Aim 40 - Chapter 2

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Scientific Management

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* Frederick W. Taylor - father of Management Thought.

* The systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency.

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Frederick Taylor's 4 principles to increase efficiency in the workplace:

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1) Study the way workers perform their tasks, gather all the informal job knowledge that workers possess, and experiment with ways of improving how tasks are performed.

(time and motion studies)

2) Codify the new methods of performing tasks into written rules and SOP

3) Carefully select workers who possess skills and abilities that match the needs of te task and train them to perform the task according to the SOP.

4) Establish a fair or acceptable level of performance for a task and then develop a pay system that provides a reward for performance above the acceptable level.

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Frank and Lillian Gilbreth

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* followed Taylor and refined his analysis of work movements

* studied fatigue and how the physical characteristics of the workplace contribute to job stress, fatigue and poor performance.

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Administrative Management Theory

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The study of how to create an organizational structure and control system that leads to high efficiency and effectiveness.

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Bureaucracy

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A formal system of organization and administration designed to ensure efficiency and effectiveness.

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Max Weber's 5 Principles of Bureaucracy

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1) In a bureaucracy, a managers formal authority derives from the position they hold in the organization.

2) In a bureaucracy, people should occupy positions because of their performance, not because of social standing or personal contacts.

3) The extent of each positions formal authority and task responsibilities, and its relationship to other positions in an organization should be clearly specified.

4) Authority can be exercised effectively in an organization when positions are arranged in a hierarchy.

5) Managers must create a well-defined system of rules, SOPs and norms so they can effectively control behavior.

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Rules

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Formal written instructions that specify actions to be taken under different circumstances to achieve specific goals.

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Norms

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Unwritten, informal codes of conduct that prescribe how people should act in particular situations and are considered important by most members of a group or organization.

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Fayol's 14 principles essential to increase the efficiency of the management process:

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1) Division of Labor: Job specialization and the division of labor should increase efficiency, especially if managers take steps to lessen workers boredom.

2) Authority and responsibility: managers have the right to give orders and the power to exhort subordinates for obedience.

3) Unity of Command: An employee should receive orders from only one superior.

4) Line of Authority: The length of the chain of command that extends from the top to the bottom of an organization should be limited.

5) Centralization: Authority should not be concentrated at the top of the chain of command.

6) Unity of Direction: The organization should have a single plan of action to guide managers and workers

7) Equity: All organisational members are entitled to be treated with justice and respect.

8) Order: The arrangement of organizational positions should maximize organizational efficiency and provide employees with satisfying career opportunities.

9) Initiative: Managers should allow employees to be innovative and creative.

10) discipline: Managers need to create a workforce that strives to achieve organizational goals.

11) remuneration of Personnel: The system that managers use to reward employees should be equitable for both employees and the organization.

12) stability of tenure of personnel: Long-term employees develop skills that can improve organizational efficiency.

13) Subordination of Individual Interests to the Common Interest: Employees should understand how their performance affects the performance of the whole organization.

14) Esprit de Corps: Managers should encourage the development of shared feelings of comradeship, enthusiasm, or devotion to a common cause.

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Behavioral Management Theory

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The study of how managers should personally behave to motivate employees and encourage them to perform at high levels and be committed to achieving organizational goals.

* Mary Parker Follett

* Hawthorne studies

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the Hawthorne effect

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Workers' attitudes toward their manager affect the level of workers performance.

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Human Relations Movement

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Advocates that supervisors be behaviorally trained to manage subordinates in ways that elicit their cooperation and increase their productivity.

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Theory X and Theory Y

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* Douglas McGregor

* Theory X - the average worker is lazy, dislikes work, and will try to do as little as possible.

* Theory Y - workers are not inherently lazy, do not dislike work, and if given the chance will do what is good for the organization.

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Management Science Theory

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* contemporary approach to management

* focuses on the use of rigorous quantitative techniques to help managers make maximum use of organizational resources to produce goods and services

many branches

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Sub-fields of Management Science

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1) quantitative management: uses mathematical techniques to help managers make decisions

2) operations management: provides managers with a set of techniques that they can use to analyze any aspect of an organizations production system to increase efficiency.

3) Total Quality Management (TQM): Focuses on analyzing an organizations input, conversion, and output activities to increase product quality.

4) Management Information Systems (MISs): help managers design systems that provide information about events occurring inside the organization as well as its external environment.

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Organizational Environment Theory

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* Considers how managers control the organizations relationship with its external environment.

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Organizational Environment

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The set of forces and conditions that operate beyond an organizations boundaries but affect a managers ability to acquire and utilize resources.

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Open System

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A system that takes in resources from its external environment and converts or transforms them into goods and services that are sent back to that environment for purchase by customers.

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Closed System

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A self-contained system that is not affected by changes in its external environment.

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Entropy

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The tendency of a closed system to lose its ability to control itself and thus to dissolve and disintegrate.

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Synergy

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The performance gains that result from the combined actions of individuals and departments; is possible only in an organized system.

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Contingency Theory

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* there is no one best way to organize

the organizational structures and the control systems that managers choose are contingent on characteristics of the external environment.

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Mechanistic Structure

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* rests on Theory X assumptions

* Authority is centralized

* tasks and rules are clearly specified

* employees are closely supervised

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Organic Structure

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* rests on Theory Y assumptions

* Authority is decentralized to middle and first-line managers

* roles are left ambiguous to encourage employees to cooperate and respond quickly to the unexpected.