The classical organization theories concentrated on discipline and the economic well-being of people. They ignored their morale and desires. Neoclassical organization theories while accepting the merits of classical theories have given more importance to human relations and behavioral sciences. The neoclassical theories of organization modified, added and extended the classical theories by realizing the fact that management exists in a social system wherein human factors have cognizant roles to perform. Employees can play crucial roles in the decision-making process. Approaches of Neoclassical Theories of Organization Human Relations and Behavioral Science have become two important approaches of neoclassical theories. 1. Human Relations Theory The human relations theory was developed by Elton Mayo and his associates from 1924 to 1932 at the Hawthrone plant of Western Electric Company. They experimented in four phases: Illumination experiment, relay assembly test, interviewing programs and the bank wiring observations room experiments. Illumination experiments revealed that Continue reading
Management Theories
Theories of Motivation: McGregor’s Theory X and Theory Y
Douglas McGregor who set forth in his book “Human Side of Enterprise” two pairs of assumptions about human beings which he thought were implied by the actions of autocratic and permissive managers. The first set of assumptions is contained in “Theory X” and the second set of assumptions in “Theory Y”. It is important to note that these sets of assumptions were not based on any research, but is intuitive deductions. Theory X: Theory X’ believes that autocratic managers often make the following assumptions about their subordinates. Accordingly, the subordinate in general: Has an inherent dislike for work and will avoid it, if he can; Is lazy and avoids responsibility. Is indifferent to organisational goals; and Prefers to be directed, wishes to avoid responsibility, has relatively little ambition and wants security above all. According to McGregor, this is a traditional theory of what workers are like and what management must Continue reading
Tuckman’s Team-Building Model
Forming – Storming – Norming – Performing is a model of team development, first proposed by Bruce Tuckman in 1965, who maintained that these phases are all necessary and inevitable in order for the team to grow, to face up to challenges, to tackle problems, to find solutions, to plan work, and to deliver results. He added a fifth stage, Adjourning, in the 1970s. The Forming Storming Norming Performing theory is an elegant and helpful explanation of team development and behavior. Tuckman’s team-building model explains that as the team develops maturity and ability, relationships establish, and the leader changes leadership style. Beginning with a directing style, moving through coaching, then participating, finishing delegating and almost detached. According to Tuckman, all of the phases are necessary and inevitable. In order for the team to grow they most face up to challenges, problems, find solutions to problems, planning as a team, and Continue reading
Criticism of Scientific Management Theory (Taylorism)
Frederick Winslow Taylor was one of the first theorists to consider management and process improvement as a scientific problem and, as such, is widely considered the father of scientific management. He proposed that a business’s economic efficiency could be improved by simplifying and optimizing work processes, which would, in turn, increase productivity. Taylorism, as a philosophy, was the product of a series of experiments and observations, such as time-motion studies, designed to determine the most effective and efficient way to complete a task. Its fundamental and inter-related principles can be summarized as follows: Using scientific method to challenge habitual working practices and to determine the most efficient way to perform specific work tasks; Matching workers’ capability and motivation to the task requirements and supervising them according to the established rules and procedures; Establishing fair performance levels and develop a pay system that rewards, and therefore encourages, over-achievement; and Appropriate division Continue reading
The Principles of Modern Management by Frederick Taylor
Frederick Taylor, known as the Father of Scientific Management, conducted many studies at Bethlehem Steel Company in Pittsburgh. His experience as an apprentice, a common labor, a foreman, a master mechanic, and then a chief engineer of a steel company gave Taylor an excellent opportunity to know first hand the problems and attitudes of workers and to see the great possibilities for improving the quality of management. To improve productivity, Taylor examined the time and motion details of a job, developed a better method for performing that job, and trained the workers. Taylor also offered a piece rate that increased as workers produced more. In 1911, published a book “Principles of Scientific Management” in which he proposed work methods designed to increase worker productivity. He defined management as art of knowing exactly what do you want to do and seeing that they do it and in the best and cheapest Continue reading
4 Phases of Hawthorne Experiment – Explained
At the beginning of the 20th century, companies were using scientific approaches to improve worker productivity. But that all began to change in 1924 with the start of the Hawthorne Studies, a 9-year research program at Western Electric Companies. The program, of which Elton Mayo and Fritz Roethlisberger played a major role, concluded that an organization’s undocumented social system was a powerful motivator of employee behavior. The Hawthorne Studies led to the development of the Human Relations Movement in business management. The experiment was about measuring the impact of different working conditions by the company itself (such as levels of lighting, payment systems, and hours of work) on the output of the employees. The researchers concluded that variations in output were not caused by changing physical conditions or material rewards only but partly by the experiments themselves. The special treatment required by experimental participation convinced workers that management had a Continue reading