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GBU 205: MANAGEMENT & ORGANISATIONAL

BEHAVIOR
WEEK 3

APPROACHES TO THE STUDY OF


ORGANISATIONAL BEHAVIOR AND
MANAGEMENT
(The Development of Management and
Organisational Behaviour)
By Grace Abban - Ampiah

Learning Outcomes
At the end of this lecture, students will be
able to:
Recognise how management principles and

practice have changed over the years before


(1900s).
Understand the significance of the different

approaches of management and organisational


behaviour to the present-day management.

Content
Evolution of Management (Historical Roots of

Management and Organizational Behaviour)


Management before the Industrial revolution (1900s).
Management during the Rapid industrialization and

Technological advancement (Before 18th and 19thth


Century)
Contributions of Management Schools of thought

towards the evolution of Management Studies.


Relevance of theories of management to present-day

Management in organizations.

Lecture Structure
Reasons why understanding the history of

management thought is important to


managers.
Evolution of Management
Management before Industrial Revolution

Period
Management during the rapid Industrial

Revolution

Lecture Structure
Contributions of Management Schools of thought

towards the evolution of Management Studies.


Classical Management School
Scientific Management theory (Frederick .W.Taylor)
Administrative Management Theory (Henri Fayol)
Bureaucratic Management theory

(Max Weber)

Behavioural (Human Relations Management School)


Hawthorne Studies (Elton Mayo)
Modern Management Theory
Contingency Management theory

Introduction
The main motive for the
evolution of the management
theories is to search for better
ways for ensuring organizational
efficiency

Group Exercise
Discuss

the reasons why it is important for


managers/future managers to study and understand
the work
of
Past
Theorists
towards
the
development of management and organizational
Behaviour in this dynamic and changing world.

Elect a leader to present your comments to the class.

Why is it important for managers to study


and understand past theorists in this
changing business
It is important for managers to study and understand Past theorists
because of the following:
In order to become an successful manager requires an

appreciation of early ideas in management and reasons for its


development.
The theories still form a vital part of the build up body of

management knowledge.
It ensures that managers does not have to re-invent ideas that

have been generated by others.


Early ideas form the basis for current understanding and boost

your ability to develop new ideas.

Management before the


Industrial Revolution
Before the industrial revolution:
There was no management theory.
Most people worked in small workshops.
Most people used horses for plowing the field

and simple tools for manufacturing of


products.

Management before
Industrial revolution
Continued
Management was based on trial and

error with little or not theory.


There was no common body of

knowledge or theoretical basis for


managing resources.
There was no best practices (lack of

sharing of ideas influenced the


management practices in the world).

Management before the Industrial


Revolution (Before 20th Century)

Industrial Revolution Era (1700-1785) in


England

What is Industrial Revolution?


This refers to a major change in an economy which is
characterized by replacement of the use of primitive
tools to rapid expansion of mechanical industries or
power driven tools. E.g. use of steam engine for
performing work in textiles and steel factories.

Characteristics of Industrial
Revolution in England/USA
Inventions of different machinery used

in factories E.g. manufacturing, textiles


e.t.c
Improved transportation (railways)
for moving goods and resources from one
place to another.
Available Electricity for production of
products in factories.
High demand for goods and services.
Concentration of workforce in factories.

When and How did


management evolved
Management began during the
advancement in large manufacturing
industries (Industrial revolution) resulting in
increased in the number of employees:
Inefficiencies during Industrial Revolution
Workers became dissatisfied with their working
conditions.
Many workers lacked the required training on
how to do their work efficiently.
These problems, made managers to attempt to

find possible way for workers to perform their work


efficiently.

Classical Theories of
Management
Classical School of thought represent
one of the earliest theories about
management of people at work.
Classical theories emphasized their
Contributions
to Management main attention on organization
structure.
They believe that if the structure of the
organization is well-designed then
organizational effectiveness shall be
accomplished.

Classical Theories of
Management Contd
Classical
Management
Schools
Contributor

1. Scientific Management (Frederick W.


Taylor)

2. Administrative Management (Henri


Fayol)
3. Bureaucracy (Max Weber)

Aim/Objective

Increase Productivity and Efficiency

Scientific Management School


Contribution towards Management
Studies
Founder of
Scientific
Management
School

Frederick W. Taylor (1890 1915)

Focus of
Management

Formulated scientific
management principles:

Focused his attention of one


aspect of organization
structure the design of
jobs.

Scientific Management Tools


to ensure
efficiency/Productivity
Work Study: involves all techniques used

to assessing work methods and equipment


used in performing a job in order to ensure
maximum outputs.

Work measurement; is concerned with

the length of time it takes an employee to


complete a work task.

Scientific Management School Steps


to design Job Structure
Design of Job
Structure

1. Systematic analysis of all work


processes and procedure.
a) Work study: Analyze all work
techniques, methods,
equipments for performing job.
.

b) Work Measurement.
(determine the average time a
worker spend to complete
work.) E.g. Hourly basis.

2. Determine standardized
techniques, methods,
equipments for performing a job.

Scientific Management
School Steps to design Job
Design
of Job Structure
Training: Scientifically
Structure
Select workers and develop
them through appropriate
training (E.g. development of
skills and ability on their job
role)
3. Close co-operation
between managers and
employees to ensure better
results and no interruptions.
4. Reward: Provide
incentives to workers.

Practical Example of a
Classical Manager
If for example Peter is a Classical Manager

working in a Textile Manufacturing Industry


Peter must have a good understanding of

the business functions to enable her


structure the organization based on task
assigned to individuals.

Scientific Management
School - Work Study
Process

Break down process into how products are


produced into 3 main parts.
1. Identify what needs to be done in the
organization.
( job definition/task roles and responsibilities).
E.g.
Processing of products
Distributing of products
Managing of raw materials

Scientific Management
School - Work Study
2. List the skills that needs to help the work to be
done:
A person with knowledge and skills in

production (Production Manager).


A person with knowledge and skills in
Sales (Sales Manager).
A person with knowledge and skills in
manufacturing raw material (Material
Management Supervisor)
3. Training: Equip workers with the knowledge
and skills required for the job.

Scientific Management
School Work Measurement
Reward workers efforts based on the

average length time of to accomplish task.


E.g. hourly based.

Basic Scientific management


Principle

Relevance of scientific Management to


Modern Management
It has help to avoid using common sense or

rule of thumb but to focus on scientific


method to study work and the most efficient
way to perform.
It has helped to match workers to their jobs

based on their abilities, motivation and to


train them to perform efficiently. E.g.
recruitment and selection
Use of performance related-pay, financial

incentives, bonuses, and total quality


management.

Relevance of scientific Management


to Modern Management
It has helped to review and monitor

workers performance by providing them


with good supervision and
instructions.
It enables managers to concentrate on

planning and organizing which helps


employees to perform creditably.

Exercise
Spend few minutes to divide yourselves

into groups and reflect on the advantages


and disadvantages of the Scientific
Management School of Thought.
Select a leader to present your views to the

class

Advantages and
disadvantages of Scientific
Management
Advantages

Disadvantages

Application and use

High investment in

of scientific
methods. E.g. Work
study, and work
measurement in large
companies(Public
sectors) .E.g.
manufacturing
industries.
Broad scope for
specialization and
accurate planning.

capital for
establishment of
planning department,
work-study,
standardized tools and
training of workers.
Applicable in only
large companies
rather than small
businesses.

Advantages and disadvantages


of Scientific Management
School

Advantages

Disadvantages

Benefits to workers

Repetitive tasks, E.g.

(higher wages and


less burden of work),
management.
Minimum wastages
of materials, time
and money.
Cordial relations
between workers and
management.

employee boredom, no
job rotation.
Focus on quantity, not
quality
More power is given to
management rather than
workers.
Does not encourage
creativity and
initiatives of workers

Contributions of Administrative
Management (Henri Fayol,
1916)
According to Henri Fayol, management is part of

our life e.g. home, work, School.


He introduced five management principles to
ensure organizational effectiveness.
Planning: forecasting and determining what
will be needed to achieve organizational goals.
Organizing: involves mobilizing all the

necessary resources needed to accomplish


task/goals.

Contributions of Administrative
Management (Henri Fayol,
1916)
Commanding: ensuring that the necessary

actions are done to achieve organizational


goals.
E.g. Motivating, persuading and convincing
people to help achieve productivity. Provide
feedback, incentives, recognition.
Co-ordinating: ensuring that group or

individuals are working together effectively.


Controlling: Ensuring that rules and regulation

are followed. E.g. review and monitor work.

Administrative Management
theory (Henri Fayol, 1916)
Henri Fayols management functions into six

groups
Work Organization
Activities

Meaning

Technical

Production and manufacture

Commercial

buying & selling - exchange


(banking, insurance,
warehousing, advertising);

Financial

seek for optimum use of


(capital banking, insurance)

Administrative
Management theory
(Henri
1916) of
Security Fayol, Protection

organizational
property

Accounting

stocktaking,
balance sheets,
costs, statistics

Management

Planning,
organizing,
commanding and
controlling
activities.

Bureaucracy Max Weber


Define Bureaucracy?

Bureaucracy refers to a formal


administrative system governing a large
institution.

Characteristics of
Bureaucracy Max Weber
Written Rules and Regulations to eliminate

managerial inconsistencies.
Authority: The power to hold people

responsible for their actions.


Promotions or Positions: Positions given to

employees should be based on performance


and not social contacts (Whom you
know).

Characteristics of
Bureaucracy Max Weber
Clearly define position responsibilities:

should be clearly defined to help employees to


understand what is expected of them.
Lines of Authority: should be clearly

recognized, this is to help them know who they


reports to.

Bureaucracy - Max Weber


Objective

Strategy

Criticism

Bureaucracy An ideal type


of Organization. (Focus on
formal Organizational
Structure)

1. Formal Written
rules to control
employees
behaviors'.

Failed to recognize
barriers to
communication. (E.g.
Hierarchical system)

2. Well-defined
hierarchy (High
level management
control lower level
management).
3. Strict Chain of
command to link
top level
management to
lowest-level
management
(each member
reports to only a
single superior)

Bereaucracy Max Weber


Objective

Strategy

Criticism

How
organization
operates
(Organizational
Structure)

4. Unity of Command:
employees should receive
orders from one person.

1. One best way


of doing things.

5. Impersonal Treatment:
promotion and selection is
based on competence.
6. Permanent Career
Commitment: Employment
is viewed as a lifelong
obligation on the part of the
organization
7.

Division of Labour
(Employees doing what they
can do best).

2. Elimination of
study of human
behaviours

Significance of Bureaucracy
in Modern Management

Companies all over the world have adopted

bureaucratic management principles.


E.g. Public sector organizations--

commonly known as bureaucracies--rely on


formal processes and hierarchies to achieve
stable structures and consistent results.

Relevance of Bureaucracy Management


Theory on Modern Organizational
Development.
Bureaucratic
Impacthas
on Modern
The Classical Management Theory
helped to improve
Management Theory
Organization
organizational effectiveness in recent times
Development
Clear Organization
hierarchy (Levels of
management)

Most organization have


adopted the Hierarchical
organizational structure
levels)with clearly defined
roles (the three distinct
hierarchy namely top,
Middle and lower
Management Levels.

Division of Labour

Employees roles are clearly


defined with the use of job
descriptions. Projects are
broken down into smaller
tasks that are very simple
and easy to accomplish.

Relevance of Bureaucracy
Management Theory on Modern
Organizational Development Contd
Bureaucratic
Management Theory

Impact on Modern
Organization
Development

Autocratic leadership Organizations' have


single leader who
control subordinates
to ensure that
organizational goals are
achieved.

Criticism/Shortfall of
Bureaucracy Max Weber
Requiring all managers to strict set of

rules and regulations (guidelines)


does not encourage creativity in the
organization
It makes employees to find it difficult to

adapt to change.

Criticisms/Shortfalls of Classical
Management School of Thought
1. Treated humans as machines.(E.g.

Taylors Scientific management Theory).


2. Focus on one best way' of improving

on performance. E.g. Each Theorist


provided one way of achieving
organizational efficiency.
E.g. Taylor focused on systematic
analysis of work processes and
related techniques to achieve
productivity and efficiency

Behavioural Management Theory (Human


Relations Movement ) Elton W. Mayo
This School of Thought was founded by Elton W. Mayo
Unlike

the Scientific
Management
School of
thought which focuses on organisational structure.

Aim: Human Relations Movement concentrates on


relationships between employees and employers
(Social and non-economic conditions).
Purpose of Hawthorne Studies

Investigated how psychological and social factors


affect productivity and work adjustment.

Role Play exercise


Do a role play on the Hawthorne Studies.

Characters
1.Elton Mayo (Researcher) and other
researchers.
2.Two people to work under lightning
conditions
3.Two people to work under low lightning
conditions
Class comments on the role play. (Individuals
behaviour)

Evolution of behavioural management theory


(Human Relations Movement) Hawthorne
Studies
Experiment 1- lighting Levels and Worker Productivity
Objective: To determine the impact of illumination(lighting,
whether dim or bright ) had effect on work productivity.
Description of Experiment:
Two groups of females were observed.
One group worked under a control room condition without any
changes in lighting.
Other group worked whiles lighting were varied (changes in
lighting whether dim or bright)
Results:
Productivity increased in both locations. Thus the output of
lighting remained high even when the lighting was so low that
workers could hardly see what they were doing.

Evolution of behavioural management theory


(Human Relations Movement) Hawthorne
Studies
Experiment 2 - Banking Wiring Room
Objective: To determine the impact of social factors and supervisory
management on employees productivity.
Description of Experiment
Diverse male work groups were observed during regular working
conditions and interviewed afterwards after work. These included the
following privileges:
Leave their workstation without permission.
Enjoy Lunch
Take rest periods.
Results:
Increased Productivity was based on the fact that they were being studied
enabled them feel more motivated to perform effectively.
To whom much is given, much is expected

Conclusions of Hawthorne
Studies
Interview of Women: They said they were motivated to work
because of attention from supervisor (Social factors) and not
the monetary factors resulting in the following:
Self esteem improved
They felt important
Supervisor valued their output
Happy being part of a team

Conclusion: People should be treated as human beings not as


machines.

Relevance of Human
Relations Management
Theory
Managers roles include caring and being

concern about employees work needs and


well-being
It is important to ensure teamwork.

Relevance of Human
Relations Management
Theory

Contemporary/Modern Management
-(Contingency Approach)
This approach recognize that there is no one best to
Improve , rather an appropriate style depends on the
demands of the situation.
(Johns . G and Saks, A. M)
.

Contemporary Management (Contingency Approach)


Contributors:
John Woodward Fielder
Lorsch and Law

Characteristics of Contingency
Management Approach
No one best way to resolving issues in

the organization because:


Every organization has its own

challenges and problem and should


resolve each problem according to the
situation.
Eg. organization is influenced by

External and internal factors.

Factors influencing
Organisations
effectiveness
Internal factors

External factors

Scarce resources (E.g.

Changes in technology

physical and human


resources)
Incompetent human
resources.
Organizational
structure
Organizational culture
Eg. Leadership styles
Strength of employees
E.g. skills and abilities

creativity and
innovation.
Government Legislation
on (Taxes, tarriff on
imported goods)
Economic conditions
inflation rate (high
inflation lowers purchasing
power), High interest
rate fall in demand of
goods in the economy

Relevance of modern Management


School - (Contingency Approach)
Managers with the contingency view use

a flexible approach in managing workers


in the organization.
E.g. Draws on variety of theories,
experience and evaluate many options to
enable them solve problems.
Analyze and understand situation and

respond accordingly.

McGregor X and Y Theory


Theory X

Theory Y

Managers assumes
that:
Workers are lazy
They dislike work
They need to be
forced to work hard.
They need close
supervision to help
them to be more
productive

Managers have the


notion that:
Workers can think for
themselves
They want
responsibility and
variety of work
They are creative.

Relevance of
Theory Y (By McGregors Theory)
Assumptions
Workers are hardworking and perform best in a
right working conditions.
They are seen as the most important assets of

the organization not financial


Machinery, and Equipment.
Managers

resources,

should be abreast with both


traditional and contemporary theories of
management as well as devise others measures
to ensure organizational effectiveness.

Conclusion
It is important for all managers
and aspiring managers to study
Past Theorists contributions
toward Management and
Organizational Behaviour to
enable them devise suitable
ways to ensure organizational
effectiveness.

Reading Assignment
Critically examine the following School

of Thought contributions towards


Management.
Systems Management Theory
Quantitative Management Theory

Conclusion
What do successful Managers do?
Successful Managers not only focus on theories of
organizational Behavior but extends these approaches in
order to meet the demands of the dynamic environment
and
globalization