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Classical Management Approaches
Part 1: From Empire to Hierarchy
From the 18th century to the early 20th century, organizations functioned much like empires, and were modeled after efficient machines.
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Classical Management Approaches
Part 1: From Empire to Hierarchy
One American who popularized the importance of hard work, independence, and planning and organizing was Benjamin Franklin (1706-1790).
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Classical Management Approaches
Part 1: From Empire to Hierarchy
His annual publication, Poor Richard’s Almanac, ran for 25 years (1732-1758) and contained many proverbs and sayings about the importance of work done well (among other things).
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Classical Management Approaches
Part 1: From Empire to Hierarchy
“Lost time is never found again.”
“Three may keep a secret, if two of them are dead.”
“Love your enemies, for they tell you your faults.”
“Speak little, do much.”
“Fish and visitors stink in three days.”
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Classical Management Approaches
Part 1: From Empire to Hierarchy
Frederick the Great (1712-1786) the King of Prussia, organized his armies on the principles of mechanics.
To Frederick, efficiency was the key to military success.
He standardized weapons, military units, commands, and drill instruction.
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Classical Management Approaches
Part 1: From Empire to Hierarchy
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Classical Management Approaches
Part 1: From Empire to Hierarchy
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Classical Management Approaches
Part 1: From Empire to Hierarchy
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Classical Management Approaches
Part 1: From Empire to Hierarchy
Adam Smith (1723-1790) and later, Karl Marx (1818-1883) wrote about how the division of labor and a hierarchy of management could lead to increased production and wealth.
This became known as the classical theory of management.
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Classical Management Approaches
Part 3: Scientific Management
Developed by Frederick Taylor (1856-1915), it assumes that organizational management is based on science, laws, rules, and principles.
Assumes there are optimal ways to work to produce goods and services in the most efficient manner.
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Classical Management Approaches
Part 3: Scientific Management
Example: Bethlehem Steel Company
Employees shoveled fuel using their own shovels.
Loads ranged from 3.5 to 38 lbs.
Taylor discovered a worker’s best day of work could be done if the shovel load was 21.5 lbs., so he made shovels to match the fuel load.
Tonnage of fuel moved increased from 16 to 59 tons per worker, per day.
Number of employees reduced from 500 to 140.
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Classical Management Approaches
Part 3: Scientific Management
Assumes there are optimal ways to work to produce goods and services in the most efficient manner.
Everything is based on the clock: how can a process be made to go faster?
Communication limited to orders and instructions.
Did not help bridge problems between workers and managers.
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Classical Management Approaches
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Classical Management Approaches
Part 3: Scientific Management
Did not help bridge problems between workers and managers.
Enhanced distinctions between the groups and depersonalized the workers.
Result: High employee turnover.
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Classical Management Approaches
Part 3: Scientific Management
Example: 280% employee turnover rate at Ford Motor Plant.
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Classical Management Approaches
Part 4: Fayol’s Classical Management
Henri Fayol (1841-1925) was a French industrialist who developed the five elements of classical management: planning, organizing, commanding (goal setting), coordinating, and controlling (evaluating).
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Classical Management Approaches
Part 4: Fayol’s Classical Management
Later grouped into:
Structure: Organizations should have strict hierarchies with clear chains of command.
Power: Centralized to those in authority.
Reward: Good pay for work that has been done with excellence.
Attitude: Employees should subordinate their personal interests to those of the organization.
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Classical Management Approaches
Part 5: Bureaucracy
Began as a response to protect employees from harsh employment conditions and firings based on race, sex, attitude, religion, or relationship to the boss (aka particularism).
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Classical Management Approaches
Part 5: Bureaucracy
Six characteristics:
A fixed division of labor;
A hierarchy of offices;
A set of rules that govern performance;
A rigid separation of personal life from work life;
The selection of personnel based on technical qualifications and equal treatment of all employees; and
Viewing employment as a career, and the creation of job tenure.
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Human Relations
Historical and Cultural Background
Began as the result of The Great Depression and World War II:
The Great Depression put millions out of work, made jobs scarce and allowed employers to take advantage of their workers.
World War II helped end The Great Depression by creating millions of new jobs.
It placed academics, managers, and the military in direct communication with each other.
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Human Relations
Pioneers of Human Relations
Mary Parker Follett (1868-1933) was a Boston social worker who used her experience running vocational guidance centers to develop new ideas about communication, leadership, social processes, and community.
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Human Relations
Pioneers of Human Relations
Her beliefs:
Cooperation among people working together under visionary leadership produces excellence in the workplace, in the neighborhood, and in the community.
Important to empower workers by sharing information with them.
Cooperation helps solve problems.
Organized teams are critical to task accomplishment.
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Human Relations
Pioneers of Human Relations
Elton Mayo (1880-1949) was a Harvard professor who believed that employees were not always rational and need interpersonal relationships.
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Human Relations
Pioneers of Human Relations
In contrast to scientific management theory, Mayo believed that:
Society comprises groups, not isolated individuals.
Individuals are swayed by group norms and do not act alone in accord with self-interests.
Individual decisions are not entirely rational; they are also influenced by emotions.
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Human Relations
Pioneers of Human Relations
Chester Barnard (1886-1961) was a chief executive at Bell Telephone and the author of The Functions of the Executive.
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Human Relations
Pioneers of Human Relations
He was a big believer in the need for cooperation in organizations, and that:
Cooperation = Persuading individuals to accept a common purpose.
Management role = Largely communicative and persuasive.
Effective managers = Those who communicate in ways that encourage workers to identify with the organization.
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Human Relations
Hawthorne Studies
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Human Relations
Hawthorne Studies
Conclusions:
Increased attention given to workers raises productivity; this came to be known as the Hawthorne effect.
Informal group norms can have a positive effect on productivity.
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Human Resources Approach
Human Resources
Human Resources: A perspective that considers both the total organizational climate as well as employee participation and dialogue.
Purpose: To restore good interpersonal relationships and human needs in organizations that might otherwise be too rational to be more effective.
Emphasis: The principles of formal organization, such as hierarchy and task specialization, are not in line with the developmental needs of healthy adults.
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Human Resources Approach
Maslow’s Hierarchy of Needs
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Human Resources Approach
Maslow’s Hierarchy of Needs
Finding: In order for humans to achieve their full potential (aka “self-actualization”), they must first have their basic needs satisfied.
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Human Resources Approach
Theory X and Theory Y Management
Douglas McGregor compared bureaucratic organizational principles, or Theory X, to an alternative set of principles, Theory Y.
As opposed to the classical approach that viewed employees as work hating and responsibility shirking (Theory X), McGregor insists that employees are autonomous, responsible, self-directed, and innovative participants in organizations (Theory Y).
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Human Resources Approach
Supportive Relationships
Rensis Likert (1903-1981) developed the principle of supportive relationships, which states that interactions within an organization should support the self-worth and importance of individuals.
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Human Resources Approach
Supportive Relationships
Likert divided organizations into four types, or “systems,” based upon degree of participation:
System I—exploitative/authoritative
System II—benevolent/authoritative
System III—consultative
System IV—participative
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