The Hawthorne Studies
l Study of worker efficiency at the
Hawthorne Works of the Western Electric Co. during 1924-1932.
n Worker productivity was measured at various levels of light illumination.
n Researchers found that regardless of
whether the light levels were raised or lowered, productivity rose.
Actually,
it appears that the workers enjoyed the attention they received as part of the
study and were more productive
Theory X and Y
l Douglas McGregor proposed the two
different sets of worker assumptions.
g Theory X: Assumes the
average worker is lazy, dislikes work and will do as little as possible.
u Managers must closely supervise and
control through reward and punishment.
g Theory Y: Assumes
workers are not lazy, want to do a good job and the job itself will determine
if the worker likes the work.
u Managers should allow the worker
great latitude, and create an organization to stimulate the worker.
Theory Z
l William Ouchi researched the cultural
differences between Japan and USA.
n USA culture emphasizes the
individual, and managers tend to feel workers follow the Theory X model.
n Japan culture expects worker
committed to the organization first and thus behave differently than USA
workers.
l Theory Z combines parts of both the
USA and Japan structure.
n Managers stress long-term employment,
work-group, and organizational focus.
Management Science
l Uses rigorous quantitative techniques
to maximize resources.
Quantitative
management: utilizes linear programming, modeling, simulation
systems.
Operations
management: techniques to analyze all aspects of the production
system.
Total
Quality Management (TQM): focuses on improved quality.
Management
Information Systems (MIS): provides information about the organization.
Organization-Environment Theory
l Considers relationships inside and outside
the organization.
n The environment consists of forces,
conditions, and influences outside the organization.
l Systems theory considers the impact
of stages:
Input: acquire
external resources.
Conversion: inputs are
processed into goods and services.
Output: finished
goods are released into the environment.
Systems Considerations
l An open system interacts with the
environment. A closed system is self-contained.
n Closed systems often undergo entropy
and lose the ability to control itself, and fails.
l Synergy: performance gains of the whole
surpass the components.
Synergy is
only possible in a coordinated system
The Organization as an Open System
Contingency Theory
l Assumes there is no one best way to
manage.
n The environment impacts the
organization and managers must be flexible to react to environmental changes.
n The way the organization is designed,
control systems selected, depend on the environment.
Technological
environments change rapidly, so must managers
Structures
l Mechanistic: Authority is centralized at the top.
(Theory X)
n Employees closely monitored and
managed.
n Very efficient in a stable
environment.
l Organic: Authority is decentralized
throughout employees. (Theory Y)
n Much looser control than mechanistic.
n Managers can react quickly to
changing environment.
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