Principles of management: Part 1 Management

1950

1. Scientific Managment Theory

2. Administrative Management Theroy

3. Behavioral Management Theory

4. Management Science Theory

5. Organizational Environment Theory

Adam Smith came up with Job specialization and the division of labor and was part of the scienfic management theroy

The process by which a division of labor occurs as different workers specialize in different tasks over time. 

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

Adam Smith

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

2. Codify the new methods of performing tasks into written rules and standard operating procedures. 

3. Carefully selectw orkers who posses skills and abilities that match the needs of the task, and ttrain htem to perform the task according to the established rules and procedures.

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

- Managers frequently implemented only the increased output side of Tylor's plan 

  -> Workers did not participate in the increased output

  -> Managers increased the amount of wok that each worker has to do

- Simplified jobs were often monotonous and repetitive, and many workers became dissatisfied with their jobs. 

- Workers learned that performance increases often resulted in fewer jobs and layoffs. Workers slowed their pace of work. 

- Moving conveyor belts controls the pace of work

1. Adam Smith

2. Frederick W. Taylor

3. Lillian and Frank Gilbreth

Often the management of work setting became a game between workers and managers: managers tried to increase performance and workers tried to hide the true potetial efficiency. 

The focus of scientific managemnet was the realstionship between worker and tasks to increase efficiency. 

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

He developed the priciples of bureaucracy, which is a system of organization and administration designed to ensure efficiency and effectiveness. 

Max Weber, Henri Fayol

1. Formal authority derives from one's position inside the organization.
   In a bureaucracy, a manager's formal authority derives from the position he or she holds in the organizationl
2. Individuals occupy positions because of their performance
   In a bureaucracy, people should occupy positions because of their performance, not because of their social standing or personal contacts. 
3. Each individual's authority and responsibilities are specified by the organization
   The extent of each position's formal authority and task responsibilities, and its relationship to other posisitons in an organization, should be clearly specified. 
4. Authority is exercised effecively when positions are arranged hierarchically. 
   Authority can be exercised effectively in an organization when positions are arranged hierarchically, so employees know whom to report to and who reports to them. 
5. Rules of the organization are followed and control individual behavior. 
   Managers must create a well-defined system of rules, standard operating procedures (SOP), and norms so they can effectively control behavior within an oranization.

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

Standard operating procedures

Specific sets of written instructions about how to perform a certain aspect of a task. 

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

• Division of Labor
• Authority and Responsibility
• Unity of Command
• Initiative
• Discipline
• Remuneration of Personnel
• Line of Authority
• Centralization
• Unity of Direction
• Stability of Tenure of personnel
• Subordination of Individual Interest to the common interest
• Esprit de corps
• Equity
• Order
•  

Administrative Management Theory

Max Weber, Fayol

Weber: Formal authority derives from the position a manager holds within the organization

Fayol: He went beyond formal authority to include the informal authority derived from personal expertise, technical knowledge moral worth, and ability to lead and to generate commitment from subordinates. 

Weber: He argued that the extent of each position's formal authority and task responsibilities, and its relationship to other positions in an organization, should be clearly specified.

Fayol: He echoes this idea when he speaks of unity of command: an employee should receive orders only from one superior. Both ideas emphasize specification on responsibility and seek to avoid confusion and overlap of authority that may decrease efficiency and / or effectiveness. 

Weber: He suggest a chain of managers in an organization be arranged from top to bottom . He was more adherent to hierachical strategy. 

Fayol: He suggest a chain of managers in an organization be arranged from top to bottom, too. He emphasized also the importance of cross-departmental intergration and terms, and communication ath the lower levels of management in an organization. He stressed the importance of limiting the number of levels in the hierarchy to reduce communiction problems. 

Weber: He argued for a strong concetration of authority at the top of the organizational hierarchy

Fayol: He argued for a strong concentration of authority at the top of the organizational hierarchy, too. He was more flexible, though, in allowing for initiative, and innovation at lower levels in an organization. 

Weber: He argued for a well-defined system of rules, standard orerating procedures, nad norms so that behaviour within an organization could be effecitely controlled. These standards provide guidelines that increase performance because thay specify the best ways to accomplish organizational tasks. 

Fayol: He also stressed order and iscipline, which echo the tenets of Weber's principle, but Fayol also stressed quity and esprit de corps, principles that emphasize the need to treat employees failry to create a positive work environment

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

Mary Parker Follett, Douglas Mc Gregor

She was concerned that Taylor ignored the human side of the organization.

Taylor never proposed that managers should involve workers in analyzing their jobs to identify better ways to perform. 

Authority should go with knowledge. If workers have the relevant knowledge of a task, then they should control the task. 

Managers in different departments communicate directly with each other ( cross-functioning)

The power is fluid and should flow to the person who can best help the organization achieve its goals (horizontal view of authority) 

The set of forces and conditions that operate beyond an organization's boundaries but affect a manager's ability to acquire and utilize resources. 

A management approach that advocates the idea that supervisors should receive bahavioral training to manage subordinates in ways that elicit their cooperation and increase their productivity. 

He proposed two different sets of assumptions of workers

Theory X: The average employee is lazy, dislikes work, and will try to do as little as possible. 
To ensure that employees work hard, managers should closely supervise employees. 
Managers should create strict work rules and implement a well-defined system of rewards and punishments to control employees.

Theory Y: Employees are not inherently lazy. Given the chance, employees will do what is good for the organisation. 
To allow employees to work in the organization's interest, managewrs msut create a work setting that provides opportunities for workers to exercise initiative and self-direction,
Managers should decentralize authority to employees and make sure employees have the resources necessary to achieve organizaitonal goals.