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Chapter 2

GMS200 Chapter 2 - Management Learning.docx


Department
Global Management Studies
Course Code
GMS 200
Professor
Shavin Malhotra
Chapter
2

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Chapter 2
Overview
Scientific management era
Social man / behavioral era
Modern era Contingency theory
Industrial Revolution
Substitution of machine power for human power
Steam engine
o Can move products from one city to another
The “Factory system”
o Huge factories being set up to mass produce
Scientific Management
F.W. Taylor (1856-1915)
o “One Best Way” was his quote, for performing, doing something, etc.
o His idea was that there is one most efficient way for working on a projects
Soldiering
o Almost universally held belief among workers that if they became more productive,
fewer of them would be needed and jobs would be eliminated
Taylor brought in the incentive wage system to encourage productivity. Workers wasted a lot of
their effort by relying on “rule-of-thumb methods” rather than on optimal work methods that
can be determined by a scientific study of the task
Taylors 4 Principals
F.W. Taylor created these 4 principals
1. Replace rule of thumb work methods with methods based on a scientific study of the task
2. Scientifically select and then train, teach, and develop the workman. Whereas in the past the
employee (or workmen_ chose his own work and trained himself as best he could
3. Provide “Detailed instruction and supervision of each worker in the performance of that
worker’s discrete task”
4. Divide work equally between managers and workers, so that managers apply scientific
management principles to planning the work and the workers actually perform the tasks.

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Drawback of Taylorism
o Slow to change
o Changes in capacities and processes are expensive and difficult to carry out.
o Limited job enrichment (same kind of work day in day out)
o Money alone does not motivate workers
Hawthorne Studies
o As part of the Scientific Management regime, companies routinely studied the effects of the
physical environment on their workers.
o The Hawthorne studies were carried out by the Western electric company (with 40,000 workers)
at their Hawthorne plant in the 1920s. Initially, the study was focused on lighting
o No relationship was seen
o They were given two five-minute breaks, one in the morning, and one in the afternoon, for a
period of 5 weeks.
o Output increased
o The breaks were each lengthened to 10 minutes each
o Output sharply increased
o The day was shortened by 30 minutes
o Output increased
o The day was shortened by 1 hour 30 minutes
o Output levelled off
o Finally, all the improvement was taken away, and the original conditions before the experiment
were reinstated. They were monitored in this state for 12 more weeks
o The output was the highest EVER recorded
Implications
o Lessons from the Hawthorne Studies:
o Social and human concerns are keys to productivity
o The Hawthorne Effect people who are singled out for special attention perform
better.
o Hawthorne researchers found that a worker might feel rewarded if she had pleasant
associations with her co-workers and that this might mean more to her than a little extra money
o Management, then, was not about controlling human behaviour but unleashing human
possibility
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Two Main Principles
o Deficit Principle
o A satisfied need is not a motivator of a behavior. Only an unsatisfied need can be a
motivator
o Progression Principle
o A need becomes a motivator once the preceding lower-level need is satisfied
o These are based on Maslow’s Hierarchy of Needs
o Examples Include:
o You can’t motivate someone to achieve their sales target (level 4) when they’re having
problems with their marriage (level 3)
o You can’t expect someone to work as a team member (level 3) when they’re having
their house re-possessed (level 2)
Personal Notes
Classical Management Approaches
There are 3 approaches to classical management Scientific management, Administrative
Principles, Bureaucratic Organization
Scientific Management (Frederick Taylor) emphasizes careful selection and training of workers
and supervisory support. Has four guiding action principles:
o Develop for every job a “science” that includes rules of motion, standardized work
implements, and proper working conditions
o Carefully select workers with the right abilities for the job
o Carefully train workers to do the job and give them the proper incentives to cooperate
with the job “science
o Support workers by carefully planning their work and by smoothing the way they go
about their jobs
Motion Study is the science of reducing a task to its basic physical motions. For
example, in a famous case they reduced the number of motions used by
bricklayers and tripled their productivity
Administrative Principles (Henri Fayol) 14 principles that should be taught to all aspiring
managers
o Division of labour specialization of work will result in continuous improvements in
skills and methods
o Authority Managers and workers need to understand that managers have the right to
give orders
o Discipline Behaviour needs to be grounded in obedience and derived from respect
o Unity of Command Each employee should have one, and only one, manager
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