personal notes

• Scientific Management Theory


  • Application of scientific methods and principles for redesigning the work process to increase efficiency
  • Emphasizes the importance of labor in the production process
• Limitations of Scientific Management Theory

  • Operations become routinary
  • Money becomes the sole incentive of workers
  • Workers believe the piece-rate technique might lead managers
• Advocates of Scientific Management Theory

  • Frederick W. Taylor
  • Henry Gantt
  • Frank and Lillian Gilbreth
• Frederick W. Taylor


  • Considered the Father of Scientific Management
  • First to advocate scientific management
  • Four principles of scientific management: Replace rule-of-thumb methods with scientifically proven ones, Select, train, and develop each worker based on scientific methods, Cooperate with workers to ensure scientific methods are observed, Divide work between managers and workers to apply scientific management principles
• Frank and Lillian Gilbreth


  • Contributed to the development of the time and motion study along with Taylor
• Administrative Theory


  • Focuses on the overall management of an organization, emphasizing the role of managers as administrators
• Henri Fayol


  • Introduced the Administrative Theory in the early 20th century
  • Five functions: planning, organizing, communicating, coordinating, controlling
  • Fourteen principles including division of work, authority, discipline, unity of command, unity of direction, predominance of the general interest, remuneration, centralization, scalar chain, order, equity, stability and tenure of personnel, initiative, esprit de corps
• Max Weber


  • Considered bureaucracy important in modern society
  • Believed bureaucratic structures allow for specialization of skills and enable workers with different traits, skills, and goals to work together
• Management


  • Science: Universally accepted principles, Has an organized body, Has cause & effect relationship
  • Art: Requires perfection through practice, Deals with the application of knowledge and skills
• Bureaucracy is an aspect of modern society, indicating a more rational and law-based view on leadership
• Management


  Planning, organizing, leading, and controlling the activities of an organization effectively and efficiently to achieve its goals
• Bureaucratic structures


  • Allow for specialization of skills and enable workers with different traits, skills, and goals to work together and contribute towards performing a common task
• Management


  • Provides a means to maintain a firm’s competitive advantage, Plays an important role in laying out the foundation of a profitable company strategy and attaining successful operations
• Chester Barnard identified three major functions of the senior executive:
• Functions of the senior executive

  1. Formulate the organization's mission

  2. Hire key employees

  3. Maintain organizational communication
• Factors Influencing Management


  • Globalization
  • Technology
  • Sustainability and Corporate Social Responsibility
  • Psychology
  • Ecosystems
• Globalization
• Mary Parker Follet wrote the Dynamic Organization, emphasizing ever-changing situations in management and the human element, collaboration, and mutual cooperation
• Globalization


  • Phenomenon of growing interconnectivity and independent relations between nations, Allows for access to the world
• Human Relations Theory


  • Focuses on the social element in the workplace, considering interpersonal relationships, social conditioning, and group norms in determining worker performance
• Hawthorne Studies by Elton Mayo

  1. Introduction of set work hours

  2. Implementation of break times for workers

  3. Improvements in lighting in work areas

  4. Close supervision by managers
• Technology
• Technology


  • One of the main driving forces of business, Advancements have immensely improved business trends, Allows for innovation and convenience, Outsourcing: Transfer of an organizational function to a third party, Offshore Outsourcing: "Offshoring" - Third party is located in another country
• Changes in Hawthorne Studies

  Resulted in increased satisfaction among workers and increased overall productivity
• Keys to Motivating for increased productivity

  • Social factors, positive employee-employer relationship, sense of being valued & recognized
• Sustainability and Corporate Social Responsibility
• Abraham Maslow's theory


  • Managers must ensure essential needs of workers are met in the workplace for maximum performance
• Sustainability


  • Means that companies should plan and conduct long-term business operations to ensure minimal negative impact on the social, cultural, and economic aspects of their external environment or community
• Douglas McGregor's Theory X


  • Negative, assumes workers do not like to work and be controlled, rewarded & punished
• Corporate Social Responsibility


  • Willingness of companies to run their business operations in a sustainable and responsible manner, Requires managers to have concern for consumers, Plan and conduct long-term operations
• Douglas McGregor's Theory Y

  • Positive approach to workers
• Psychology
• William Ouchi's Theory Z


  • Collaborative work, shared responsibility, open to job enlargement vs enrichment programs
• Psychology


  • Vital for effective management, Helps managers foster closer relations and better communication with employees
• Chester Barnard's view


  • Organizations are essentially cooperative systems, emphasizing the leader inducing participant's cooperation by forming the morally
• Quality Management Theory (TQM)


  • Emphasizes consistency in an organization, minimal to no errors or defects in production, ensuring quality products and services for high customer satisfaction and increased revenue
• Ecosystems
• William Edwards Deming's methods


  Involved statistical process control (SPC) and problem-solving techniques
• Business Ecosystem


  • Consists of a group of firms that provide related products and services, Impact on the environment has to be taken into account
• William Edwards Deming's significant principles

  • Improved product design for improved service
  • Uniform product quality
  • Improved product testing
  • Increased market sales