Adam Smith's Contributions Of Bureaucracy In Management

735 Words 3 Pages
Management has been shaped and molded over history to what it is today. The development is the industry is one that is constantly growing and changing. There are several key figures who have helped the management process become better by their contributions.
During the industrial revolution, Adam Smith’s The Wealth of Nations impacted the way business was conducted. In his writing, Smith discusses a laissez-faire economy. This type of strategy means that government does not interfere if possible with businesses. He also developed the “invisible hand” theory, which states that competition and the choices and preferences of the buyers control businesses instead of the government. His strategies impacted the Industrial Revolution by allowing businesses
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Weber developed the strategy of bureaucracy in management because managers and leaders were appointed based on wealth or family power. The goal of his new form of management was to achieve the goals of a business in the most efficient was there is. According to Weber, there are seven different elements of bureaucratic organizations. The first is that employees are hired because of their work ethic and educational backgrounds. Managers are the ones who promote employees based on their work or time at the company. There is also a chain of command within a business where all employees report to a higher authority figure than themselves, and tasks are evenly dispersed. Company policies and rules apply to all employees and there are no exceptions, and every change and regulation that occurs within the business must be recorded. The final element is that the owners of the organization should not be the managers as …show more content…
Fayol developed the Fourteen Principles of Management, which still stand today. The first is the division of work, meaning production can increase if the work is divided into smaller, more specific tasks. Authority and responsibility is the second element, which states that a manager’s responsibility and authority should correspond equally. The appropriate behavior can be achieved if the rules and regulations are clear and are the same for all employees. There should be unity of direction, where each company goal is met by having one person with one plan decide what measures to be taken. Company needs must be put before the individual needs of each employee, and the employees should be paid fairly and equally. Too little or too much centralization can become a problem, so companies must find the right balance to fit their needs. Within each organization, there is a chain of hierarchy in which all employees answer to one top command, and every person has their own responsibilities which should not interfere with one another. Company loyalty will develop from fair treatment of employees, and low turnover will benefit a business because it increases performance and decreases cost. Managers should motivate their employees to be developmental for the company. Last, efforts will increase if the workers if a sense of togetherness is formed. These principles have helped set a better standard for the management

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