Principles of Management Lecture 2 - Management Models

• Approx. 1890-1945: Scientific Management Theory
• Approx. 1895-1985: Administrative Management Theory
• Approx. 1915-1990: Behavioral Management Theory
• Approx. 1940-1995: Management Science Theory
• Approx. 1945-2005: Organizational Environment Theory

Analysis of workflows with the main focus of improving economic efficiency, especially labour productivity.

Job Specialization and the Division of Labor: Process by which a division of labor occurs as different workers specialize in different tasks over time

18th-century economist, Adam Smith, observed that firms manufactured pins in one of two different ways. He found that the performance of the factories in which workers specialized in only one or a few tasks was much greater than the performance of the factory in which each worker performed all 18 pin-making tasks.

Frederick Taylor performed a systematic study of the relationships between people and tasks for the purpose of redesigning the work process to increase efficiency.

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

Principles of bureaucracy (Weber): Formal system of organisation and administration designed to ensure efficiency and effectiveness

• Principle 1: Formal authority derives from one's position inside the organization
• Principle 2: Individuals occupy positions because of their performance
• Principle 3: Each individual's authority and responsibilities are specified by the organization
• Principle 4: Authority is exercised effectively when positions are arranged hierarchically
• Principle 5: Rules of the organization are followed and control individual behavior

Job specialization and the division of labor should increase efficiency, especially if managers take steps to lesson workers’ boredom.

Managers have the right to give orders and the power to exhort subordinates for obedience.

An employee should receive orders from only one superior.

The length of the chain of command that extends from the top to the bottom of an organization should be limited.

Authority should not be concentrated at the top of the chain of command.