1 Scientific
Management
The systematic study of
the relationships between people and tasks for the purpose of redesigning the
work process for higher efficiency.
•
Defined by Frederick
Taylor in the late 1800’s to replace informal rule of thumb knowledge.
•
Taylor sought to reduce
the time a worker spent on each task by optimizing the way the task was done.
Four Principles of Scientific Management
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Principles to increase
efficiency:
1. Study the ways jobs are performed now and determine
new ways to do them.
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Gather detailed time and
motion information.
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Try different methods to
see which is best.
2. Codify the new methods into rules.
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Teach to all workers the
new method.
3. Select workers whose skills match the rules.
4. Establish fair levels of performance and pay a
premium for higher performance.
> Workers should benefit from higher out
Problems with Scientific Management
•
Managers frequently
implemented only the increased output side of Taylor’s plan.
Workers did not share in
the increased output.
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Specialized jobs became
very boring, dull.
Workers ended up
distrusting the Scientific Management method.
•
Workers could purposely
“under-perform.”
Management responded with
increased use of machines and conveyors belts.
Frank and Lillian Gilbreth
•
Refined Taylor’s work and
made many improvements to the methodologies of time and motion studies.
Time and motion studies
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Breaking up each job
action into its components.
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Finding better ways to
perform the action.
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Reorganizing each job
action to be more efficient.
Administrative Management Theory
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 Five Principles
of Bureaucracy
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Authority is the power to
hold people accountable for their actions.
•
Positions in the firm
should be held based on performance, not social contacts.
•
Position duties are
clearly identified so that people know what is expected of them.
•
Lines of authority should
be clearly identified such that workers know who reports to who.
•
Rules, standard operating
procedures (SOPs), and norms guide the firm’s operations.
Behavioral Management Theory
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.
Focuses on the way a manager should personally
manage to motivate employees.
•
Mary Parker Follett
An influential leader in early managerial theory
Held a horizontal view of power and authority in
organizations
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Suggested workers help in
analyzing their jobs for improvements—the worker knows the best way to improve
the job.
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If workers have relevant
knowledge of the task, then they should control the task.
Theory X and Theory Y
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Douglas McGregor proposed
the two different sets of assumptions about workers.
Theory X assumes the average worker is lazy,
dislikes work and will do as little as possible.
•
Managers must closely
supervise and control through reward and punishment.
Theory Y assumes workers are not 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.
Management Science Theory
•
An approach to management
that uses rigorous quantitative techniques to maximize the use of
organizational resources.
Quantitative
management—utilizes linear
programming, modeling, simulation systems.
Operations
management—techniques to analyze
all aspects of the production system.
Total
Quality Management (TQM)—focuses on improving
quality throughout an organization.
Management
Information Systems (MIS)—provides information
about the organization.
Organizational Environment Theory
•
The set of forces and
conditions that operate beyond an organization’s boundaries but affect a
manager’s ability to acquire and utilize resources
Two-Systems View
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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.
Inputs: the acquisition of external resources.
Conversion: the processing of inputs into goods and
services.
Output: the release of finished goods into the
environment.
•
Closed system
A system that is self-contained and thus not
affected by changes occurring in its external environment.
Often undergoes entropy and loses its ability to
control itself, and fails.
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Synergy
Performance that results when individuals and
departments coordinate their actions
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Performance gains of the
whole surpass the sum of the performance of the individual components.
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.
Assumes there is no one best way to manage.
•
The environment impacts
the firm and managers must be flexible to react to environmental changes.
In rapidly changing organizational environments, managers
must find ways to coordinate different departments to respond quickly and
effectively.
Mechanistic and Organic Structures
Mechanistic Structure
Authority is centralized at the top. (Theory X)
Employees are closely monitored and managed.
Can be very efficient in a stable environment.
Organic structure
Authority is decentralized throughout the
organization. (Theory Y)
Tasks and roles are left ambiguous to encourage
employees to react quickly to changing environment.
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