Teaching notes on Human resources as role of manager

POM Motes on managers role

1. HAWTHORNE STUDIES Illumination Studies: A Serendipitous Discovery (1924) Place - Hawthorne Works of the Western Electric Company outside of Chicago Conducted by -The National Research Council (NRC) of the National Academy of Sciences with engineers from MIT , Elton Mayo , White Head, Roethlisberger Funded by- General Electric Objective - E xamine the relationship between light intensity on the shop floor of manual work sites and employee productivity Research Design – Experimental A test group and a control group were used. Findings - The test group in an early phase showed no increase or decrease in output in proportion to the increase or decrease of illumination. The control group with unchanged illumination increased output by the same amount overall as the test group. Subsequent phases brought the level of light down to moonlight intensity; the workers could barely see what they were doing, but productivity increased. Complex Human variables may be were not controlled

2. RELAY ASSEMBLY TEST EXPERIMENTS The next experiments beginning in 1927 focused on the relay assembly department, where the electromagnetic switches that made telephone connections possible were produced. The manufacture of relays required the repetitive assembly of pins, springs, insulators, coils, and screws. Western Electric produced over 7 million relays annually. As the speed of individual workers determined overall production levels, the effects of factors like rest periods and work hours in this department were of particular interest to the company. 1927-1929 Experiments were conducted by Elton Mayo Manipulated factors of production to measure effect on output: Pay Incentives (Each Girls pay was based on the other 5 in the group) Length of Work Day & Work Week (5pm, 4:30 pm, 4pm) Use of Rest Periods (Two 5 minutes break) Company Sponsored Meals (Morning Coffee & soup along with sandwich) Results: Higher output and greater employee satisfaction Conclusions: Positive effects even with negative influences – workers’ output will increase as a response to attention Strong social bonds were created within the test group. Workers are influenced by need for recognition, security and sense of belonging

3. RELAY ASSEMBLY ROOM – PHASE II 1928-1929 Measured effect on output with compensation rates Special observation room 1 st Session- Relay Assemblers changed from departmental incentive to small group incentive 2 nd Session - Adjusted back to large group incentive Results: ‘Small group incentives’ resulted in highest sustained level of production –Output dropped in 2 nd session Conclusion: Pay relevant to output but not the only factor

4. MASS INTERVIEW PROGRAM About 20,000 interviews were conducted between 1928 and 1930 to determine employees’ attitudes towards company, supervision, insurance plans, promotion and wages. Initially, these interviews were conducted by means of direct questioning such as “do you like your supervisor?” or “is he in your opinion fair or does he have favorites?” etc. This method has disadvantage of stimulating antagonism or the oversimplified ‘yes’ or ‘no’ responses which could not get to the root of the problem, The method was changed to non- directive interviewing where interviewer was asked to listen to instead of talking, arguing or advising. The interview programme gave valuable insights about the human behaviour in the company. The workers were satisfied or dissatisfied depending upon how they regarded their social status in the company. Social groups created big impact on work. Production was restricted by workers regardless all financial incentives offered as group pressure are on individual workers.

5. BANK WIRING OBSERVATION GROUP 1931-1932 Objective - To find out the impact of small groups on the individuals. In this experiment, a group of 14 male workers were formed into a small work group. The men were engaged in the assembly of terminal banks for the use in telephone exchanges. The research team decided to use a separate room. Unlike the relay room experiments, the bank wiring room study involved no experimental changes once the study had started. An observer and an interviewer gathered objective data for study. The department’s regular supervisors were used in the bank wiring room. Just as in the department out on the factory floor, these supervisors’ main function was to maintain order and control Limited changes to work conditions Segregated work area No Management Visits Supervision would remain the same Observer would record data only – no interaction with workers Small group pay incentive Result: No appreciable changes in output Conclusions: Preexisting performance norms Group dictated production standards – Work Group protection from management changes.

6. Systems Approach It attempts to view organization as a single, unified, purposeful entity, composed of interrelated parts. Managers now have a greater appreciation for the importance of seeing the whole picture. Manager should not become preoccupied with one aspect of organizational management while ignoring other internal and external realities. The systems approach tries to integrate various management theories.

7. The Systems Approach What Is a System? A collection of parts operating interdependently to achieve a common purpose. Systems Approach Posits that the performance of the whole is greater than the sum of the performance of its parts. Seeks to identify all parts of an organized activity and how they interact.

8. Systems Theory Resources Labor Materials Capital Machinery Information Managerial and Technological Abilities Planning Organizing Staffing Leading Controlling Goods Services Profits and losses Employee satisfaction Inputs Transformation process Outputs Feedback

9. Key Concepts of General Systems Theory Subsystems or Components Holism, Synergism, Organicism, and Gestalt: Nonsummativity Open Systems View: Systems can be considered in two ways: (1) closed or (2) open. Input-Transformation-Output Model / Input-Throughput-Output System Boundaries Permeable boundaries (materials can pass through) Relative openness (system can regulate permeability) Negative Entropy Second Principle of Thermodynamics ( ENTROPY ) Entropy must increase to a maximum Negentropy increases growth and a state of survival Steady State, Dynamic Equilibrium, and Homeostasis Feedback and Dynamic Homeostasis Positive Feedback - move from status quo Negative Feedback - return to status quo Dynamic Homeostasis - balance of energy exchange

10. Equivocality and Requisite Variety (Karl Weick) Equivocality (uncertainty and ambiguity) Requisite Variety (complex inputs must be addressed with complex processes) Feedback Hierarchy: Subsystem and supra system Multiple Goal-Seeking Equifinality of Open Systems vs. one best way

11. Managerial Functions Henri Fayol First outlined the four managerial functions in his book General Industrial Management . Managers at all levels in all organizations perform each of the functions of planning, organizing, leading, and controlling.

12. Planning Identifying and selecting appropriate goals and courses of action for an organization . The planning function determines how effective and efficient the organization is and determines the strategy of the organization. Three Steps in the Planning Process: Deciding which goals to pursue. Deciding what courses of action to adopt. Deciding how to allocate resources.

13. MEANING & DEFINITION : PLANNING ACCORDING TO WEIHRICH & KOONTZ, “Planning involves selecting missions and objectives and actions to achieve them. It requires decision-making that is, choosing from among alternative future courses of action.” Planning is the process of defining organization’s objectives and selecting best possible future courses of action (i.e. plans) for achieving these objectives efficiently and effectively.

14. PROCESS/TECHNIQUE/STEPS An ideal Planning consists of the following steps: Environmental Scanning: Managers should scan their internal as well as external environment for possible future opportunities and threats. This will initiate the planning process. Setting Objectives: For entire organization and then for individual departments. Establishing planning premises (critical factors)- about internal environment and external environment. Searching Alternatives: for achieving the objectives Evaluating the alternatives: investment, risk involved, availability of resources. Selecting the most appropriate alternative or plan Formulating derivative plans/ supporting plans Budgeting Implementing the plans Follow up actions

15. Types of Managers Levels of Management First-line managers Responsible for day-to-day operations. Supervise people performing activities required to make the good or service. Middle managers Supervise first-line managers. Are responsible to find the best way to use departmental resources to achieve goals. Top managers Responsible for the performance of all departments and have cross-departmental responsibility. Establish organizational goals and monitor middle managers. Form top management team along with the CEO and COO.

16. Levels of Management 1 – 16

17. Relative Amount of Time That Managers Spend on the Four Managerial Functions Figure 1.4

18. Managerial Roles and Skills Managerial Role The set of specific tasks that a person is expected to perform because of the position he or she holds in the organization. Roles are defined into three role categories (as identified by Mintzberg): Interpersonal  Informational  Decisional

19. Decisional Roles Roles associated with methods managers use in planning strategy and utilizing resources: Entrepreneur — deciding which new projects or programs to initiate and to invest resources in. Disturbance handler —managing an unexpected event or crisis. Resource allocator —assigning resources between functions and divisions, setting the budgets of lower managers. Negotiator —reaching agreements between other managers, unions, customers, or shareholders.

20. Informational Roles Roles associated with the tasks needed to obtain and transmit information in the process of managing the organization: Monitor — analyzing information from both the internal and external environment. Disseminator —transmitting information to influence the attitudes and behavior of employees. Spokesperson —using information to positively influence the way people in and out of the organization respond to it.

21. Interpersonal Roles Roles that managers assume to provide direction and supervision to both employees and the organization as a whole: Figurehead — symbolizing the organization’s mission and what it is seeking to achieve. Leader —training, counseling, and mentoring high employee performance. Liaison —linking and coordinating the activities of people and groups both inside and outside the organization/department.

22. Managerial Skills Conceptual Skills The ability to analyze and diagnose a situation and distinguish between cause and effect. Human Skills The ability to understand, alter, lead, and control the behavior of other individuals and groups. Technical Skills The specific knowledge and techniques required to perform an organizational role. What should be the right thing? How can we do better?

23. Decision making process Identify the problems Identification of decision criteria Allocation of weights to the criteria Development of alternatives Analysis of alternatives Select an alternative Implementation of alternative Evaluation of decision effectiveness Managers decision making Rationality Bounded rationality Intution

24. Decision making style Directive decision-making Fast decisions Focused/ short run Efficiency/speed Minimum information Analytical More information More alternatives Careful/thoughtful Unique solution Conceptual Broad outlook Many alternatives Focus on ling run Creative solutions to the problems Behavioural Need for affiliation Conflict avoidance Participative style Concerted about the achievements of those around them Receptive of suggestions from others

25. Management by objectives (MBA) Steps in MBO program Formulate organization’s overall objectives and strategies Allocate objectives among departments and divisions Specify objectives collaboratively for units Specify objectives collaboratively to the department members Action plans Implement action plans Review and feedback Successful achievements of objectives is reinforced by performance based rewards