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MANAGERIAL ROLES OF 

ORGANIZATION

CH.2 :Managing History and 
Current Thinking
3 BASIC APPROACHES TO
MANAGEMENT:
 Classical Approach
 Behavioral Approach

 Management Science Approach

OTHER APPROACHES:
 The Contingency Approach

 The Systems Approach


THE CLASSICAL APPROACH
THE CLASSICAL APPROACH
 Pioneers of Management Study
 “recommends that managers continually strive to
increase organizational efficiency to increase production”
 Find the ‘one best way’

 Lower-level analysis: done by studying the jobs of


workers at the lower levels of organization, how the task
situation can be structured to get the highest production
from workers.
 Comprehensive Analysis: studying the management
function as a whole.
FREDERICK W. TAYLOR
 Gave the concept of ‘Scientific Management’ – increase
worker efficiency by scientifically designing jobs, his basic
premise was that every job had one best way to do it and
that this way should be discovered and put into
operation.
 Bethlehem steel Co.

 Assumption that any workers work could be reduced to a


science
 Astounding results and increase in efficiency and
production
 Pioneered the Piece-Rate System
Scientifically designed Equipment
GILBRETHS:
‘Motion Study’ – reducing each job to the
most basic movements possible
Each movement/motion is studied to
determine how much time the movement
takes and how necessary it is to
performing the job
Inefficient/unnecessary movements are
eliminated
Motion & Movement
HENRY L.GANTT:

 Interested in increasing worker efficiency


 Current tasks and piece rates were set according to what

had been done in the past, or on somebody’s OPINION


of what workers should do.
 This led to inefficient tasks and unsatisfactory piece rates

 Gantt said this OPINION should be substituted by EXACT

SCIENTIFIC KNOWLEDGE
 Sought to improve systems/organizations through task-

scheduling innovation and the rewarding of innovation


GANTT CHART TEMPLATE
 Gantt Charts: Still the scheduling tool most commonly used by modern managers. This chart shows
what work was scheduled for specific time periods, how much of this work has been completed,
and by whom it was done.

 Rewarding Innovation: You should be more humane, do not be a slave-driver. When you ask
someone to perform work, make it to their advantage to do so, do not ask unreasonable or
impossible.
Gave the concept of a ‘Bonus’ pay in addition to piece rate, for exceeding the daily production
quota.
Believed in worker compensation that corresponded to overproduction (bonus)
HENRI FAYOL:
 Comprehensive Analysis
 Pioneer of Administrative Theory

 He gave the FUNCTIONS OF MANAGEMENT –Planning,


Organizing, Commanding, Coordinating, and
Controlling.
 Gave 14 General Principles of Management:

1. Division of Work

2. Authority (and Responsibility)

3. Discipline

4. Unity of Command
5.Unity of Direction
6. Subordination of individual interests to the general interests
7. Remuneration
8. Centralization (/Decentralization)
9. Scaler Chain
10. Order
11. Equity
12. Stability of Tenure of Personnel
13. Initiative
14. Espirit de corps

.
THE BEHAVIORAL APPROACH
Emphasizes increasing production through
an understanding of people.
If managers understand their people and
adapt their organizations to them,
organizational success will usually follow.
The Hawthorne Studies
The Human Relations Movement
THE HAWTHORNE STUDIES
 Conducted R (Chicago) Works of the
at the Hawthorne
Western Electric Company between 1924 - 1932

PHASE 1: The Relay Assembly Test Room Experiments:


 Studied productivity under different working conditions,
specifically lighting
 Determine relationship between intensity of lighting
and worker efficiency
 Two test groups, light intensity varied for one, held
constant for the other
 RESULT: Productivity increased in both conditions

 WHY?
 workers were more responsive to social factors—
such as the people they worked with on a team 
and the amount of interest their manager had in 
their work—than the factors (lighting, etc.)

 The Hawthorne studies discovered that workers 
were highly responsive to additional attention 
from their managers and the feeling that their 
managers actually cared about
 WHY?

- subjects found it enjoyable


- New supervisory relationship – free, no fear
- realized they were part of an important study
- became friendly as a group

 CONCLUSION: human factors within an


organization could significantly influence
production.
PHASE 2: The Bank Wiring Room Experiment:
 To analyze the social relationships in a work group.

 Focused on the effect of group piecework incentives on a group


of men
 Harder group worked as a whole – the more pay each member
would receive
 Believed workers would encourage one another to work harder

 They were wrong

 The faster workers were pressured to slow down

 They were more concerned with increasing group solidarity


rather than earning more
 CONCLUSION: social groups in organizations could effectively
exert pressure to influence individuals to disregard monetary
incentives.
Result of both phases of Hawthorne Studies:

Managers realized the importance and influence of the HUMAN


VARIABLE.

HUMAN RELATIONS MOVEMENT:


 Sparked by Hawthorne studies

 A people-oriented approach to management

 Enhance org success by building relationships with ppl

 When management stimulates high productivity and


commitment to the organization and its goals, human relations
are said to be effective, and vice versa.
 Human Relations Skill: ability to work with people in a way that
enhances organizational success
MANAGEMENT SCIENCE APPROACH
 Suggeststhat managers can best improve their
organizations using the scientific method and
mathematical techniques to solve organizational
problems.
THE CONTINGENCY APPROACH:
(SITUATIONAL)

 What managers do in practice depends upon, or


is contingent upon, a given set of circumstances,
that is , dependent upon certain situations
 Emphasizes “ïf-then”relationships

 Outlines the best management methods for


different situations
 No one best way to solve all management
problems in an organization, but ONE BEST WAY
TO SOLVE A PARTICULAR PROBLEM OR SITUATION
“ïf-then”
THE SYSTEM APPROACH:
 System: A number of interdependent parts functioning as
a whole for some purpose
 Two types of systems: Closed and Open

 Concept of system as a WHOLE is very important – you


must first b aware of how each part functions and the
interrelatedness of each part, before you can make
modifications to the parts which benefit the system as a
whole
 Management System comprises of a number of parts
including organizational input, organizational process and
organizational output. These function interdependently
to achieve a purpose – organizational objectives
Open System

Closed System

• Incidents
• Appraisals
• Interaction