Principles of Management Lesson 2 PDF

Principles of Management └ The systematic study of the Lesson 2 relationships between The Evolution of Management Thought people and tasks for the...

Principles of Management └ The systematic study of the Lesson 2 relationships between The Evolution of Management Thought people and tasks for the purpose of redesigning the work process to Management Theories increase efficiency.  Classical Approach ( 18th Century) F.W. Taylor and Scientific Management  Behavioral Approach (19th Century)  Taylor was a manufacturing manager who eventually became a consultant and taught  Systems Approach (1930’s-40’s) other managers how to apply his scientific  Contingency Approach (60’s) management techniques.  Taylor believed that if the amount of time and effort that each worker spend to produce a unit of output (a finished good or service) can be reduced by increasing specialization and the division of labor, the production process will become more efficient. four principles to increase efficiency in the workplace  Principle 1: Study the way workers perform Job Specialization and the Division of Labor their tasks, gather all the informal job  Adam Smith (18th century economist) knowledge that workers possess, and experiment with ways of improving how └ Observed that firms manufactured tasks are performed. pins in one of two different ways:  Principle 2: Codify the new methods of - Craft-style—each worker performing tasks into written rules and did all steps. standard operating procedures. - Production—each  Principle 3: Carefully select workers who worker specialized in one possess skills and abilities that match the step. needs of the task, and train them to perform the task according to the established rules  Smith found that the performance of the and procedures. factories in which workers specialized in only one or a few tasks was much greater than  Principle 4: Establish a fair or acceptable the performance of the factory in which level of performance for a task, and then each worker performed all pin-making tasks develop a pay system that rewards performance above the acceptable level.  job specialization- The process by which a division of labor occurs as different workers The Gilbreths specialize in different tasks over time. Two prominent followers of Taylor were F.W. Taylor and Scientific Management  Frank Gilbreth (1868–1924) and  Scientific Management  Lillian Gilbreth (1878–1972), who refined Taylor’s analysis of work movements and  made many contributions to time-and- motion study. The Gilbreths’ Aims 1. Analyze every individual action necessary to perform a particular task and break it into each of its component actions 2. Find better ways to perform each component action 3. Reorganize each of the component actions so that the action as a whole could be performed more efficiently-at less cost in time and effort Administrative Management Theory Fayol’s Principles of Management  Administrative Management  Henri Fayol (1841–1925) was the CEO of Comambault Mining. └ The study of how to create an Working at the same time as organizational structure that leads to Weber, but high efficiency and effectiveness. independently, Two of the most influential early views regarding the  Fayol identified 14 principles that creation of efficient systems of organizational he believed essential to increase administration were developed in Europe: the efficiency of the management  Max Weber, a German sociology professor, process. developed one theory; and Fayol’s 14 Principles of Management  Henri Fayol, the French manager who 1. Division of labor. developed the model of management 2. Authority and Weber’s Principles of Bureaucracy responsibility. bureaucracy -a formal system of organization and 3. Unity of command. administration designed to ensure efficiency and effectiveness. 4. Line of authority. A bureaucratic system of administration is based on 5. Centralization the five principles: 6. Unity of direction 7. Equity 8. Order 9. Initiative 10. Discipline 11. Remuneration of personnel 12. Stability of tenure of personnel  13. Subordination of individual use of organizational resources to interests to the common interest produce goods and services. 14. Esprit de corps  Quantitative management  Behavioral Management └ utilizes mathematical techniques, like linear └ The study of how managers should programming, modeling, personally behave to motivate simulation and chaos theory employees and encourage them to perform at high levels and be  Operations management committed to the achievement of organizational goals. └ provides managers a set of techniques they can use to  Mary Parker Follett analyze any aspect of an organization’s production └ Concerned that Taylor ignored the system to increase efficiency human side of the organization  Total quality management  Suggested workers help in analyzing their jobs └ focuses on analyzing an organization’s input,  If workers have relevant conversion, and output knowledge of the task, then activities to increase they should control the task product quality  Management information systems The Hawthorne Studies and Human Relations └ help managers design  Hawthorne effect The finding that systems that provide a manager’s behavior or information that is vital for leadership approach can affect effective decision making workers’ level of performance. Theory X vs. Theory Y Management Science Theory The Organization as an Open System  Management Science Theory └ Contemporary approach to management that focuses on the use of rigorous quantitative techniques to help managers make maximum Contingency Theory Reference: George, J., Jones, G. (2011). Contemporary Management: McGraw-Hill Education: 2 Penn Plaza, New York, NY 10121