Lecture 4Outline of Last Lecture - Theory X and the Fundamental Attribution Theory- Theory Y - Administrative Principles- Fayol’s Principles of Management Outline of Current Lecture II. Fredrick W. TaylorIII. Scientific Management in the Political WorldIV. Assumptions of Scientific Management V. Human RelationsCurrent LectureScientific ManagementFredrick W. Taylor (1856-1915)- Focused on the factory floor- More productive people had a different sticky model of how much they should produce- Set out to change this and make everyone more productive and efficient- “The One Best Way” book about Fredrick Taylor’s teaching - Focused on the one best way to do a job and life. Ex: his golf club and tennis racquet- Ex: shovels too big or too small developed 21lb shovel- Assumed that people are rational (motivated by self interest)o Therefore set up incentive schemes- Saw the firm as having fixed resources (the pie)o Cant increase something without the expense of another unless the pie gets larger, when it does everyone benefits stayed fixed - Tool design, time and motion study (one best way) + training, goal setting, incentives (rationally)= greater output (larger pie)Frank and Lillian Gilbreth- Brick laying by frank- Before motions were 18, and after there was 5 motions bringing bricks/hour from 175 to 350Scientific Management in The Political WorldVladimir I. Lenin and Frederick W. Taylor- In soviet Russia leaders eager to industrialize a mostly agrarian society in the 1920s embraced Taylors notionsAssumptions of scientific management MGMT 3711. One best way2. Rationality3. Fixed recourses (pie)Examples:Roger Federer best tennis player ever now Jokovich is. Roger uses one hand backhand vs. Jokocich uses two hands. So is there a one best way to do things? - When placed under a lot of pressure the principles don’t always holHawthorn Factory Chicago: during early days of telephone manufactured all of telephone lines in the US. Scientific management people wanted to study them to refine principleso Ex: illumination room, lights affecting productivity, could not find one best level of illumination because they found an increase with the light and then when the light wentdown more it still increased, inconclusive of what was increasing the work (one best way)o Ex 2: bank wiring observation room, men would wire banks of telephone connectors. Employees got paid on an incentive system. Goal average person should produce 1,000 you would get higher pay if you surpassed 1,000. Productivity did not achieve 1,000 conspired to all not reach it, people were behaving irrationally. (Rationality)- Hawthorn Study Conclusions:o No obvious “one best way” o Groups enforced low productivity norms on memberso Overall impression: “Happy workers are more productive” Leads to Human RelationsHuman Relations- Resulted from the Hawthorne Studies- Conclusions were based on poorly-controlled studies- Believed that increasing job satisfaction would yield higher performance- Increase job satisfaction, increase