Introduction to Management: Classical and Human Relations Approaches, Lecture notes of Management Theory

These are Lecture notes about the basics and the principle of Management.

Typology: Lecture notes

2017/2018

Uploaded on 01/12/2018

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Introduction to
Management
Denition: Management is the fact of having a set of
activities done by one people who share one common goal
in an organisation.
Managers inuence the groups of people that are under
their orders (the followers).
Managers are focus on the task to be done, not on the
people who are doing the tasks.
They have objectives to full no matter what they will full
them.
Managers have a very low emotional commitment.
Another denition: Management is a process of getting
things done eectively* and eciently* through and with
people.
*eectively: time usage
*eciently: means usage
The Management processes:
The management processes are four (4): Planning,
Organising, Leading and Controlling
Planning: Dening goals, establishing strategies and
developing plans to coordinate activities
Organising: Determining what tasks have to be done, who
has to do the task, how task are to be grouped, who report
to whom and where decision are to be made.
Leading: Motivating employees, directing the activities of
others, selecting the most eective communication
channel and resolving conicts.
Controlling: The process of monitoring performance, in
accordance with the organisational goal (and not with the
manager’s personal interest)
Managers vs. Leaders
Low emotional commitment / High emotional commitment
Not concerned with people / Concerned with people
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Introduction to

Management

Definition: Management is the fact of having a set of activities done by one people who share one common goal in an organisation. Managers influence the groups of people that are under their orders (the followers). Managers are focus on the task to be done, not on the people who are doing the tasks. They have objectives to fulfil no matter what they will fulfil them. Managers have a very low emotional commitment. Another definition: Management is a process of getting things done effectively* and efficiently* through and with people. *effectively: time usage *efficiently: means usage The Management processes: The management processes are four (4): Planning, Organising, Leading and Controlling

  • Planning: Defining goals, establishing strategies and developing plans to coordinate activities
  • Organising: Determining what tasks have to be done, who has to do the task, how task are to be grouped, who report to whom and where decision are to be made.
  • Leading: Motivating employees, directing the activities of others, selecting the most effective communication channel and resolving conflicts.
  • Controlling: The process of monitoring performance, in accordance with the organisational goal (and not with the manager’s personal interest) Managers vs. Leaders
  • Low emotional commitment / High emotional commitment
  • Not concerned with people / Concerned with people
  • Goal to attain / Vision to realize
  • Strict ( like order ) / Flexible people NB : Both leaders and managers are important in an organisation. They seem like the two sides of a coin, you need both of them

Chapter I: The Classical School

Section 1: Frederick Winslow Taylor –

Scientific Management

Scientific organisation: Scientific organisation of how a task should be performed to meet effectiveness (time) and efficiency (resources means) Ranking: Conception agents (Managers) Top Executive agents (Operatives) Bottom Principles and Consequences

  • Task specialization (workers do small units of tasks, repeatedly « routine ») F 0E 0F 02 0Expertise (know how)
  • Salary : « The more you work , the higher your pay » F 0E 0F 02 0Risk of overwork
  • No communication in the job place between workers (avoid wasting time) F 0E 0F 02 0No socialisation (mental depression, stress)
  • Vertical communication (from top to bottom ; Operatives opinion doesn’t matter/ are not important) F 0E 0F 02 0No initiative

STRENGHS WEAKNESS High Productivity and High organizational income (bosses)

Very bad social atmosphere in the organization

Efficiency and effectiveness

Mental Depression, Stress, Sadness… TMS : Trouble musculo squelettiques

Section 3: The Bureaucracy Theory – Max

Weber

Principles:

  • Task specialisation: People are put in a position they could best perform.
  • (^) Clear hierarchical division: In order to make noticeable the different layers of responsibility.
  • Formal selection : People are recruited based on their skills and qualifications (know how)
  • Written rules and regulations: Everything is written (used as proof or evidence) For instance the service note.
  • Impersonality : Everyone is at the same level
  • Career orientation : a planned evolution of career NB: Weber advocates vertical communication

Strengths Weaknesses

Rapidity of action (activities are performed as soon as the order is given )

Inflexibility of the theory/strict

Meritocracy ( against nepotism and corruption )

Inhibit subordinates initiatives

Equity and adequate behaviours for all members of the organisation

Some criticism consider bureaucracy as irrational to a certain extent

Section 4: Fordism – Henry Ford

Principles:

  • Mass production (division of labour)
  • Mass consumption (low price, low production cost)
  • Use of semi-skilled workers supervised by chief engineers (To minimize the production cost) ; supervised by chief engineers (to minimize the production cost)
  • Authority: managers have the right give. ??

NB: If we sum it up we can say that the classical school can be divided into two groups:

  1. Task oriented thinkers: Frederick Taylor and Henry Ford.
  2. Whereas, with “administration oriented thinkers”: Fayol and Weber for instance.

Chapter II: The new approach of

human relations

Section 1: Elton MAYO – The human

relations movement

The human relations movement arose at the time when Scientific Management with its associated rational approaches to managing work in organisation, was the most widely accepted organisational theory.

Elton MAYO is the Father of this movement. He conducted a 20 year experience (from 1927 to 1947) in order to examine the connection between improvement of working conditions and productivity.

The Hawthorne Experience Results

  • Improving working conditions in the illumination experiment didn’t impact positively on worker’s productivity (Productivity didn’t increase) because here nothing changed but the workers didn’t have long breaks coffee or other refreshment. Nor could them communication with each other.
  • Whereas worker’s productivity increased in some experiments where the social psychological aspects were taken into consideration Improvement of the working conditions that impacted on workers:
  • Shortening of the working day (8 hours)

Many criticisms of this theory were based not on the pertinence of the identified needs but on the established hierarchy.

Furthermore, criticisms reproaches Maslow to have conducted his research on a narrow sample with people of nearly same education level.

NB: Maslow in his late search found a 6 th^ human need: overcoming one’s self.

Section 3: Frederick Herzberg – Dual Factor

Theory

Herzberg is a psychologist who has been highly inspired by Maslow’s “Hierarchy of Human Needs”. He used Maslow’s theory to study people’s behaviours in organisation. He looked for factors that strengthened workers’ motivation (motivational factors) and other that caused their dissatisfaction (Hygiene Factors).

He came to the conclusion that when Maslow’s level of needs (1+2) are not paid enough attention by organisation, employees will be frustrated or demotivated. Therefore, production may decrease and it’s a menace to the organisation growth.

The two-factor theory examples:

Motivators Hygiene Recognition Low or unreasonable wage Love of the job (passion) Bad Environment/ working conditions Financial treatment (salary) No career orientation Self/Career Development Bad interpersonal relations Good administration policy Excellent interpersonal relations

Criticism:

Criticism about Herzberg’s bi-factor theory is mainly based on the fact that the study was held concerning small sample (200 people), and all white professionals (engineers) with high salary.

NB: Whatever, Herzberg’s research has inspired more than one businessmen in the management of their company.

Section 4: Douglas McGregor – Theory X and

Theory Y

Like Frederick HERZBERG, McGregor has two types of theories: XY Theory.

In his book “The Human Side of Enterprise”, Douglas McGregor relate the leadership style to the leader’s view of his subordinate and motivates them.

According to the “XY Theory”, McGregor identified two major viewpoint in the human mentality.

1) The “X Theory” assumes that human beings by nature:

  • are lazy and don’t want to work.
  • do not want to take responsibility and prefer to be led and avoid to be punished.
  • are not ambitious, they work only for money to satisfy their lower levels needs. (physiological needs & security needs)
  • do not have initiatives (do not want to think)

2) The “Y Theory” on the other hand assumes that human beings:

  • are eager to work and consider it as a natural process
  • like taking responsibility and accept it
  • are inventive; creative (they can think to find solutions, take initiative)
  • achieve more when development is possible

NB: Management styles depend on the theory X or Y the manager is facing.

The leadership style resulting from X theory is characterized by no feedback (vertical communication). Submission and strict control. It is an authoritarian leadership style with negative consequences sometimes:

  • Lack of progress
  • Loss of self-esteem

By contest, the leadership style resulting from “Y theory” shows feature such as:

Single-loop learning:

With this learning-loop managers don’t ask for informations if an activity is not well performed. Yet there are variables to be taken into account in the performance of a task.

NB: With this learning-loop (aka “thermostas”), little or no learning occurs.

And managers get angry and communication is altered consequently we have problems. Managers stick to the “rules”.

Double-loop learning:

With the double-loop learning, the manager seek information about the different variables that have caused the failure of his subordinate in performing the activity. The manager is not going to stick to the rule of classical management rather he will be flexible and change rules.

Then subordinates have opportunities to learn from their managers the know- how and gain the professional development (they gain maturity).

At the same time managers learn from subordinates different aspects that are causing failure.