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Classical Management Theories

1. Scientific Management2. Administrative Principles3. Bureaucratic Organizations

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Bureaucratic Organization (Max Weber)

Noticed German managers got jobs because of who they are, not what they know

Developed the Bureaucratic Organization Principle

Based on principles of order and legitimate authority

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Bureaucratic Organization (Max Weber)

Characteristics of bureaucratic organizations:

Clear division of laborClear hierarchy of authorityFormal rules and proceduresImpersonalityCareers based on merit

Business is a “machine”

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Bureaucratic Organization (Max Weber)

Pros:EfficientObjectiveFair career paths

Cons:Excessive paperwork or “red tape”Slowness in handling problemsRigidity in the face of shifting needsResistance to changeEmployees become “a number”

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And that’s all for Classical Management Theories!

…but has a perfect theory been reached?

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Recap Classical Theories1. Scientific Management = productive

but to robotic2. Administrative Principles = established

leadership but too hierarchical3. Bureaucratic Organization = provides

order but is too slow and impersonal

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Behavioural Approach to Management

Look at the needs of employees, how they feel in a given work environment, and how this impacts their work

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Western Electric Hawthorne Works

CompanyThe Western Electric Company in Cicero, Illinois was looking to save money in their factory and began testing productivity when lighting and heat variables were changed.

A group of workers were chosen as test subjects and were put in a special room where they would carry out their regular daily tasks.

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Each worker was required to build electrical relay switches, a small but complicated component that consists of over 40 separate pieces. Each worker was asked to sit alone at a table and build the relays. When completed, an assembled relay was dropped in a chute where it would be counted and added to the worker’s total.

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Prior to the testing each employee worked a 48-hour week (including Saturdays) and was given no rest pauses except for the lunch break. Under these conditions the average worker could produce 2,400 relays in one week.

The first day of the experiment, a regular temperature was applied to the room where the group of workers was sent, however the

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lighting was increased by 25%. The employees continued to work and what do you think happened to their productivity?

One the second day, temperature again remained the same but lighting was reduced this time by 50%. What happened to their productivity now?

The third day temperature remained the same

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but lighting was reduced to a level at which it was difficult for the workers to see. What happened to productivity now?

Next, temperature was used as a variable. First it was increased to extremely high temperatures, then reduced to a point at which the workers were wearing their jackets. In both cases you can probably guess what happened to productivity…

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How does this make any sense?

Should managers put their employees in dark, cold rooms to increase production?

Or maybe extremely bright, hot rooms?

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Hawthorne Studies Something psychological effects

worker productivityElton Mayo, Harvard Business

Professor created Hawthorne Studies from 1927-1932

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Hawthorne Studies Results

Being “included” increase productivity Self-worth and value increase productivity Employees want to have purpose, not be

another “number” The Hawthorne Effect: People who are

singled out increase their performance.