MGMT100 Chapter Notes - Chapter 2: Systems Theory, Human Relations Movement, Theory Z
MGMT100: MANAGING: PEOPLE, SYSTEMS AND CULTURE, WEEK 2
Learning Outcome:
Explain the eaig of the ters aageet, systes, ulture ad 'orgaisatio' ad 'struture'
(LO1)
Essential Question:
What are the vital concepts of global management that are needed by Australian companies wanting to
operate i a orderless usiess orld?
Notes:
Classical approaches to management:
Three major branches within the classical approach to management
1. Scientific management
2. Administrative management
3. Bureaucratic management
1. Scientific approach – emphasises careful selection and training of workers and supervisory support
• The principal object of management should be to secure maximum prosperity for the
employer, coupled with the maximum prosperity for the eployee – Frederick W. Taylor
• Taylor noticed that many workers did their jobs in their own way without clear and uniform
specifications, creating a loss in efficiency and performing below their potential
• Operates on the belief that supervisors and managers should assist and teach workers how to
perform in a certain way
• Four guiding action principles:
o Develop jobs with efficient work methods
o Carefully select workers who attain the required skills and abilities for the job
o Carefully train workers to help them perform efficiently and effectively and give them
result-based compensation as a performance incentive
o Support workers so they can perform their jobs to the best of their abilities
2. Administrative management – based on attempts to document and understand the experiences of
successful managers
• Contributed by Henri Fayol, a French CEO of a large mining company
• Five rules/duties of management:
o Foresight – to complete a plan of action for the future
o Organisation – to provide and mobilise resources to implement the plan
o Command – to lead, select and evaluate workers to work at their best towards the plan
o Co-ordination – to fit diverse efforts together and ensure information is shared and
problems are solved
o Control – to make sure things happen according to plan and to take necessary corrective
action
• Contributed by Mary Parker Follett – understood groups and deep commitment to human
cooperation
• Groups = mechanisms through which diverse individuals could combine their talents for the
greater good
• Organisations = ouities i which managers and workers should labour in harmony
• It is the managers job to help people in organisations co-operate
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MGMT100: MANAGING: PEOPLE, SYSTEMS AND CULTURE, WEEK 2
3. Bureaucratic management – a rational and efficient form of organisation founded on logic, order
and legitimate authority
• Founded by Max Weber, a German intellectual whose insights have had a major impact in
management and the sociology of organisations
• Fie harateristis of Weers ureaurati aageet:
o Clear division of labour – jobs are well defined and workers become highly skilled at
performing them
o Clear hierarchy of authority – authority and responsibility are well defined for each
position, and each position reports to a higher level one
o Formal rules and procedures – written guidelines direct behaviour and decisions in jobs
o Impersonality – rules and procedures are impartially and uniformly applied with no one
receiving special treatment
o Careers based on merit – workers are selected and promoted based on ability and
performance
Behavioural approaches to management:
Major branches within behavioural approaches to management
1. Hawthorne Studies
2. Theory of human needs
3. Theory X and Theory Y
1. Hawthorne Studies – a scientific management perspective that sought to determine how economic
incentives and the physical conditions of the workplace affected the output of workers
• Thought that better lighting would improve performance, but it did not
• Psychological factors somehow interfered, which then directed attention towards human
interaction in the workplace, which had a major influence on the field of management
• Found no direct relationship between physical working conditions and output
• Elto Mayo foud that a e soial settig aouted for ireased productivity
• Results in these studies showed that satisfaction for some workers could be dissatisfaction for
other (wages, working conditions)
• The Hawthorne effect – the tendency of people who are singled out for special attention to
perform as expected
• Human relations movement – based on the viewpoint that managers who used good human
relations in the workplace would achieve productivity
2. Maslow’s theory of hua eeds
• Needs – physiological or psychological deficiencies a person feels the desire to satisfy
• Five levels of human needs:
o Physiological
o Safety
o Social
o Esteem
o Self-actualisation
• Based on two principles:
o Deficit principle – a satisfied need is not a motivator
o Progression principle – the five needs exists in a hierarchy whereby the five needs can
only be satisfied in sequence
• A deprived need dominates individual attention and determines behaviour until it is satisfied
• Managers who can help people satisfy their important needs at work will achieve productivity
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Document Summary
Explain the (cid:373)ea(cid:374)i(cid:374)g of the ter(cid:373)s (cid:858)(cid:373)a(cid:374)age(cid:373)e(cid:374)t(cid:859),(cid:859) syste(cid:373)s(cid:859), (cid:858)(cid:272)ulture(cid:859) a(cid:374)d "orga(cid:374)isatio(cid:374)" a(cid:374)d "stru(cid:272)ture" (lo1) It is the managers job to help people in organisations co-operate. Impersonality rules and procedures are impartially and uniformly applied with no one receiving special treatment: careers based on merit workers are selected and promoted based on ability and performance. Inventory modelling: linear programming, queuing theory, network models, simulation. Continuing management themes: key the(cid:373)es (cid:272)o(cid:374)(cid:448)eyed i(cid:374) refere(cid:374)(cid:272)e to (cid:858)(cid:373)a(cid:374)age(cid:373)e(cid:374)t(cid:859) i(cid:374)(cid:272)lude, continuous pressure for quality and performance excellence, expanding global awareness, new leadership in an age of information, knowledgeable workers, highly competitive business environments. Global awareness: much of the pressure for quality and performance excellence is created by highly competitive global economy, william ouchi used the term theory z to describe a management framework that incorporates. Australasian and us or practices: theory z describes a management framework emphasising long-term employment and teamwork. Mgmt100: managing: people, systems and culture, week 2.
