Write a profile describing a leader in a diverse organization

Module 2 - Leadership History

What's the benefit of studying this topic?

Leadership research frames and sets the stage for how to think more deeply about who leads and who recognizes that leadership. This module helps you to see how leadership ideas have developed. With that knowledge, you can better position your leader and manager activities.

Module 2 Leadership Primer: The History of Leadership Theory and Why It's Important

Let's Begin with a "Snapshot" of Today

 About 2.1 million people held leadership positions within companies, institutions, and charities in the USA in 2011  $159,000+ was the average median salary, with a range of total compensation ranging more than $1m. per year  The average tenure of a global chief executive is about 6 years, down from 6.5 years in 2006. North American

CEOs' tenure has dropped to 6.8 years from 8.6 years. In the Asia Pacific region, CEO tenure increased to 5.7 years from 4.3, while Europe's senior level officers remained fairly stable (Kirdahy, 2008).

 In contemporary American business life, leaders continue to be perceived as the shapers of the destinies of their companies--as judged from the increasingly large financial rewards.

Given these data points, what's important to trace and understand about the history of leadership and management?

History and Philosophy of Management Thought

Prior to the industrial revolution (around 1750) 19 out of 20 people were involved in agriculture. It wasn’t until the middle 1900’s that the ratio of industrial & business workers to agricultural workers exceeded 50%. Eli Whitney, famous for inventing the cotton gin, is also credited with developing the first interchangeable parts for the firing mechanism of muskets in 1801. With the growth of industry and manufacturing, Increased attention was focused on productivity. The development of the philosophy of management thought is generally broken down into four eras: the Classical Era; Behavioral Era; Quantitative Era; and the Quality Era.

Classical Management Theorists.

Three of the classical pioneers in the development of management theory were Frederick W. Taylor, Henri Fayol, and Frank and Lillian Gilbreth.

Frederick W. Taylor (1852-1915) is credited with the concept of “Scientific Management.” Briefly stated, Taylor’s principles can be summarized as follows:

• Determine the one-best-way for each element of work. • Scientifically select, train, teach and develop workers. • "Heartily" cooperate with workers to insure work is done in accord with Scientific Management. • There is an almost equal division of work between management and workers. • Time & motion study. (Taylor, 1911)

Henri Fayol (1841-1925) The “Five Functions of Management” 14 Principles

The Five Functions of Management (see also Module 1) 1. Planning 2. Organizing 3. Commanding 4. Coordinating 5. Control

Fayol’s Fourteen Principles (Fayol, 1930. Administration Industrielieet Generale) 1. Division of work 2. Authority 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interests to the general interest 7. Remuneration 8. Centralization 9. Scalar chain organization 10. Order 11. Equity 12. Stability of tenure of personnel 13. Initiative 14. Esprit de corps

Frank (1868-1924) and Lilian (1878-1972) Gilbreth: “Parents” of Industrial Engineering

Frank Gilbreth began as an apprentice bricklayer. He noticed that no two bricklayers used the same motions, and much of what they did was inefficient. He developed many improvements and was able to decrease a worker’s motions from 18 to 4-1/2. Frank found a kindred spirit in Lillian. They were married in 1912 and had 12 children, one of which wrote the humorous account of their family life in a book and later movie Cheaper by the Dozen.” The Gilbreths identified 15 to 16 “motion cycles” which came to be called “therbligs” (think of spelling Gilbreth backwards).

Behavioral Management Theorists

Following the “nuts and bolts” focus on productivity by the Classical Theorists, in the mid-1900’s the focus turned toward examining worker behavior and motivation. Mayo, Maslow, McGregor, and Drucker are notable examples.

Elton Mayo (1880-1949): The Hawthorne Studies The “Hawthorne Studies” (or experiments) were conducted from 1927 to 1932 at the Western Electric Hawthorne Works in Chicago. The faculty made and assembled relays for the booming telephone industry. Specifically, the goal was to examine the affects of fatigue and monotony on productivity by varying such things as rest breaks, illumination, work hours, etc. The workers were all female and divided themselves into two groups: a test group (exposed to changes in working conditions), and a control group (no changes). Each experiment lasted several weeks, and careful data was collected. Accounts of the study note that the relationship between the workers and the data collectors was friendly and cordial; there were no threatening conditions. A brief summary of the types of experiments and results:

Experiment Result

1 They were then put on piece-work for eight weeks. Output went up

2 Two five minute rest pauses, morning and afternoon, were introduced for a period of five weeks.

Output went up once more

3 The rest pauses were lengthened to ten minutes each. Output went up sharply.

4 Six five minute pauses were introduced, and the girls complained that their work rhythm was broken by the frequent pauses. Output fell slightly

5 Return to the two rest pauses, the first with a hot meal supplied by the Company free of charge.

Output went up

6 The girls were dismissed at 4.30 p.m. instead of 5.00 p.m. Output went up

7 They were dismissed at 4.00 p.m. Output remained the same

8 Finally, all the improvements were taken away, and the girls went back to the physical conditions of the beginning of the experiment: work on Saturday, 48 hour week, no rest pauses, no piece work and no free meal. This state of affairs lasted for a period of 12 weeks.

Output was the highest ever recorded averaging 3000 relays a week.

(Originally 2400/week)

Conclusions

 Logical factors are less important than emotional factors in determining efficiency. Furthermore, of all the human factors influencing employee behavior the most powerful were those emanating from the worker’s participation in social groups.

 Workers in a factory constitute a culture of their own.

 To be effective, management must recognize that work must satisfy personal, subjective requirements.

 Taylor’s theory is deficient because it treats workers as cogs in the machine and denies humanity.

When published years later the response of Industrial Psychologists was astounding (http://www.managetrainlearn.com/page/elton-mayo).

Abraham Maslow (1908-1970): Hierarchy of Needs

Maslow’s theory is that all people have certain needs which can be classified into five groups and arranged in what he referred to as a hierarchy or “proponent” order. If a lower need is unmet (hunger or thirst for example) it is difficult to interest the person in addressing a higher level (esteem).

This Maslow’s Hierarchy of Needs image is available under Creative Commons Attribution-Share Alike 3.0 Unported license.

Douglas McGregor (1906-1964): Theory X and Theory Y

Douglas McGregor proposed his famous X-Y theory in his 1960 book The Human Side Of Enterprise. McGregor suggested that there are two fundamental approaches to managing people.

Theory X ('authoritarian management' style)

The average person

 Dislikes work  Must be controlled, forced or threatened.  Needs to be enticed

Theory Y ('participative management' style)

The average person

 Will take responsibility.  Is motivated to achieve goals  Considers work as natural as play

 Peter Drucker (1909-2005): Management by Objectives

Drucker was an Austrian-born American management consultant, educator, and author. The author of 39 books, Drucker is often referred to as “prolific.”

Quality Management Theorists.

Starting in the 70s and 80s American manufacturing began to acquire a reputation for poor “quality.” Japanese manufacturers (particularly automotive) realized they could not match the mass production processes of America. Concentrating on reducing time and waste led to concepts such as Just In Time (JIT) and kaizen (continuous improvement). Toyota led the way. Following World War II the Japanese were assisted in quality improvements by two Americans: W. Edwards Deming and Joseph Juran. While Deming and Juran are known as the “brains” of quality, Philip Crosby is known as the “friendly uncle.”

W. Edwards Deming (1900-1993): Statistical Process Control Deming’s 14 Points

1. Create constancy of purpose toward improvement of product and service, 2. Adopt the new philosophy. Western management must awaken to the challenge, must learn their responsibilities,

and take on leadership for change. 3. Cease dependence on inspection to achieve quality. 4. End the practice of awarding business on the basis of a price tag. 5. Improve constantly and forever to improve quality and productivity, 6. Institute training on the job. 7. Institute leadership

8. Drive out fear (encourage suggestions for improvement) 9. Break down barriers between departments. 10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of

productivity 11. Remove barriers that rob the hourly worker of his right to pride of workmanship. 12. Remove barriers that rob people in management and engineering of their right to pride of workmanship. 13. Institute a vigorous program of education and self-improvement. 14. Put everybody in the company to work to accomplish the transformation.

Philip Crosby (1926-2001): Quality is Free and Quality Without Tears

Which is a higher quality hamburger: McDonalds’ Big Mac or Burger King’s Whopper?

According to Crosby, “Quality is conformance to requirements. A Big Mac is “Two all-beef patties, special sauce, lettuce, cheese, pickles, onions on a sesame seed bun.” Crosby would say if it comes out of the kitchen that way, as far as McDonalds is concerned, it is a quality burger. Now, if no one buys it, that’s another consideration.

“Acceptable Quality Level” (AQL) is totally unacceptable. The only acceptable quality level is Zero Defects. Quality is not goodness, shininess, weight, etc. Quality is tangible and can be measured Quality does not originate in the Quality Department Quality is achieved by prevention, not appraisal

Research Trends Explaining/Using Leader Model Typologies or Categories:

More recent research (2005-12) indicates ongoing interest in Human Relations Theories. Although leadership historians may consider other categories more engaging, behaviorists and consulting practitioners alike continue to explore the interaction dynamics which make up the communication and actions stimulated by leader decisions and follower's

commitment/performance or resistance. Researchers of more than 325 studies in the past 5 years identify and explain relational aspects of leading. This research cluster has increased attention to context as a means of understanding human relations/interactions and to delving into the role of communicating self and values (spirituality).

Summary:

You should take away from this Module that the role of the leader is a complex one; and one that is more than simply being assigned or appointed in charge of something. The leader's vision, strategy, and management of resources are essential elements of good leadership. These readings lay the groundwork for much of the class, and I hope as you answer the questions posed in the lesson, you might engage your fellow students in the conference discussions.