CAYABYAB, HICEE M.

Terms to Know on Management History

1.Division of labor (or job specialization)- Division of labor simply means that when people
specialize on a single task, they tend to be more effective than attempting to do every task with
one person. For example I could plumb a bathroom. But I have never plumbed a bathroom
before. So it could take me all week to do what a man who has done plumbing professionally
for most of his life, could do in a few hours. By dividing the labor to people who do each
function best, you have more efficiency and productivity.
2.Industrial Revolution- The Industrial Revolution was a period of major industrialization and
innovation that took place during the late 1700s and early 1800s. The Industrial Revolution
began in Great Britain and quickly spread throughout the world.
3.Scientific Management- Scientific Management is the "scientific" approach to processes and
management. It is a time based approach to management with the view to increasing employee
productivity. Its an early departure from the classical/industrialist management model that
assigns work tasks to skillset of employees including prioritising leadership for leaders and
managers, its about designing a best fit process for the task at hand.
4.General Administrative theory- Theories are ideas organized in a logical order to reinforce or
demolish an existing conviction or to form the basis for a new conviction. The administrative
theory consist of various theories put forth by scholars with an aim to achieve efficiency and
economy of the organization.
5.Principles of Management- Management principles are the fundamental rules and
recommendations that must be implemented in practice at all levels of the organization. The
main point of management principles is that their observance increases the effectiveness of
practical activities. A principle is a fundamental truth and is generally stated in the form of
cause and effect inter-relationship. Management principles are the statement of general truth
providing guide to thought or action.
6.Bureaucracy- Bureaucracy is the term used for an organization in which the decision makers
are not elected. For example, a corporate where there is a boss is a bureaucracy where as a
residential society is not. It can often be confused in the second part of the example where an
official elected can become bureaucratic which means that he imposes rules that effect the
efficiency of the general population.
7.Quantitative Approach- Quantitative methods emphasize objective measurements and the
statistical, mathematical, or numerical analysis of data collected through polls, questionnaires,
and surveys, or by manipulating pre-existing statistical data using computational techniques.
8.Organizational Behavior - is the study of the behavior of the people in an organization. It is
the study of the interaction between the people at workplace and also the organization itself.
“Organizational behavior could be described as the study of how individuals and organizations
act and how do these organizations and individuals apply knowledge.
9.Hawthorne Studies – Is a study to illuminate the meaning of the works of this great American
writer, ss are studies of any great writer.
10.System - A set of things working together as parts of a mechanism or an interconnecting
network; a complex whole. And can be a set of rules to follow to achieve a goal or it can be
rules and an organization which implements the rules and achieves the goals.
11.Closed system - Closed system in management is all about transparency where all corporate
matters stay within a well defined boundary and only certain matters are let out based on the
management decision. Closed systems are closed off from the outside environment, and all
interaction and knowledge is transmitted within the closed system only. Closed systems can
hamper growth since the flow of information stays within the system and has no chance to
interact with or build on knowledge from the outer environment
12.Open system - An open system interacts with its environment through giving and receiving
information.
13.Contingency approach - A contingency approach to management is based on the theory that
management effectiveness is contingent, or dependent, upon the interplay between the
application of management behaviours and specific situations. In other words, the way you
manage should change depending on the circumstances. This actively demonstrates that “do
not use the same answer that worked before to solve a new problem without having evaluated
the exact nature of the problem you are facing now”.