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Week Three Notes
Wednesday, September 22, 2021 10:10 AM
GMS Assignment:
• Touch upon systematic and intuitive thinking
• Potential decision errors and how to avoid them
• Mla+apa format is fine
• Due next Wednesday
• Upload on d2l- as pdf
Glo Bus:
How to make decisions:
Chapter 2 Management Learning Past to Present:
Planning Ahead: key take-aways
• Identify what can be learned from classical management approaches
• Identify what can be learned from the behavioral management approaches
• Identify what can be learned from the modern management approaches
Chapter 2 Outline:
1. Classical Management Approaches
• Scientific management
• Administrative principles
• Bureaucratic situation
2. Behavioural management approaches:
• Follett's organization as communities
• The Hawthorne studies
• Maslow's theory of human needs
• McGregor's theory X and Theory Y
• Argyris's personality and organization
3. Modern Management foundations
• Quantitative analysis and tools
• Organizations as systems
• Contingency thinking
• Quality management
• Evidence-based management
MAJOR CLASSICAL APPROACHES TO MANAGEMENT:
Scientific Management (Frederick Tayler)
Four guiding principles of scientific management:
1. Develop aa "science: that includes rules of motion standardized work
implements
2. Carefully select workers with the rights abilities for the job
3. Carefully train workers to do the job and give them incentives' to cooperate
with the job "science"- science of the job
Ex: you as a coffee manager, you should develop how long it will take putting
coffee in a cup, how long we should serve a customer- "2 mins"
4. Therefore support workers by carefully planning their work and by smoothing
the way as they do their work- it is easy to measure performance
Scientific Management (the Gilbreths)
• Motion study
• Science of reducing job/task to its basic physical motions
• Eliminating wasted motions improves performances
• Ex: assembly lines
Practical insights from scientific management:
• Make results-based compensation a performance incentive
• Carefully design jobs with efficient work methods
• Carefully select workers with the ability to do the job
Administrative principles( Henri Fayol)- rules/ duties of management
• The structure and how to put the organization together to do the job
• Foresight:
To complete a plan of action for the future
• Organization
To prove mobilize resources to implement the plan
• Command
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To lead, select, and evaluate to get the best work to the plan- whose supervisor
ex
• Coordination
To fit diverse efforts together and ensure information is shared and problems
solve
• Control:
To make sure things happen according to plan and to take necessary corrective
action
Bureaucratic organization (Max Weber)
• Following logic, order and other legitimate authority,
• Being objective, following rules
• Ex: you're friends with the general manager and you ask him for a vacation-
but you must follow order and write a memo to your manager
• An ideal intentionally rational and very efficient form of organization
Characteristics:
• Clear division of labour
• Clear hierarchy of authority
• Formal rules and procedures
• Impersonality
• Careers based on merit
Benefits:
• Effectiveness
• No bias
• Defined structure and rules are clear
Problems:
• Excessive paperwork/ "red tape"
Ex: if you want a day off you need to write a paper and it will take time to get
approval from different levels
• Slowness in handling problems
• Inflexible
• Low creativity
• Resistance to change
• Employee apathy
Behavioural Management Approaches:
• It is catered towards the people
• Foundation of human resources
• Was not about getting the job done
• Ensure that people felt belonging
• Organization would be a community and think for individual people
1. Follett's organization as Communities (Mary parker Follet)
• Groups and human cooperation
• Groups allow individuals to combine their talents for a greater good
• Organizations are cooperating communities of managers and workers
Forward looking management insights:
• Making every employee an owner creates a sense of collective responsibility
• Precursor of employee ownership, profit sharing, and gain sharing
• Business problems involve a variety of interrelated factors
• Precursor of systems thinking
• Private profits relative to public good
• Precursor of managerial ethics and social responsibility
2. Hawthorn Studies (Elton Mayo)
• Initial study examined how economic incentives and physical conditions
affected worker output
• Ex: giving better lights in a factory proved overall work
• No consistent relationship found
• "Psychological factors" influence results
• Creating social setting and human relations
Ex: work parties
• Manipulated physical work conditions to assess impact on output
• Designed
• Employee attitude
Lessons from hawthorn studies:
• Social and human concerns are key productivity
• Hawthorn effect- people who are singled out for special attention perform as
expected
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• Ex: if you think people have slow performance, people are going to be slow, if
you single people out you will never see any good outputs
3. Maslow's theory of human needs (Abraham Maslow)
• a need is a physiological/psychological deficiency a person feels compelled to
satisfy
1. Self- actualization
2. Esteem
3. Social
4. Safety
5. Physiological
• Managers must know where to put their employees in this hierarchy of
needs
Ex: you just graduated from Ryerson with a student loan and then you got a good job
from a bank
• You need to pay your bills
• You work Monday-Friday, but you need extra money
• The bank gives u more hours
• Therefore you will sacrifice your weekend for the money because it is a higher
need
Maslow's theory of human needs:
• Deficit principle :
• A satisfied need is not a motivator of behaviour
• Progression principle
• A need becomes a motivator once the preceding lower-level need is satisfied
• Once we get to the top, both principles cease to operate at self actualization
level
4. Theory X and Theory Y (Douglas McGregor)
McGregor's Theory X assumes that workers:
• Dislike work
• Lack ambition
• Are irresponsible
• Resist to change
• Prefer to be led
McGregor's Theory Y assumes that workers
• Willing to accept responsibly
• Capable of self control
• Capable of self direction
• Imaginative and creative
Implications of Theory X and Theory Y:
• Managers create self fulfilling prophecies
• Theory x managers create situations where workers become dependant and
reluctant
• Theory y managers create situations where workers respond with initiative and
high performance
• Central to notions of empowerment and self management
5. Argyris's theory of adult personality:
• Classical management principles and practices, inhibit worker maturation and
are inconsistent with the mature adult personality
• Psychological success occurs when people define their own goals
• Management practices should be accommodate the mature personality by:
1. Increasing task responsibility
2. Increasing task variety
3. Using participative decision making
Foundations for continuing developments in management:
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Modern Management Foundations:
Quotative analysis and tools
• Analytics:
the use of large data bases and mathematic to solve problems and make informed
decisions using systematic approaches
• Typical quantitative approach to managerial problem solving:
Problem encountered, it is systematically analyzed, appropriate mathematical
models and computations applied, optimal solution identified
Organizations as systems:
• System:
Collection of interrelated parts that function together to achieve a common
purpose
• Subsystem:
A smaller component of a larger system
• Open systems :
Organization that interact with their environments in continual process of
transforming resource input into outputs
• Thinking about the bigger picture and where the firm is in the bigger picture
Contingency Thinking:
• Tries to match managerial responses with problems and opportunities unique to
different situations
• No "one best way " to manage
Ex: Manager in a factory they want to be led, you want all the workers to be on
the floor on Monday at 9am-your calling them to show up because you want to
give them direction for the week- they are likely to show up
Assume you are hired as president of UFT- and you issued a call: you want the
professors to show up at 9am in the hall to give direction: no one will come,
cause that’s not how it works
• Therefore decisions depend on the situation
• Appropriate way to manage depends on the situation
Quality management:
• Managers and workers in progressive organizations are quality conscious:
Quality and competitive advantage are linked
• Total quality management (TQM):
Comprehensive approach to continuous improvement for the total organization
• Continuous improvement :
• Continual search for new ways improve quality
• Something always can and should be improved
• ISO certification:
• Global quality management standards
• Evidence-based management
• Refine and upgrade quality to meet ISO requirements
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