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Evolution of management thought
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Evolution of management thought


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  • 1. A structured social system consisting of groups of individuals working together to meet some agreed-on objectives
  • 2. •Scottish philosopher •Wrote ‘Causes of Wealth of Nations’ •Proposed ‘Division of Labour’
  • 3.  Adam Smith, 18th century economist, found firms manufactured pins in two ways:  Craft -- each worker did all steps.  Factory -- each worker specialized in one step.  Smith found that the factory method had much higher productivity.  Each worker became very skilled at one, specific task.  Breaking down the total job allowed for the division of labor.
  • 4. •British Mathematics professor •Wrote ‘On the Economy of Machinery and Manufactures’ •Proposed advantages of division of labour: •Reduces the time needed for learning a job •Reduces waste of material •Attainment of high skill levels •Matching skills and abilities with jobs
  • 5. Welsh entrepreneur Recognised how factory work was demeaning to employees
  • 6. Scientific Management- Frederick Taylor  Develop a science for each element of an individual’s work  Scientifically select, train, teach and develop worker  Cooperation with workers  Divide work responsibility equally between management and workers
  • 7.  Frank and Lillian Gilbreth refined Taylor’s methods.  Made many improvements to time and motion studies.  Time and motion studies: 1. Break down each action into components. 2. Find better ways to perform it. 3. Reorganize each action to be more efficient.  Gilbreths also studied fatigue problems, lighting, heating and other worker issues.
  • 8. - Study conducted in Hawthorne plant of General Electric Company, Chicago - Mayo, Roethlisberger, Dickson, Whitehead  Illumination experiment (1924-27)  Relay room experiment (1927-28)  Mass interviewing (1928-30)  Bank wiring observation (1931-32)
  • 9.  Social factors in output  Group Influence  Conflicts  Leadership  Supervision  Communication
  • 10. Administrative Theory  French industrialist Henry Fayol  Proposed that a manager plans, organises, directs, controls and coordinates  14 principles of management including division of labour, authority, scalar chain, unity of command, initiative
  • 11. 1. Division of work 2. Authority 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interest to the general interest 7. Remuneration
  • 12. 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability and tenure 13. Initiative 14. Esprit de corps
  • 13. Proposed Structural Theory Described bureaucratic structure • Division of labour • clearly defined hierarchy, • detailed rules and regulations and • impersonal relationships
  • 14.  Formal rules regulations  Division of labour  Hierarchical structure  Authority structure  Lifelong commitment
  • 15. Mary Parker Follett Emphasised on group ethics Manager must coordinate group efforts
  • 16. Social Systems Theory Organisations made up of people who have interacting social relationship They communicate Success depends on maintaining good relations
  • 17.  Described organisations as a complex network of decisional process  Decision process comprises: i) intelligent activity ii) design activity iii) choice activity  Bounded rationality  Administrative man : simplification, satisficing approach  Orgaisational Communication
  • 18.  Nature of management as innovative and creative  Manager has to act as administrator, entrepreneur, set objectives etc.  Organisation structure to facilitate effective functioning  MBO
  • 19. Structuring of an organization into departments or units on the basis of type of work performed A functional manager is a person who has management authority over an organizational unit - such as a department - within a business or company
  • 20.  Authoritative  Participative  Free-rein  Pseudo autocratic
  • 21.  Leaner organisations  Outsourcing  Contingent workforce
  • 22.  Virtual corporations Highly flexible, temporary organisations formed by a group of companies to exploit a specific opportunity
  • 23.  Socio-technical approach  Management science  Human relations approach  Systems approach  Contingency approach
  • 24.  Considers relationships inside and outside the organization.  The environment consists of forces, conditions, and influences outside the organization.  Systems theory considers the impact of stages: Input: acquire external resources. Conversion: inputs are processed into goods and services. Output: finished goods are released into the environment.
  • 25.  An open system interacts with the environment. A closed system is self-contained.
  • 26.  Uses rigorous quantitative techniques to maximize resources. Quantitative management: utilizes linear programming, modeling, simulation systems. Operations management: techniques to analyze all aspects of the production system. Total Quality Management (TQM): focuses on improved quality. Management Information Systems (MIS): provides information about the organization.
  • 27.  Assumes there is no one best way to manage  The environment impacts the organization and managers must be flexible to react to environmental changes.  The way the organization is designed, control systems selected, depend on the environment.  Technological environments change rapidly, so must managers.