Session 2 the Evolution of Managent Thought

8/17/2019 Session 2 the Evolution of Managent Thought

1/55

The Evolution Of Organization

Theory

Chapter 2


2/55

Developing Frame work• There are two underlying dimensions in the evolution

of organization theory and each dimension in turn hasopposed perspective

! Organizations are systems

a! "rior to #$% tended to &e dominated &y closedsystem perspective

&! 'eginning #$%( O!T &egan to take on distinctly opensystem perspective

2! Deals with the ends of the organization structure

a! )ational perspective emphasizes that structure of anorganization is conceived as a vehicle to specifically

achieve o&*ectives&! +ocial "erspective emphasize that organizationstructure is primarily the result of conflicting forces &ythe organization,s constituents who seek power andconflict


3/55

Evolution of Contemporary Organization Theorists

-ppro.imat

e TimeFrame

#%% /

#0%

#0%/

#$%

#$% /

#1

#1 /

+ystems"erspective

Ends"erspective

CentralTheme

TheoreticalClassification

Close

)ational

3echanicalEfficiency

Type

Close

+ocial

"eople andhuman

relationsType 2

Open

)ational

ContingencyFrame work

Type 0

Open

+ocial

"ower and"olitics

Type 4


4/55

Type Theorists

• Classical +chool

• Developed universal "rinciples or models

that apply in all situations• Each perceived organization as closed

system to achieve goals efficiently


5/55

Taylor,s 5iews On "ro&lems of

"roductivity• 3atter of ignorance on part of

management and la&or

•'oth don,t know what constitutes a 6 Fairday work7 and 6 Fair "ay7

• 'oth concerned too much with how to

divide profits that arose from productivity

and not enough with increasing

productivity


6/55

The 8a&or 9uestion

• +oldiering the real cause of low la&orproductivity

• Types of +oldiering

! :atural +oldiering :atural Tendency and instinct of men

to take it easy

2! +ystematic +oldiering

; )esult of inherent relationship withother men


7/55

)easons for +ystematic +oldering

• :atural +oldering could &e overcome &y a manager a&le to

inspire or force workers to come up to the mark• +ystematic soldering<

! =ork faster would throw large num&er of workers out of work

2! The defective management systems then in use forcedworkers to work slowly to protect their own interests

0! -dherence to rule of thum& work methods• Taylor placed &lame on managers and not workers &ecause itwas management *o& to design the *o&s properly and to offerthe proper incentives to overcome their soldering

• - daily or hourly wage system encouraged soldering &ecausepay was &ased on attendance and position not effort

• To work hard &rought no rewards and actually encouragedlazy worker • "iece rate system practiced at that time was defective

&ecause standards were not set properly


8/55

Determining Fair Day,s =ork

and Fair Day,s "ay• Fair Days =ork

Through Time and 3otion +tudy determine

what workers can do with their e>uipment and

materials!

Develop a file of elementary movement and

times

• Fair Day,s "ay

+et standards and rates scientifically?se differential piece rate system


9/55

The First/Class 3an

• This formed the &asis for scientific

selection of workmen

• The ma*or difference &etween

individuals was not in &rains &ut in will(

the drive to achieve

• The first/class man was a person with

am&ition who was suited to his work not

some super human


10/55

+ummary of Taylor,s =ork

• Develop science for each element of

person,s work

• +cientifically select( train( teach and

develop workers

• Cooperate with workers

• Divide responsi&ility &etweenmanagement and workers


11/55

The Task 3anagement +ystem

• Defined management as( 6 knowing e.actly what you wantmen to do( and then seeing that they do in &est and cheapestway7

• The relation &etween employers and men forms without>uestion the most important part of this art

• Taylor specified nine >ualities that made up a well roundedforeman

! 'rains

2! Education

0! Technical knowledge

4! Tact

! Energy

$! @rit1! Aonesty

B! udgment or common sense

#! @ood health


12/55

• To find a man with three of these >ualities isnot difficult

• =ith five or si. more difficult

• =ith seven or eight almost impossi&le

• This led him to a&andon the military type of

organization of a single &oss and to developfunctional foreman concept

• Ae hypothesized that not all foreman dutiesre>uired all these traits

• 'y specializing the foreman,s *o& physicaland mental demand on the incum&ent could&e reduced


13/55

Functional Foreman

• Taylor divided the responsi&ility into two main

areas<a! "erformance duties

&! "lanning duties

a! "erformance duties<

i! @ang 'oss< had charge of all work up to the timepiece was placed in the machine

ii! +peed 'oss< &egan his work when the materialwas placed in the machine and he determined thetools( the cut and machine speed

iii! The inspector< responsi&le for >uality of work

iv! )epair 'oss was in charge of care andmaintenance of machinery


14/55

&! "lanning Duties

i! The order of work route clerk< determined the

flow of work and the e.act order of work &yeach class of men and machine

ii! nstruction card clerk< furnished writteninformation on tools( materials( the piece rate

and premium and other operating instructioniii! The time and cost clerk< sent time tickets forrecording time taken and cost incurred andinsured return of this data

iv! +hop disciplinarian< ept a record of each

man,s virtues and defects( served as peacemaker( and served employment function ofselecting and discharging employees


15/55

Taylor Functional Foremen

Planning

Performance

Instructioncard Clerk

Time andcost clerk

Order ofroute clerk Disciplinarian

Individual

Workman

Gang

oss

!peed

oss"epair

ossInspector


16/55

Functional Foremen• The functional foreman concept was an

e.pediency• t provided shop with supervision in a relatively

short time versus long/range search for anddevelopment of well rounded manager

• +aw no conflict in his system with unity ofcommand principle

• To him knowledge must prevail orders weregiven to workers on this special knowledge and

not on the &asis of authority inherent in theposition• Aence no conflict since each man had only one

&oss on any one particular aspect of his *o&


17/55

Criticism of +cientific +chool• 8acked Aumanism

5iewed workers as mechanical( motivated &yrational economic consideration( work

standardization and fragmentation reduced

workers as impersonal cog( assumed workers

to &e without emotions concerned only withwage ma.imization

• "iece rate system aroused fears of speed up

and unhealthy pressure on the worker

• Opposition &y managers for su&stitution of

scientific methods for their own *udgment


18/55

-dministrative Theorists• Aenri Fayol

• "rimary emphasis on esta&lishing &road administrative

principles applica&le to higher management level• Definition of 3anagement

3anagement is an overall function of conducting an

undertaking towards its o&*ectives &y trying to make

&est possi&le use of all resources at its disposal and toensure smooth working the five essential elements

! "lanning

2! Organizing

0! Command4! Coordination

! Control


19/55

Elements of 3anagement

! "lanning<

To Fayol( managing meant looking ahead andforesight

-ny plan of action rested upon<

! The firm,s resources

2! The nature of present work in progress0! Future trends in all activities of the firm whose

occurrence could not &e determined

Fayol put forth an early concept of participation

6 The study of resources( future possi&ilities( andmeans to &e used for attaining o&*ectives call forcontri&utions from all department head within framework of their mandate7


20/55

"lanning contd!

+uch participation insured that no response was

neglected and promoted managerial interest in the plan - good plan of action has the characteristics of<

i! ?nity G one overall plan followed &y specific plans foreach activity

ii! Continuity G &oth long range and short range

iii! Fle.i&ility G to &end to une.pected events

iv! "recision eliminating as much guess work as possi&le Fayol advised series of separate plans which would

altogether comprise one entire plan for the firm

Daily( weekly( monthly( annual( five year( and ten yearforecast were prepared and redrafted as time passed orconditions changed

Fayol,s stress on long term plans were uni>uecontri&ution to management thought and his ideas areas important today as hey were for his own time


21/55

Organizing!• ncluded provisions for the structuring of activities and

relationships as well as the procurement( evaluation( andtraining of personnel

• -s this element evolved later writers split Fayol,s organizingelements into two elements organizing and staffing

• For Fayol( to organize meant 6 to provide it with every thinguseful for its functioning< raw materials( tools( capital( andpersonnel!7

• t was the duty of management to 6see that the human andmaterial in organization is consistent with the o&*ectives(resources and re>uirements of the concern7

• n organization theory( the organizational pyramid is productof functional growth

• Functional growth is horizontal in that more people areadded to functions a s the organizational workload e.pands

• +calar growth is vertical and caused &y the need to addlayers of supervision to direct and coordinate lowerechelons


22/55

Organizing contd!• Fayol &uilt his functional and scalar growth processes

on the &asis of workers to a foreman and a ratio of 4supervisors to every other superior • Fayol advocated a relatively narrow span of

management control• =hatever his level of authority( one manager was to

have direct command over a small num&er ofsu&ordinates( less than si.!

• -t the foreman level( Fayol *udged him to capa&le ofhandling 2% men provided the work is simple

• Fayol introduced another important concept of 6staff7• Fayol visualized a group of men who had the 6strength(

knowledge( and time7 to assist a manager &y acting asa 6sort of of e.tension to the manager,s personality7

• The staff was to take orders only from general manager

O i i td


23/55

Organizing contd!• The functions of staff were to<

i! -id in carrying out the manager,s personnel personal

duties like correspondence( interviews( interviews(conferences( etc!

ii! To aid in liaison and control

iii! To gather information and assist in formulating futureplans

iv! +earch for improvements• The function of staff was uni>ue to Fayol hepostulated that operating managers had neither thetime nor energy to devote long/term research&ecause they were too a&sor&ed in the current andweighty pro&lems of running the &usiness

• The staff freed of daily cares could search for &etterwork methods( perceive changes in &usinessconditions( and concern itself with long rangemethods


24/55

Organizing contd!• mportance of organization charts

• Organization charts were a sine >ua non of everyenterprise

• The preparation of organization charts ena&led oneto<

i! 5isualize the organization as a whole

ii! +pecified lines of authorityiii! "rovided for channels of communication

iv! "revented the overlapping or encroachments ofdepartments

v! -voided dual command situationsvi! Clearly assigned duties and responsi&ilities

• Fayol did not completely develop his ideas andmethods of departmentalizing operations


25/55

Organizing contd!• Fayol on staffing<• Developed the rudiments of personnel or staffing function which

consisted of selection( evaluation( and training• +election was viewed as function of finding the >ualities and

knowledge in people to fill all levels of the organization• Evaluation of &oth managers and workers were &ased on similar

characteristics &ut varied according to the level within the organization<

! Aealth and physical fitness was essential to all personnel

2! ntelligence and mental vigor &ecame more important further up thehierarchy! 3ental vigor was the a&ility to(7 deal simultaneously manyvaried manifold su&*ects7 and was essential for higher managers

0! 3oral >ualities< such as initiative( acceptance of responsi&ility anddisciple were important for all levels

4! @eneral education< apart from *o& knowledge was necessary if onewished to rise in the organization

! 3anagement knowledge that is considered as elements of planning(organizing( command( coordination and control &ecame increasinglyimportant as one moved up the organization ladder

$! nowledge of other functions< was necessary as one,s responsi&ilitye.panded to include spheres of authority


26/55

Organizing contd!• Fayol confined himself to descri&ing >ualities and

did not e.amine pro&lems of evaluatingperformance nor the methods and procedures forthe conduct

• Training was dealt with at length• Contemporary education was &ased on the

premise that the value of engineers and industrialleaders &ore a direct relationship to the num&erof years devoted to the su&*ect of of mathematics

• Fayol deplored the emphasis on mathematics• -ccording to Fayol( &asic mathematics helped to

train the mind &ut further study should &edevoted to study management rather than moremathematics


27/55

Command• 3anager,s o&*ective should &e to get the optimum return from all

employees of his unit in the interest of the whole unit

• Command was an art that which rested upon certain personal>ualities and knowledge of general principles of management• The managers who e.ercised command should<

! Aave a through knowledge of his personnel

2! Eliminate incompetent

0! 'e well versed in the agreements &inding the &usiness and its

employees4! +et a good e.ample

! Conduct periodic audit of the firm and used summarized charts tofurther this

$! 'ring together his chief assistants &y means of conferences( atwhich unity of direction and focusing the efforts are provided

1! :ot &ecome engrossed in details

B! -im at making unity( energy( initiative( loyalty prevail among thepersonnel


28/55

Command contd!• -ccording to Fayol conferences were very useful devise for

insuring unity of direction and stressed that the chief must &e

constantly aware of all &usiness activities• The manager should &e aware of everything &ut not neglectlarge pro&lems while lavishing attention on small ones

• Through the use of staff( and the use of oral and written reportsthe manager should maintain direction and control

• To achieve initiative( the manager should allow su&ordinatesma.imum share of activity consistent with their position( even atthe cost of some mistakes

• This was mostly delegation not full &lown participation inmanagement since a sound organization could &e used tocircumscri&e activities to prevent too much initiative at wrong

times and in wrong places


29/55

Coordination• Coordination was meant to harmonize all the activities of a

concern so as to facilitate its working and its success•

To Fayol( coordination was a &alancing act of keeping e.pensesto revenues( of maintaining e>uipment to meet production goals(and insuring that sales and production were consonant

• Organization and planning facilitated coordination &y specifyingduties( esta&lishing schedules( and focusing responsi&ilities onthe o&*ectives

•Command instilled initiative and conferences &etween managerand his su&ordinates provided a clearing house for airingpro&lems( progress and plans

• +taff personnel H liaison officersI should &e used to enhancecoordination in the interim &etween conferences and in the careof esta&lishments located far away

• The liaison position supplemented coordination &ut did notreplace the direct responsi&ility of the chief


30/55

Control

• Control consisted of verifying whether every thing

occurs is in conformity with plan adapted(instructions issued( and for principles esta&lished

• The o&*ective of control was to identify errors inorder to correct them and to prevent recurrence

• Effective control was &ased on prompt action(followed &y sanctions if necessary

• Control also had an integrative effect on all the fourelements &ecause<

i! +timulated &etter planning

ii! +implified and strengthened the organization

iii! ncreased efficiency of command

iv! Facilitated coordination


31/55

Fayol,s Fourteen "rinciples

! Division of work<

The classic idea of specialization of la&or and the advantagesof which accrued in reducing waste( increasing out put( andeasing the task of *o& training

2! -uthority< The right to give orders and the power to e.act o&edience

Fayol distinguished &etween the positional authority andpersonal authority which compounded in intelligence( moralworth( a&ility to lead( and past services

-uthority and responsi&ilities were corollaries in the sensewhatever authority was e.ercised responsi&ility arose

Fayol stressed that authority should commensurate with

responsi&ility0! Discipline Discipline was &ased on o&edience and the respect &etween

the firm and the employees t was essential for success and &ased on respect rather than

fear

F l, F t " i i l


32/55

Fayol,s Fourteen "rinciples4! ?nity of command For any action whatsoever an employee should receive

orders from one superior only ust as no man can serve two masters( dual command

was a threat to authority( discipline( and sta&ility

! ?nity of direction One head and one plan for a group of activities having

the same o&*ective ?nity of direction came from a sound organization

structure( and was essential to unity of action(coordination of strength( and focusing of effort

$! +u&ordination of individual interests to general interest< =as a plea to a&olish ignorance( am&ition( selfishness(

laziness( weakness and all human passions causedconflict when an individual or group tried to prevail overthe organization

F l, F t " i i l


33/55

Fayol,s Fourteen "rinciples1! )emuneration of personnel

Fayol,s version of economic man

Concluded that mode of payment was dependent onmany factors and the o&*ective was to make the manmore valua&le and also to inspire keenness

Ais analysis fell short of suggesting a clear concept ofremunerative principle and any clear notion of motivation

B! Centralization

6Centralization is not a system of management good or&ad of it self( capa&le of &eing adopted or discarded atthe whim of manager or circumstances7

The >uestion of centralization or decentralization is asimple >uestion of proportion( it is a matter of finding theoptimum degree for the particular firm


34/55

Fayol,s Fourteen "rinciplesCentralization Hcontd!I

n a small firm where manager,s order go directly tosu&ordinates there is a&solute centralization n large concerns( where a long scalar chain is

interposed &etween manager and lower grades( ordershave to go through a series of intermediaries

Each employee( intentionally or unintentionally putssomething of himself into the transmission and e.ecutionof orders and of information received too

=hat appropriate share of initiative may &e left tointermediaries depends on the personal character of the

manager( on his moral worth( on relia&ility ofsu&ordinates and also on the condition of the &usiness Ais notion of centralization/ decentralization was e.plicit(

6 every thing which goes to increase the importance ofsu&ordinate,s role is decentralization( everything which

goes to reduce it is centralization


35/55

Fayol,s Fourteen "rinciples#! The scalar Chain

The chain of superiors ranging from the ultimate

authority to the lowest ranks +hows the line of authority and the channels for the

transmission of communication

Developed gang plank which allowed communications to

cross the lines of authority &ut with the full knowledge ofsuperiors

%! Order

nsured a place for every thing and every thing in itsplace

t applied to materials( shop cleanliness and personnel

For people( it was each to his task and that task setneatly into a structure of activities

F l, F t " i i l


36/55

Fayol,s Fourteen "rinciples

! E>uity< procedural *ustice

2! +ta&ility of tenure of personnel+ought to provide for orderly personnel

planning( and provisions to replace thehuman resources

0! nitiative

E.horted individuals to display zeal andenergy in all efforts

4! Espirit de corps

'uilding harmony and unity within the firm


37/55

Criticism• +tatic Consideration

Does not e.plain the impact of DynamicEnvironmental Factors and its resultantcomple.ities

• Dehumanization of organizations

• Criticism of universal principles

?nity of command principle

-uthority and responsi&ility may not &eopen

+pan of control restricted to five

3 = & , ' ti


38/55

3a. =e&er,s 'ureaucratic

3odel

+ystem Of -dministration• Division of 8a&or

-uthority and responsi&ility well defined• "ositions organized in Aierarchy of authority

resulting in clear chain of command• 3em&ers selected on &asis of technical

competence• Officials appointed not elected

• +ystem and procedures for dealing with worksituations• mpersonality in interpersonal relations


39/55

Types of -uthority

• )ational 8egal

• Traditional

• Charismatic


40/55

)ational 8egal -uthority

• "rovides a &asis for continuity of

administration

• "erson chosen on the &asis of

competence

• 8egal means of e.ercising authority

•Function necessary to accomplish task

- t f ' ti 3 d l


41/55

-ssessment of 'ureaucratic 3odel

• Functional conse>uences

+pecialization"redicta&ility and sta&ility

)ational

• Dysfunctional Conse>uences

)igidity

mpersonality

Displacement of o&*ectives

Cost of control

3a*or assumptions of Classical


42/55

3a*or assumptions of Classical

Theorist

• There is one &est way

• )ational Economic 3an

• Organization as 3echanistic +ystem• +tructuring and controlling Auman

"articipants

• 3anagement primary integrative force andformal hierarchy the mechanism for

achieving coordination


43/55

Type 2 Theorists

• Common Theme< )ecognition of thesocial nature of organization

• 5iew organizations as made up of tasks

and people H +ocio/technical systemI• )epresent a human counterpoint to

Type theorists

• Commonly known as Auman relation or'ehavioral school of thought

' h i l + h l


44/55

'ehavioral +chool

• Aawthorne E.periments HElton 3ayoI #24/ #21

"hase <

! llumination e.periments

2! )elay room E.periment +mall group of si. women

5aria&les studied< shorter working periods( groupincentive pay( and supervision

)esults< productivity increased

)easons< 3ore freedom on *o&( :o &oss( +etting their

own work( +mall group( the way they were treated


45/55

"hase 2< nterviewing "rogram

• :on directive techni>ues

• Complaints had two levels of content<

a! 3anifest or material content

&! "sychological content or 6 "essimistic

)everies7

Conclusion<

:ew supervisor was to &e more people oriented(more concerned( less aloof and skilled in

handling social pro&lems

"hase 0< 'ank wiring )oom


46/55

"hase 0< 'ank wiring )oom

E.periments

• 4 male operatives• The group *o& was to wire and solder of e>uipment

for general connecting services

Conclusions<

mportance of group norms and standards and theinformal group

@roup norms regarding rate of productivitysignificantly influenced the level of individual

productivity nformal authority of influential group mem&ers

often overrode formal authority from the supervisor


47/55

mplications of Aawthorne +tudies

•Demonstrated the importance of psychological orhuman factors on worker productivity and morale

• +ignaled the criticality of certain varia&les forworker satisfaction( autonomy on the *o&( relativelack of need for the need for close supervision(

the importance of receiving feed&ack on the directrelationship &etween performance and reward

• "rovided evidence for latter theory HAerz&ergI thatthere is no direct cause and effect relationship

&etween working conditions and productivity• "rovided data and stimulus for group dynamics(especially in work conte.t


48/55

Type 0 Theorists

• :either mechanistic forces of darkness nor

the humanistic forces of light could muster

evidence that their solution and only their

solution was right for all situations• The conflict &etween thesis and anti thesis

led to synthesis that provided &etter

guidance to managers• The synthesis was contingency approach


49/55

Aer&ert +imon

• )ecognized in #4% that Type principles wouldhave to give way to contingency approach

• 3ost classical principles were nothing more thanprover&s and contradicted each other

• -rgued that organization theory needed to go&eyond superficial oversimplified principles to astudy of the conditions under which competingprinciples were applica&le

• Took 2% years &efore organization theorists toeffectively respond to +imon challenges

t d h , E i t l


50/55

atz and ahn,s Environmental

"erspective• Daniel atz and )o&ert ahn,s &ook 6 The social "sychology of

organizations7 was a ma*or impetus towards promoting the Type 0open system perspective

• "rovided a convincing description of the advantages of an opensystem perspective

•E.amined the relationship of an organization with its environmentand the need for an organization to adapt to changing environmentif they have to survive

• +ince atz and han,s work numerous theorists like 'urns and+talker( Emery and Trist( 8awrence and 8orsh have investigatedenvironment Gstructure relationships

• :o current discussion of the organization theory would &e completewithout a thorough assessment of environment as an a ma*orcontingency factor influencing the preferred form of structure


51/55

Th C f T h l


52/55

The Case for Technology

• )esearch &y oan woodward( Charles"errow ( and ames Thompson have

shown the importance of technology in

determining the appropriate structurefor an organization

Th - t @ d O i ti


53/55

The -ston @roup and Organization

+ize

• +ize as the ma*or contingency factor in

influencing structure was championed &y

?niversity of -ston researchers

• 8arge and small organizations have &een shownto have many common structural components

• The evidence suggest that certain of these

components follow an esta&lished as

organizations e.pand in size


54/55

Type 4 Theorists

• Focuses on "olitical nature of organizations

• March and Simon’s Cognitive limits to Rationality( Bounded Rationality)

• Challenged the classical notion of rational or optimum

decisions• They argued that most decision makers due to

incomplete information( cognitive limitations( conflicts(and time pressures select satisfactory alternatives Galternatives that were good enough

• Only in e.ceptional cases would they &e concerned withdiscovery and selection of optimal alternatives

"f ff , O i ti " liti l


55/55

"feffer,s Organizations as "olitical

-rena,s

• Aenry "feffer model of organization theoryencompasses power coalitions( inherent conflict overgoals( and organization design decisions that favorself interest of those in power

• Control in organizations &ecome an end rather thanmerely means to rational goals

• Organizations are coalitions composed of varyinggroups and individuals with different demands

• -n organization,s design represent the result of powerstruggles &y these coalitions• f one wants to understand why organizations are

designed the way they are( one needs to assess thepreferences and interests of those in organizationswho have influence over design decisions

Session 2 the Evolution of Managent Thought

Documents

Transcript of Session 2 the Evolution of Managent Thought