Management 2

• Key Learning Outcomes:

  • Define theory and evolution
  • Describe the classical management perspective (scientific, administrative and bureaucratic)
  • Describe the behavioural management perspective
  • Describe the quantitative management perspectives (management science and operations management)
  • Discuss the systems and contingency approaches
  • Explain total quality management
  • Describe the challenges of management
• Prominent pioneers in management studies include:

  • Frederick Winslow Taylor
  • Frank and Lillian Gilbreth
  • Max Weber
  • Henry Fayol
  • Elton Mayo
  • Mary Parker Follet
• Earlier researches help future managers or business owners to manage organizations effectively
• Organizations are shaped by management theories which have evolved due to different types of challenges and opportunities faced
• Reasons to study management theories:

  • Economic influences: distribution of resources, availability, and production within society
  • Social influences: influence of culture in interpersonal relationships
  • Political influences: pressure from political institutions on individuals and organizations
  • Technological influences: emergence of new technologies and advancements in devices
  • Global influences: blending of economic, social, political, legal, and technological influences affecting operations of organizations
• Theories provide a stable focus for comprehending experiences

  • Theories provide criteria for determining relevance
  • Theories provide means to communicate efficiently, allowing for more complex relationships with other people
  • Theories challenge individuals to keep learning about the world
• Role of the Industrial Revolution in the evolution of management theories:

  • Industrial Revolution period (1760–1850) marked the development of major perspectives to management
  • Fundamental change in the way goods were produced, from human labor to machines
  • Four major changes in England during this period
• Classical Management Perspectives:

  • Classical management theory developed during the Industrial Revolution period
  • Belief that men at work acted in a rational manner driven by economic concerns
  • Developed to seek the best way of performing and managing tasks for high monetary and personal gains
• Scientific Management:

  • People are primarily motivated by economic gains
  • Focus on individual or worker productivity
  • Main objective is to improve economic efficiency, especially labor productivity
  • Pioneer: Frederick Winslow Taylor
  • Taylor's work focused on task performance, supervision, and motivation
• The Gilbreths:

  • Husband and wife team inspired by Taylor's time studies
  • Frank Gilbreth specialized in time and motion studies
  • Lillian Moller Gilbreth improved efficiency and productivity, introduced better working conditions
• Limitations of the Scientific Management Theory:

  • Emphasis on enhanced productivity and profitability led to exploitation of workers and customers
  • Resulted in more workers joining unions and changed labor management relations for decades
• Administrative Management:

  • Focus on basic management functions and manager's tasks within an organization
  • Regarded management as a profession that could be taught to people
  • Henri Fayol summarized his management experiences and identified the five functions and 14 principles of management
• Discipline, obedience, and respect help to ease the operation of an organization
• Unity of command: Each employee should receive orders from only one superior
• Unity of direction: All organization members should coordinate and focus their efforts in the same direction
• Subordination of individual interests to the general interest
• Remuneration: Employees should be fairly paid based on contribution
• Centralization: The relationship between centralization and decentralization is a matter of proportion
• Scalar chain: Subordinates should adhere to an official chain of command
• Order: Both material things and people should be in their proper places
• Equity: Fairness owing to kindness and justice will generate dutiful and loyal service
• Stability and tenure of personnel: Employees require time to learn their jobs
• Initiative: Formulating and executing a plan is one of the greatest satisfactions
• Esprit de corps: Harmonious effort among individuals is key to organizational success
• Bureaucratic Management was created by Max Weber
• Bureaucratic Management emphasizes organizational rules, management hierarchies, division of labour, and detailed rules and procedures
• Behavioural Management Perspectives focus on human behaviour in shaping management styles
• Hawthorne Studies were conducted to study human behaviour
• Mayoism formula: Humanistic supervision plus morale equals productivity
• Quantitative Management Perspectives use quantitative techniques to improve decision making
• Systems Approach views an organization as "the big picture" and considers external environment influences
• Contingency Approach is situational and there is no one best way to manage
• Total Quality Management aims to improve performance by focusing on customers and addressing the needs of all stakeholders
• Challenges of Management include globalization, evolving technologies, dynamic environments, changing human relations, major shifts in managing situations, flexibility, workplace diversity, and international competition