085 0rganizational Behavior

2–2–11

Philosophies and Approaches to Management Practice

C H A P T E R 2

Jon L. Pierce &Donald G. Gardnerwith Randall B. Dunham

Management

OrganizationalBehavior

PowerPoint Presentationby Charlie Cook

An Integrated Perspective

Copyright © 2002 by South-Western

Copyright © 2002 by South-WesternCopyright © 2002 by South-Western 2–2–22

Learning ObjectivesLearning Objectives1.1. Identify early pioneers in management and organizational Identify early pioneers in management and organizational

behavior and their contributions to the classical theory of behavior and their contributions to the classical theory of management.management.

2.2. Discuss the major elements of of Taylor’s approach to Discuss the major elements of of Taylor’s approach to scientific management.scientific management.

3.3. Explain the significance of the Hawthorne studies.Explain the significance of the Hawthorne studies.4.4. Identify the major contributors to the behavioral theory of Identify the major contributors to the behavioral theory of

management, their view of organizations, and their management, their view of organizations, and their contributions to the management literature.contributions to the management literature.

5.5. Discuss the meaning of the human resources model and Discuss the meaning of the human resources model and its relationship to the high involvement approach to its relationship to the high involvement approach to organizational management.organizational management.

6.6. Identify and discuss several contemporary perspectives Identify and discuss several contemporary perspectives on the nature of organization and management practice.on the nature of organization and management practice.


The Classical School of Management The Classical School of Management Thought and PracticeThought and Practice• The Scientific Management MovementThe Scientific Management Movement

Management which conducts a business or affairs by Management which conducts a business or affairs by standards established by facts or truths gained through standards established by facts or truths gained through systematic observation, experiment, or reasoning.systematic observation, experiment, or reasoning.

Focused on increasing labor efficiency and productivity Focused on increasing labor efficiency and productivity primarily by managing the work of employees in the primarily by managing the work of employees in the organization’s technical core (i.e., shop floor).organization’s technical core (i.e., shop floor).

Characterized by close forms of supervision and Characterized by close forms of supervision and control-oriented management practices.control-oriented management practices.


Scientific Management PioneersScientific Management Pioneers• Charles Babbage (1792Charles Babbage (1792–1871)–1871)

Advocated division of labor and job specialization.Advocated division of labor and job specialization. Promoted time studies to establish performance Promoted time studies to establish performance

standards and rewards for exceeding standards.standards and rewards for exceeding standards.• Frederick Taylor (1856Frederick Taylor (1856–1915)–1915)

Considered the “father of scientific management.”Considered the “father of scientific management.” Believed in the “science of work”—the underlying laws, Believed in the “science of work”—the underlying laws,

or principles, that govern various work activities.or principles, that govern various work activities. Believed in the economically-motivated “mutuality of Believed in the economically-motivated “mutuality of

interest” of employees and managers.interest” of employees and managers.


Fredrick Taylor’s Scientific Fredrick Taylor’s Scientific Management PrescriptionsManagement Prescriptions• Develop the science of work (“one best way”).Develop the science of work (“one best way”).• Emphasize an absolute adherence to work Emphasize an absolute adherence to work

standards.standards.• Scientifically select, place, and train workersScientifically select, place, and train workers• Apply a financial incentive system.Apply a financial incentive system.• Utilize specialized functional supervision.Utilize specialized functional supervision.• Develop and maintain friendly labor-Develop and maintain friendly labor-

management relations.management relations.


Functional Supervision and Unity of Functional Supervision and Unity of CommandCommand

Cost ClerkSupervisor

Time ClerkSupervisor

InspectorSupervisor

Repair BossSupervisor

. . .

FunctionalSupervision

Unity ofCommand

VS.

GeneralSupervisor

DisciplinarianSupervisor

FIGURE 2FIGURE 2–1–1


Scientific Management Pioneers Scientific Management Pioneers (cont’d)(cont’d)• The GilbrethsThe Gilbreths

Frank Gilbreth (1868–1924) focused on improving work Frank Gilbreth (1868–1924) focused on improving work methods such as bricklaying to improve effectiveness methods such as bricklaying to improve effectiveness and efficiency.and efficiency.

Lillian Gilbreth (1878–1972) pioneered modern human Lillian Gilbreth (1878–1972) pioneered modern human resource management.resource management.

Developed a classification scheme Developed a classification scheme to describe the motions (to describe the motions (therbligstherbligs) ) used in the performance of used in the performance of a job.a job.


Scientific Management Pioneers Scientific Management Pioneers (cont’d)(cont’d)• Henry Gantt (1861–1919)Henry Gantt (1861–1919)

Developed the Developed the GanttGantt chart to summarize work activities chart to summarize work activities and identify those tasks that should be performed and identify those tasks that should be performed simultaneously or sequentially.simultaneously or sequentially.

Advocated a minimum-wage-based incentive system Advocated a minimum-wage-based incentive system and bonuses for work above and beyond the expected and bonuses for work above and beyond the expected standard by employees.standard by employees.

Proposed a bonus system for supervisors to encourage Proposed a bonus system for supervisors to encourage them to manage subordinates effectively.them to manage subordinates effectively.


Gantt Chart for Classic Home ContractorsGantt Chart for Classic Home Contractors

Draw Plans

Rough Framing

Rough Electrical

Cabinet Ordering

Final Electrical Work

Install Wallboard

Install Cabinets

Install Carpet

Final Inspection

Week 1 Week 2 Week 3 Week 4


Source: Adapted from J. G. Monks, 1982. Operations management: Theory and problems. New York: McGraw-Hill, 549.


Administrative Management and the Administrative Management and the Bureaucratic OrganizationBureaucratic Organization• Organizations were viewed as giant machines Organizations were viewed as giant machines

created to achieve goals.created to achieve goals.• A basic set of universal laws, or principles A basic set of universal laws, or principles

should govern organization design and allow should govern organization design and allow managers to run those “machines” effectively.managers to run those “machines” effectively.


Administrative Management (cont’d)Administrative Management (cont’d)• Henri Fayol (1841Henri Fayol (1841–1925)–1925)

Believed that all managers perform five managerial Believed that all managers perform five managerial functions:functions:

PlanningPlanning OrganizingOrganizing CommandingCommanding CoordinatingCoordinating ControllingControlling


Fayol’s Fourteen PrinciplesFayol’s Fourteen Principles1.1. Division of laborDivision of labor2.2. AuthorityAuthority3.3. DisciplineDiscipline4.4. Unity of commandUnity of command5.5. Unity of directionUnity of direction6.6. Subordination of Subordination of

individual interest individual interest for common goodfor common good

7.7. RemunerationRemuneration8.8. CentralizationCentralization9.9. Scalar chainScalar chain10.10. OrderOrder11.11. EquityEquity12.12. Stability of tenureStability of tenure13.13. InitiativeInitiative14.14. Esprit de corpsEsprit de corps


The Bureaucratic OrganizationThe Bureaucratic Organization• Max Weber (1864Max Weber (1864–1920)–1920)

Envisioned an organization managed on an impersonal Envisioned an organization managed on an impersonal and rational basis.and rational basis.

Goals of the bureaucratic model:Goals of the bureaucratic model: SpeedSpeed PrecisionPrecision OrderOrder UnambiguityUnambiguity ContinuityContinuity PredictabilityPredictability


Structure of the Bureaucratic ModelStructure of the Bureaucratic Model• Division of labor (functional specialization)Division of labor (functional specialization)• Well-defined hierarchy of authority Well-defined hierarchy of authority

(centralization of authority)(centralization of authority)• Systems of rules for employees and work Systems of rules for employees and work

proceduresprocedures• Impersonal organizational relationshipsImpersonal organizational relationships• Selection and promotion solely on competenceSelection and promotion solely on competence• Career employment and well-defined promotion Career employment and well-defined promotion

path to top of organizationpath to top of organization• Organizational transactions extensively Organizational transactions extensively

documenteddocumented


Contributions and Limitations of the Contributions and Limitations of the Classical SchoolClassical SchoolContributionsContributionsPrescriptions for how to Prescriptions for how to

manage organizationsmanage organizationsSearch for “one best way” Search for “one best way”

to manage to lead to to manage to lead to greater organizational greater organizational efficiencyefficiency

Spurred additional Spurred additional research into management research into management and organizational and organizational systems systems

LimitationsLimitationsLimited view of employees Limited view of employees

as resources without as resources without social needssocial needs

Pursuit of “one best way” Pursuit of “one best way” (universal principles) to (universal principles) to managemanage

““Control-oriented” Control-oriented” approach creates an approach creates an inflexible, mechanistic inflexible, mechanistic organizationorganization


The Hawthorne StudiesThe Hawthorne Studies• Worker productivity studies (1924Worker productivity studies (1924–1933) –1933)

carried out at Western Electric.carried out at Western Electric. Focused on the relationship of workers’ productivity Focused on the relationship of workers’ productivity

and changes in their work environment.and changes in their work environment. Strongly influenced by behavioral management theory.Strongly influenced by behavioral management theory. Researchers concluded that social factors were Researchers concluded that social factors were

powerful determinants of worker productivity.powerful determinants of worker productivity. Results were inconsistent with expectations: Results were inconsistent with expectations:

Productivity improved under adverse conditions.Productivity improved under adverse conditions. Informal work groups with leaders and normsInformal work groups with leaders and norms

– ““Rate busters” and “chiselers”Rate busters” and “chiselers”


Behavioral School of ManagementBehavioral School of Management• An organization was viewed as a social system An organization was viewed as a social system

of people-to-people and people-to-work of people-to-people and people-to-work networks in which employees have both social networks in which employees have both social needs and the desire to make meaningful needs and the desire to make meaningful contributions toward the accomplishment of contributions toward the accomplishment of organizational goals.organizational goals.


Behavioral School ContributorsBehavioral School Contributors• Robert Owen (1771Robert Owen (1771–1858)–1858)

Progressive industrialist who recognized need for good Progressive industrialist who recognized need for good overall management of an organization’s human overall management of an organization’s human resources.resources.

• Hugo Munsterberg (1863–1916)Hugo Munsterberg (1863–1916) Father of industrial psychology and its use to enhance Father of industrial psychology and its use to enhance

organizational effectiveness.organizational effectiveness.• Walter Dill Scott (1869–1955)Walter Dill Scott (1869–1955)

Advocated improving employee attitudes and Advocated improving employee attitudes and motivation as a means to increase worker productivity.motivation as a means to increase worker productivity.


Behavioral School Contributors Behavioral School Contributors (cont’d)(cont’d)• Mary Parker Follett (1868Mary Parker Follett (1868–1933)–1933)

Asserted that managers’ influence and power should Asserted that managers’ influence and power should flow from their knowledge and skill.flow from their knowledge and skill.

• Chester Barnard (1886–1961)Chester Barnard (1886–1961) Provided insight into the concept of formal (consciously Provided insight into the concept of formal (consciously

created) and informal (spontaneous) organizations created) and informal (spontaneous) organizations within firms.within firms.


The Human Relations ModelThe Human Relations Model

Worker Satisfaction

leads to . . .

Enhanced WorkerPerformance


A management model that views the employee as socially motivated and operates from the assumption that a social need-satisfied worker is a productive worker.


The Behavioral Science InfluenceThe Behavioral Science Influence• Behavioral science movementBehavioral science movement

A movement that stressed the need to conduct a A movement that stressed the need to conduct a systematic and controlled field and laboratory studies systematic and controlled field and laboratory studies of workers and their motivation, attitudes, and behavior.of workers and their motivation, attitudes, and behavior.

Introduced the growth model of the employee.Introduced the growth model of the employee. The movement eventually The movement eventually

gave rise to organizational gave rise to organizational behavior as a discipline.behavior as a discipline.


Behavioral Science ContributorsBehavioral Science Contributors• Abraham Maslow (1908Abraham Maslow (1908–1970)–1970)

Identified sets of basic human needs and suggested Identified sets of basic human needs and suggested that they could be arranged in a hierarchy based on that they could be arranged in a hierarchy based on their importance to the individual.their importance to the individual.

• Douglas McGregor (1906–1964)Douglas McGregor (1906–1964) Developed the Theory X (traditional—negative—Developed the Theory X (traditional—negative—

management approach) and Theory Y (positive management approach) and Theory Y (positive management approach) to workers and work management approach) to workers and work motivation.motivation.


Behavioral Science Contributors Behavioral Science Contributors (cont’d)(cont’d)• Chris ArgysisChris Argysis

Believed that the conflict between mature individuals Believed that the conflict between mature individuals and bureaucratic organizations could be avoided by the and bureaucratic organizations could be avoided by the development of open and flexible organizations.development of open and flexible organizations.

• Rensis LikertRensis Likert Stressed teamwork and a group approach to Stressed teamwork and a group approach to

organizational design and management, which he called organizational design and management, which he called System 4.System 4.


Organizational HumanismOrganizational Humanism• A system that promoted an interest in A system that promoted an interest in

understanding the psychological forces tying understanding the psychological forces tying individuals to organizations.individuals to organizations.

• A system that also promoted management A system that also promoted management practices that lead to employee satisfaction practices that lead to employee satisfaction and well-being.and well-being.


The Human Resources ModelThe Human Resources Model

EmployeeInvolvement

OrganizationalPerformance

Satisfaction

Commitment and aWillingness toBecome More

Involved


The belief that through employee involvement in organizational decision making performance would be enhanced, leading to employee satisfaction, commitment and motivation for further involvement.


The Human Resources Model The Human Resources Model (cont’d)(cont’d)• High-involvement management and High-involvement management and

organization (Edward E. Lawler, III)organization (Edward E. Lawler, III) A participative process (everyone at all levels) that uses A participative process (everyone at all levels) that uses

the entire capacity of workers, is designed to encourage the entire capacity of workers, is designed to encourage employee commitment to organizational success.employee commitment to organizational success.

Depends upon management providing the necessary Depends upon management providing the necessary information, skills, empowerment and reward systems information, skills, empowerment and reward systems for organizational members.for organizational members.


Contributions and Limitations of the Contributions and Limitations of the Behavioral SchoolBehavioral SchoolContributionsContributionsRaised awareness of the Raised awareness of the

need to design open, need to design open, flexible organizationsflexible organizations

Introduced the growth Introduced the growth needs model of the needs model of the employeeemployee

LimitationsLimitationsLacks a language for Lacks a language for

communicating its ideas communicating its ideas to managersto managers

Haven’t gotten top Haven’t gotten top management’s attention management’s attention and respectand respect

Persistence in the belief Persistence in the belief that there is “one best that there is “one best way” to manageway” to manage


Dominant Features of the Behavioral Dominant Features of the Behavioral ModelModelInvolvement-oriented management practicesOrganic organization design

organization is a social system (human community)involvement-oriented organization

flexible structuredynamic tasks, loosely definedconsultative communicationsauthority flows from knowledge

and expertise vs. positionlow levels of standardizationextensive use of groups/teamsopen system

Model of the employeehuman relations movement—social beinghuman resource movement—growth being

Table 2Table 2–3–3


Other Management PerspectivesOther Management Perspectives• Contingency perspectiveContingency perspective

The belief that the techniques appropriate for a manager The belief that the techniques appropriate for a manager to use depend (areto use depend (are contingent contingent) on the specific situation.) on the specific situation.

• Contingency perspectivesContingency perspectives Total quality managementTotal quality management Systems theorySystems theory Theory ZTheory Z McKinsey 7-S frameworkMcKinsey 7-S framework


Demands on Effective Management: Demands on Effective Management: Contingency PerspectivesContingency Perspectives

Develop DiagnosticSkills for Situational

Awareness

ManagementChallenges

Develop Capacity forFlexible Behavior

Identify AppropriateStyle and Fit It

to Situation



Total Quality Management Total Quality Management PerspectivePerspective• Quality management perspectiveQuality management perspective

An approach to management that has as its goal the An approach to management that has as its goal the achievement of customer satisfaction by providing achievement of customer satisfaction by providing high-quality goods and services.high-quality goods and services.

• Total quality management (TQM)Total quality management (TQM) A management philosophy and way of managing with A management philosophy and way of managing with

the goal of getting everyone committed to quality, the goal of getting everyone committed to quality, continuous improvement, and the attainment of continuous improvement, and the attainment of customer satisfaction by meeting or exceeding customer satisfaction by meeting or exceeding customer expectations.customer expectations.

TQM pioneers: Deming, Juran, IshikawaTQM pioneers: Deming, Juran, Ishikawa


Total Quality Management Perspective Total Quality Management Perspective (cont’d)(cont’d)• TQM assumptionsTQM assumptions

Quality products are less costly to produce than poor Quality products are less costly to produce than poor quality products.quality products.

People (employees) care about quality and improving People (employees) care about quality and improving the quality of their work.the quality of their work.

Organizations are systems of interdependent parts and Organizations are systems of interdependent parts and quality problems cut across functional lines.quality problems cut across functional lines.

Quality and continuous improvement are the Quality and continuous improvement are the responsibility of top (senior) management.responsibility of top (senior) management.

Continuous learning and improvement are vital to the Continuous learning and improvement are vital to the long-term health and survival of an organization.long-term health and survival of an organization.


The Systems PerspectiveThe Systems Perspective• Systems theorySystems theory

A view of an organization as made up a number of A view of an organization as made up a number of interrelated elements, each functioning to contribute to interrelated elements, each functioning to contribute to the purpose of the whole organization which exists in the purpose of the whole organization which exists in an interdependent relationship with the external an interdependent relationship with the external environment.environment.


The McKinsey 7-S FrameworkThe McKinsey 7-S Framework

StrategyStrategy

StructureStructure

SystemsSystems

StaffStaff

StyleStyle

SkillsSkills

Shared Shared goalsgoals

OrganizationOrganizationManagementManagement


A ComparisonA Comparisonof American, of American, Japanese, and Japanese, and Theory Z Theory Z OrganizationsOrganizations

Short-Term EmploymentIndividual Decision MakingIndividual ResponsibilityRapid Evaluation and PromotionExplicit Control MechanismsSpecialized Career PathSegmented Concern for Employee as a Person

Theory A (American)Lifetime EmploymentCollective Decision MakingCollective ResponsibilitySlow Evaluation and PromotionImplicit Control MechanismsNonspecialized Career PathHolistic Concern for Employee as a Person

Theory J (Japanese)

Long-Term EmploymentCollective Decision MakingIndividual ResponsibilitySlow Evaluation and PromotionImplicit, Informal Control with Explicit, Formalized MeasuresModerately Specialized Career PathsHolistic Concern, Including Family

Theory Z (Modified American)

FIGURE 2FIGURE 2–6–6Source: Adapted from W. Ouchi. 1981. Theory Z. Reading, MA: Addison-Wesley, 58.


Contributions and Limitations of the Contributions and Limitations of the Contemporary SchoolsContemporary Schools• ContributionsContributions

Unified the technical Unified the technical side (classicists) and side (classicists) and the social elements of the social elements of organizations organizations (behavioralists).(behavioralists).

Showed that there is no Showed that there is no “one best way” to “one best way” to manage in all manage in all circumstances.circumstances.

• LimitationsLimitations Contemporary approaches Contemporary approaches

to management are more to management are more complex than the classical complex than the classical and behavioral and behavioral approaches.approaches.

No contemporary No contemporary management approach management approach has been thoroughly has been thoroughly researched.researched.

Education

085 0rganizational Behavior