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• Theory- an explanation for how or why something happens • Functions of theory
– Describe – Explain – Predict – Control
• Social problems developed in the large groups of workers employed under the factory system. • Large-scale mechanized manufacturing began to supplanting small-scale craft production in the ways in which goods were produced. • Managers began to focus on increasing the efficiency of the worker-task mix.Scientific Management Theory • Evolution of Modern Management – Began in the industrial revolution in the late 19th century as: • Managers of organizations began seeking ways to better satisfy customer needs. .
The Evolution of Management Theory 2–4 .
Job Specialization and the Division of Labor • Adam Smith (18th century economist) – Observed that firms manufactured pins in one of two different ways: • Craft-style—each worker did all steps. – Realized that job specialization resulted in much higher efficiency and productivity • Breaking down the total job allowed for the division of labor in which workers became very skilled at their specific tasks. – . • Production—each worker specialized in one step.
W.F. • Defined by Frederick Taylor in the late 1800’s to replace informal rule of thumb knowledge. Taylor and Scientific Management • Scientific Management – The systematic study of the relationships between people and tasks for the purpose of redesigning the work process for higher efficiency. • Taylor sought to reduce the time a worker spent on each task by optimizing the way the task was done. .
• Workers should benefit from higher output . • Try different methods to see which is best. • Teach to all workers the new method. Establish fair levels of performance and pay a premium for higher performance. 3. Study the ways jobs are performed now and determine new ways to do them. 4. Codify the new methods into rules. • Gather detailed time and motion information.Four Principles of Scientific Management • Principles to increase efficiency: 1. Select workers whose skills match the rules. 2.
• Specialized jobs became very boring. .” – Management responded with increased use of machines and conveyors belts. – Workers ended up distrusting the Scientific Management method. • Workers could purposely “under-perform.Problems with Scientific Management • Managers frequently implemented only the increased output side of Taylor’s plan. dull. – Workers did not share in the increased output.
• Also studied worker-related fatigue problems caused by lighting. • Reorganizing each job action to be more efficient.Frank and Lillian Gilbreth • Refined Taylor’s work and made many improvements to the methodologies of time and motion studies. . heating. • Finding better ways to perform the action. and the design of tools and machines. – Time and motion studies • Breaking up each job action into its components.
.Administrative Management Theory • Administrative Management – The study of how to create an organizational structure that leads to high efficiency and effectiveness. • Max Weber – Developed the concept of bureaucracy as a formal system of organization and administration designed to ensure efficiency and effectiveness.
Weber’s Principles of Bureaucracy .
. • Rules. and norms guide the firm’s operations. • Lines of authority should be clearly identified such that workers know who reports to who. not social contacts. • Position duties are clearly identified so that people know what is expected of them.Weber’s Five Principles of Bureaucracy • Authority is the power to hold people accountable for their actions. standard operating procedures (SOPs). • Positions in the firm should be held based on performance.
– Focuses on the way a manager should personally manage to motivate employees. .Behavioral Management Theory • Behavioral Management – 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.
• If workers have relevant knowledge of the task. . then they should control the task.Behavioral Management • Mary Parker Follett – An influential leader in early managerial theory – Held a horizontal view of power and authority in organizations • Suggested workers help in analyzing their jobs for improvements—the worker knows the best way to improve the job.
• Managers must closely supervise and control through reward and punishment. – . – Theory X assumes the average worker is lazy. want to do a good job and the job itself will determine if the worker likes the work. • Managers should allow workers greater latitude. and create an organization to stimulate the workers. – Theory Y assumes workers are not lazy. dislikes work and will do as little as possible.Theory X and Theory Y • Douglas McGregor proposed the two different sets of assumptions about workers.
Theory X versus Theory Y .
simulation systems.Management Science Theory • An approach to management that uses rigorous quantitative techniques to maximize the use of organizational resources. modeling. – Total Quality Management (TQM)—focuses on improving quality throughout an organization. – Quantitative management—utilizes linear programming. – Operations management—techniques to analyze all aspects of the production system. . – Management Information Systems (MIS)—provides information about the organization.
Organizational Environment Theory • Organizational Environment – The set of forces and conditions that operate beyond an organization’s boundaries but affect a manager’s ability to acquire and utilize resources. • . .
– Output: the release of finished goods into the environment. – Inputs: the acquisition of external resources. .The Open-Systems View • Open System – A system that takes resources for its external environment and converts them into goods and services that are then sent back to that environment for purchase by customers. – Conversion: the processing of inputs into goods and services.
The Organization as an Open System 2–20 .
• Synergy – Performance that results when individuals and departments coordinate their actions • Performance gains of the whole surpass the sum of the performance of the individual components. and fails. . – Often undergoes entropy and loses its ability to control itself.Other System Considerations • Closed system – A system that is self-contained and thus not affected by changes occurring in its external environment.
managers must find ways to coordinate different departments to respond quickly and effectively. • The environment impacts the firm and managers must be flexible to react to environmental changes. – Assumes there is no one best way to manage. .Contingency Theory • Contingency Theory – The idea that the organizational structures and control systems manager choose depend on—are contingent on—characteristics of the external environment in which the organization operates. – In rapidly changing organizational environments.
Contingency Theory of Organizational Design .
(Theory X) – Employees are closely monitored and managed. • Organic structure – Authority is decentralized throughout the organization. – Can be very efficient in a stable environment. . (Theory Y) – Tasks and roles are left ambiguous to encourage employees to react quickly to changing environment.Mechanistic and Organic Structures • Mechanistic Structure – Authority is centralized at the top.