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The Evolution of Management Thinking
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C lassical PerspectiveRational, scientific approach to management make organizations efficient operating
machinesScientific ManagementBureaucratic Organizations
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Taylor
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S cientific Management - Taylor 1856-1915G eneral Approach
D eveloped standard method for performing each job.
S elected workers with appropriateabilities for each job.Trained workers in standard method.S upported workers by planning work and eliminating interruptions.Provided wage incentives to workers for increased output .
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S tep 1 : C hoose the specific job to be studiedS tep 2 : Inform the worker of the studyS tep 3 : Break the job into distinguishable elementsS tep 4 : C alculate the number of cycles to observeS tep 5 : Time each element, record data & rate theworkers performanceS tep 6 : C ompute the standard time
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S cientific ManagementC ontributions
D emonstrated the importance of compensationfor performance.Initiated the careful study of tasks and jobs.D emonstrated the importance of personnel andtheir training.
C riticismsD id not appreciate social context of work andhigher needs of workers.D id not acknowledge variance amongindividuals.Tended to regard workers as uninform andignored their ideas
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Bureaucracy Organizations
Positions organizedin a hierarchy of authority
Managers subject toRules and proceduresthat will ensure reliable
predictable behavior
Personnel are selectedand promoted based
on technicalqualifications
Administrative actsand decisions recorded
in writing
Management separatefrom the ownershipof the organization
Division of labor with Clear definitions of
authority and responsibility
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Management and OrganizationManagement philosophies and organization forms changeover time to meet new needsS ome ideas and practices from the past are still relevant andapplicable to management today
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N ew Approach to ManagementSuccess accrues to those who learn how
To be leadersTo initiate changeTo participate in and create organizations
With less hierarchy that can change quickly
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Management Perspectives Over Time
1930
1990C lassical
1950
2000Humanistic
2000
2010
The Technology-Driven Workplace
1990
2010The L earning Organization
1970C ontingency Views
2000
1980Total Quality Management
2000
1940Management Science Perspective
1990
20101870
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H uman Resource PerspectiveS uggests jobs should be designed to meet higher-
level needs by allowing workers to use their full potential
Emphasized satisfaction of employees basic needs
as the key to increased worker productivity
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TQM View of Organizations
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Elements of a Learning Organization
L earningOrganization
OpenInformation
EmpoweredEmployees
Team-Based Structure
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C ontingency View of Management
Successful resolution of organizational problems is thought todepend on managers identification of key variations in thesituation at hand
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W hen do you feel motivated?
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MOTIVATIO NTreat others as you would like to be treated
How do human needsinfluence motivation to work?
How do thought processes
and decisions affectmotivation to work?
W hat role does reinforcementplay in motivation?
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Motivation factors
AchievementRecognition
Growth/AdvancementInterest in the job
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What is Motivation?Motivation is defined as an internal state thatinduces a person to engage in a particular
behaviour Motivation theories are concerned with thereasons why some people perform their job
better than others.
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Motivation
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N eed TheoriesN eed Theories view motivation as derivingfrom peoples desires for certain things
There are two need theories:1. N eed H ierarchy Theory2. Two-Factor Theory
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Maslow
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MOTIVATIO N
H uman N eedsMaslows H ierarchy of N eeds
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P hysiological
SafetyBelongingness
Esteem
Self-actualization
Abraham Maslows
Hierarchy of Needs
Based on needs satisfaction
1908-19 70
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M aslow's hierarchy of needsPhysiological - thirst, hunger S afety/ S ecurity - stability, protection
Affiliation (Love/Belongingness) - To escapeloneliness, love and be loved, and gain a senseof belongingEsteem/ S elf-respectS elf-actualization -To fulfill one's
potentialities
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H erzberg
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Two-Factor TheoryH erzbergs two-factor theory states thatmotivation comes from the job itself, notexternal rewards.
H ygiene Factors- job aspects relevant to the
needs of human nature such as psychologicalneedsMotivator Factors- job aspects relevant togrowth needs such as recognition
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MOTIVATIO N
H uman N eedsH erzbergs Two-factor Theory
H ygiene Factor
is found in the job context, such as workingconditions, interpersonal relations, organizational
policies, and salary.
Motivator Factor
is found in job content, such as a sense of achievement, recognition, responsibility,advancement, or personal growth.
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H erzbergExamples of hygiene needs (or maintenance factors)in the workplace are:company policyrelationship with supervisor, subordinateswork conditionssalarycompany car, pre-requisitesstatussecurity
personal life
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True motivators were found to be other completelydifferent factors, notably in H erzberg's researchfactors such as:achievementrecognitionwork itself
responsibilityadvancement
personal growth
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H erzbergs two-factor theory contd
H ygiene needs
Motivator needs
- jobenviron-
mentcreates
demand for
+ job
opportu-nitiesallo
or ers toac ieve
H ygiene factors:More money, better supervision, goodworking conditionsetc
Motivators:
Achievement,responsibility,growth, work itself,recognition
L evel of jobdissatis-faction
L evel of jobperformance
L evel of jobsatisfaction
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McGregor
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McGregor's work is based upon Maslow'shierarchy of needs , in that he grouped the
hierarchy into "lower order" (Theory X) needsand "higher order" (Theory Y) needs. H esuggested that management could use either set of needs to motivate employees, but better results could be gained by the use of TheoryY, rather than Theory X.
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D islike work will avoid itMust be concerned, controlled,directed, or threatened with
punishmentPrefer direction, avoid
responsibility, little ambition,want security
D o not dislike work S elf direction and self controlS eek responsibilityImagination, creativity widely
distributedIntellectual potential only
partially utilized
D ouglas McGregor Theory X & Y
T heory X Assumptions
T heory Y Assumptions
190 6 -19 64
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Theory XD ouglas McGregor developed a philosophical view of humankind withhis Theory X and Theory Y in 1960. These are two opposing perceptionsabout how people view human behavior at work and organizational life.Theory X assumptions, management's role is to coerce and controlemployees.People have an inherent dislike for work and will avoid it whenever
possible.People must be coerced, controlled, directed, or threatened with
punishment in order to get them to achieve the organizational objectives.People prefer to be directed, do not want responsibility, and have little or no ambition.People seek security above all else
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Theory YWith Theory Y assumptions, management's role is to develop the potentialin employees and help them to release that potential towards commongoals.Work is as natural as play and rest.
People will exercise self-direction if they are committed to the objectives(they are N OT lazy).C ommitment to objectives is a function of the rewards associated withtheir achievement.People learn to accept and seek responsibility.C reativity, ingenuity, and imagination are widely distributed among the
population. People are capable of using these abilities to solve anorganizational problem.People have potential.
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Intellectual creativity cannot be 'programmed' and directed the way we program and direct an assembly line or an accounting department. This kind of intellectual
contribution to the enterprise cannot be obtained by giving orders, by traditional supervisory practices, or by closesystems of control. Even conventional notions of
productivity are meaningless with reference to creativeintellectual effort. Management has not yet considered inany depth what is involved in managing an organizationheavily populated with people whose prime contributionconsists of creative intellectual effort.
- D ouglas Mc G regor, "New C oncepts of Management"
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D ouglas McGregor Theory X & Y
Few companies today still useTheory X
Many are trying Theory Ytechniques
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Mayo
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C ontent theoriesElton MayoMc C lelland
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H uman relations schoolHawthorne Plant, C hicago
C hanges in conditions and financial awards had no effect on productivity
Increase in output due to cohesion, communication between workersWorkers get motivated when recognition is given to the group
E lton Mayo wrote about the Hawthorne studiesPersonal satisfactions of workers must be met to keep them motivatedTeams, associates
Volvo, Mcdonalds, H onda research examples
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C riticismWorkers and management need to share thesame goals
Barriers between management and workersdue to differential salaries, hierarchyTrade unions feel this reduces their bargaining
power
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MOTIVATIO N
H uman N eedsMc C lellands Acquired N eeds
N eed for Achievement
is the desire to do something better, to solve problems,or to master complex tasks.N eed for Power
is the desire to control, influence, or be responsible for other people.
N eed for AffiliationIs the desire to establish and maintain good relationswith other people.
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Mc C lellands managerial needsC hildhood needs when encouraged continueAchievement, affiliation, power
H igh achievement needs => entrepreneursN eed to work with others => H R, MarketingPower motive = influence, persuade, lead people
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Process theoriesExpectancyEquity
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MOTIVATIO N
H uman N eeds
Maslow described a hierarchy of needs topped by
self-actualization.H erzbergs two-factor theory focuses on higher-order need satisfaction.Mc C lelland identified acquired needs for achievement, power, and affiliation.
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Thought Processes and Expectations
Adams Equity theory explains how socialcomparisons can motivate individual behavior
Vrooms Expectancy theory considersmotivation = expectancy x instrumentality x valence
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Adams Equity theory explains how social comparisons canmotivate individual behavior Employees will evaluate how much they receive from the job
(outcomes) in relation to their contributions( inputs)Outcomes/ Inputs
Inequity occurs when employees feel as if his/her ratio isdifferent from others - Any perceived inequities will motivate
them to behave in a manner that will change them
I nequity - situation in which a person perceives he or she isreceiving less than he or she is giving, or is giving less than he
or she is receiving
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R esolution of I nequity - strategies
Alter a persons outcomesAlter a persons inputsC hange who is used as a comparisonRationalize the inequity
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N ew Perspectives-Equity Theory
Equity S ensitiveI prefer an equityratio equal to that of my comparison withanother
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N ew Perspectives-Equity Theory
BenevolentI am comfortable withan equity ratio less than
that of my comparisonwith others
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N ew Perspectives- Equity Theory
Entitled
I am comfortablewith an equity ratio
greater than thatothers
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Expectancy Model of Motivation
P erformance RewardE ffortEffort
Perceived effortperformance
probability
Perceivedvalue of reward
Perceivedperformance
reward probabilityIf I work hard,will I get the jobdone?
What rewardswill I get whenthe job is well
done?
What rewardsdo I value?
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Vrooms Expectancy Theorymotivation = expectancy x instrumentality x valence
Expectancya persons belief that working hard will result in achieving adesired level of task performance
Instrumentalitya persons belief that successful performance will lead to rewardsand other potential outcomes
Valencethe value a person assigns to the possible rewards and other work-related outcomes.
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V rooms Expectancy Theory
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MOTIVATIO N
ReinforcementThe law of effect states that behavior followed by a pleasant consequence is likely to be
repeated; behavior followed by an unpleasantconsequence is unlikely to be repeated.
Behaviour that gets rewarded gets repeated
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D ave H allUnit 59C ase study - Mendelsons