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CH 2 “The new industrial revolution”= a time full of technological and social uncertainties and opportunities. 2.1 CLASSICAL MANAGEMENT APPROACHES: Management is focused on three main classical approaches: Scientific management Administrative principles Bureaucratic organization Scientific manage...

CH 2 “The new industrial revolution”= a time full of technological and social uncertainties and opportunities. 2.1 CLASSICAL MANAGEMENT APPROACHES: Management is focused on three main classical approaches: Scientific management Administrative principles Bureaucratic organization Scientific management: Frederick Taylor: the principles of scientific management. In there he states that the principle object of management should be to secure the maximum prosperity for the employer, coupled with the maximum prosperity for each employee. He is often called the father of scientific management. He noted this problem: workers did their work in unnecessary motions and without a consistent approach; resulted in inefficiency and low performance. Solution?= workers being taught and guided in an efficient way by supervisors. Goal? Improve productivity Used the concept of “time study” to analyze the motions and tasks required to do a job and to develop the most efficient ways to perform that job. This approach includes four guiding principles: 1.Develop a “science” that includes rules of motion, standardized work implements, and proper working conditions for every job. 2. Carefully select workers with the right abilities for the job. 3.Carefully train workers to do the job and give them incentives to cooperate with the job “science.” 4. Support workers by carefully planning their tasks and by smoothing the way as they do their work. F. Motion Study= the science of reducing a job or a task to its most basic physical motions studies as a management tool. Administrative principles: Henri Fayol Identifies 5 rules or duties of management, which are to support the four functions of management: planning, organizing, leading, and controlling. 5 rules= Foresight- to complete a plan of action for the future Organization- to provide and mobilize resource to implement the plan Command- to lead, select, and evaluate workers to get the best work toward the plan. Coordination- to fit diverse efforts together and to ensure information is shared and problems solved. Control- to make sure things things happen according to plan and to take necessary corrective action Believed management could be taught. Bureaucratic organization Weber. Bureaucracy was at the heart of his thinking; it means founded in principles of logic, order, and legitimate authority. He highlights the following defining characteristics: Clear division of labour: Jobs are well defined, and workers are highly skilled at performing them. Clear hierarchy of authority: Authority and responsibility are well defined for each position, and each position reports to a higher level. Formal rules and procedures: Written guidelines direct behaviour and decisions in jobs, and written files are kept for historical record. Impersonality: Rules and procedures are impartially and uniformly applied, with no one receiving preferential treatment. Careers based on merit: Workers are selected and promoted on ability, competency, and performance, and managers are career employees of the organizations. He believed a purely bureaucratic hierarchy would make for an organization that is capable of attaining the highest degree of efficiency. One that is precise, stable, and disciplined. 2.2 BEHAVIORAL MANAGEMENT APPROACHES Behavioural approaches assume that people enjoy social relationships, respond to group pressures, and search for personal fulfillment. Organizational behaviour: the study of individuals and groups in organizations. Behavioral approach to management include: Follets- organizations as communities Hawthorne studies Maslow's theory of human needs douglas mcgregor and chris argyris. Follets organizations as communities: Taught respect for workers experience and knowledge Warned against dangers of too much hierarchy. Called for visionary leadership Thought of organizations as communities where workers should labour in harmony without one party dominating another, and freedom to talk through and reconcile any problem. It was the role of managers to help workers cooperate with one another. Thought that making every employee an owner in a business would c reate a sense of responsibility. Spaulding and his 8 necessities of management: they focus on respect for people and a belief in community. Everyone must work together to achieve a goal. Cooperation and teamwork Authority and responsibility Division of labour Adequate manpower Adequate capital Feasibility analysis Advertising budget Conflict resolution The Hawthorne Studies Based on a research program to study worker productivity at the Hawthorne Works of the firm's chicago plant. set out to learn how economic incentives and workplace conditions affected workers’ output. Study focused on fatigue and output; showed that productivity increased regardless if people got more time off or not. It was an inconclusive case because researchers concluded that the social setting in the test room made the workers want to do a good job. Despite the results, it brought visibility to the idea that workers feelings, attitudes, and relationships with co-workers affected their work. They also identified the Hawthorne effect= the tendency of workers singled out for special attention to perform well- or better than anticipated because of expectations created. Maslows theory of human needs Described a need as physiological or psychological deficiency a person feels compelled to satisfy. His theory is based on two underlying principles deficit principle- a satisfied need that does not motivate behaviour Progression principles- people will satisfy their needs in a step by step sequence. He identified 5 needs in order from highest to lowest: Self-actualization needs- need for self fulfillemtn to grow and use abilities to fullest and most creative extent Esteem needs- needs for esteem in the eyes of others; respect, prestige, recognition, self-esteem. Personal sense of competence, mastery. Social needs- need for love, affection, sense of belonginess in one relationship with others Safety needs; security, protection, stability Physiological needs: biological maintenance, food, water, physical wellbeing. Theory implies that managers who understand this hierarchy of needs will satisfy their most important needs in order to get more productivity out of their employees. Mcgregor’s theory X and theory Y Argued that managers should give more attention to workers' social and self-actualizing needs. To shift perspectives from theory x to theory y Theory X= assumptions believe that employees generally dislike work, have little ambition, are irresponsible, resist change, and prefer to be led rather than to lead. Theory Y= employees are willing to work hard, accept responsibility, are capable of self-control, and self-direction, and are imaginative and creative. Point being that these assumptions create self-fulfilling prophecies. Argyris theory of adult personality Contrasts management practices found in traditional bureaucratic organization with the needs and capabilities of mature adults. Believed that common problems; alienation, absenteeism,low morale, ec; may be signs of a mismatch. Argued that manager who treat their employees as responsible adults with achieve the highest productivity. 2.3 MODERN MANAGEMENT FOUNDATIONS modern management approaches include: the use of quantitative analysis and tools a systems view of organizations contingency thinking commitment to quality management the importance of evidence-based management. Quantitative analysis and tools When a problem is encountered, it is to be systematically analysed, mathematical techniques are applied, and an optimum solution is identified. Analytics- the systematic analysis of large debates- often called big data- to solve problems and make informed decisions. Organizations as systems Organizations are a system of interrelated parts or subsystems that work together to achieve a common goal. Organizations function as open systems- they interact with the environment in a contrinual process, transforming inputs (people, technology, information, money, and supplies) into outputs (goods and services). Contingency thinking This type of thinking matches problems and opportunities specific to different people and settings.. There is no one best way to manage in all circumstances. Quality management Edwards Deming- contributed ideas to total quality management; incorporates quality principles in organizations strategic objectives. It is a search for and commitment to quality, which reflects continuous improvement; always looking for new ways to improve on current practices. It is critical to never be satisfied- something should always be improved. Evidence-based management General concern; are we being too quick to accept results of studies based on poor science or questionable evidence? We need to take extra care in interpreting and applying results to management practice. Evidence-based management= where management decisions are made based on hard facts with evidence. about managers “making decisions through the conscientious, explicit, and judicious use of four sources of information: practitioner expertise and judgment, evidence from the local context, a critical evaluation of the best available research evidence, and the perspectives of those people who might be affected by the decision. The following criteria are useful as a first step to determine whether or not good scientific methods have been used. A research question or problem is clearly identified. One or more hypotheses are stated to describe possible explanations. The research design provides a good test of the hypotheses. Data are rigorously gathered, analyzed, and interpreted. Hypotheses are accepted or rejected and conclusions made based on the evidence. ​ Classical management: ○​ People are rational and motivated by self-interests. ​ Behavioral management ○​ Towards an idea that people are social beings, capable of self-actualizing. ​ Modern/contemporary Why do people study management in history: -​ Idea that we don’t have to reinvent the wheel; use their ideas as guidelines and build off what others have done. -​ Understanding why things are the way they are in some place. -​ Recognizing that management theories might not work well in other places and times. -​ Capitalizing on successes and avoiding their mistakes; those who are ignorant of history are doomed to repeat it. CLASSICAL APPROACHES: 1.​ Scientific management 2.​ Administrative principles 3.​ Bureaucratic organization Share common assumption: ppl act in a rational manner driven by economic self-interest. -​ People pick the road that will maximize their monetary gain. 1.​ Scientific management a.​ Taylor developed 4 guiding principles: 1. to develop a science for each aspect of work: rules of workspace, standardizing the tools you use. Rooted in an industrial idea of work. 2.carefully select your workers making sure they have the right abilities. 3.train them to do the job- Provide them with incentives to follow the scientific rules you developed.  4.support workers by planning their tasks and helping them complete them. ​ Science of reducing a job to its basic motions. ​ Hope is that if you can improve your work, then you can increase productivity. ​ Examples: Amazon ○​ Tracks workers steps and actions to identify opportunities for reducing time and effort ○​ Also divides up the labour; employees specialize on particular tasks. ○​ Well defined procedures for those tasks to ensure consistency. ​ Scientific management ensures: ○​ Result-based compensation ○​ Efficient work methods ○​ Carefully select workers ○​ Carefully train them ○​ Train the supervisors so they can support the workers. ​ Taylor failures: ○​ His science was actually garbage and he fabricated stories sometimes. 2.​ Administrative principles a.​ Believed management could be thought of. b.​ Fayol Suggested they should be able to do 5 key things: 1.Foresight 2.coordination; ability to fit diverse methods to make sure people are working well together 3. organization; ability to provide workers with resources they need an implementing the plan they made 4.command; select, lead, evaluate workers to the plan you made. 5. Control; make sure things happen according to the plan. c.​ These rules have inspired the 4 functions of contemporary management: i.​ Planning: setting objectives or goals for a business and determining what needs to be done. (foresight) ii.​ Organizing: process of assigning tasks, allocating resources, and coordinating activities (organization and coordination) iii.​ Leading: process of aspiring enthusiasm and encouraging the completion of goals (command). iv.​ Controlling: (control) measuring performance and taking action if you're not seeing your desired results.  3.​ Bureaucratic organization a.​ Max Weber; bureaucracy is an ideal, intentional, and efficient form of organization. b.​ A structure founded on logic, order, and legitimate authority. c.​ 5 things are defining characteristics; i.​ Clear division of labour: jobs need to be well defined so people can become highly skilled in them. ii.​ Clear hierarchy of authority: workers and management as being very distinct- each position reports to a higher level position. iii.​ Formal rules and procedures. iv.​ Impersonality: to make things more fair. A faceless impersonal ID. 1.​ Can be cold and dehumanizing. v.​ Careers based on merit. d.​ In this way, resources would be used more efficiently and people would treat others more fairly. e.​ Example: large insurance companies, Fortis, UBC- specialization is evident- arts, science, engineering. Operates on formal rules and regulations. Standardized processes and procedures. f.​ The legacy of bureaucratic organization recommended to be: i.​ Simple- not too complex ii.​ Stable- not changing significantly over time. BEHAVIORAL APPROACHES TO MANAGEMENT: The behavioral approaches to management have a different assumption about how people behave. People are social beings, and are self-actualizing. Assume people at work seek out fulfilling social relationships. The Human factor became a key element in organizational performance. 5 main approaches: 1.​ Hawthorne studies 2.​ Organizations as communities 3.​ Theory of human needs 4.​ Personality and organization 5.​ Theory X and Y 2. Organizations as communities a.​ Follet b.​ Individuals should come together towards common goals. Work for the total good. c.​ Managers and workers as cooperating communities; she thought they should work in harmony, not one dominating the other. Should not boss people around. d.​ Making every employee an owner will create a sense of responsibility e.​ Her thoughts: i.​ Employee ownership ii.​ Systems thinking iii.​ Contingency thinking iv.​ Managerial ethics v.​ Corporate social responsibility f.​ In practice: employee centered companies like google. i.​ Flat structure to encourage communications between employees of all levels. Executives will hear ideas of employees. 1.​ Hawthorne studies a.​ Work behaviour is influenced by social and psychological factors and that work can be improved by human relations. i.​ Factors like working conditions. b.​ Making workers feel important c.​ Example: job interviews i.​ Both interview and candidate are influenced by social interactions, attitude. ii.​ Interviews behavior can affect a candidate performance and other way around iii.​ Reflects the hawthorne insight that individual behavior can change when they know they are being observed. iv.​ Takeaway; the idea of being observed can positively or negatively impact the way people act. d.​ Lessons from these studies: i.​ Shifted focus to social and human factors; managers who use good human relations can see better productivity. ii.​ Hawthorne effect; revealed how people singled out for special attention perform better. e.​ ACTIVITY: Ladies Learning Code i.​ Seminars can show the importance of social interaction, collaboration. These groups can foster a sense of community and collaboration. Can enhance people's motivation.  ii.​ Gives women recognition and includes them in ways that they might not be included in other places. iii.​ The impact of informal networks; where people can connect and share experiences and build each other up. iv.​ Shows how psychological factors can be important in motivating people. 2.​ (3) Maslow's hierarchy of human needs in order: i.​ Physiological ii.​ Safety iii.​ Social- need to have relationships with people, affection, love iv.​ Esteem- need to have respect and be recognized by our peers v.​ Self-actualization- need for self-fulfilment. b.​ Why is it a hierarchy? Deficit principle; people act to satisfy their deprived needs. c.​ Progression principles: idea that these needs exist in a hierarchy: a need at any level only becomes activity once the lower need is satisfied. Once you reach the top stage, the more you satisfy it the stronger it grows. d.​ Important insights i.​ Introduced the concept of self-actualization ii.​ For people to find self-fulfillment in their work. iii.​ Managers who help workers satisfy their needs will get more productivity out of them. \ e.​ DEBRIEF: i.​ Ladies fulfilled their social needs: a sense of social belonging. ii.​ Also getting an esteem need fulfilled: achievement and self respect. Learning new things. Helps with self actualization needs; gives participants an opportunity to grow and use their abilities. 3.​ Mcgreog theory of X and Y a.​ Managers need to shift their perspective from a traditional X assumption to a Traditional Y b.​ X= managers people people are lazy and prefer to be led c.​ Y= managers assume people are willing to work, capable of self control, willing to accept responsibility. d.​ Example: theory x= homer. Slacks off and only interested in social pursuits. Boss has to closely monitor and control him and doesn't trust him to work responsively.  e.​ Managers can create self-fulfilling prophecies depending on the theory they believe in. f.​ Example: traditional manufacturing industries i.​ Employees working on assembly lines are subject to strict supervision- closely watching. g.​ Example for theory Y: Zoom i.​ Empower employees for company success ii.​ Allows for work to happen iii.​ Allows for flexibility. h.​ ACTIVITY: the ladies learning code i.​ If a manager encourages a woman to take the LLC workshop, what type of manager would they be- theory Y. manager is assuming the employee wants to improve. 4.​ ARgyrus theory of adult personality a.​ Argued that certain principles of classical management were actually inconsistent with the mature adult personality. Said adults tend to negatively react when constrained by certain practices. b.​ Pointed to apathy, alienation, absenteeism, low morale and motivation, i.​ Argued that these problems are due to a mismatch between management practices and adult personality. c.​ He's saying “you're not treating adults like adults”. He recommended allowing for more variety to adjust the supervisory style. Point to allow for more participation and promote more engagement. To create an environment that fosters personal growth and productive contributions. d.​ Example: SHOPIFY is a place for individuality, self expression, giving workers freedom to make decisions and solve problems and take ownership of problems. e.​ LADIES LEARNING CODE: i.​ Manager is empowering people to take control. MODERN MANAGEMENT APPROACHES: -​ ​