The Weal of Nations
-adam smith, 1776
-argued about advantages of division of labor
Division of Labor
“Job Specialization”
def.- the breakdown of jobs into narrow and repetitive tasls
-also known as the invisible hand?
Industrial Revolution
-Substituted machine power for human labor
-Created large organizations in need of management
-Needed more people and required more management of these people
-more economical to manufacture goods in factories than at home
4 Major approaches to management theory
1.Classical Approaches
2.Behavioral Approaches
3.Quantitative Approaches
4.Contemporary Approaches
Classical Approach
– first studies of management, which emphasized rationality and making organizations and workers as efficient as possible.
-Workers were seen more as assets or things
What two theories is the classical approach compromised by?
-scientific management (Taylor)
-general administrative theory
Scientific Management
-Fredrick Winslow Taylor is “father” of this theory
– an approach that involves using the scientific method to find the “one best way” for a job to be done.
-Falls under treating workers as objects
-His goal was to minizimize time=more output
When was the modern management theory born and by who?
-by Taylor through his book “principles of Scientific Management”
Taylor’s Scientific Management Principles
Review Chapter 1 ppt slide 8
Teacher said this wasn’t very important
– a classification scheme for labeling basic hand motions
– 17-18 basic motions
Frank and Lillian Gilbreth
-studied work to eliminate inefficient hand-and-body motions using stop motion video
-also experimented with the design and use of the proper tools and equipment for optimizing work performance.
-parents in cheaper by the dozen
Important result of Gilbreths in improving industrial efficiency
-they created consulting management
-maximize productivity and minimize fatigue
-lead to development of ergonomics to improve efficiency
-they were first ones to look at employees as people not objects
General Administrative Theory
– an approach to management that focuses on describing what managers do and what constitutes good management practice.
-What managers do in good management
Principles of Management
-developed by Henri Fayol
-14 principles
-Fundamental rules of management that could be applied in all organizational situations and taught in schools.
Name the 14 Principles of Management
1. Division of Work
2. Authority
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of individual interests to the general interests.
7. Remuneration(fair pay)
9. Scalar Chain
10. Order
11. Equity
12. Stability of tenure of personnel
14.Espirit de corps
General Administrative Theory- A Bureaucracy
-Max Weber
–a form of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships.
-Organizations are best implemented as a bureaucracy
-Vertical organization
Characteristics of Weber’s Bureaucracy
1. division of labor
2. authority hierarchy
3.formal selection
4. formal rules and regulations
5. impersonality
6. career orientation
Behavioral Approach-def. of Organizational Behavior
– the study of the actions of people at work.
-Early OB Advocates
Robert Owen-working conditions
Hugo Munsterberg-pioneer psychologist
Mary Parker Follett-people-oriented
Chester Barnard-open concept
-Huge shift to people as individuals and how they work
-Look into motivation types, intrisnic or whatever,
-Employees matter
-review slide 20
Hawthorne Studies*** “most important slide in lecture”
– a series of studies during the 1920s and 1930s that provided new insights into individual and group behavior.
-Supervisor interactions with employees is what mattered and having an employee involved in making the schedule made productivity increase significantly
-conducted by elton mayo
Conclusions of the hawthorne studies
. The studies concluded that people’s behavior and attitudes are closely related, that group factors significantly affect individual behavior, that group standards establish individual worker output, and that money is less a factor in determining output than group standards, group attitudes, and security. These conclusions led to a new emphasis on the human behavior factor in the management of organizations.
Hawthorne Effect
– if you are being watched by anyone makes you change your behavior
Quantitative approach
– the use of quantitative techniques to improve decision making.
-using data to make decisions
-also known as “management science”
-developed for military problems during WW2
Total Quality Management (TQM)
-a philosophy of management that is driven by continuous improvement and responsiveness to customer needs and expectations
-uses quantitative techniques
6 factors of Quality management
1. Intense focus on customer
2.concern for continual improvement
3.Process focused
4.Improvement in the quality of everything
5.Accurate measurement
6.Empowerment of employees
The two Contemporary Management Approaches
-open system
-closed system
the two “Perspectives” are systems and contingency
System & systems approach
– a set of interrelated and interdependent parts arranged in a manner that produces a unified whole.
-The systems approach says that an organization takes in inputs (resources) from the environment and transforms them into outputs that are distributed into the environment.
Closed system
– systems that are not influenced by and do not interact with their environment.
Open System
– systems that interact with their environment.
Contingency Approach
– a management approach that recognizes organizations as different, which means they face different situations (contingencies) and require different ways of managing.
-also called the situational approach
Popular contingency variables
1.organization size
2.routineness of task technology
3.environmental uncertainty
4.inidividual differences
What is the primary value of the contingency approach?
-it stresses there are no simplistic or universal rules for managers to follow.