusion & chaos. It leads to better superior subordinate relationship.
Advantage
It avoids duplication of efforts and wastage of resources. It leads to smooth running of the enterprise.
Result
Though they are different from one other they are dependent on each other. Unity of direction is a prerequisite for unity of command.
Taylorism vs Fayolism
Both attempted to overcome managerial problems in a systematic manner Both developed some principles which can be applied to solving managerial problems Both emphasized that management actions can be effective if they are based on sound management principles Both expressed that managerial qualities can be acquired through training and development Both emphasized harmonious relationship between management and workers to achieve organizational objectives Both have advocated division of labour and specialisation
Basis
Human aspect
Taylor
Taylor disregards human elements and there is more stress on improving men, materials and methods
Fayol
Fayol pays due regards on human element. E.g. Principle of initiative, Espirit De Corps and Equity recognizes a need for human relations
Status
Stressed on efficiency
Approach
It has macro-approach and discuses general principles of management which are applicable in every field of management.
These are applicable in all kinds of organization regarding their management affairs Administrative management
Scope of principles
Achievement
Scientific management
Taylorism Employees performance vs Management performance Taylors Scientific Management focuses more on the performance of the worker Approach Taylor followed bottom-upward approach, as he mainly focused on shop and factory management Applicability Taylors principles and techniques have narrow applicability. They are focussed on production units. Nature Taylors techniques are more specific and rigid Popularity Taylor is popularly known as the father of Scientific management Mechanistic vs Humanistic approach: Taylors approach is mechanistic as he mainly emphasizes increase in productivity and efficiency
Fayolism Fayols principles of management place more emphasis on the performance of management Fayol followed top-down approach as his main focus was on functions and qualities of managers Fayol put forth general principles of management which can be applied to any type of organization or activity
Fayol is popularly known as the father of Functional Management Fayols approach is humanistic as he considers human elements like equity, stability of tenure, unity etc.
Individual vs Group performance Taylors scientific management gives more importance Fayols functional management gives more stress on to the individual performance group performance of managers Functional foremanship vs Principle of Unity of Command Taylor introduced the concept of functional Fayol strongly advocates the principle of Unity of foremanship, whereby workers have to report to Command i.e., one subordinate should report to only several functional heads one superior.
Planning
Planning is fundamental function of management preceding all other functions of management . To Govern is to foresee. Process through which a manager looks into the future. Though future is uncertain, planning helps instead of leaving things to chance. It involves developing goals, strategies, policies, procedures and programmes
Planning
Is goal-oriented Is future-oriented Is the primary function Is an intellectual process Is all-pervasive Is both short range and long range Is Continuous Is actionable Is flexible Is an integrated system
LIMITATIONS OF PLANNING:
Egoistic planning Wastage of resources Expensive Limits individual freedom Not an end Dynamic environment Non-availability of authentic and accurate data Unsuitable for small units Time consuming Delayed action due to deliberation Rapidly changing business environment / unrealistic targets
COMPONENTS OF PLANNING:
Standing Plans:
Mission: Objectives: Strategies: Policies: Procedures: Rules:
DECISION-MAKING
Decision-making is a conscious human process involving
both individual and social phenomenon, based upon factual and value premises, which concludes with a choice of one behavioural activity from among two or more alternatives with the intention of moving towards some desired state of
Shull Decision-making is the selection based on some criteria from two or more possible alternatives George Terry
affairs.
PROCESS OF DECISION-MAKING
Identification of a problem Diagnosing the problem Analysis of the problem Collecting information Identifying alternate courses of action Evaluation of alternatives Choice of best alternative Conversion of decision into action Progressive review
ORGANISATION
Organising involves grouping of activities necessary to
accomplish goals and plans, the assignment of these activities to the appropriate departments and the provisions for authority delegation and coordination. Koontz and
Importance of Organisation
Organization promotes specialization and division of labour It avoids ommissions, overlapping and duplication of efforts It clarifies authority-responsibility relationships It facilitates staffing It facilitates coordination It establishes communication links It increases efficiency of management
PRINCIPLES OF ORGANISATION
1. Principle of delegation of authority
2. Principle of coordination
3. Principle of continuity
4. Principle of definition
5. Principle of explanation
7. Principle of flexibility
8. Principle of unity of objectives 9. Principle of responsibility 10. Principle of specialization
Authority
Authority may be defined as the power to make decisions which guide the actions of another..
Characteristics of Authority: a) Authority is a legitimate right to command & control subordinates b) Authority is granted to achieve the cherished goals of the enterprise c) Authority is a right to direct others to get things done d) Authority is a commanding force binding individuals together e) Authority is delegated downwards.
Responsibility
Responsibility may be defined as the obligation of a subordinate to whom a duty has been assigned to perform.
Characteristics of Responsibility:
a) Responsibility is to assign duty to human beings only. b) Responsibility is the result of duty assigned to a human being c) Responsibility is the obligation to complete the assigned task d) Responsibility can never be delegated e) Responsibility always flows upward from juniors to seniors
Relationship between Authority and Responsibility a) Parity in authority and responsibility b) Authority and responsibility flow in opposite direction c) Responsibility cannot be delegated
Elements of Organisation
Defining responsibility Delegating Authority, and Establishing relationships between authority and responsibility Three significant elements of organising: 1. Line authority 2. Staff authority 3. Functional authority
LINE AUTHORITY
Line authority flows down the chain of command.
STAFF AUTHORITY
Staff authority is the right to advise or counsel those with line authority.
Functional Authority
Functional authority of staff departments to control the activities of other departments.
Formal Structure
Informal Structure
Informal Structure
Unofficial but important working relationships between members.
Informal organisations are based on personal attitudes, likes and dislikes, understanding, customs, traditions, etc. It is based on the activities to be performed Informal organization exists at all levels of and not on the individuals who perform such organization from top to bottom activities It is formally proclaimed by the top Although, there is no specific channel of management and hence, shown on the communication, informal channel is much organization charts more powerful than formal channel It sets up the boundaries and specific part of actions, which must be strictly followed.
Informal Structure
Informal Structures have good and bad points
Social network analysis identifies communication relationships Good points include problem solving, support, friendship and fill gaps in the formal structure Bad points include rumors, inaccurate information and resistance to change
Organizational Charts
What You Can Learn from an Organization Chart
Division of work Supervisory relationships Span of control Communication channels Major subunits Staff positions Levels of management Positions and titles show work responsibilities.
Lines between positions show who reports to whom in the chain of command. The number of persons reporting to a supervisor. Lines between positions show routes for formal communication flows. Which job titles are grouped together in work units, departments, or divisions. Staff specialists that support other positions and parts of the organization. The number of management layers from top to bottom.
Departmentation enables an organization to avail the benefits of specialisation. When every department looks after one major function, expertise is developed and efficiency of operation increases. Expansion Fixation of responsibilities Appraisal Administrative control
Departmentalization
Functional departmentation: Product departmentation Territorial departmentation Customer departmentation Process or equipment departmentation Matrix organisation
Functional Structures
ADVANTAGES
Is logical reflection of functions Maintains power & prestige of major functions Follows principle of occupational specialization Simplifies training Furnishes means for tight control at the top
DISADVANTAGES
Deemphasis of overall company objectives Overspecializes and narrows viewpoints of key personnel Reduces coordination between functions Responsibility for profits is at the top only Slow adaptation to changes in environment Limits development of general managers
Divisional Structures
Common divisional structures
Customer Departmentation
ADVANTAGES Encourages concentration of customer needs Gives customers a feeling that they have an understanding supplier Develops expertise in customer area DISADVANTAGES May be difficult to coordinate operations between competing customer demands Requires managers and staff with expertise in customers problems Customer groups may not always be clearly defined
Matrix Structures
Matrix Structures combine functional and divisional structures
uses permanent cross functional teams to try to gain the advantages of both the functional and divisional approaches
Matrix Structures
Matrix Orgnisation
ADVANTAGES Is oriented towards end results Professional identification is maintained Pinpoints product-profit responsibility DISADVANTAGES Conflict in organization authority exists Possibility of disunity of command exists Requires manager effective in human relations
Team Structures
Team Structures
Make use of permanent and temporary cross functional teams Improved problem solving and project management
Team Structures
Team structure example
Team Structures
Possible advantages of Team structures
Team assignments improve communication, cooperation, and decision-making. Team members get to know each other as persons, not just job titles. Team memberships boost morale, and increase enthusiasm and task involvement.
MOTIVATION
The psychological processes that arouse and direct goaldirected behavior The set of forces that cause people to behave in certain ways
Motivation
Need -> Motive -> Behaviour -> Consequence -> Satisfaction / Dissatisfaction
Motivation Equation
Inputs from Organizational members Outcomes received by members Pay Job Security Benefits Vacation Autonomy Responsibility
Performance
Self-esteem, recognition, status. Offer recognition, status, challenges, merit pay, employee participation in making decisions Sense of belonging, love Offer interaction with others, participation in workgroup, good relations with supervisors Security, protection Offer safe working conditions, job security, health and retirement benefits
Esteem
Social
Safety
Physiological
Belongingness
Safety
Physiological
Lower level needs must be satisfied before higher needs are addressed.
Maslow then categorized these 5 needs into lower-order needs and higher-order needs. Lower-order needs are needs that are satisfied externally: physiological and safety needs. Higher-order needs are needs that are satisfied internally (within the person): social, esteem, and self-actualization needs.
Intrinsic Factor (Motivating) is the satisfaction, such as the feeling of accomplishment, a person receives from performing the particular task itself
Motivation-Hygiene Theory:
According to Herzberg, the factors leading to job satisfaction are separate and distinct from those that lead to job dissatisfaction. Hygiene factors include factors such as: company policy and administration, supervision, interpersonal relations, working conditions, and salary. Motivator factors include factors such as: achievement, recognition, the work itself, responsibility and growth.
Two-Factor Theory
Hygiene Factors
Company policy and administration; Supervision; Relationship with supervisor; Work conditions; Salary; Relationship with peers; Personal life; Relationship with subordinates; Status; Security
Motivator Factors:
Achievement Recognition; Work itself; Responsibility; Advancement; Growth
Need for Affiliation basic human need to establish and maintain warm, close, intimate relationships with other people
The need for achievement is the desire to accomplish a task or goal more effectively than in the past. Characteristics: Tend to Set Moderately Difficult Goals and Make Moderately Risky Decisions Have a Preoccupation With Work Want Immediate, Specific Feedback on Their Performance Assume Personal Responsibility for Getting Things Done
Motivators: Fear of failure / Hope of Success People with a high need for power can be successful managers if three conditions are met:
They must seek power for the betterment of the organization rather than for their own interests They must have a fairly low need for affiliation (fulfilling a personal need for power may well alienate others in the workplace). They need plenty of self-control to curb their desire for power when it threatens to interfere with effective organizational or interpersonal relationships.
Affiliation
Power
Desire to influence others and gain In positions where they can lead, influence or control control over others or to be others. They seek opportunities for leadership. superiors to others. Argumentative, always wanting to be the first, enjoying, giving directions to others. Desire to be helpful to others or to provide ones service to organisation nation or any external agent. Are good social workers. They enjoy helping others and look for opportunities where they can be of help. They join social service organisations and probably maintain good interpersonal relations.
Extension
MOTIVE
MEANING
Need to dominate others and to demonstrate ones own strength, at times even physically Need to consult others Dependence before making any decision. This may arise out of insecurity. Independence Opposite of dependence, a desire to do things individually and to be ones own self.
Aggression
Are argumentative, talks loud, they may get into physical fights and want always to win or show their strength. Will always look for directions from others, cannot make any independent decisions, want to be protected by someone and lack initiative. Like to make decisions on their own without seeking anyones approval. They prefer to have freedom and dislike interference from outsiders including superiors. They may consult others, but do not seek approval. Express it by their frustration at lack of job security, economic security etc. They may grumble about the job, save money for the future etc. This is a very important need and if many employees have this as a high need, the organisation policies are worth looking at.
Security
Need to be secure about ones own living and to be sure one continues to have it.
MOTIVE
MEANING
Desire to be respected and treated with deference specially by others in the social environment.
Would not violate social norms or would do so only when they get recognition positively. They run for offices, they like to show authoritarian tendencies when they work with others. They may be categorising people into status groups and interacting with them selectively and differentially. Work hard but lose their motivation completely if their work is not recognised immediately. They try to make their presence felt and strive to get attention. This is another basic need in all of us. Is always active, a hard worker and is constantly engaged in some activity. The opposite is passivity which is also a need to relax and not to be disturbed.
Recognition
Activity