2. foundation of modern management nu 2020

Wai Chamornmarn
2020
2. Foundation of Modern Management :
Behavioural and System Perspectives
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1 2. Foundation of Modern Management NU 2020 - 25 September BE 2563

MODERN MANAGEMENT PERSPECTIVES
1.BEHAVIORAL MANAGEMENT PERSPECTIVES
2.BOUNDED RATIONALITY
3. COGNITIVE REVOLUTION
4.CONTINGENCY PERSPECTIVES
5.SOCIO TECHNICAL SYSTEM
6.SYSTEM THEORY PERSPECTIVES

An Integrative Framework of Management Perspectives

1.BEHAVIORAL MANAGEMENT PERSPECTIVES

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Organization Behavior Model

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the properties of individuals, or the study of
how cognition affects operations;
and 2) properties of groups and
organizations, or the study of how social
norms and social systems affect
operations.

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Behaviorism refers to the school of psychology founded by John B. Watson based on the
belief that behaviors can be measured, trained, and changed.
• "Give me a dozen healthy infants,
well-formed, and my own specified
world to bring them up in and I'll
guarantee to take any one at random
and train him to become any type of
specialist I might select -- doctor,
lawyer, artist, merchant-chief and,
yes, even beggar-man and thief,
regardless of his talents, penchants,
tendencies, abilities, vocations, and
race of his ancestors." 
--John Watson, Behaviorism, 1930
•
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Cognitive Behaviour and learning
Humanism and Behaviorism as Psychological Learning Theories/Principles

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John B. Watson was a very important theorist within the Behaviorist category of Human Development. Behaviorism is is the theory, developed by Watson, which focuses on how
humans behave in a controlled environment. Watson believed in the "blank slate" theory, which means that humans are born with nothing in their brain and they grow to be who
they are by the environment they live in.
John B. Watson

Behavioural Research
• Social learning theory proposes that learning takes place vicariously and
through imitation (Bandura, 1965, 1976).
• Vicarious learning is learning by observation resulting in behaviour patterns
that are learned by watching others and observing the consequences
(Atkinson et al, 1987).
• Reinforcement theory is concerned with the consequences or outcomes that
influence behaviour (Skinner, 1969).
• The underlying assumption of social learning theories is that what an
individual learns from experience is likely to influence their perception of a
task and the subsequent choice they make.
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Behaviorism versus Other Schools of Thought 
• One of the major benefits of behaviorism is that it allowed researchers to investigate observable behavior
in a scientific and systematic manner.
• However, it many thinkers believed that it fell short by neglecting some important influences on
behavior. Freud, for example, felt that behaviorism failed by not accounting for the unconscious
mind's thoughts, feelings, and desires that exert an influence on people's actions.
• Other thinkers like Carl Rogers and the other humanistic psychologists believed that behaviorism was too
rigid and limited, failing to take into consideration things like free will.
• More recently, biological psychology has emphasized the power that the brain and genetics play in
determining and influencing human actions.
• The cognitive school of psychology focuses on mental processes such as thinking, decision-making,
language, and problem-solving. In both cases, behaviorism neglects these process and influences in favor
of studying just observable behaviors.
•
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Behavioral Management Perspectives

If you deliberately plan on being less than you are capable of being,
then I warn you that you'll be unhappy for the rest of your life.
-Abraham Maslow

Motivational Theory Comparison

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changed from “observer” to “subject”

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Bobo doll experiment
Modeling is the powerful way of learning Learning can take place in absence of reinforcement.
One can learn by via observation and modeling

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The Triadic Social Cognitive Theory (Bandura (1986)
‘‘Beliefs’’ and ‘‘Uncertainty’’
‘‘Immediate outcomes’’,
‘‘Intention to prepare’’ and
‘’Preparedness
‘‘Information’’ and a
variety of societal
influences.

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Humanism and Behaviorism as Psychological Learning Theories/Principles
‘‘Beliefs’’ and ‘‘Uncertainty’’
‘‘Information’’ and
a variety of
societal influences.
‘‘Immediate outcomes’’,
‘‘Intention to prepare’’ and
‘’Preparedness
+’‘Emotion and feelings’’

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Behaviorism and Social Cognitive Theory

Cognitive theories, by comparison, employ information processing models to explain how
individuals organise information in order to make a decision (Cronbach, 1960).
• The three key cognitive approaches are heuristic/analytic reasoning, Image theory
and Prospect theory.
• Heuristic reasoning involves searching for familiar solved problems and reducing
the task to a core set of causal relationships to make a decision (Huysman, 1968).
• Image theory posits that individuals apply existing knowledge (images) to
establish standards that guide their decision making (Beach, 1990).
• Prospect theory is a descriptive model that modifies expected utility theory to
accommodate decision behaviour that violates the rational choice model (Tversky
& Kahneman, 1981).
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2. BOUNDED RATIONALITY

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Simon’s Metaphor : A man is an ant

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Study of decision-making
Simon's three stages in Rational Decision Making: Intelligence, Design, Choice (IDC)
I am a monomaniac. What I am a monomaniac about is decision-making.Administrative Behavior,[24] first
appearing in 1947, and updated across the years was based on Simon’s doctoral dissertation. It served
as the foundation for his life's work. The centerpiece of this book is the behavioral and cognitive
processes of humans making rational choices, that is, decisions. By his definition, an operational
administrative decision should be correct and efficient, and it must be practical to implement with a set of
coordinated means.
Simon recognised that a theory of administration is largely a theory of human decision making, and as
such must be based on both economics and on psychology. He states:
[If] there were no limits to human rationality administrative theory would be barren. It would consist of the
single precept: Always select that alternative, among those available, which will lead to the most
complete achievement of your goals.(p xxviii)

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Maps of Bounded Rationality : a Perspective on Intuitive Judgment and Choice

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3. COGNITIVE REVOLUTION

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Five major ideas from the cognitive revolution
In his book The Blank Slate (2002), psychologist Steven Pinker identified five key ideas that made up the cognitive revolution:
1 "The mental world can be grounded in the physical world by the concepts of information, computation, and feedback.”
2 "The mind cannot be a blank slate because blank slates don't do anything.”
3 "An infinite range of behavior can be generated by finite combinatorial programs in the mind.”
4 "Universal mental mechanisms can underlie superficial variation across cultures.”
5 "The mind is a complex system composed of many interacting parts.”
The cognitive revolution is the name for an intellectual movement in the 1950s that created, what are collectively known as, the cognitive sciences. It began in the modern
context of greater interdisciplinary communication and research. The relevant areas of interchange were the combination of psychology, anthropology, and linguistics with
approaches developed within the then-nascent fields of artificial intelligence, computer science, and neuroscience.
A key idea in cognitive psychology was that by studying and developing successful functions in artificial intelligence and computer science, it becomes possible to make
testable inferences about human mental processes. This has been called the reverse-engineering approach.
Important publications in setting off the cognitive revolution include George A. Miller's 1956 Psychological Review article "The Magical Number Seven, Plus or Minus
Two" (one of the most frequently cited papers in psychology), Donald Broadbent's 1958 book Perception and Communication, Noam Chomsky's 1959 "Review of Verbal
Behavior, by B.F. Skinner", and "Elements of a Theory of Human Problem Solving" by Newell, Shaw, and Simon. Ulric Neisser's 1967 book Cognitive Psychology[8] was a
landmark contribution. Starting in the 1960s the Harvard Center for Cognitive Studies and the Center for Human Information Processing at the University of California San
Diego became influential in the development of cognitive studies.
By the early 1970s according to some accounts, the cognitive movement had all but "routed" behaviorism as a psychological paradigm, and by the early 1980s the cognitive
approach had become the dominant research line of inquiry in most psychology research fields.

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Steven Pinker
Johnstone Family Professor of Psychology
Harvard College Professor
In the mid-20th century, psychology was no longer “the science of mental life” (as William James had defined it), but “the science of behavior.” Mentalistic concepts —thoughts,
memories, goals, emotions — had been banned as unscientific, replaced by associations between stimuli and responses.
But new ideas about computation, feedback, information, and communication were in the air, and psychologists realized they had enormous potential for a science of mind. Four
Harvard scholars used them to launch the “cognitive revolution.”
George Miller noted that people could label, quantify, or remember about seven items at a time, whether they were tones, digits, words, or phrases. That meant the human brain must be constricted by
a bottleneck of seven (plus or minus two) units, which Miller called “chunks.”
Linguist Noam Chomsky, while at the Harvard Society of Fellows, noted that people can produce and understand an infinite number of novel sentences. They must have internalized a grammar, or
set of rules, rather than having memorized a list of responses. Children are not taught this grammar, and so are equipped with a “language acquisition device” that instantiates a “universal
grammar.”
Jerome Bruner co-authored “A Study of Thinking,” which analyzed people as constructive problem-solvers rather than passive media as they mastered new concepts. His colleague
Roger Brown analyzed the relationship of concepts to language and initiated a new science of language development in children.
In 1960, Bruner and Miller founded the Harvard Center for Cognitive Studies, which institutionalized the revolution and launched the field of cognitive science. Today the study of the human mind
is among the most exciting frontiers of science. Its practical applications include the design of software, the diagnosis of neurological disease, and the formation of public policy, and its theories have
revolutionized our understanding of ancient problems such as consciousness, free will, and human nature.
The Cognitive Revolution

1960s “Cognitive Revolution”:
Information-processing psychology replaced prevailing orthodoxy of
behaviorism
Requires scientific theories of internal activities of the brain
– What level of abstraction? “Knowledge” or “(neural) circuit” ?
– How to validate?
Both fields (Cognitive Science and Cognitive Neuroscience)
are now distinct from AI, but both share with AI some characteristics and
general goals
Hence, all three fields share one principal direction!
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https://youtu.be/AeoyzqmyWug

Acting humanly: The Turing test (I)
Turing (1950) “Computing machinery and intelligence'‘
• “Can machines think?“ → “Can machines behave intelligently?“
• Operational test for intelligent behaviour: the Imitation Game
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Problem: Turing test is not reproducible, constructive, or amenable to
mathematical analysis

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Cognitive computing

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A unifying
theory ?
The First Cognitive
Revolution:
The Brain and the Nerve Net
as an Information Processing
Machine

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AI is valuable because in many contexts, progress in these capabilities offers revolutionary, rather than evolutionary, capabilities. Example applications of AI include the following;
there are many more.
1. Reasoning: Legal assessment; financial asset management; financial application processing; games; autonomous weapons systems.
2. Knowledge: Medical diagnosis; drug creation; media recommendation; purchase prediction; financial market trading; fraud prevention.
3. Planning: Logistics; scheduling; navigation; physical and digital network optimisation; predictive maintenance; demand forecasting; inventory management.
4. Communication: Voice control; intelligent agents, assistants and customer support; real-time translation of written and spoken languages; real-time transcription.
5. Perception: Autonomous vehicles; medical diagnosis; surveillance.
Since the 1950s, AI research has focused on five fields of enquiry:
1. Reasoning: the ability to solve problems through logical deduction
2. Knowledge: the ability to represent knowledge about the world (the understanding that there are certain entities, events and situations in the world; those elements have properties; and those elements can
be categorised.)
3. Planning: the ability to set and achieve goals (there is a specific future state of the world that is desirable, and sequences of actions can be undertaken that will effect progress towards it)
4. Communication: the ability to understand written and spoken language.
5. Perception: the ability to deduce things about the world from visual images, sounds and other sensory inputs.

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Cognitive Computing is a self-learning system that makes use of machine
learning models. These models exhibit behavior like a human brain.”

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Supervised Machine Learning
Unsupervised Machine Learning
Semi Supervised Machine Learning Reinforcement Learning
Machine Learning
With machine learning, programs learn like a human would — through experience and training

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https://youtu.be/OdpuaCWCQ8g

4.CONTINGENCY PERSPECTIVES

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Joanne Woodward is an award-winning American actress best known for her roles in The Three Faces of Eve
(1957), Rachel Rachel (1968) and Summer Wishes, Winter Dreams (1973). Woodward is the widow of actor Paul
Newman.

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Contingency Approach

5. SOCIO-TECHNICAL SYSTEM

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Socio -Technical System

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Work Designs that optimize Technology
Low Technical Interdependence High
HighTechnicalUncertaintyLow
Self-Regulating
Work Groups
Traditional
Work Groups
Traditional
Job Design
Enriched Jobs
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Socio - technical Theory (1950s/1960s-)
Sociotechnical Systems (STS)

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What is the Socio-Technical System Approach?
February 10, 2011
The Socio-technical System approach is about harnessing the people aspects and technical aspects of
organizational structure and processes to achieve joint optimization, with a focused emphasis on achieving
excellence in both the technical performance and the quality in people’s work. The term socio-technical system was
coined in the 1960s by Eric Trist and Fred Emery who were working as consultants at the Tavistock Institute in
London.
Trist noted in his book “Organizational Choice” that “Inherent in the socio-technical approach is the notion
that the attainment of optimum conditions in any one dimension does not necessarily result in a set of
conditions optimum for the system as a whole….The optimization of the whole tends to require a less than
optimum state for each separate dimension”.
The work of Trist and Emery provide the basic foundation for High Performance Work Team Organization
(HPWO) and the empowerment of teams in the following:
Responsible autonomy. Shifting work to teams or groups with internal supervision and leadership, but avoiding
the “silo thinking” by engaging the whole system
Adaptability, agility. In an environment of increasing complexity, giving groups responsibility for solving local
problems
Whole tasks. Specifying the objective to be completed, with a minimum of regulation of how it is to be done
Meaningfulness of tasks. In the words of Trist et al: “For each participant the task has total significance
and dynamic closure.”
From the works of Eric Trist and Fred Emery, Centre for Performance Transformation define High Performance Work
Team as:
1 People working together to produce a product or services;
2 They are focus on meeting or exceeding customers’ requirements;
3 They have a clear understanding of their mission, roles, measures and operating guidelines;
4 They demonstrate a high level of trust and interdependence skills that results in effective
communication, team meetings and handling of differences;
5 They seek continuous improvement by monitoring their performance, setting goals, analyzing their
processes and identifying and solving problem on a regular basis; and
6 They are empowered to plan, control, coordinate and improve their work

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High Performance Team

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Trist concluded that the following principles were involved in the success:
1 The work system, a functioning whole, now became the basic unit of focus rather than single
tasks and jobs. 
2 The work group was central rather than the individual job-holder. 
3 Internal regulation of the work system by the work group was possible and effective, rather
than the external regulation of individuals by supervisors. 
4 Work teams developed members who were multi-skilled, therefore more flexible and capable of
self-regulation. 
5 The discretionary, rather than the prescribed, aspect of the work was valued. 
6 The team structure increased the variety of work done by individuals, thereby increasing
intrinsic motivation. 
From these observations emerged the theory and practice of socio-technical systems.
The theory expanded to include not only the immediate work system, but the whole organizational system and the
macro-social system that inevitably impacts the work of the organization and the behavior of its members.
The theory recognized that every system is a sub-system of a larger system and no system can be
understood without understanding its interaction with both the larger system and parallel systems.
LEAN MANAGEMENT: A SOCIO-TECHNICAL SYSTEMS APPROACH TO CHANGE

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The Practical Practice of Lean
Shigeo Shingo, 1909-1990
The Toyota Production System did not emerge from any academic theory or research. On
the contrary, it was born and bred on the shop floor by practicing managers, engineers and
front line employees. The language of lean, phrases like “the elimination of waste” and
“respect for people” reflect its shop floor origins.
Taiichi Ohno and Shigeo Shingo are the two individuals at Toyota who are most
credited with developing and promoting this new system of work. It emerged as Shigeo
Shingo worked with die press operators to reduce change over time from one stamped part
to another. At Ford in the 1960’s it required one day to change dies. There was a die
change department, die change workers and die change managers. If it takes a full day to
change over from one part to another you are naturally going to want to run each part for a
long time, many hundreds or thousands of units before changing over. You must then have
a warehouse to put them in, a forklift to move them, warehouse workers and warehouse
managers. Shingo observed the work and timed the actual value adding time and
the total time. He only considered the actual time that the die was stamping the metal to
be value-adding. Everything else was waste. Asking the press operators to think, to
experiment and find ways to reduce the non-value adding time, the process increasingly
became “lean.” The last time I was in Marysville, there was poster next to the world’s larges
stamping press. The poster was written by hand and said “.54!” That is fifty-four seconds to
change dies on the world’s largest stamping press.
When you reduce change over time you reduce the need for work-in-process inventory and
you make small lots rather than large lots. You eliminate waste. This is where it began.
It is an important point of history that both in the coal mine and at the stamping
press, it was the workers who used their own practical knowledge of how
things work and the relationships among people, to create what became
historically important innovations in work systems.

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Socio-Technical Principles
Below is a summary of the principles of socio-technical system design distilled from the work of Eric Trist and many others.
1.0 Social System
• There is no optimum organization.
• As the environment, culture, people and technology change, so should the organization.
• When selecting people for a workgroup, strive for homogeneity in their backgrounds and work attitudes.
• Reduce wide variations in knowledge levels and variety through cross training.
• Achieve high performance through commitment rather than minimal compliance. Use more carrot than stick.
• Build commitment by involving people in the shaping of their future.
• Provide opportunities to satisfy unfulfilled higher order needs. Use the intrinsic motivators.
• Adult learning occurs primarily through experience. Integrate learning on the job through advisors, facilitators, and guided application.
2.0 Technical System
• Control variances at their source.
• Ensure that the detection of a variance and the source of that variance occur in the same work group.
• Maintain quality by detecting variances in the process rather than in the final product.
• Monitor inputs as carefully as outputs.
• Size work buffers large enough to allow problem solving but small enough to prevent problem avoidance.
• Match technological flexibility with the product mix.
• Match technology scale with production volume of the work groups.
3.0 Integration
• Design the Socio and Technical systems simultaneously and jointly.
• Give workers larger and more varied tasks and increase cycle time.
• Integrate support functions within work groups to the largest possible extent.
• Optimize the system rather than the system’s components.
• Begin and end a work group’s technical boundary at a discontinuity in the material transformation process.
4.0 Managing The System
• Allow teams to manage the daily work.
• Coach and facilitate rather than supervise. Coaches should manage the team boundaries.
• Upper management should set goals, supply resources and manages the culture.

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During the mid-twentieth century, several organizational psychologists at the London Tavistock
Institute developed the Sociotechnical Systems (STS) approach to organizational
development. This was mostly in response to growing problems in modern organizations with
absenteeism, turnover, quality and productivity (Cummings, 2004). As it turned out, the work
design principles influenced by Scientific Management resulted in boring and meaningless
work. Even though technology and pay was improving, task productivity was decreasing. Eric
Trist and his colleagues from the Tavistock institute (1963) identified two principles for work
design:
• Interaction of technical and social factors: Work is influenced by two systems of
variables. The technical system concerns the tasks involved, any tools, the location, etc.
while the social system concerns the social and psychological needs of the employees.
Both systems always influence the work, whether designed or not;
• Joint optimization: When designing work, both systems need to be addressed equally as
they continuously interact and influence each other. Failure to design both, will certainly
result in loss of productivity;
Following an important case study in production-oriented environments, Trist (1951) identified
a number of principals that improve the fit between social and technical systems:
• Teams as ‘unit of work’: The focus should be on teams that perform work rather than on
individuals;
• Whole tasks in small teams: Small teams should take on whole tasks and be made
responsible to complete them. They should all the required expertise to do so;
• Increase autonomy: Teams are responsible for organizing and controlling their work.
Managers and supervisors become advisors rather than overseers. They control the
process, not the tasks;
• Self-organize and adapt continuously to deal with complexity: Teams self-organize to
adapt to the continuously changing complexities of the organizational reality and the work
they are performing;

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From socio-technical systems to Scrum
It isn’t hard to identify the influences of the sociotechnical systems approach in Scrum. In their seminal article for the Harvard Business Review, Hirotaka Takeuchi and Ikujiro Nonaka (1986) laid the
groundwork for a holistic approach to work design that would lead to the development Scrum. They interviewed a number of employees from several successful manufacturing organizations (like
Honda, HP and Xerox) and identified six key aspects of the approaches these companies used to optimize their production process:
• Built-in instability: management sets challenging goals and gives the team the freedom to achieve these goals;
• Self-organizing project teams: A team is allowed to self-organize to achieve the goal in the most optimal way. This requires teams to have a lot of autonomy, a very strong desire to
continuously improve (to ‘self-transcend’) and to cross-fertilize knowledge within the team;
• Overlapping development phases: Development requires certain phases, but these should overlap to absorb vibration or changing requirements;
• Multi-learning: Members of a team learn in multiple ways. They learn from each other and by rotating roles (cross functional learning) and by learning across multiple organizational levels
(multilevel learning);
• Subtle control: Rather than the traditional command-and-control authoritarian style of management, managers should subtly control the work process of the team. They can do this by creating
the right climate for teams to work effectively, select the right people for the jobs, managing the rhythm of the process and tolerating mistakes;
• Transfer of learning: To avoid losing valuable knowledge gained by teams throughout the process, learning should be facilitated throughout the organization in many ways.
The six aspects closely mirror the principles of sociotechnical systems. Even the use of ‘holistic’ matches the idea that technical and social systems of work design should be aligned. Interestingly,
Takeuchi & Nonaka (1986) make no mention of sociotechnical systems or any other precursor model or theory. Although the authors are sometimes credited with the invention of a new approach for
commercial product development, their work is clearly based (or describes) on existing models and approaches.
Although Takeuchi and Nonaka use the term ‘Scrum’ in their article, they use it mostly as an analogy. The term ‘Scrum’ as the name for a method for software development was first coined by Ken
Schwaber and Jeff Sutherland. They formalized and presented Scrum as a methodology for software development during the annual OOPSLA congres (Object-Oriented Programs, Systems,
Languages & Applications) (1995). The rest of the story is known to those familiar with Scrum.

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“What Toyota could do
better than its rivals seems to
be not so much rational
calculations before the trials
as systematization and
institutionalization after the
trials” (Fujimoto, 1995, p.
212, italics in original).
Toyota’s meta-routine was
important in continuing its
dedication to a production
system characterized by small
lot sizes and multi-purpose
machines, despite the
disappearance of ﬁnancial
bottlenecks in the 1960s
(Gronning, 1997, p. 428).

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lean production

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lean production

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5. SYSTEM THEORY

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System theory Perspectives

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Von Bertalanffy

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Viable System Model
Principal functions of the Viable System Model, 1975.
The Viable System Model (VSM) is a model of the organisational structure of any viable or autonomous system. A viable
system is any system organised in such a way as to meet the demands of surviving in the changing environment. One of the
prime features of systems that survive is that they are adaptable. The VSM expresses a model for a viable system, which is an
abstracted cybernetic description that is applicable to any organisation that is a viable system and capable of autonomy.

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Stafford Beer (1926 – 2002)

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Fremont E. Kast (Ph.D.—University of Washington)

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