04 - Evolution of Management Theory II

Human Resources Approach
Week 4
The Evolution of • Robert Owen
Management Theory II Claimed that a concern for employees was
profitable for management and would relieve
human misery.
• Hugo Munsterberg
Principles of Management Created the field of industrial psychology—the
scientific study of individuals at work to maximize
their productivity and adjustment.
Evans Khadambi Luyali
Department of Civil & Structural Engineering
Human Resources Approach Behavioural Management Theory

• Mary Parker Follett • Behavioural Management
Recognized that organizations could be viewed The study of how managers should behave to
from the perspective of individual and group motivate employees and encourage them to
behaviour. perform at high levels and be committed to the
achievement of organisational goals.
• Chester Barnard
Focuses on the way a manager should personally
Saw organizations as social systems that require
manage to motivate employees.
human cooperation.
Expressed his views in his book The Functions of
the Executive (1938).
3 4
Behavioural Management The Hawthorne Studies

• Mary Parker Follett • Studies of how characteristics of the work
An influential leader in early managerial theory setting affected worker fatigue and
Held a horizontal view of power and authority in performance at the Hawthorne Works of the
organisations Western Electric Company from 1924-1932.
• Suggested workers help in analysing their jobs for Worker productivity was measured at various levels
improvements—the worker knows the best way to of light illumination.
improve the job.
Researchers found that regardless of whether the
• If workers have relevant knowledge of the task, then light levels were raised or lowered, worker
they should control the task. productivity increased.
5 6
1
The Hawthorne Studies Human Relations Movement
• Human Relations Implications • Based on a belief in the importance of
Hawthorne effect—workers responded to the employee satisfaction—a satisfied worker was
attention they received and were more productive. believed to be a productive worker.
Managers should be behaviourally trained to
manage subordinates to elicit their co-operation • Advocates were concerned with making
and increase their productivity. management practices more humane.
Groups impose informal performance norms on Dale Carnegie
their members (both “rate busters” and “chiselers”)
Abraham Maslow
Gave rise to the field of Organisational Behaviour
Douglas McGregor
• The study of the factors that have an impact on how
individuals and groups respond to and act in
organisations.
7 8
Theory X and Theory Y Theory X versus Theory Y
• Douglas McGregor proposed the two different

sets of assumptions about workers.
Theory X assumes the average worker is lazy,
dislikes work and will do as little as possible.
• Managers must closely supervise and control through
reward and punishment.
Theory Y assumes workers are not lazy, want to do
a good job and the job itself will determine if the
worker likes the work.
• Managers should allow workers greater latitude, and
create an organization to stimulate the workers.
9 10
Theory Z The Quantitative Approach

• William Ouchi researched the cultural • Operations research (management science)
differences between Japan and USA. Evolved out of the development of mathematical
 USA culture emphasises the individual, and and statistical solutions to military problems during
managers tend to feel workers follow the Theory X World War II.
model.
Involves the use of statistics, optimization models,
 Japan culture expects worker committed to the
information models, and computer simulations to
organisation first and thus behave differently from
USA workers. improve management decision making for planning
and control.
• Theory Z combines parts of both the USA and
Japan structure.
 Managers stress long-term employment, work-
group, and organisational focus.
11 12
2
Management Science Theory Social Events That Shaped Management
• An approach to management that uses Approaches
rigorous quantitative techniques to maximize • Classical approach
the use of organisational resources. Desire for increased efficiency of labour intensive
Quantitative management—utilises linear operations
programming, modelling, simulation systems. • Human resources approach
Operations management—techniques to analyse
The backlash to the overly mechanistic view of
all aspects of the production system.
employees held by the classicists.
Total Quality Management (TQM)—focuses on
The Great Depression.
improving quality throughout an organisation.
Management Information Systems (MIS)—
• The quantitative approaches
provides information about the organisation. World War II
13 14
The Process Approach Organisational Environment Theory

Organisational Environment
• Management theory jungle (Harold Koontz)
The set of forces and
The diversity of approaches to the study of conditions that operate
management—functions, quantitative emphasis, beyond an organisation's
human relations approaches—each offer something boundaries but affect a
to management theory, but many are only manager’s ability to acquire
managerial tools. and utilise resources.
• Planning, leading, and controlling activities are
circular and continuous functions of
management.
15 16
The Systems Approach The Open-Systems View

• Defines a system as a set of interrelated and • Open System
interdependent parts arranged in a manner A system that takes resources from its external
that produces a unified whole environment and converts them into goods and
Closed system : a system that is not influenced services that are then sent back to that
by and does not interact with its environment environment for purchase by customers.
Open system: a system that dynamically interacts Inputs: the acquisition from external resources.
with its environment Conversion: the processing of inputs into goods
Stakeholders: any group that is affected by and services.
organizational decisions and policies Output: the release of finished goods into the
environment.
17 18
3
The Organisation as an Open System Other System Considerations
• Closed system
A system that is self-contained and thus not
affected by changes occurring in its external
environment.
Often undergoes entropy and loses its ability to
control itself, and fails.
• Synergy
Performance that results when individuals and
departments co-ordinate their actions
• Performance gains of the whole surpass the sum of
the performance of the individual components.
19 20
The Contingency Approach Contingency Theory

• The situational approach to management that • Contingency Theory
replaces more simplistic systems and The idea that the organisational structures and
integrates much of management theory control systems managers choose depend on (are
contingent on) the characteristics of the external
• Four popular contingency variables
environment in which the organisation operates.
Organization size
Assumes there is no one best way to manage.
Routineness of task technology • The environment impacts the firm and managers
Environmental uncertainty must be flexible to react to environmental changes.
Individual differences In rapidly changing organisational environments,
managers must find ways to coordinate different
departments to respond quickly and effectively.
21 22
Contingency Theory of Organisational Design Mechanistic and Organic Structures

• Mechanistic Structure
Authority is centralised at the top. (Theory X)
Employees are closely monitored and managed.
Can be very efficient in a stable environment.
• Organic structure
Authority is decentralised throughout the
organisation. (Theory Y)
Tasks and roles are left ambiguous to encourage
employees to react quickly to changing
environment.
23 24
4
At the next session
Planning
25

04 - Evolution of Management Theory II

Uploaded by

Copyright:

Available Formats

04 - Evolution of Management Theory II

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

04 - Evolution of Management Theory II

Uploaded by

Copyright:

Available Formats

Human Resources Approach

Human Resources Approach Behavioural Management Theory

Behavioural Management The Hawthorne Studies

Theory X and Theory Y Theory X versus Theory Y

• Douglas McGregor proposed the two different

Theory Z The Quantitative Approach

The Process Approach Organisational Environment Theory

The Systems Approach The Open-Systems View

The Contingency Approach Contingency Theory

Contingency Theory of Organisational Design Mechanistic and Organic Structures

You might also like