Major Schools of Thoughts Theories of Management & Administration 1 Theoretical understanding of organization system, management, and functions
Theories of Management and Administration 1.The Classical School (Mechanistic View of the Organization) Scientific Management----F W Taylor--USA Bureaucratic Organization----Max Weber--Germany 14 Administrative Principles-----Henry Fayol--France 2. Behavioral Management Movement (Organic View of the Organization) The Human Relations Approach (Developing & Improving Employees Relations at Work) The Behavioral Approach (Understanding Employee Behavior at Work) 3. Contemporary Thoughts The New Public Management New Public Service Public Choice Theory 2
The Classical School of Thought in Management The Scientific Management Principles- F W Taylor The Bureaucratic Administration Max Weber 14 Administrative Principles-----Henry Fayol 3 industrial and commercial life . it changes economic and social system of the industrial societies...called modern societies complexities of modern life need more efficient organization and professional management Professionalism Professional knowledge, technical competence, by using modern skills and technology
How to Attempt? 4 Introduction: What is the theory-overall About the author(s) His/her Contribution Books written Main postulates of the theory Critical Analysis Merits and Demerits Relevance to public admin in 21 st century Conclusion Impact of the theory
5 Scientific Management Theory What is Science? Systematic Approach Empirical Study Correlational Study Cause-&-Effect Study Managing Organizations Scientifically. F W Taylor Main postulates of the theory Critical Analysis Merits and Demerits Applicability in Pakistan Relevance to public admin in 21 st century Conclusion Impact of the theory
Scientific Management Theory Frederick Winslow Taylor (March 20, 1856 – March 21, 1915) was an American mechanical engineer who sought to improve industrial efficiency. He was one of the first management consultants. Scientific Management theory is based on life long work of F W Taylor; designed jobs/work assignments on scientific lines. His voluminous book ‘The Principles of Scientific Management’ was published in 1911 6
7 four key principles that include: Scientific methods are used to discover the most efficient way to perform a task C lear division of responsibilities Performance-based pay Rigid hierarchy and strict surveillance of employees.
Scientific Management Movement Scientific Management a rational approach to managing organization resources in a systematic and objective manner. It seeks the “One-Best-Way” Method of accomplishing any given task by discovering the fastest, most efficient , and least fatiguing method of operation. An approach called the “ Time-&-Motion Studies” 8
The Essence of Theory Taylor focused first on worker’s job activities called Job Analysis and Design designed detailed measurements of time and motions involved in any task. Standardization of work methods for each task to avoid ad hocism, delay and overlapping. 9
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The Essence of the theory……. Incentives based on scientifically measured output per given time i.e. the ‘piece-rate pay system’ “Time and Motion Studies” can be applied in industrial and assembly line operations Operations Management. Human cooperation in a mechanical fashion for maximum output Working under a highly formal and controlled work setting 11
Taylorism in Public Administration L D White “The objective of public administration is most efficient utilization of the resources at the disposal of officials and employees” Luther Gulick “ In the science of administration, whether public or private, the basic ‘good’ is efficiency” POSDCoRB In public sector, position classification and job design still reflect many of the aspects of Taylorism. 12
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Critical Analysis Taylorism considers worker as an appendage to a machine. Scientific approach turns workers into machines organization becomes highly mechanical and formal . The manager’s job is to ensure efficient operation of the system with little concern for employees. 14
Critical Analysis Clear cut rules and job designs with scientific training workers as a mean to an end i.e. the organization’s goals are ultimate and human welfare exploitation of human potential 15
Critical Analysis W. E. Moore- (Industrial Relations and Social Order) approach ignored social and human factors in an organization It is inhuman approach as incentives are economic only and linked with maximum output for maximum gains. Employees do have needs other than monetary incentives both monetary and non-monetary needs 16
The Bureaucratic Administration The Ideal-Type of Bureaucracy 17
How to Attempt it? Introduction What is bureaucracy Etymology Origin About the Author-Max Weber Brief intro of author His/her contribution Books written or other theories given Main Features of Bureaucracy Structural Functional Cultural Critical Analysis of Bureaucracy Pros and Cons Merits and Demerits Issues and Challenges to Bureaucracy Relevance in 21 st century Weber’s Model and Pakistan’s Bureaucracy Conclusion 18
Bureaucracy It is as old as human civilization itself. The term " bureaucracy " combines the French word bureau – desk or office – with the Greek word ( kratos ) – rule or power. The French economist Jacques de Gournay (1712-1759) coined the word in the mid-18th century. Bureaux ----French word …in English it is Bureau means desk or office Kratos -Greek word meaning authority Modern bureaucracies arose as the state, society and government grew larger Rise of modern society and the Industrial Revolution. Need for efficient and technical departments and public agencies 19
Maximilian Karl Emil Weber (1864 – 1920) a German historian, sociologist, jurist, and political economist, one of the most important theorists on the development of modern Western society. Father of Modern Bureaucracy 20
Concepts Bureaucratic administration means domination through knowledge — Max Weber Weber described ideal type of public administration and government in his book Economy and Society (1922) He described the bureaucratization of society due to rationalization of culture bureaucratic organization has technical superiority over any other form of organization — Max Weber 21
Weber’s Bureaucratic Model- The Ideal-type of Bureaucracy The Rationalization of Society: the historical change from tradition to rationality as the dominant mode of human thought. ( Macionis ) Tradition Vs Rationality Tradition: sentiments and beliefs passed from generation to generation. Rationality: objective, deliberate, matter-of-fact calculation of the most efficient means to accomplish a particular goal. It’s willingness of the society to adopt the latest technology 22
Definitions An organizational model rationally designed to perform complex tasks efficiently. (J J Macionis ) Any large organization , public or private, characterized by a clearly defined hierarchy of impersonal offices to which persons are appointed based on technical qualifications and through which they are subject to strict discipline and control . (Weber) 23
Characteristics of Ideal-Type of Bureaucracy Max Weber identified following key elements of the ideal bureaucratic organization: Structural Elements; Hierarchy of offices- Graded structure Specialized jurisdictions (Fixed division of labor) A Permanent Bureaucratic System A career structure- career development Large scale organizations. 24 Division of labor refers to different workers performing different tasks in the course of producing a good or service.
Bureaucracy 2. Functional Elements Impersonal (Neutral Bureaucracy) It Dehumanizing Highly Formal-little social and informal interaction Formal written communications Rule-bound-results into red-tape and delays Rational-legal authority (Rules & regulations) Highly disciplined-creates rigidity Self-discipline Group control Organizational Stability 25 Bureaucrats are little cogs who run the entire machine
Bureaucracy Power Position of Bureaucracy Highly efficient due to technical competence, work specialization, and wider experience Powerful Exercise information, expert, legal/official as well as political power Ever-expanding Elites 26
An Analysis by Scott Bureaucratic structures evolved from traditional structures with the following changes: 1. Jurisdictional areas are clearly specified, activities are distributed as official duties. 2. Organization follows hierarchical principle -- subordinates follow orders of superiors, but have right of appeal 3. rules govern decisions and actions. Decisions are recorded in permanent files 28
4. Means of production or administration belong to office. Personal affairs separated from office. Bureaucratic Neutrality merit in decision making office is a public trust 5. Officials are selected on the basis of technical qualifications/merit. 6. Employment by the organization is a lifelong career. The official is a full-time employee 29
Scott .. conti Weber stressed that the rational-legal form was the most stable, reliable and clear. Subordinates ideally can challenge the decisions of their leaders by referring to the stated rules. bureaucratic systems can handle more complex operations. 30
Criticism Weber also saw bureaucracy a threat to individual freedoms (bureaucratic excesses). Extra judicial actions Extra Legal actions Bureaucracy suffer from delays, inefficiency, corruption, partisanship and favoritism (recall Woodrow Wilson’s criticism to American bureaucracy in the 19 th century) Bureaucrats consider individuals as cases and not as human beings dehumanizing of persons. 31
Criticism Although bureaucracies are established to serve the society, but with the passage of time as bureaucracies get maturer , the society become dependent of them. (Bureaucratic Excesses) Rules becomes ends in themselves instead of means toward end i.e public service delivery Impersonality, sometimes, becomes almost impossible as public office holders are human beings not machines 32
Pakistani Bureaucracy: a Comparison with Weber’s Principles The civil service of Pakistan follow the principle of hierarchy. Selection of candidates is based on technical qualifications determined by a rigorous process. The system of division of labor exists. Strict division between generalists and specialists The civil service is a well-defined career based on seniority, or merit or both 33
Although merit system is the hallmark of civil service, however, quota system is also present. Affirmative action Equal representation of all segments of the country in bureaucracy It is rule bounded and operates in legal framework. As Weber identified malfunctions of bureaucracy, we also find such drawbacks in Pakistani bureaucratic systems and structures. 34
HUMAN RELATIONS APPROACH Recognizing the Human Side of the Organization Organizations are Organic Social Systems Along with Formal Relations there should be informal interaction in the Organizations 35
Employees' Relationship management 21st Century theme for organizations is relationship management and wellness of employees organic social system gives emotional comfort, social connection, caring and sympathetic, protection and love 36 Org. provide opportunities to the employees not only for technical and formal growth and development but also arrange for their mental, spiritual, and social development
Managers/Leaders improve human relations, employees increase productivity…. Good working relationships improve working environment , increase interaction, fulfill employees emotional and human needs Frustration, anger, and stress are managed Trust level increases which improves employee motivation 37
Human Relations The scientific (classical) school did not give importance to the human aspects of the workers. scientific managers did not achieve a high level of production, efficiency and co-operation between the management and workers. The drawbacks of the scientific approach led to the human relations movement. (in 1920s and 1930s) Lady Parker Follet, Elton Mayo, Herbert Simon, Chester Barnard The human relations experts tried to integrate Psychology and Sociology with Management . 38
Human Relations Approach shifts the focus from work to worker Managers should continuously improve working relationships at all level of the organization. Focus of this approach is also maximum efficiency 39
Assumptions 40
Human Relations …cont Organization is a social system of interpersonal and inter group relationships . So give importance to Relationship Management more than work get the work done from workers by satisfying their social and psychological needs. 41
Principles of Human Relations Approach The 7-basic principles of human relations approach are :- Workers are human beings. So they must not be treated like machines. Managers should try to understand the feelings and emotions of the workers. Human beings are not interested only in financial gains. They also need recognition and appreciation. 42
……..Principles of Human Relations Approach An organization works not only through formal relations, but also through informal relations. managers should encourage informal relations in the organization along with formal relations. Workers need a high degree of job security and job satisfaction. Job Independence Autonomy 43
……..Principles of Human Relations Approach Workers want good communication from the managers. managers should communicate effectively without feelings of ego and superiority complex. Workers want freedom. They do not want strict supervision. Therefore, managers should avoid strict supervision and control over the workers. Employees would like to participate in decision making, especially, in those matters affecting their interests. Therefore, management must encourage workers' participation in management. This will increase productivity and job satisfaction. MBO -Management By Objectives Peter Drucker 44
The Behavioral Approach the Human Relations Approach grew out of series of scientific experiments conduct on the employees by Elton Mayo and his team (Harvard Business School). Experiments were conduct around six years (four phases) on the Hawthorne Workers of the Western Electric Company Chicago from 1927-1932 One of the many hypothesis was “ the physical conditions at work would directly affect productivity” Hyp-1: The intensity of light has its direct impact on workers outputs 45
The Behavioral Approach Behavioral theorists believe that a better understanding of human behavior at work , such as motivation, conflict, expectations, and group dynamics, improve productivity. Elton Mayo's contributions came as part of the Hawthorne Studies (Father of Behavioral Management) 46
The Hawthorne Experiments The Hawthorne experiments consisted of two studies The first study was conducted by a group of engineers seeking to determine the relationship of lighting levels to worker’s productivity. They discovered that workers productivity increased as the lighting levels increased. productivity decreased with the decrease in light 47
Bank Wiring Room Studies A few years later, a second group of experiments began. Harvard researchers Mayo and F. J. Roethlisberger supervised a group of five women in a bank wiring room. They gave the women special privileges, such as; the right to leave office without permission, take rest periods, enjoy free lunches, have variations in pay levels, and Variation in workdays. This experiment also resulted in significantly increased rates of productivity. 48
Findings & Conclusion Mayo concluded that increase in productivity resulted from the supervisory arrangements rather than the changes in lighting- flexible supervision, friendly boss-workers environment the intense interest researchers displayed for the workers was the basis for the increased motivation and productivity. Employees socialized themselves , formed informal group, modified their behavior and set their own rules. 49
Essentially, the researchers became a part of the study and influenced its outcome. This is the origin of the term Hawthorne effect…. Hawthorne effect : the finding that a manager’s behavior or leadership approach can affect workers’ level of performance . Employees react/behave as groups rather than as individuals. 50
Findings & Conclusion …cont Human relations and the social needs of workers are crucial aspects of management. Different Human groups fulfill different human needs Workforce diversity and org. harmony As a group, employees worked for inner satisfaction and not materialistic rewards only. shifting the focus to the role of individuals in an organization's performance through team work. 51
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HR or Beh . Approach Introduction Parker Follet Herbert Simon Elton Mayo Hawthorne Experiments Hawthorne Findings Hawthorne Effect Main Postulates of the Theory Critical Analysis Application of the Theory In public sector In Businesses In 21 st Century Conclusion 53
THE SYSTEMS APPROACH Shifting the focus from work to worker, and now to working environment 54
The Systems Approach It’s the study of relationship between the organization and its environment. Organizational Environment The set of factors and forces that operate within and outside an organization’s boundaries but affect a manager’s ability to acquire and utilize resources. Ecology A system is a collection of parts unified to accomplish an overall goal. If one part of the system is removed, the nature of the system is changed as well. 55
System Theory ..cont Systems are; Open Systems Closed Systems Open system: A system that takes in resources from its external environment and converts them into goods and services that are then sent back to that environment for purchase by customers. Open systems are adaptive. The Cybernetic Model The Feedback Loop 56
System Theory ..cont Closed System A system that is self-contained and thus not affected by changes that occur in its external environment. Entropy The tendency of a system to lose its ability to control itself and thus to dissolve and disintegrate. 59
System Theory ..cont Systems theorists argue that “the parts are more than the sum of the whole” They mean that an organization performs at a higher level when its operational units/departments work together rather than separately Synergy Performance gains that result when individuals and departments coordinate their actions. 60
Critical analysis The systems approach also recognizes existence of organization sub-systems working in harmony for greater gains. These sub-systems may be working in conflict with other sub-systems A productive manager create synergy by overcoming resistance in the components of the system 61
Administrative Buffering 62
Bureaucracy as a Change Agent Does bureaucracy always favor and bring social change? “ Although bureaucracies arc not necessarily resistant to social change and can actually be instruments of innovation, they are not suited to bring about changes involving greater democratic participation.” (Bureaucracy in Modern Society, Blau ) Modern age and importance of bureaucracy 63
Bureaucracy: Pakistan Experience The Ayub’s Era Basic Democracies Five-Year Development Plans Energy Sector Reforms Industrial Development The Democratic Regime Nationalization of economy Civil Service Reforms, 1973 Integrated Rural development program 65
Bureaucracy: Pakistan Experience The Zia’s Regime Reversal of Bhuto’s Socio-economic policies Increasing role of military in public offices and service delivery 1988-1999 Fragile political system Discontinuity of policies Corruption Economic instability. 66
Bureaucracy: Pakistan Experience Musharaf Era Devolution Plan Economic Reforms Protection of women and minorities Reversal of Zia’s policies The Parliamentary Democracy- current scenario Conclusion 67