OCMT ORGANIZATION THEORY UNIT II ORGANIZATION THEORY APROACHES

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Ernest Hampton
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1 OCMT ORGANIZATION THEORY UNIT II ORGANIZATION THEORY APROACHES 1

2 UNIT II LEARNING OBJECTIVES 1. Classical approaches: systematic management, scientific management 2. Bureaucracy, administrative management, Human relations 3. Quantitative management, organizational behavior, System theory 4. Contingency theory, Contemporary approaches: current and future revolutions 2

3 HAWTHORNE STUDIES The Hawthorne Studies Hawthorne Works of Western Electric Company Chicago Research focus: Relation of quality and quantity of illumination to efficiency in industry Four Important Studies 3

4 The Hawthorne Studies Illumination Study (November 1924) Designed to test the effect of lighting intensity on worker productivity Heuristic (experienced based) value: influence of human relations on work behavior Relay Assembly Test Room Study ( ) Assembly of telephone relays (35 parts - 4 machine screws) Production and satisfaction increased regardless of IV manipulation Workers increased production and satisfaction related to supervisory practices Human interrelationships are important contributing factors to worker productivity Bottom Line: Supervisory practices increase employee morale AND productivity Interviewing Program ( ) Investigate connection between supervisory practices and employee morale Employees expressed their ideas and feelings (e.g., likes and dislikes) Process more important than actual results Bank Wiring Room Observation Study (November May 1932) Social groups can influence production and individual work behavior RQ: How is social control manifested on the shop floor? Informal organization constrains employee behavior within formal 2/3/2016 organizational structure BABY THOMAS

5 Hawthorne Studies - Implications Illumination Study (November 1924) The mere practice of observing people s behavior tends to alter their behavior (Hawthorne Effect) Relay Assembly Test Room Study ( ) Relationships between workers and their supervisors are powerful Human interrelationships increase the amount and quality of worker participation in decision making Interviewing Program ( ) Demonstrated powerful influence of upward communication Workers were asked for opinions, told they mattered, and positive attitudes toward company increased Bank Wiring Room Observation Study (November May 1932) Led future theorists to account for the existence of informal communication Taken together, these studies helped to document the powerful nature of social relations in the workplace and moved managers more toward the interpersonal aspects of organizing. 5

6 Organizational behavior Organizational behavior is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving organizational effectiveness. 6

7 Theory X and Theory Y: Douglas McGregor Douglas McGregor ( ) Theory X - Classical Theory Three Assumptions 1. The average human being has an inherent dislike of work and will avoid it. 2. Most people must be coerced, controlled, directed, and threatened with punishment 3. The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, wants security. Theory Y - Human Relations Theory Assumptions 1. Physical and mental effort in work is similar to play / rest. 2. External control and the threat of punishment are not the only strategies 3. Commitment to objectives is a function of the rewards associated with their achievement 4. The average human being learns, under proper conditions, not only to accept but to seek responsibility 5. The capacity to exercise a high degree of imagination, ingenuity, and creativity in the solution of organizational problems is widely distributed in the population 2/3/2016. Intellectual potentialities BABY THOMAS of the average human being are underutilized. 7

8 Contingency Theory Developed in the 1960s by Tom Burns and G. M. Stalker in Britain and Paul Lawrence and Jay Lorsch in the United States It is the idea that the organizational structures and control systems that managers choose depending on (i.e. are contingent on) the characteristics of the external environment in which the organization operates. 8

9 Characteristics of Contingency Theory The characteristics of the external environment affect an organization s ability to obtain resources To maximize the likelihood of gaining access to scarce resources, managers must allow an organization s departments to organize and control their activities in ways most likely to allow them to obtain those resources Examples of characteristics of the external environment include (but are not limited to): changes in the environment; the entry of new competitors; unstable economic conditions. 9

10 Systems Types: Open Vs. Closed An open system interacts with its environment. A closed system receives no inputs from its environment & decay sets in. Systems have different levels of being open or closed. A variety of inputs is required to help a system to remain open. Implications: Need to create a system as open as possible to avoid entropy (gradual decline). Systems are nested in a hierarchy, that is, systems consist of subsystems and systems operate within environments. Implications Systems Concepts: Hierarchy Need to specify what level of the hierarchy you are focusing on as that level becomes the system of interest. 10

11 The Organization as an Open System Input Stage Raw Materials Conversion Stage Machines Human skills Output Stage Goods Services Sales of outputs Firm can then buy inputs 11

12 OCMT ORGANIZATION THEORY UNIT II ORGANIZATION THEORY APROACHES 12

TIMELINE OF MANAGEMENT

TIMELINE OF MANAGEMENT HISTORY OF MANAGEMENT THOUGHT I. INTRODUCTION The systematic study of management began during the latter decades of the nineteenth century, after the industrial revolution had swept