Division of Labour Adam Smith, 1776, The Wealth of

Division of labour once implemented increases the productivity Nation

Started in the 18th Century in
of the organization
Great Britain and came to
Quantitative Approach (operation approach) is The use of "Industrial Revolution" America
quantitative Techiques such as data Collection and mathematic The Industrial revolution is the term applied to the "revolution" in the
manipulation of that data to improve decision making process workplace and broader community as machinery was introduced
Quantitative Approach +Total Quality Management 2 Key Concepts into the workplace Human power was replaced by
Historical Background Machine power
Total Quality Management a management philosophy devoted Management started long time ago
to continual improvement and responding to customer needs and Factories arose and the need for
expectations. management increased
Forecast demands
Systems Approach Ensure enough materials
Open systems A system is a set of interrelated and interdependent parts Assign tasks
Interact with their environment arranged in a manner which produces a unified whole. Direct daily activities
The Last Three Management Approaches
Taylorism - Scientific Management (Efficiency) Ensure work standards were met
Closed systems Taylor published his book "Principles of Scientific Find markets for finished products
are not influenced by and do not interact with external Management" in the year 1911 1. Develop a science for each element of an individual's
environment Contigency Theory work with standardised work implements and efficient
"The bureaucracy may not always be the best structure methods for all to follow
design" Scientific Management – Taylor and Ford 2. Select right people for the right jobs and train them in the
Human Relations - a management approach that most efficient ways to accomplish the tasks
emphasizes the importance of social processes in the
organization. Dissatisfaction with the Technical 3. Compensate people for the jobs they are doing and
Approach design led to the development of the Human provide a work environment for them to reinforce their
manners
Relations school of thought Topic 2: Evolution of Management
4. Divide responsibility for managing and for working. SOme
people are more capable of managing, whereas others are
The Hawthorne studies at the Western Electric Company better at performing the tasks laid out for them.
1. Attitudes toward people are linked with productivity (Chicago) by Elton Mayo, present a positive link between
management style and productivity. Frank & Hellen they followed Taylorism and
2. The workplace is a social environment went a step further with classified hand
Fordism - Scientific Management (Effectiveness)
Organisational Behaviour and Human Relations motions - 17 basic motions - Therbligs
3. Psychology played an important role in productivity Ford applied the Principles of scientific
Movement management* and added assembly line technology
4. Social norms or group standards were the key that allowed for greater division of labour, as well as
determinants of individual work behavior time and motion management. Analyze basic work tasks
5. People's behavior and attitudes are closely related The ways managers design motivating jobs Use time and motion studies to eliminate time
6. Money is less factor in determining output than group Effect on Today's Business World wastes
The ways they work with employees teams
Scientific Management Today
standards Hire the best qualified workers
7. A large part of this work focused on behavioral science
methods Design incentive systems based on output
Open Communication
8. A large part of this work focused on behavioral science Henri Fayol - The Father of Strategic
methods Management
9. Maslow's Hierarchy of Needs, you motivate people Management is a Universal Set of Functions
differently depend on their needs
General Administrative Theory (Planning, Organizing, Leading, Controlling)

Formal Selection
1. Division of work - Specialisation increase output
Division of Labour 14 Principles of Management
2. Authority - Managers must be able to give orders
Clearly defined Hierarchy
Max Weber - Founder of The Organization Theory 3. Discipline - Employees must obey rules
Detailed rules and regulation (Brureaucracy)
4. Unity of Command - Only one superior
Impersonal Relationship
5. Unity of Direction - Single plan of action
Career Orientation
6. Subordination if individual interests to the general interest -
Organization takes precedent
7. Remuneration - Workers must be paid a fair wage
8. Centralisation - The degree to which subordinates are
involved in decision making
9. Scalar Chain - The Line of Authority from top to bottom
10. Order - People and materials in the right place at the right
time
11. Equity - Managers should be kind and fair
12. Stability of tenure of personnel - Ensure replacements are
available to fill vacancies
13. Initiative - Employees who plan and execute will have
high effort
14. Esprit de corps - Promoting team spirit will bring Unity
and harmony