POM 2 M Theory

8/8/2019 POM 2 M Theory

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Not understoodNot understood

Slide 25 to 30Slide 25 to 30

ManagementManagement as science???as science???

Management as art???Management as art???


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Mgt is the art ofgetting things done through othersMgt is the art ofgetting things done through others

Art:Art:

Practical know howPractical know how

Technical skillsTechnical skills

Concrete resultsConcrete resultsCreativityCreativity

Personalized naturePersonalized nature

Science:Science:

Empirically derivedEmpirically derivedCritically testedCritically tested

General principlesGeneral principles

Cause and effect relationshipCause and effect relationship

Universal applicationUniversal application

Management Art or ScienceManagement Art or Science


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Management as a science, it provides principles Management as a science, it provides principlesand as an art helps in tackling situation.and as an art helps in tackling situation.


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Evolution ofManagement TheoryEvolution ofManagement Theory


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ScientificManagement TheoryScientificManagement Theory

Evolution of Modern ManagementEvolution of Modern Management

Began in the industrial revolution in the late 19thBegan in the industrial revolution in the late 19th

century as:century as:

Managers of organizations began seeking ways toManagers of organizations began seeking ways tobetter satisfy customer needs.better satisfy customer needs.

LargeLarge--scale mechanized manufacturing began toscale mechanized manufacturing began to

supplanting smallsupplanting small--scale craft production in the ways inscale craft production in the ways in

which goods were produced.which goods were produced.

Social problems developed in the large groups ofSocial problems developed in the large groups of

workers employed under the factory system.workers employed under the factory system.

Managers began to focus on increasing the efficiencyManagers began to focus on increasing the efficiency

of the workerof the worker--task mix.task mix.


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The Evolution ofManagement TheoryThe Evolution ofManagement Theory


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F.W. Taylor and ScientificManagementF.W. Taylor and ScientificManagement

Scientific ManagementScientific Management

The systematic study of the relationships betweenThe systematic study of the relationships between

people and tasks for the purpose of redesigningpeople and tasks for the purpose of redesigning

the work process for higher efficiency.the work process for higher efficiency. Defined by Frederick Taylor in the late 1800s toDefined by Frederick Taylor in the late 1800s to

replace informal rule of thumb knowledge.replace informal rule of thumb knowledge.

Taylor sought to reduce the time a worker spent onTaylor sought to reduce the time a worker spent on

each task by optimizing the way the task was done.each task by optimizing the way the task was done.


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Four Principles ofScientificManagementFour Principles ofScientificManagement

Principles to increase efficiency:Principles to increase efficiency:1.1. Study the ways jobs are performed now andStudy the ways jobs are performed now and

determine new ways to do them.determine new ways to do them.

Gather detailed time and motion information.Gather detailed time and motion information.

Try different methods to see which is best.Try different methods to see which is best.

2.2. Codify the new methods into rules.Codify the new methods into rules.

Teach to all workers the new method.Teach to all workers the new method.

3.3. Select workers whose skills match the rules.Select workers whose skills match the rules.

4.4. Establish fair levels of performance and pay aEstablish fair levels of performance and pay apremium for higher performance.premium for higher performance.

Workers should benefit from higher outputWorkers should benefit from higher output


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Problems with ScientificManagementProblems with ScientificManagement

Managers frequently implemented only theManagers frequently implemented only the

increased output side of Taylors plan.increased output side of Taylors plan.

Workers did not share in the increased output.Workers did not share in the increased output.

Specialized jobs became very boring, dull.Specialized jobs became very boring, dull.Workers ended up distrusting the ScientificWorkers ended up distrusting the Scientific

Management method.Management method.

Workers could purposelyunderWorkers could purposelyunder--perform.perform. Management responded with increased use ofManagement responded with increased use of

machines and conveyors belts.machines and conveyors belts.


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Frank and Lillian GilbrethFrank and Lillian Gilbreth

Refined Taylors work and made manyRefined Taylors work and made many

improvements to the methodologies of timeimprovements to the methodologies of time

and motion studies.and motion studies.

Time and motion studiesTime and motion studies Breaking up each job action into its components.Breaking up each job action into its components.

Finding better ways to perform the action.Finding better ways to perform the action.

Reorganizing each job action to be more efficient.Reorganizing each job action to be more efficient.

Also studied workerAlso studied worker--related fatigue problemsrelated fatigue problems

caused by lighting, heating, and the design ofcaused by lighting, heating, and the design of

tools and machines.tools and machines.


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Administrative Management TheoryAdministrative Management Theory

Administrative ManagementAdministrative Management

The study of how to create an organizationalThe study of how to create an organizational

structure that leads to high efficiency andstructure that leads to high efficiency and

effectiveness.effectiveness.Max WeberMax Weber

Developed the concept of bureaucracy as a formalDeveloped the concept of bureaucracy as a formal

system of organization and administrationsystem of organization and administration

designed to ensure efficiency and effectiveness.designed to ensure efficiency and effectiveness.


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WebersWebers

Principles ofPrinciples ofBureaucracyBureaucracy


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Webers Five Principles of BureaucracyWebers Five Principles of Bureaucracy

Authority is the power to hold peopleAuthority is the power to hold peopleaccountable for their actions.accountable for their actions.

Positions in the firm should be held based onPositions in the firm should be held based on

performance, not social contacts.performance, not social contacts. Position duties are clearly identified so thatPosition duties are clearly identified so that

people know what is expected of them.people know what is expected of them.

Lines of authority should be clearly identifiedLines of authority should be clearly identifiedsuch that workers know who reports to who.such that workers know who reports to who.

Rules, standard operating procedures (SOPs),Rules, standard operating procedures (SOPs),and norms guide the firms operations.and norms guide the firms operations.


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FayolsFayols Principles ofManagementPrinciples ofManagement

Division of Labor:Division of Labor: allows for joballows for jobspecialization.specialization.

FayolFayol noted jobs can have too muchnoted jobs can have too muchspecialization leading to poor quality and workerspecialization leading to poor quality and workerdissatisfaction.dissatisfaction.

Authority and ResponsibilityAuthority and Responsibility

FayolFayol included both formal and informalincluded both formal and informal

authority resulting from special expertise.authority resulting from special expertise. Unity of CommandUnity of Command

Employees should have only one boss.Employees should have only one boss.


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Fayols Principles ofManagement (contd)Fayols Principles ofManagement (contd)

EquityEquity

Managers should be both friendly and fair toManagers should be both friendly and fair to

their subordinates.their subordinates.

OrderOrder Materials and people should be in the right placeMaterials and people should be in the right place

at the right time.at the right time.

InitiativeInitiativeThe fostering of creativity and innovation byThe fostering of creativity and innovation by

encouraging employees to act on their own.encouraging employees to act on their own.


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DisciplineDiscipline

Obedient, applied, respectful employees areObedient, applied, respectful employees are

necessary for the organization to function.necessary for the organization to function.

Remuneration of PersonnelRemuneration of Personnel An equitable uniform payment system thatAn equitable uniform payment system that

motivates contributes to organizational success.motivates contributes to organizational success.

Stability of Tenure of PersonnelStability of Tenure of Personnel LongLong--term employment is important for theterm employment is important for the

development of skills that improve thedevelopment of skills that improve the

organizations performance.organizations performance.


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Subordination ofIndividual Interest toSubordination ofIndividual Interest to

the Common Interestthe Common Interest

Management must see that the goals of the firmsManagement must see that the goals of the firms

are always paramount.are always paramount. Esprit de corpsEsprit de corps

Promoting team spirit will give the organization aPromoting team spirit will give the organization a

sense of unity.sense of unity.


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Behavioral Management TheoryBehavioral Management Theory

Behavioral ManagementBehavioral Management

The study of how managers should behave toThe study of how managers should behave to

motivate employees and encourage them tomotivate employees and encourage them to

perform at high levels and be committed to theperform at high levels and be committed to theachievement of organizational goals.achievement of organizational goals.

Focuses on the way a manager should personallyFocuses on the way a manager should personally

manage to motivate employees.manage to motivate employees.


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Behavioral ManagementBehavioral Management

PerspectivePerspective Abraham MaslowAbraham Maslow

Advanced a theory that employees are motivated byAdvanced a theory that employees are motivated by

a hierarchy of needs that they seek to satisfy.a hierarchy of needs that they seek to satisfy. Douglas McGregorDouglas McGregor

Proposed Theory X and Theory Y conceptsProposed Theory X and Theory Y concepts

of managerial beliefs about peopleof managerial beliefs about peopleand work.and work.


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Maslows Hierarchy of NeedsMaslows Hierarchy of Needs

Five levelsFive levels

PhysiologicalPhysiological hunger, thirst, shelter, sexhunger, thirst, shelter, sex

SafetySafety security and protectionsecurity and protection

SocialSocial affection, interpersonal relationshipsaffection, interpersonal relationships

EsteemEsteem selfself--respect, achievement statusrespect, achievement status

SelfSelf--actualization(SA)actualization(SA) achieving full potentialachieving full potential

Usually thought in the form of a pyramidUsually thought in the form of a pyramid


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Maslows Hierarchy of NeedsMaslows Hierarchy of Needs

SA

Esteem Needs

Social Needs

Security Needs

Physiological Needs


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Theory X and Theory YTheory X and Theory Y

McGregor proposed the two different sets ofMcGregor proposed the two different sets ofassumptions about workers.assumptions about workers.

Theory X assumes the average worker is lazy,Theory X assumes the average worker is lazy,dislikes work and will do as little as possible.dislikes work and will do as little as possible.

Managers must closely supervise and control throughManagers must closely supervise and control throughreward and punishment.reward and punishment.

Theory Y assumes workers are not lazy, want toTheory Y assumes workers are not lazy, want todo a good job and the job itself will determine ifdo a good job and the job itself will determine if

the worker likes the work.the worker likes the work. Managers should allow workers greater latitude, andManagers should allow workers greater latitude, and

create an organization to stimulate the workers.create an organization to stimulate the workers.


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Theory X versus Theory YTheory X versus Theory Y


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Organizational Environment TheoryOrganizational Environment Theory

Organizational EnvironmentOrganizational Environment

The set of forces and conditions that operateThe set of forces and conditions that operate

beyond an organizations boundaries but affect abeyond an organizations boundaries but affect a

managers ability to acquire and utilize resources.managers ability to acquire and utilize resources.


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The OpenThe Open--Systems ViewSystems View

Open SystemOpen System

A system that takes resources for its externalA system that takes resources for its external

environment and converts them into goods andenvironment and converts them into goods and

services that are then sent back to thatservices that are then sent back to thatenvironment for purchase by customers.environment for purchase by customers.

Inputs: the acquisition of external resources.Inputs: the acquisition of external resources.

Conversion: the processing of inputs into goodsConversion: the processing of inputs into goods

and services.and services.

Output: the release of finished goods into theOutput: the release of finished goods into the

environment.environment.


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The Organization as an Open SystemThe Organization as an Open System


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Contingency TheoryContingency Theory

Contingency TheoryContingency Theory

The idea that the organizational structures andThe idea that the organizational structures and

control systems manager choose depend oncontrol systems manager choose depend onareare

contingent oncontingent oncharacteristics of the externalcharacteristics of the externalenvironment in which the organization operates.environment in which the organization operates.

Assumes there is no one best way to manage.Assumes there is no one best way to manage.

The environment impacts the firm and managers mustThe environment impacts the firm and managers must

be flexible to react to environmental changes.be flexible to react to environmental changes. In rapidly changing organizational environments,In rapidly changing organizational environments,

managers must find ways to coordinate differentmanagers must find ways to coordinate different

departments to respond quickly and effectively.departments to respond quickly and effectively.


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Contingency Theory ofOrganizational DesignContingency Theory ofOrganizational Design


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Mechanistic and OrganicStructuresMechanistic and OrganicStructures

Mechanistic StructureMechanistic Structure Authority is centralized at the top. (Theory X)Authority is centralized at the top. (Theory X)

Employees are closely monitored and managed.Employees are closely monitored and managed.

Can be very efficient in a stable environment.Can be very efficient in a stable environment. Organic structureOrganic structure

Authority is decentralized throughout theAuthority is decentralized throughout theorganization. (Theory Y)organization. (Theory Y)

Tasks and roles are left ambiguous to encourageTasks and roles are left ambiguous to encourageemployees to react quickly to changingemployees to react quickly to changingenvironment.environment.

POM 2 M Theory

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