MG4031 Week 02 Lecture 02 PDF

MG4031 Wk.02 Lec.02 Human Relations: Sought to understand how psychological and social factors interacted with the work environment in influencing performance. Elton Mayo and the Hawthorne Experiments (1924-32) identified the social and psychological factors influencing performance. Illuminatio...

MG4031 Wk.02 Lec.02 Human Relations: Sought to understand how psychological and social factors interacted with the work environment in influencing performance. Elton Mayo and the Hawthorne Experiments (1924-32) identified the social and psychological factors influencing performance. Illumination Experiments: Observation leads to increased output, the Hawthorne Effect. Relay Assembly Test Room (RATR) Experiments: designed to study the effects of rest breaks, work-day length, refreshments and incentive payments on productivity. First, the supervisory style in the test room, with the absence of a formal supervisor, was more open and friendly and workers enjoyed being the centre of attention. Second, the test room was less controlled than regular work groups and the women participated in decisions affecting the job and could set their own work pace. Third, group formation resulted in a cohesive group which was loyal and co-operative. Finally, the attitudes of the women were different, as they no longer felt part of a large department subject to managerial control but felt involved. This affected their job satisfaction. In other words, people were underproductive because of things they felt were wrong, rather than because of ignorance about the company’s objectives. Bank Wiring Observation Room (BWOR) Experiments: Found that well established groups have norms about behaviour and productivity. If someone worked too hard or little in comparison to the group’s norms, they were frowned upon. They were united in their opposition to management and financial incentives didn’t matter. Informal work group relations had enormous influence on motivation and performance. Organisational Behaviour (Abraham Maslow + Douglas McGregor): The first 3 needs are deficiency needs (which managers often fulfil) while the other 2 are growth needs.  It recognises that people are motivated not only by money and that they are motivated by different things at different times. However, it assumes that employees seek only one of these needs at a time, not all at once. It also assumes that human needs are this simple. McGregor’s Theory X and Y of managers also contributes to Organisational Behaviour. Quantitative Management Approaches: Quantitative Management: To optimise the decision-making capacity, teams of quantitative experts were called on to develop specific mathematical methods of problem analysis. Emerged during WWII but stayed afterwards. However, it neglects non- quantifiable factors. Operations Management: Operations management sought to use quantitative methods to increase efficiencies. Production controls and inventory controls fall within the framework of operations management. Many of its principles were further developed by the total quality management (TQM) movement (Deming + Juran). Contemporary Management Approaches: Systems Theory (Chester Barnard): Argues that organisations should be seen as open systems that transform inputs from the external environment into outputs to the external environment. Systems theory takes effectiveness into account. Effectiveness is the extent to which the organisation’s outputs match the needs and wants of the external environment. Recognises that an organisation is a subsystem of the industry. It also highlights how a synergy can be formed when all parts of the organisation work together effectively. Recognises the relationship between an organisation and its environment, but no specific guidelines on the functions and duties of managers. Contingency Theory: Advocates that managerial practice depends on the situation facing an organisation. It is impossible to specify a single way of managing that works best in all situations because circumstances facing organisations are varied and continually changing. The different circumstances or situations facing organisations are called contingencies. The rate of change and complexity of the external environment. The types of technology, tasks and resources used by the organisation. The internal strengths and weaknesses of the organisation. The values, skills and attitudes of the workforce. Burn’s + Stalker Framework: When the rate of change was slow, a bureaucratic (‘mechanistic’) form of structure worked best. When the pace of technological change increased, a more flexible form (‘organic’) was the optimum. Contingency theory recognised the limitations of universal principles of management and identified contingencies under which different actions are required. The main problems associated with the approach are that it may not be applicable to all managerial issues, and it is almost impossible to identify all contingencies facing organisations. Globalisation: Refers to increasing and deepening interactions between individuals and organisations across the globe. Challenges for Managers: Differences in legal, political and cultural environments Digital disruption Workplace diversity and need for flexibility More emphasis needed on sustainable development and business ethics References: Notes based on MG4031 Lecture Slides and Modern Management: Theory and Practice for Students in Ireland (5th Ed.) - Tiernan S. and Morley, M.J. Chapter 1. Image 1: linkedin.com Image 2: reasearchgate.net