Management Thought

Management Thought and OB

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Organizational Behaviour is the study of what people think, feel, and do in and around Organizations

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Organizations are groups of people who work interdependently toward some purpose

Why Study Organizational Behavior Understand organizational events

Organizational Behavior Research Influence organizational events

Predict organizational events

OB and the Bottom line  

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OB knowledge is also important for an organization’s financial health A study of 700 firms calculated that companies applying performance-based rewards, employee communication, work-life balance, and other OB ideas have three times the level of financial success as compared to other companies without these OB practices Warren Buffet and other investment gurus have considered the organization’s leadership and the quality of employees as two of the best predictors for a firm’s financial potential

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The Evolution of Management Theory

Taylor’s Theory of Scientific Management

 Frederick  “The

W.Taylor (1856-1915)

Father of Scientific Management”  Maximize worker capacity and profits  PROBLEM: Get employees to work at their maximum capacity, and avoid “soldiering”  PRIMARY FOCUS: TASKS

Taylor’s Theory of Scientific Management 

Elements of Scientific Management 

Scientific design of every aspect of every task 

Time and Motion Studies

Careful selection and training of every task  Proper remuneration for fast and high-quality work 

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Maximize output - increase pay

Equal division of work and responsibility between worker and manager

Underlying Themes     

Managers are intelligent; workers are and should be ignorant Provide opportunities for workers to achieve greater financial rewards Workers are motivated almost solely by wages Maximum effort = Higher wages Manager is responsible for planning, training, and evaluating

Four Steps in Scientific Management Step 1 – Develop a science for each element of the job to replace the old rule-of-thumb methods Step 2 – Scientifically select employees and then train them to do the job as described in Step1 Step 3 – Supervise employees to make sure that they follow the prescribed methods for doing the jobs Step 4 – Continue to plan the work but use the workers to actually get the job done

Video clip – Modern Times

Taylor’s Theory of Scientific Management 

Application in the Modern Workplace  Assembly Line Plants as Prototypical Examples  “Prisoners of Taylorism”  System of Remuneration (quotas commission)  Re-Design - Reengineering  Benchmarking  Data are used to refine, improve, change, modify, and eliminate organizational processes  Lean Manufacturing

Weber’s Theory of Bureaucracy  Max Weber (1864-1920)  German

Sociologist  Theory of Social and Economic Organization (1947)  Principles and Elements of Management describe an ideal or pure form of organizational structure (general policy and specific commands)  PRIMARY FOCUS: Organizational Structure  Worker should respect the “right” of managers to direct activities dictated by organizational rules and procedures  More DESCRIPTIVE

Weber’s Principles of Bureaucracy

Weber’s Theory of Bureaucracy  Tenets

of Bureaucracy

 Rules  Specified

sphere of competence

 Hierarchy  Specialized

Training  Workers do not own technology  No entitlement to “official position” by incumbent  Everything written down  Maintenance of “ideal type” - bureaucracy

Weber’s Theory of Bureaucracy  Concerned

with describing the ideal structure of an organization  Cornerstone: existence of written rules  The

rational application of written rules ensures the promotion of legitimate authority and the effective and efficient functioning of the organization.

Weber’s Theory of Bureaucracy  Application

in the Modern Workplace Large organizations guided by countless rules are bureaucracies Linked with inefficient, slow-moving organizations Organizations have several characteristics of bureaucracies

Fayol’s Administrative Theory  Henri Fayol (1841-1925)  General

and Industrial Management  Principles and Elements of Management how managers should accomplish their managerial duties  PRIMARY FOCUS: Management (Functions of Administration)  More Respect for Worker than Taylor  Workers

are motivated by more than money  Equity in worker treatment  More

PRESCRIPTIVE

Fayol’s Administrative Theory 

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Five Elements of Management -- Managerial Objectives  Planning  Organizing  Command  Coordination  Control Keep machine functioning effectively and efficiently Replace quickly and efficiently any part or process that did not contribute to the objectives

Fayol’s Administrative Theory 

Fourteen Principles of Management (Tools for Accomplishing Objectives)              

Division of work - limited set of tasks Authority and Responsibility - right to give orders Discipline - agreements and sanctions Unity of Command - only one supervisor Unity of Direction - one manager per set of activities Subordination of Individual Interest to General Interest Remuneration of Personnel - fair price for services Centralization - reduce importance of subordinate’s role Scalar Chain - Fayol’s bridge Order - effective and efficient operations Equity - kindliness and justice Stability of Tenure of Personnel - sufficient time for familiarity Initiative - managers should rely on workers’ initiative Esprit de corps - “union is strength” “loyal members”

Fayol’s Administrative Theory 

Positioned communication as a necessary ingredient to successful management

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Application in the Modern Workplace  Fayol’s elements of management are recognized as the main objectives of modern managers  Planning - more participatory  Organizing - human relationships and communication  Especially applicable for large organizations (military)

The Hawthorne Studies  Series

of studies at Western Electric Company’s Hawthorne Works, Chicago  Examined the relation between the physical environment and productivity  Researchers’ findings contradicted their anticipated results

The Hawthorne Studies Concluded

that a worker’s behavior and sentiments were closely related

Group

influences were significant in affecting individual behavior.

The Hawthorne Studies Group

standards were highly effective in establishing individual worker output.

Money

was less a factor in determining worker output than were group standards, sentiments, and security.

Behavioral Management Theory Behavioral Management The

study of how managers should behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals. Focuses on the way a manager should personally manage to motivate employees

Behavioral Management Theory Mary Parker Follett 

Concerned that Taylor ignored the human side of the organization Suggested workers help in analyzing their jobs If workers have relevant knowledge of the task, then they should control the task

Management Science Theory An approach to management that uses rigorous quantitative techniques to maximize the use of organizational resources.

Management Science Theory 

Quantitative management — utilizes linear programming, modeling, simulation systems and chaos theory.

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Operations management —techniques used to analyze all

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aspects of the production system

Management Science Theory 

Total Quality Management (TQM) — focuses on analyzing input, conversion, and output activities to increase product quality.

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Management Information Systems (MIS) — provides information vital for effective decision making.

Organizational Environment Theory Organizational Environment – The set of forces and conditions that operate beyond an organization’s boundaries but affect a manager’s ability to acquire and utilize resources

Contingency Theory There is no one best way to organize” The idea that the organizational structures and control systems manager choose depend on—are contingent on—characteristics of the external environment in which the organization operates.

Contributing Disciplines to the OB Field

Contributing Disciplines to the OB Field (cont’d)

Contributing Disciplines to the OB Field (cont’d)

Contributing Disciplines to the OB Field (cont’d)

Contributing Disciplines to the OB Field (cont’d)

Summary of Session 1 

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Buildings, machines or financial resources by themselves do not make organizations. Organizations are groups of people who have a common goal, and are interdependent. OB studies their behaviour in order to be able to influence them. Successful organizations are those that have adopted good OB practices The worker was initially considered as merely a tool of production, and the Hawthorne studies marked a shift in the emphasis from a clinical approach to a Human Relations approach. It was realised that man is a social animal, and that various social factors also affect the productivity. These gave rise to other theories. There are also some who maintain that there is no one way to organize. OB has heavily drawn from subjects like psychology, sociology, social psychology, anthropology, political science etc.

THANK YOU

Management Thought and OB

SESSION 2

H.Ramaseshan Iyer

Management Functions

Planning

Organizing

Management Functions Controlling

Leading

Management Functions (cont’d)

Management Functions (cont’d)

Management Functions (cont’d)

Management Functions (cont’d)

Mintzberg’s Managerial Roles

Mintzberg’s Managerial Roles (cont’d)

Mintzberg’s Managerial Roles (cont’d)

Management Skills

Effective Versus Successful Managerial Activities (Luthans) 1. 1.Traditional Traditionalmanagement management • •Decision Decisionmaking, making,planning, planning,and andcontrolling controlling

1. 1.Communications Communications • •Exchanging Exchangingroutine routineinformation informationand andprocessing processing paperwork paperwork

1. 1.Human Humanresource resourcemanagement management • •Motivating, Motivating,disciplining, disciplining,managing managingconflict, conflict,staffing, staffing, and andtraining training

1. 1.Networking Networking • •Socializing, Socializing,politicking, politicking,and andinteracting interactingwith withothers others

Allocation of Activities by Time

Theory X and Theory Y  Theory

X assumes that employees are basically lazy and dislike work

 Theory

Y On the other hand, assumes that people consider work as natural as play or rest

Theory X assumptions  The

average person dislikes work and tries to avoid it if he can  They have to be either coerced by punishment or goaded by means of financial rewards to make them work effectively  The average employee prefers to be given directions about his work and shies away from taking greater responsibilities. They are not

Video Clip on Globalization

Globalization Defined “A set of processes that are widening, deepening, and

accelerating the interconnectedness among societies ”(Kegley & Raymond)

“…processes whereby social relations acquire relatively distanceless or borderless qualities, so that human lives are increasingly played out in the world as a single place.” (Jan Aart Scholte) “…technological, political, economic, and cultural dimensions that connect individuals, governments,and firms across national borders.” (Rosa Gomez Dierks) Globalization as ‘Deterritorialization’ Breakdown of borders of Space and Time

The Start of Globalization The Destruction of the Berlin Wall The walls come down…

Tim Berners-Lee

…and the (World Wide) Web goes out.

Death of Distance Call Centers in India

Diversity Challenges Fairness and Justice Decision Making and Performance

Flexibility

Effectively Managing a Diverse Workforce •Securing top-management commitment to diversity •Providing diversity training •Educating employees about diversity •Preventing sexual harassment

Trends and Prospects in OB  Reduction

in the number of middle management personnel  Increasing use of computers and ITin organizations  Entry of women and minorities in the workforce  Cooperation between management and unions  Innovative work approaches for special needs of employees

Summary of Session 2 

The four major management functions are planning, organizing, leading and controlling (Fayol)

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Mintzberg has classified 10 managerial roles as interpersonal(3), informational(3) and decisional (4)

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Managerial skills can broadly be classified as technical, human and conceptual. As one goes up the ladder, one requires more conceptual, and less technical skills. However, every one requires human relations skills to the same degree

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Globalization means greater integration and interconnectedness among the world’s nations. Technology has been responsible for shrinking the distances, and more and more companies are employing persons belonging to different nationalities, posing a greater challenge of diversity management to today’s managers

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Individual Behaviour in Organizations SESSIONS 3 and 4 H.Ramaseshan Iyer

 Human

Behaviour is analogous to a jigsaw puzzle – just as puzzles are different from each other, no two individuals are alike

Understanding Behaviour as an Input-Output system  The

Traditional Perspective S-R and later S-O-R

 Behavioural

perspective S-O-B (Here, ‘S” stands for situation)

Classical Conditioning

Operant Conditioning

Variables that have an impact

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Employee productivity Absenteeism Employee turnover Job Satisfaction

Biographical Characteristics

Age

Gender

Marital Status

Tenure

Intellectual Abilities •Number aptitude •Verbal comprehension •Perceptual speed •Inductive reasoning •Deductive reasoning •Spatial visualization •Memory ability

MARS Model of Individual Behavior Role Perceptions Values Personality

Motivation

Individual Behavior and Results

Perceptions Emotions Attitudes Stress

Ability Situational Factors

The Ability-Job Fit o

Requirements of the job

Strategy – Select the applicants whose Competencies best fir the required tasks

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Training

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Redesign the jobs so that

employees are given only tasks within their capabilities

Types of Behavior in Organizations Task Performance Maintaining Work Attendance

Types of Work-Related Behavior

Joining/Staying with the Organization

Organizational Citizenship

CounterProductive Behaviors

Organizational Applications

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Lotteries to reduce absenteeism Well pay versus sick pay Training programs Mentoring programs

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