M22EKM People

Management
Shifting People management
styles

Classical/Scientific School

Classical Theorists

Robert Owen
Charles Babage
Frederick Taylor
Lillian and Frank Gilbreth
Henry Gantt
Henri Fayol
Henry Ford

Taylors Principles
Scientific Analaysis
Training Needs Analysis
Co-operation
Equal Division of Labour
http://www.youtube.com/watc
h?v=slfFJXVAepE

Avoiding Systematic
Soldiering

Split planning from doing

Standardise and divide the job
Select by job suitability
Train
Monitor

Taylors Results
Midvale Steel Works
Before After
Tons loaded per day12.5 47.5
Wages per day $1.15 $1.85
Labour costs/ton $0.0092 $0.0039

Bethlehem Steel Works

Before After
Tons Shovelled per day16 59
Wages per day $1.15 $1.88
Total Manpower 500 150

Henry Gantt
Gantt Chart
Bonus Payment Scheme
Proactive Management
Services Vs Profit

Henri Fayol
Division of Work
Authority and
Responsibility
Discilpine
Unity of Command
Unity of Direction
Subordination of
personal interests
Renumeration

Centralisation
Scalar chain
Order
Equity
Stability of Tenure
Initiative
Esprit de Corp

The underlying assumptions of

Scientific Management
People ... act as individuals
... act rationally and logically
... are driven by economic
factors
...want to realise their
incividual
capabilities

The Classical School

Background influences
Military Engineering
Physiology
Classical Economics

Factors Studied
The Nature of Work
Specialisation
Work Loads
Authority / Responsibility

Nature of the Solution

Rational allocation of work
Division of Labour
Authority structure

Means / Methods
Principles drawn from experience and observations

Business Organisation (Study In Management)

John OShaughnessy Harper Collins 1966

Managing people:
From personnel management to SHRM: an
evolutionary road map

Personnel management approach (first part of

the 20th century):
Weberism, Taylorism and scientific
management
Maximizing labour productivity and efficiency
Transactional, low-level, record-keeping and
maintenance function
A preoccupation with operational issues,
practices and policies, to the neglect of
broader business issues and the overall
direction of the organization

Managing people:
From personnel management to SHRM: an
evolutionary road map

Human relations and organizational

behaviour paradigms (1970s):
the complexity of human behaviour was
introduced
importance of soft aspects of
management, including leadership and
motivation on work outcome was
highlighted
a new, people-oriented approach to HRM

Managing people:
From personnel management to SHRM: an
evolutionary road map
SHRM (1990s):
a response to large-scale organizational
change and an intensely competitive global
economic environment
a renewed focus on quality and customers,
and the war for talent among others
increased attention to how employees can
have an impact on overall performance

Managing people:
From personnel management to SHRM: an
evolutionary road map

SHRM (1990s):
a response to large-scale organizational
change and an intensely competitive global
economic environment
a renewed focus on quality and customers,
and the war for talent among others
increased attention to how employees can
have an impact on overall performance

Schools of thought on
Organisation
Classical
Human Relations
Environmentalist

The Organisational Environment

Individual

Role

Group

Organisation

Institution
Society
(Sector)

Entrepreneurial Organisational Structure

Functional Organisational Structure

General Manager

Technical Manager

Production Manager

Marketing Manager
Sales

Development

Promotion

Quality Control

Machine Shop

Assembly

Divisional Organisational Structure

By Product
General Manager

Manager

Manager

Product Range 1

Product Range II

(Traditional Steels)

(Aircraft Steels)

Technical
Manager

Production
Manager

Marketing
Manager

Technical Production Marketing

Manager
Manager
Manager

Divisional Organisational Structure

By Geography
General Manager

Manager

Manager

Division A

Division B

(United Kingdom)

(The Rest of the World)

Technical

Production

Marketing

Manager

Manager

Manager

Technical Production Marketing

Manager
Manager
Manager

Divisional Organisational Structure

By Customer
Branch Manager

Manager

Manager
Customer Group A

Customer Group B

(Personal Banking)

(Corporate Banking)

Technical

Production

Marketing

Manager

Manager

Manager

Technical Production Marketing

Manager
Manager
Manager

Matrix Organinisational Structures

Project Management Structure
General Manager

Marketing
Manager
Sales
Promotion
Technical
Manager
Development
Quality Control
Production
Manager
Machine Shop
Assembly

Project Manager I

Project Manager II

Control in Matrix Structures

Overlay
Co-ordinated
Secondment

, Kenneth, ed. Matrix Management: A Cross-Functional Approach to Organization

ork: PBI-Petrocelli Books, 1977.

Control in Matrix Structures

Project
type

Marketi
ng/
sales

Finan
ce

Engineeri
ng

Quality Desig
n

Cost down

Process
improvem
ent
New
product
intro

Manufacturing

X = member of staff required to work on project from department

What happens when only 1 person available from engineering department?

Organisations

A system of consciously coordinated activity involving two

or more people
Chester Barnard 1930s

Organisational
Structure

Tall
Structures
Flat
Structures

How do Organisations work?

Authority
Responsibility
Accountability
Delegation

Concerns about Delegation

Division of Labour
Levels in the Hierarchy
Spans of Control
Line V's Staff
Authority

Divisions of Labour
Group exercise
In groups of 4 read the class exercise and prepare a presentation
on how you intend to re organise your working practices and
therefore identify the division of your labour.
Be prepared to justify your answer.

The end

Put away your notes and laptops,