Classical Management Theory

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Questions and Answers

Which of the following represents a core principle commonly agreed upon by the founding fathers of classical management theory?

  • Integrating ownership and management to foster a sense of shared responsibility and long-term vision.
  • Promoting cross-functional collaboration to break down silos and enhance organizational agility.
  • Decentralizing authority to empower front-line employees and encourage autonomous decision-making.
  • Centralizing authority and establishing hierarchical coordination to maintain control and efficiency. (correct)

How did the Human Relations Movement, particularly through the Hawthorne experiments, shift the focus from classical management theories?

  • By emphasizing the importance of social needs and work groups in influencing employee productivity and satisfaction. (correct)
  • By reinforcing the principles of scientific management and optimizing work processes for maximum efficiency.
  • By promoting strict separation of ownership and management to avoid conflicts of interest.
  • By advocating for stronger hierarchical structures and centralized decision-making.

What was a key finding from the Bank Wiring Room experiment, a component of the Hawthorne studies?

  • Individual incentives are the most effective way to boost productivity.
  • Strict supervision and control mechanisms are essential for maintaining efficiency.
  • Employees are primarily motivated by financial rewards and career advancement opportunities.
  • Informal group dynamics and norms can significantly influence worker output. (correct)

In the context of Masahiko Aoki's framework, what is the primary characteristic of the 'J-Firm' (Japanese firm) organizational structure?

<p>Workers rotate among various jobs and become capable of coping with unexpected emergencies, fostering collective learning. (C)</p> Signup and view all the answers

According to Aoki, what is a key difference between the 'A firm' and the 'J firm' regarding the role of management?

<p>The ‘A firm’ emphasizes management’s role in owning and controlling information, while the 'J firm' delegates the task to those in charge of information systems. (C)</p> Signup and view all the answers

In the context of Aoki’s organizational models, what is the primary strategic advantage of the “A firm”?

<p>Efficiency gains stemming from specialization. (D)</p> Signup and view all the answers

Which of the following best describes Taylorism?

<p>A set of principles emphasizing the optimization of work processes to enhance efficiency. (D)</p> Signup and view all the answers

What underlying factor primarily spurred the development of classical management theory?

<p>Addressing the complexities of managing larger companies with a growing workforce and integrating machines. (C)</p> Signup and view all the answers

What is the main idea behind the Hawthorne effect?

<p>Employee productivity increases when workers feel they are being observed or given special attention. (B)</p> Signup and view all the answers

What has John Hassard argued in his re-evaluation of the Hawthorne studies?

<p>That the 'progressive' ethos espoused by Western Electric was undermined by paternalism and anti-unionism. (D)</p> Signup and view all the answers

How did the Human Relations Movement differ from scientific management theories in its approach to worker motivation?

<p>By prioritizing employee well-being and fostering a sense of belonging to enhance productivity. (C)</p> Signup and view all the answers

Which of the following is a modern application of Taylorism?

<p>All of the above (D)</p> Signup and view all the answers

What is a primary advantage of the 'J-Firm' model according to Aoki?

<p>Flexibility and learning adaptation. (B)</p> Signup and view all the answers

What is the primary focus of 'Organizational Studies' that is of interest to firms?

<p>Empirical illustrations of real companies that solve organizational problems. (A)</p> Signup and view all the answers

According to Aoki, what is the key asset in an ‘A Firm’?

<p>Technical Capital (D)</p> Signup and view all the answers

What type of problem is 'Le caché de la poste' attempting to solve?

<p>Worker Route Optimization. (A)</p> Signup and view all the answers

According to Masahiko Aoki's analysis comparing American and Japanese firms, what is the primary mode of knowledge acquisition and application in the 'J-Firm' model?

<p>Collective learning and adaptation arising from decentralized problem-solving and continuous improvement efforts. (D)</p> Signup and view all the answers

What is the standardization period for the 'A Firm'?

<p>1900s - 1980s (A)</p> Signup and view all the answers

What is a key limitation of classical management theory that the Human Relations Movement sought to address?

<p>Neglect of the social and psychological needs of workers in the workplace. (B)</p> Signup and view all the answers

According to the information, who spearheaded Toyotism?

<p>Taiichi Ohno (B)</p> Signup and view all the answers

According to the information about Aoki’s firms: what organization does the Ford Motor Company follow?

<p>A-Firm (A)</p> Signup and view all the answers

Building upon the Hawthorne studies, what critical insight did researchers gain regarding the impact of workplace dynamics on employee behavior and productivity?

<p>The informal social structures and relationships among workers can exert a more powerful influence on behavior than formal organizational rules and incentives. (C)</p> Signup and view all the answers

What concept is Toyota Production System also known as?

<p>Just-in-time production (A)</p> Signup and view all the answers

What organizational structure does the 'LE CACHÉ DE LA POSTE' leverage?

<p>Top-down approach (B)</p> Signup and view all the answers

In contrast to Frederick Taylor's scientific management, what was a core tenet of Elton Mayo's approach to improving organizational effectiveness?

<p>Recognizing the importance of social relationships and employee morale in enhancing productivity. (C)</p> Signup and view all the answers

Flashcards

Fordism

A management approach that emphasizes efficiency and standardization, often using assembly lines. Pioneered by Henry Ford.

Toyotism

A contrasting management philosophy focused on flexibility, continuous improvement (kaizen), and skilled workers. Developed by Toyota.

Hawthorne Studies

Mayo's studies at Western Electric in 1924 explored the impact of working conditions on productivity. Lighting variations unexpectedly showed increased output regardless of change.

Human Relations Movement

Focuses on the social and psychological aspects of work. It values employee relationships and considers the impact of group dynamics on productivity

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A-Firm (Vertical)

A hierarchical structure where authority is centralized and coordination is top-down. Jobs are highly specified, and workers perform specialized isolated tasks.

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J-Firm (Horizontal)

Organizational structure characterized by decentralized decision-making, job descriptions, and focus on the whole system.

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Elton Mayo

A pioneer in studying the social and psychological aspects of work. Best known for the 'Hawthorne Studies'.

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Who founded Classical Management Theory?

The founding fathers of the Classical Management Theory

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3 mains principals of Classical Management Theory

Centralizing authority and hierarchical coordination, Division of labour, Separation of ownership and Management

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Study Notes

  • Organizational Behaviour and Design is the topic.
  • The lectures are part of License 2 (2024-25), Economics and Management, Université Côte d'Azur
  • Contact Marie-Mathilde Basile at [email protected] for more details.

Recap from Last Week

  • The founding fathers of classical management theory are Weber, Taylor, and Fayol.
  • The three main principles they all agreed on were:
    • Centralizing authority and hierarchical coordination
    • Division of labor
    • Separation of ownership and management
  • Examples of modern uses of Taylorism include McDonald's, Tesla, and Nummi.

Organization Theories: Authors and Key Ideas

  • The origins of classical management theory came from the reaction to the Industrial Revolution.
  • Classical management theory came about because of larger companies and more people working with machines.
  • It was also driven by rapid industry growth.
  • There was no existing model of management or professional managers at this time.
  • Classical management theory addresses how to organize resources and manage people.

First Reactions to Classical Management Theory

  • This period saw the Human relations movement and the Hawthorne experiments

Elton Mayo and the Human Relations Movement

  • A series of experiments were conducted at the Western Electric Company in 1924

  • A comparison was done between two groups of employees assessing changes to their working conditions,

  • Conclusion the output of the experimental group increased regardless of how illumination was manipulated

  • A second experiment (1927) was conducted with 6 women assembling telephone relays working at a comfortable pace

  • The group of 6 soon became an organized social group

  • Conclusion: Employees had been made to feel special, they had been the centre of attention, so whatever their working conditions, productivity increased

  • The workplace's social needs are important and the way in which work groups can satisfy these needs.

  • A experiment in 1930 happened in the Bank Wiring Rooms with a group of 9 men divided into 3 groups

  • Whatever the researchers did, productivity decreased at one of the groups

  • Results showed the influence of the group dynamic:

    • An existing group for a long time with negative influence and internal norms:
    • Too productive workers were hit by the others to slow down.

Rethinking the Hawthorne Studies

  • The Western Electric research had a social, political, and historical context.
  • Beyond the "Hawthorne effect."
  • Hassard argues that an ostensibly human relations philosophy that had been espoused at Western prior to Elton Mayo's arrival in 1928, was underpinned by hard-edged paternalism and tough-minded anti-unionism.

Informational Coordination and Recent Organizational Design

  • Masahiko Aoki contributed in 1986.
  • He did a comparison of two archetypical firms (the American and the Japanese firms).
  • Assessing their internal organization and their perforamnce

Aoki's Horizontal vs. Vertical Information Structure

  • The A firm (vertical):
    • Workers' jobs are specified according to a collective agreement.
    • Each worker performs a specialized task.
    • When irregular events happen, remedies are sought by supervisors, not manual workers.
    • Rational hierarchical control.
  • The J firm (horizontal):
    • Workers' jobs are not specified in detail.
    • Workers rotate among various jobs.
    • Workers become capable of coping with unexpected emergencies, giving them considerable power in decision-making.
    • Collective learning by doing.

Comparing the A and J Firms

  • A Firm:

    • Main organizational form: Pyramidal
    • Standardization period: 1900s–1980s
    • Key asset: Technical capital
    • Key manager: The top management which owns the information in order to improve the global performance
    • Comparative advantages: Gains from specialization

  • J Firm:

    • Organisational form: Network
    • Differentiation period: 1980s–2000s
    • Key asset: Information
    • Manager: In charge of the information systems
    • Comparative advantages: Gains in terms of learning and adaptation

  • Fordism:

    • Ford Motor Company started in 1903
    • Model T in 1908
    • Standardization of the product
    • Use of special equipment via the assembly line
    • Elimination of skilled labor

  • Toyotism:

    • Toyota Production System developed between 1948 and 1975 by Taiichi Ohno
    • Aka "lean manufacturing” and "just-in-time production"
    • Continuous improvement, long-term efficiency
    • Highly skilled workers (tacit knowledge)
    • Problem solving

What Interests of Organizational Studies for Real Firms?

  • Empirical illustrations:
    • What is the organizational problem?
    • Which type of (internal and external) coordination?
    • What is the organizational structure?
    • How has the organizational problem been solved?

Example: « LE CACHÉ DE LA POSTE »

  • How to organize postal delivery staff.
  • Determining workers' delivery routes to optimize efficiency
  • Vertical organization based on speed and time standards
  • Top-down approach
  • Not currently solved

To Read For Next Week:

  • Creating a competitive advantage in the connected health market
  • The Pensioner's Line: BMW

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