Lecture 2- Contrasting management approaches PDF

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M2: Contrasting management approaches Monday, 10 August 2020

4:06 PM

OB: Study of how people think, feel act and behave in organizational context

Meso : groups and teams Macro: the entire company Each component affects another, e.g. organization structure affects how group function, and group affects individuals

What is OB? - Study the impact of individuals, groups and social structures on behavior within organizations ○ For organization to function: Coordination, communication, collaboration § Share info and expertise - Multidisciplinary: psychology, sociology, anthropology, political science - Scientific theories-> hypothesis -> Research-based evidence - Use knowledge to improve management practice and organizational effectiveness The formal organization- official story above the iceberg

^ "official story" Informal organization

^ informal leaders - don't have formal authority but exercise influence & leadership ^ groups influence individual behavior. Group norms: understanding of how individuals behave, do they identify strongly with that group? ^ Grapevines: informal communication Informal organization has more influence on people's perception and behavior

TOPIC 1: The 2 theories/approaches to management: Scientific Management and Human relations Mayo saw managers as psychologists & socialists, Taylor saw managers as engineers

Scientific Management- Fred Winslow Taylor - Proposed 4 principles of Scientific Management - Productivity can be increased, how people can be managed for maximum efficiency - Dehumanized management - seeks efficiency and precision, deskill jobs so workers don't have to think, they just follow instructions - Time of rapid industrialization, his principles enabled mass production 4 Principles of Fred Winslow Taylor / Taylorism 1. Job Design - Managers should design job efficiently, specifying precisely every element of an employee's work ○ E.g. Analyse hand movements in manual labour, conserve resources & inputs 2. Human Resource Management - Managers select, train, teach and develop employees ○ at the time, managers did not do that, it was groups of workers who chose people to work with 3. Performance Management - Managers specify output to be achieved, workers are paid according to output. ○ Human nature: gives incentives and motivate people

○ Human nature: gives incentives and motivate people 4. Development of Management Profession - Division of workers and management based on expertise ○ Workers should not think, they just had to do ○ Managers did the thinking

Enduring Legacy of Scientific Management school Separation of conception(think) and execution(do) - Tasks are standardized, deskill(less skill required, people can be replaced easily) - Development of managers & management Managerial authority is based on scientific impartiality (cannot be challenged) Financial reward is main motivation for employees View organization as a machine - People are interchangeable parts(replaceable), cogs in the machine Played down the psychological and social aspects of organization - Job satisfaction, socialization, groups -> Enabled mass production and consumption, increase standards of living, but was controversial, workers protest and industrial unrest, absenteeism(not turning up for work), turnover(leaving organization) This was during 1900s, Bolshevik revolution(1917), workers took over the government. People become worried Taylorism management will cause a revolution.

Human Relations - Elton Mayo Human Relations 1. Participative- Value feedback and employees’ welfare 2. Facilitates development and growth 3. Interesting - Workers do more than one job instead of the same routine 4. Social groups

Recognize importance of addressing social and emotional needs of

employees, not just physical needs and efficiency "Worker problem"(unrest and disobedience) was a result of psychological disturbances brought by the alienating nature of work - Boring, repetitive and deskill jobs would prompt worker problems Disagreed with Karl Marx, who believe waged employment was alienating and exploitative. - Mayo was optimistic, he believes by making work more participative and recognizing the social nature of work, it can improve employee happiness HRS: The Hawthorne Studies - Originally looked impact on working environment on productivity(e.g. light & desk height) -> found no correlation - They noticed social factors impacted productivity Findings 1. Despite attempts to isolate workers, work remains a group activity 2. Workers have a need for recognition, security and sense of belonging, they gravitate toward informal groups 3. Informal group has a strong social control over work habits and attitudes of its members 4. Managers should recognize the impact of these informal groups in exerting influence on productivity ○ Group would make outliers like Chiselers - slacked off, and rate-busters - high productivity to come in line with group norms ○ Managers needed social skills 5. Organizations should ensure good fit between informal groups and formal work structures Enduring Legacy of the Human Relations school - Quality of employee's working life is a main consideration of OB - Social aspects have major impact on worker's productivity and quality of work life - Informal social networks have influence on individual's behaviour - Rise of "Corporate culture" movement ○ Organizations are cultures that can be changed and influenced in order to help the organization - OB is increasingly interested in norms, values and social mores

that influence behaviour - Rise of team work ○ Makes job more skilled and interesting, improve quality of work life ○ Align formal organization structures with informal groups

SUMMARY - OB used research-based evidence -> understand human behaviour -> apply to organizational effectiveness, fairness(of employment, quality), sustainability - Scientific Management vs Human Relations ○ Different ideas have what shapes behaviour in organization and how to manage workers ○ Still have influence on management practice ○ History of Management theory and practice is a struggle between SM and HR...