Chapter 2: Management learning – - PowerPoint Presentation

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Chapter 2: Management learning – - PPT Presentation

Past to present John Wiley amp Sons Canada Ltd Business Leadership Management Fundamentals John R Schermerhorn Jr Barry Wright and Lorie Guest Understand what can be learned from ID: 178357

canada john amp wiley john canada wiley amp sons management theory workers organizations principles human quality cont

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Slide1

Chapter 2: Management learning – Past to present

Business Leadership: Management Fundamentals

John R.

Schermerhorn

, Jr

Barry Wright, and Lorie GuestSlide2

Understand what can be learned from traditional management thinkingUnderstand the insights of the behavioural management approachesUnderstand the foundations of modern management

thinking

Planning Ahead — Chapter 2 Learning GoalsSlide3

Classical approaches to management include:Scientific managementAdministrative principlesBureaucratic organizationSlide4

“The principal object of management should be to secure maximum prosperity for the employer, coupled with the maximum prosperity for the employee” – F. Taylor© John Wiley & Sons Canada Ltd.Scientific management (frederick Taylor)

Four guiding principles:

Develop rules of motion, standardized work implements, and proper working conditions for every job.

Carefully select workers with the right abilities for the job.

Carefully train workers and provide proper incentives.

Support workers by carefully planning their work and removing obstacles.Slide6

Motion Study:Science of reducing a job or task to its basic physical motionsEliminating wasted motions improves performance© John Wiley & Sons Canada Ltd.

Scientific management (the gilbreths)Slide7

Bricklaying ergonomics(external link)Slide8

Gilbreth Time and Motion Study in Bricklaying

(external link)Slide9

How UPS Works(external link)Slide10

Expansion of Worldport

(external link)Slide11

Make results-based compensation a performance incentiveCarefully design jobs with efficient work methodsCarefully select workers with the abilities to do these jobsTrain workers to perform jobs to the best of their abilitiesTrain supervisors to support workers so they can perform jobs to the best of their abilities

Practical lessons from scientific managementSlide12

Division of labourAuthorityDisciplineUnity of command

Unity of directionSubordination of individual interests

RemunerationCentralizationScalar chain

Order

Equity

Personnel tenure

Initiative

Esprit

de corps

Administrative principles (

henri

favol

)Slide13

Rules of Management:Foresight:

to complete a plan of action for the future

Organization: to provide and mobilize resources 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 ensure information is shared and problems

solved

Control

to make sure things happen according to plan and to take necessary corrective

action

Administrative principles

(cont’d)Slide14

Key principles of management:Scalar Chain: there should be a clear and unbroken line of communication from the top to the bottom of the organizationUnity of Command:

each person should receive orders from only one bossUnity of

Direction: one person should be in charge of all activities with the same performance objective

Administrative principles

(cont’d)Slide15

Bureaucracy:An ideal, intentionally rational, and very efficient form of organizationBased on principles of logic, order, and legitimate authority© John Wiley & Sons Canada Ltd.

Bureaucratic organization (max weber)Slide16

Characteristics of bureaucratic organizations:

Clear division of

labour

Clear hierarchy of authority

Formal rules and procedures

Impersonality

Careers based on merit

Possible disadvantages of bureaucracy:

Excessive paperwork or “red tape”

Slowness in handling problems

Rigidity in the face of shifting needs

Resistance to change

Employee apathySlide18

Human Resource approaches include:Follett’s notion of organizations as communitiesHawthorne studiesMaslow’s theory of human needsMcGregor’s Theory X and Theory YArgyris’s theory of adult personality

Groups and human cooperation:Groups are mechanisms through which individuals can combine their talents for a greater good.Organizations are cooperating “communities” of managers and workers.Manager’s job is to help people in the organization cooperate and achieve an integration of interests.© John Wiley & Sons Canada Ltd.

Administrative principles (Mary Parker Follett)Slide21

Forward-looking management insights:Making every employee an owner creates a sense of collective responsibility (precursor of employee ownership, profit sharing, and gain-sharing).Business problems involve a variety of inter-related factors (precursor of systems thinking).Private profits relative to public good (precursor of managerial ethics and social responsibility).

Administrative principles (Mary Parker Follett) (cont’d)Slide22

Initial study examined how economic incentives and physical conditions affected worker outputNo consistent relationship found“Psychological factors” influenced results© John Wiley & Sons Canada Ltd.

Hawthorne studiesSlide23

Relay assembly test-room studiesManipulated physical work conditions to assess impact on outputDesigned to minimize the “psychological factors” of previous experimentFactors that accounted for increased productivity:Group atmosphereParticipative supervision

(cont’d)Slide24

Employee attitudes, interpersonal relations and group processesSome things satisfied some workers but not othersPeople restricted output to adhere to group normsLessons from the Hawthorne Studies:Social and human concerns are keys to

productivityHawthorne effect — people who are singled out for special attention perform as

expected© John Wiley & Sons Canada Ltd.Hawthorne studies (cont’d)Slide25

Testing the Hawthorne Effect(external link)Slide26

A need is a physiological or psychological deficiency a person feels compelled to satisfy.Need levels:PhysiologicalSafetySocialEsteemSelf-actualization

Maslow’s theory of human needsSlide27

Deficit principleA satisfied need is not a motivator of behaviour.Progression principleA need becomes a motivator once the preceding lower-level need is satisfied.Both principles cease to operate at self-actualization level.

(cont’d)Slide29

What parts of a job satisfy each level of the pyramid?Physical?Safety?Social?Esteem?Self-Actualization?© John Wiley & Sons Canada Ltd.

Application: MaslowSlide30

Dislike workLack ambition

Are irresponsibleResist changePrefer to be led

McGregor’s Theory Y

assumes that workers are:

Willing to work

Capable of self control

Willing to accept responsibility

Imaginative and creative

Capable of self-directionSlide31

Managers create self-fulfilling prophecies.Theory X managers create situations where workers become dependent and reluctant.Theory Y managers create situations where workers respond with initiative and high performance.This is central to notions of empowerment and self-management.© John Wiley & Sons Canada Ltd.

Implications of Theory X and Theory YSlide32

Traditional management principles and practices inhibit worker maturation and are inconsistent with the mature adult personality.Management practices should accommodate the mature personality by: Increasing task responsibilityIncreasing task varietyUsing participative decision making

Foundations for furthering developments in management:Quantitative analysis and toolsSystems view of organizationsContingency thinkingCommitment to quality Learning organizationsEvidence-based management

Management science or operations research:The scientific applications of mathematical techniques to management problems Mathematical forecasting makes future projections useful for planningNetwork model such as a Gantt chart breaks large tasks into smaller components © John Wiley & Sons Canada Ltd.

Quantitative Analysis and ToolsSlide35

Management science or operations research (cont’d):Inventory analysis controls inventories mathematically determining how much to automatically order and when

Queuing theory allocates service personnel/workstations to minimize service cost and customer waiting timeLinear programming

calculates how to allocate scarce resources among competing uses Operations management is the study of how organizations produce goods and services

Quantitative Analysis and Tools

(cont’d)Slide37

SystemCollection of interrelated parts that function together to achieve a common purpose.SubsystemA smaller component of a larger system.Open systemsOrganizations that interact with their environments in the continual process of transforming resource inputs into outputs.

Organizations as Systems

“Organizations are co-operative systems that achieve great things by integrating the contributions of many individuals to achieve a common purpose

” – Chester BarnardSlide38

Tries to match managerial responses with problems and opportunities unique to each situationsEspecially in terms of individual or environmental differencesNo “one best way” to manageAppropriate way to manage depends on the

situation

Managers and workers in progressive organizations are quality consciousQuality and competitive advantage are linkedTotal quality management (TQM):Comprehensive approach to continuous quality improvement for a total organization

Quality managementSlide41

ISO certificationGlobal quality benchmarkRefine and upgrade quality to meet ISO standardsContinuous improvementContinual search for new ways to improve qualitySomething always can and should be improved on

Quality management (cont’d)

“80% of the problems are caused by 20% of the

operations” -

Deming’s

80/20 ruleSlide42

Knowledge management is the process of using information technology to achieve performance success Portfolio of intellectual assets include patents, intellectual property rights, trade secrets, and accumulated knowledge of the entire workforce.© John Wiley & Sons Canada Ltd.Knowledge Management and Organizational LearningSlide43

Organizations that are able to continually learn and adapt to new circumstancesCore ingredients include:Mental modelsPersonal masterySystems thinkingShared vision

Learning organizationsSlide44

Organizations that consistently achieve excellence while creating a high quality work environmentInvolves making decisions based on hard facets about what really works© John Wiley & Sons Canada Ltd.Evidence-Based ManagementSlide45

People oriented – value people as human assetsTeam oriented – achieve synergy through teamworkInformation oriented – mobilizes the latest information technologyAchievement oriented – focuses on the needs of customers and stakeholdersLearning oriented – operates with internal culture that respects and facilitates learning

characteristics of high performance organizationsSlide46

Employment securitySelective hiringSelf-managing teamsHigh pay based on meritTraining and developmentReduced status distinctionsShared information

Evidence-Based Positive Human Resource Management PracticesSlide47

The 21st Century Manager:Managers have to excel as never before to meet the expectations held of them and of the organization they lead.Attributes of a 21st Century Manager:

Global strategist: understanding the interconnections among nations, cultures and economies

Master of technology : comfortable with information technologyInspiring leader: attracting and motivating workers to achieve high-performance culture

Model of ethical

behaviour

acting ethically in all ways

Century LeadershipSlide48

© John Wiley & Sons Canada Ltd.Copyright © 2013 John Wiley & Sons Canada, Ltd. All rights reserved. Reproduction or translation of this work beyond that permitted by Access Copyright (The Canadian Copyright Licensing Agency) is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons Canada, Ltd. The purchaser may make back-up copies for his or her own use only and not for distribution or resale. The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information contained herein.

Chapter 2: Management learning – - PowerPoint Presentation

Chapter 2: Management learning – - PPT Presentation

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