June 28, 2018

Activity in Production Management

Sharmaine P. Santos BSBA-IV

F W Taylor - (1856 - 1915), USA- The Scientific Management School

Taylorism involved breaking down the components of manual tasks in manufacturing environments, timing each movement
('time and motion' studies) so that there could be a proven best way to perform each task. Thus employees could be trained to
be 'first class' within their job.

This was a scientific system where every task became discrete and specialised. Specialised services are provided in the NHS,
and these management techniques could prove useful in these areas, to review productivity.

Key points about Taylor, who is credited with what we now call 'Taylorism':

 he was in the scientific management school

 his emphases were on efficiency and productivity
 but he ignored many of the human aspects of employment
For the managers, scientific management required them to:

 develop a science for each operation to replace opinion and ‘rule of thumb’
 determine accurately from the science the correct time and methods for each job (time and motion studies)
 set up a suitable organisation to take all responsibility from the workers except that of the actual job performance
 select and train the workers
 accept that management itself be governed by the science deployed for each operation and surrender its arbitrary powers
over the workers, i.e. cooperate with them.
For the workers, scientific management required them to:

 share in the prosperity of the firm by working in the correct way and receiving wage increases
 give up their idea of time wasting and co-operate with the management in developing the science
 accept that management would be responsible for determining what was done and how
 agree to be trained in new methods where applicable.
The benefits arising from scientific management can be summarised as follows:

 improving work methods brought enormous increases in productivity

 its rational approach to the organisational work enables tasks and procedures to be measured with a considerable degree of
accuracy
 measurement of paths and processes provide useful information on which to base improvements in working methods, plant
design, etc
 it enabled employees to be paid by results and to take advantage of incentive payments
 it stimulated management into adopting a more positive role in leadership at shop floor level
 it contributed to major improvements in physical working conditions for employees
 it provided the formation for modern work studies.
The drawbacks were mainly for the workers:

 it reduced the worker's role to that of a rigid adherence to methods and procedures over which he/she had little discretion
 it led to increased fragmentation of work due to its emphasis on divisional labour
 it generated an economically based approach to the motivation of employees by linking pay to geared outputs
 it put the planning and control of workplace activities exclusively in the hands of the managers
 it ruled out any realistic bargaining about wage rates since every job was measured and rated 'scientifically'.
Therefore, in summary, while the scientific management technique has been employed to increase productivity and efficiency
both in private and public services, it has also had the disadvantages of discounting many of the human aspects of
employment. Taylor’s ideas on management and workers demonstrates justice for both parties (employer and
employee).Taylorism prevailed in the '30s through to the early '60s - and in many organisations considerably later than this.
Peters and Waterman in the 70s/80 and Senge late '80s/early '90s led us towards what we now call 'systems thinking' where
the rights and potential wider contributions of employees received considerably greater emphasis.

Max Weber (1864 - 1924), Germany

Weber described bureaucracy as the most efficient way of working.

Bureaucracy in this context is the organisational form of certain dominant characteristics such as a hierarchy of authority and a
system of rules.

Bureaucracy in a sense of red tape or officialdom should not be used as these meanings are value-ridden and only emphasise
very negative aspects of the original Max Weber model.

Authority is distinguished from power by Weber. Power is a unilateral thing - it enables a person to force another to behave in a
certain way, whether by means of strength or by rewards. Authority, on the other hand, implies acceptance of the rules by
those over whom it is to be exercised within limits agreeable to the subordinates that Weber refers to in discussing legitimate
authority.

Weber presented three types of legitimate authority (also discussed in Section 5a):
 Traditional authority: where acceptance of those in authority arose from tradition and custom.
Charismatic authority: where acceptance arises from loyalty to, and confidence in, the personal qualities of the ruler.
Rational-legal authority: where acceptance arises out of the office, or position, of the person in authority as bounded by the
rules and procedures of the organisation.

It is the rational-legal authority form that exists in most organisations today and this is the form to which Weber ascribed the
term 'bureaucracy'.

The main features of bureaucracy according to Weber were:

 a continuous organisation or functions bounded by rules

 that individuals functioned within the limits of the specialisation of the work, the degree of authority allocated and the rules
governing the exercise of authority
 a hierarchical structure of offices
 appointment to offices made on the grounds of technical competence only
 the separation of officials from the ownership of the organisation
 the authority was vested in the official positions and not in the personalities that held these posts. Rules, decisions and
actions were formulated and recorded in writing.
It is no coincidence that Weber's writings were at a time of the major industrial revolutions and the growth of large complex
organisations out of the cottage industries and/or entrepreneurial businesses.

The efficiency of this rational and logistical organisation shares a considerable amount of common ground with the thinking of
Fayol. In particular, features such as scalar chain, specialisation, authority and the definition of jobs which were so essential to
successful management as described by Fayol, are typical of bureaucracy. There is also little doubt that Weber's ideas
concerning specific spheres of competence and employment based on technical competence would have considerable appeal for
Taylor's scientific managers.

Advantages

 Appointment, promotion and authority were dependent on technical competence and reinforced by written rules and
procedures of promoting those most able to manage rather than those favoured to manage. We take a lot of this for granted
in the UK today. Anything else is regarded as nepotism and corruption.
 The adoption of bureaucratic type of management systems allow organisations to grow into large complex organised systems
that are focused towards formalised explicit goals.
 It cannot be stated strongly enough that the Weber theory has the advantage of being used as a 'gold standard' on which to
compare and develop other modern theories.
Disadvantages

Subsequent analysis by other researchers have identified many disadvantages:

 Tendency for organisations to become procedure dominated rather than goal dominated.
 Tendency for heavily formalised organisational roles to suppress initiative and flexibility of the job holders.
 Rigid behaviour by senior managers can lead to standardised services that do not meet the needs of the client.
 Rigid procedures and rules are demotivating for the subordinates that work in the organisations.
 Exercise of control based on knowledge as advocated by Weber has led to the growth of 'experts' whose opinions and
attitudes may frequently clash with those of the more generalised managers and supervisors.

Human Relations Theories

Elton Mayo: Hawthorne studies

Where Classical theorists were concerned with structure and mechanics of organisations, the theorists of human relations were,
understandably, concerned with the human factors.
The foci of human relations theory is on motivation, group motivation and leadership.

At the centre of these foci are assumptions about relationship between employer and employee.

Schein (1965) and Mayo (1933)

 were academic, social scientists
 their emphasis was on human behaviour within organisations
 they stated that people's needs are decisive factors in achieving an organisation's effectiveness
 they were descriptive and attempted to be predictive of behaviour in organisations
A 'motive' is described as a need or driving force within a person.

The process of motivation involves choosing between alternative forms of action in order to achieve some desired end or goal
Alternative forms of action of motivation depend on a manager's assumptions about his/her subordinates:

Prime Motivators Theory

1. Rational- economic man Self interest and maximisation of gain Basis of Classical, especially, Taylor/Scientific theory

2. Social man Social need, being part of a group Basis of Mayo

3. Self actualising man Self-fulfilment of individual Maslow, Likert, McGregor, Argyris, Herzberg

4. Complex man Depends on individual, group, task 'Systems approach'

Elton Mayo : Hawthorne Studies

The ground-breaking Hawthorne studies carried out in the Hawthorne plant of the Western Electric Company (USA) 1927 - 32.
 Stage 1 (1924 -27)

Study of the physical surroundings (lighting level) on productivity of workers. Control group and experimental group previously
had similar productivity before study began.

Control Group = constant lighting level

Experimental Group = varied lighting level

Result
Both groups productivity increased - even when experimental group was working in dim light.

Product leader called Mayo and colleagues to explain the results.

Stage 2 (1927 - 29) 'Relay assembly room stage'

Still analysing effect of physical surroundings (rest, pauses, lunch break duration, length of working week) on output.

Result

Output increased even when worsening conditions

Hypothesis was now that it was the attitudes of subjects at work and not the physical conditions. This gave rise to the
'Hawthorne Effect' - employees were responding not so much to changes in the environment as to the fact they were the centre
of attention - a special group.

Stage 3 (1928 - 30)

A Total of 20,000 interviews were collected with the workers on employee attitudes to working conditions, their supervision and
their jobs.

Stage 4 (1932) 'Bank winning observation room'

This time the new subjects (14 men) put in separate room for six months.

Result
Productivity restricted due to pressure from peers to adopt a slower rate to circumvent company wages incentive scheme to
generally adopt own group rules and behaviour.

Advantages

 first real attempt to undertake genuine social research in industrial setting

 individuals cannot be treated in isolation, but function with group members
 that individual motivation did not primarily lie in monetary or physical condition, but in need and status in a group
 the strength of informal (as opposed to formal) groups demonstrated a behaviour of workers (formal supervisors were
powerless in Stage 4)
 it highlighted need for supervisors to be sensitive and cater for social needs of workers within the group
Disadvantages

 from 1930s -1950s some doubt was cast on the increased applicability of these theories to every day working life

Neo-Human Relations Theory

This group were social psychologists who developed more complex theories:

Maslow
McGregor (Theory X and Theory Y)
Herzberg
Likert
Argyris
See also Section 5a Motivation, creativity and innovation in individuals, and their relationship to group and team dynamics for
more references to Maslow, McGregor, and Herzberg.
Maslow is often-quoted still today, having developed a seminal theory of the needs of human beings. Herzberg's and
McGregor's neo-human relations theories both focus on motivation and leadership, but their theories are very different.

In this group we find a particular focus on human motivation including:

 satisfaction
 incentive
 intrinsic

Maslow (1943) Heirarchy of Needs

1. Maslow proposed a hierarchy of human needs building from basic needs at the base to higher needs at the top.
2. Maslow made assumptions that people need to satisfy each level of need, before elevating their needs to the next higher
level e.g. a hungry person's need is dominated by a need to eat (i.e survival), but not to be loved, until he/she is no longer
hungry.

3. Today the focus in most Western societies is on the elements towards the top of Maslow's hierarchy - in which work
environments and 'jobs', including 'having a job' and the satisfaction or otherwise such jobs provide - have become typical
features. Notably the attainment of self-esteem and, at the very top of the hierarchy, what Maslow calls 'self-actualisation' -
fundamentally the synthesis of 'worth', 'contribution' and perceived 'value' of the individual in society.
Advantages

 Managers should consider the needs and aspirations of individual staff.

Disadvantages

 The broad assumptions in 2 above have been disproved by exceptions e.g. hungry, ill artist working in combination.
Whilst this research provides a basic framework, life is complex.
 McGregor (Theory X and Theory Y)
Managers were perceived by McGregor, whose theories are still often quoted, to make two noticeably different sets of broad
assumptions about their employees.

Theory X (essentially 'scientific' mgt) Theory Y

Lazy Like working

Avoid responsibility Accept/seek responsibility

Therefore need control/coercion Need space to develop imagination/ingenuity

Schein type: 'rational economic man' Schein type: 'self-actualising man'

Advantages

 Identifies two main types of individual for managers to consider how to motivate.
Disadvantages

 Only presents two extremes of managerial behaviour.

Herzberg’s theory

Herzberg showed that satisfaction at work came from different factors to dissatisfaction. Dissatisfaction was not simply the
opposite of the factors which caused satisfaction.

200 engineers and accountants were asked to recall the times/occasions when they experienced satisfactory and unsatisfactory
feeling about their jobs. Later this also involved manual and clerical staff similar results were found. Herzberg showed two
categories of findings:
Motivators - factors giving rise to satisfaction
Hygiene factors - factors giving rise to dissatisfaction
 Important Motivators Important Hygiene Factors

Achievement Company policy and recognition

Recognition Supervision - the technical aspects

Work itself Salary

Responsibility Interpersonal relations - supervision

Advancement Working conditions

Other features include:

Motivators Hygiene Factors

Related to content of work Related to context/environment of work

Promote satisfaction Only prevent dissatisfaction

Advantages

 Herzberg's work led to a practical way to improve motivation, which had, up to that point, been dominated by Taylorism
(salary, wages). In particular ' job enrichment' programmes mushroomed. The aim of these was to design work and work
structures to contain the optimum number of motivators.
 This approach counters the years of Taylorism, which sought to break down work into its simplest components and to remove
responsibility from individuals for planning and control.
Disadvantages
 There remain doubts about Herzberg's factors applicability to non-professional groups, despite the fact that some of his later
studies involved the clerical and manual groups. The numbers in these categories though were small, and researchers still
argue about the applicability of the manual and clerical group.
 Social scientists argue about the validity of his definition of 'job satisfaction'.

Likert
Described 'new patterns of management' based on the behaviours of managers.
Four main patterns:

1. Exploitative - authoritative where power and direction come from the top down', where threats and
'Rational economic
punishment are employed, where communication is poor and teamwork is minimal. Productivity is
man'
typically mediocre.

2. Benevolent - authoritative is similar to the above but allows some upward opportunities for Weaker version of
consultation and some delegation. Rewards may be available as well as threats. Productivity is typically 'rational - economic
fair to good but at cost of considerable absenteeism and staff turnover. man'

3. Consultative - where goals are set or orders issued after discussion with subordinates, where
communication is upwards and downwards and where teamwork is encouraged, at least partially. Some 'Social man'
involvement of employees as a motivator.

4. Participative - this is reckoned by many to be the ideal system. Under this system, the keynote is Self - actualising
participation, leading to commitment to the organisation's goals in a fully co-operative way. man
Communication is both upwards, downwards and lateral. Motivation is obtained by a variety of means. (see also McGregor:
Productivity is excellent and absenteeism and turnover are low. theory Y)

Advantages

Essentially Likert's work gives more alternatives in the spectrum between Theory X and Theory Y of McGregor
Disadvantage

 criticised for being based more on theory than empirical practice. Therefore not widely accepted by practising managers.
 Argyris
Studied the needs of people and the needs of organisation. He felt that classical models of organisation promoted 'immaturity'
(see below). He felt that it was important to understand the needs of people and integrate them with needs of organisation.
Only in this way, he said, can employees become co-operative rather than defensive or aggressive

Characteristics of Employee
Immaturity Maturity

Passivity ---------------------------------------------------Activity
Dependence--------------------------------------------------Relative independence
Behave in a few ways----------------------------------------Behave in many ways
Erratic, shallow interests----------------------------------Deeper interests
Short time perspective-------------------------------------Long time perspective
Subordinate position---------------------------------------Equal or superior position
Lack of awareness of self--------------------------------Awareness and self control

Advantages

 Argyris is moving here towards a 'contingency approach' i.e. remedy depends on diagnosing problems first
 He presents a spectrum rather than bipolar patterns of employees behaviour could be expected from immaturity to maturity.
Certain behaviours of employees may be preferred.
Disadvantages

 Still too centred around 'self-actualising man'. Viewed not to be applicable to production lines with manual workers, workers
in sterile supplies, people manning phone helplines etc whose needs are perceived to be typically lower in Maslow's hierarchy
of needs.

System Theories
Attention began to focus on organisations as 'systems' with a number of inter-related sub-systems. The 'systems
approach' attempted to synthesise the classical approaches ( organisations without people') with the later human
relations approaches that focused on the psychological and social aspects, emphasised human needs - almost
'people without organisations'.

Systems theory focuses on complexity and interdependence of relationships. A system is composed of regularly interacting or
interdependent groups of activities/parts that form the emergent whole.
Part of systems theory, system dynamics is a method for understanding the dynamic behaviour of complex systems. The basis
of the method is the recognition that the structure of any system -- the many circular, interlocking, sometimes time-delayed
relationships among its components -- is often just as important in determining its behaviour as the individual components
themselves.
Early systems theorists aimed at finding a general systems theory that could explain all systems in all fields of science. The
term goes back to Bertalanffy’s (1951) basic work 'General Systems Theory'. Sociologists like Niklas Luhmann (1994) also
worked towards a general systems theory. As of today, whilst no systems theory can live up to this claim, there are general
system principles which are found in all systems. For example, every system is an interaction of elements manifesting as a
whole. Miller and Rice (1967) likened the commercial and industrial organisation to biological organisms.

Systems theories took much more of an holistic view of organisations, focusing on the total work organisation and the inter-
relationships between structures and human behaviours producing a wide range of variables within organisations. They help us
understand the interactions between individuals, groups, organisations, communities, larger social systems, and their
environments and help us enhance our understanding of how human behaviour operates in a context.
A system is a part, and it is a whole, at the same time.
An example of this in the Modern NHS is care pathways for patients which will often require a range of health disciplines to
work together and will often also include professionals from the local authority.

System Theory Key Terms:

Boundary - an imaginary line around system of focus. Regulates flow of energy (e.g. information, resources) into and out of
the system.

Focal system - the system on which you are concentrating at any given time (e.g.: a manufacturing plant or a family).

Subsystem - a part of the focal system (e.g., in a family, it may be children or parents) sometimes referred to as 'sibling
subsystem' and 'parental subsystem').

Suprasystem - is external to focal system; it is its environment. May include place of employment, school, neighbourhood,
church, social service system.

Open system - Relatively open systems have a freer exchange of information and resources within the system and also allow
relatively free passage of energy from and to the outside of the system.
 Closed system - is more self-contained and isolated from their environment.

The business organisation is an Open System: there is continual interaction with the broader external environment of which it
forms a part. The systems approach considers the organisation within its total environment and emphasises the importance of
'multiple channels of interaction'. Thus the systems approach views organisations as a whole and involves the study of the
organisation in terms of the relationship between technical and social variables with the systems. Thus changes in one part,
technical or social, will affect other parts and therefore the whole system.

It was Trist (1963) and others at the Tavistock Institute of Human relations who focused in on socio-technical systems arising
from their study of the effects of changing technology in the coal-mining industries in the 1940s.
The following Timeline gives perspective to the development of Systems Theory:

 1950 General Systems Theory (founded by Ludwig von Bertalanffy)

 1960 cybernetics (W. Ross Ashby, Norbert Wiener) Mathematical theory of the communication and control of systems
through regulatory feedback. Closely related: "control theory"
 1970 catastrophe theory (René Thom, E.C. Zeeman) Branch of mathematics that deals with bifurcations in dynamical
systems, classifies phenomena characterised by sudden shifts in behavior arising from small changes in circumstances.
 1980 chaos theory (David Ruelle, Edward Lorenz, Mitchell Feigenbaum, Steve Smale, James A. Yorke) Mathematical theory of
nonlinear dynamical systems that describes bifurcations, strange attractors, and chaotic motions.
 1990 complex adaptive systems (CAS) (John H. Holland, Murray Gell-Mann, Harold Morowitz, W. Brian Arthur). The "new"
science of complexity which describes emergence, adaptation and self-organisation, all of which are basic system principles,
was established mainly by researchers of the Santa Fe Institute (SFI). It is based on agents and computer simulations and
includes multi-agent systems (MAS) which have become an important tool to study social and complex systems. CAS are still
an active field of research.

Tavistock Institute of Human Relations

 organisation is an 'open system' with environment

 organisations are complex systems of people, task, technology
 technological environmental factors are just as important as social/psychological

Contingency Theories

From the late 1950s, a new approach to organisation theory was developed which became known as contingency theory. This
theory argues that there is no 'one best way' to structure an organisation. An organisation will face a range of choices when
determining how it should be structured, how it should be organised, how it should be managed. Successful organisations adopt
structures that are an appropriate response to a number of variables, or contingencies, which influence both the needs of the
organisation and how it works.
 these theories take a comprehensive view of people in organisations
 they recommend a diagnosis of people/ task/ technology/environment – then suggest the development of appropriate
solutions
Contingency theorists including Pugh, Burns and Stalker and Laurence and Lorsch have found that three contingencies are
particularly important in influencing an organisation's structure. These are:

 its size
 the technology it uses
 its operating environment.
There are two significant implications of contingency theory:

 if there is no 'one best way', then even apparently quite similar organisations, for example, two nearby colleges, may choose
significantly different structures and still survive and be reasonably successful in achieving their missions
 if different parts of the same organisation are influenced in different ways by the contingencies bearing upon them, then it
may be appropriate for them to be structured differently, for example, one university department may have a functional
structure, whilst another may have a matrix structure