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PrincipleofManagement EvolutionofManagementTheory Chapter2 EvolutionofManagementTheory JobSpecializationandtheDivisionofLabor AdamSmith 18thcenturyeconomist Observedthatfirmsmanufacturedinoneoftwodifferentways Craft style eachworkerdidallsteps Production eachworkerspecializedinonestep JobSpecializationandtheDivisionofLabor AdamSmith 18thcenturyeconomist RealizedthatjobspecializationresultedinmuchhigherefficiencyandproductivityBreakingdownthetotaljoballowedforthedivisionoflaborinwhichworkersbecameveryskilledattheirspecifictasks FrederickWTaylor 1856 1917 FatherofScientificManagementPublished PrinciplesofScientificManagement in1911 Thesystematicstudyoftherelationshipsbetweenpeopleandtasksforthepurposeofredesigningtheworkprocessforhigherefficiency FrederickWTaylor 1856 1917 Taylorlisted newduties formanagement Therewere Thedevelopmentofatruescience Thescientificselection educationanddevelopmentofworkmen Friendly closeco operationbetweenmanagementandworkers FourPrinciplesofScientificManagement 1 Studythewaysjobsareperformednowanddeterminenewwaystodothem Gatherdetailedtimeandmotioninformation Trydifferentmethodstoseewhichisbest FourPrinciplesofScientificManagement 2 Codifythenewmethodsintorules Teachtoallworkersthenewmethod FourPrinciplesofScientificManagement Selectworkerswhoseskillsmatchtherules Establishfairlevelsofperformanceandpayapremiumforhigherperformance Workersshouldbenefitfromhigheroutput AdministrativeManagementTheory AdministrativeManagementThestudyofhowtocreateanorganizationalstructurethatleadstohighefficiencyandeffectiveness MaxWeber 1864 1920 GermansociologistFormulatedideasonidealmanagementapproachforlargeorganization Developedasetofideasaboutthestructureofanorganizationthatdefinewhatweknowasbureaucracy MaxWeber 1864 1920 MaxWeber 1864 1920 Weber sperspectiveonadministrativemanagementare Adivisionoflabor Inwhichauthorityandresponsibilityaredefinedveryclearlyandsetoutasofficialduties Hierarchyofauthority Officeorpositionsareorganizedinahierarchyofauthorityresultinginachainofcommand Formalselection Allemployeesareselectedonthebasisoftechnicalqualificationsthroughformalexaminationsorbyeducationortraining MaxWeber 1864 1920 Weber sperspectiveonadministrativemanagementare Careermanager Managersareprofessionalswhoworkforfixedsalariesandpursue careers withintheirrespectivefields Theyarenot owners oftheunitstheyadminister Formalrules Administratorsshouldbesubjecttostrictformalrulesandothercontrolsregardingtheconductoftheirofficialduties HenryFayol 1841 1925 AminingengineerandmanagingdirectorofalargeFrenchcompany Published GeneralandIndustrialManagement in1918 HenryFayol 1841 1925 Fayol s14principlesofmanagement1 DivisionofLabor Workshouldbedividedtoassistspecialization2 Authority Authorityandresponsibilityshouldbeequal 3 Discipline Disciplinehelpsworkersdevelopobedience diligence energyandrespect 4 UnityofCommand Nosubordinateshouldreporttomorethanonesuperior HenryFayol 1841 1925 Fayol s14principlesofmanagement5 UnityofDirection Alloperationswiththesameobjectiveshouldhaveonemanagerandoneplan 6 Subordinationofindividualinteresttogeneralinterest Theinterestofoneindividualorgroupshouldnottakeprecedenceovertheinterestoftheenterpriseasawhole 7 Remuneration Remunerationandmethodsofpaymentshouldbefair HenryFayol 1841 1925 Fayol s14principlesofmanagement8 Centralization Managersmustmaintainfinalresponsibilitybutshoulddelegatecertainauthoritytosubordinates 9 Scalarchain Aclearlineofauthorityorchainofcommandshouldextendfromthehighesttothelowestlevelofanenterprise Thishelpstoensureanorderlyflowofinformationandsupplementtheprincipleofunityandcommand HenryFayol 1841 1925 Fayol s14principlesofmanagement10 Order Aplaceforeverythingandeverythinginitsplace Properschedulingofworkandtimetablestocompleteworkareimportant Thiscanensurematerialsareintherightplaceattherighttime 11 Equity Employeesshouldbetreatedwithkindnessandjustice 12 Stabilityoftenureofpersonnel Managementshouldworktowardsobtaininglong termcommitmentsfromstaff HenryFayol 1841 1925 Fayol s14principlesofmanagement13 Initiative Workersshouldbeallowedtoconceiveandexecuteplansinordertodeveloptheircapacitytothefullestandfeellikeanactivepartoftheorganization 14 Espritdecorps Harmonyandunionhelptobuildthestrengthofanenterprise Itisanextensionoftheprincipleofunityofcommand emphasizingtheneedforteamworkandtheimportanceofcommunication BehavioralManagementTheory Thestudyofhowmanagersshouldbehavetomotivateemployeesandencouragethemtoperformathighlevelsandbecommittedtotheachievementoforganizationalgoals Focusesonthewayamanagershouldpersonallymanagetomotivateemployees EltonMayor In1941thepublicationoftheresultsofthepsychologicalexperimentsofEltonMayorattheHawthorne Illinois plantoftheWesternElectricCompanywasanotablelandmark Itfocusedonthecomponentsofthejobandworksatisfactiononthepartofemployees EltonMayor TheHawthorneExperimentsweredividedintothreephasesTestroomstudiesInterviewingstudiesObservationalstudies EltonMayor TestroomstudiesAgroupofwomenweresegregatedandvariationsmadeintheintensityofillumination intemperature hoursofworkandrestperiods andtheirperformancewasnoted Theresultsweresurprising asoutputrose eventhoughsomechangesweremadewhichmadeworkingconditionspoorer EltonMayor InterviewingstudiesFocusontheattitudesofpeopleattheplanttowardstheirjobs workingconditionsandsupervision Amoralesurveycomprisingover21 000wastakenbyEltonObservationalstudiesStudythenormalgroupworking andtheindividualinthegrouprelations Showedtheimportanceofinformalorganization TheoryXandTheoryY TheoryXTheaveragepeopledislikesworkandwillavoiditifpossible Peoplethereforemustbemanipulated controlled directedandthreatenedwithpunishment Theaveragepersonpreferstobedirectedandwantsavoidresponsibility haslittleambitionanddesiressecurityaboveall TheoryXandTheoryY TheoryYExpenditureofphysicalandmentaleffortinworkisasnaturalasplayorrest Workcanbeasourceofsatisfaction Peoplecanexerciseself directionandcontroltoachieveobjectivestowhichtheyarecommitted Commitmenttoobjectivesisafunctionoftherewardsassociatedwiththeirachievement TheoryXandTheoryY TheoryY continue Underproperconditionspeoplecanlearntoacceptandseekresponsibility Abilitytouseimaginationandcreativethinkingiswidelydistributedinpopulation Theintellectualpotentialoftheaveragepersoninindustriallifeisonlypartiallyrealized ManagementScienceTheory Anapproachtomanagementthatusesrigorousquantitativetechniquestomaximizetheuseoforganizationalresources ManagementScienceTheory Quantitativemanagement utilizeslinearprogramming modeling simulationsystemsandchaostheory Operationsmanagement techniquesusedtoanalyzeallaspectsoftheproductionsystem ManagementScienceTheory TotalQualityManagement TQM focusesonanalyzinginput conversion andoutputactivitiestoincreaseproductquality ManagementInformationSystems MIS providesinformationvitalforeffectivedecisionmaking OrganizationalEnvironmentTheory OrganizationalEnvironment Thesetofforcesandconditionsthatoperatebeyondanorganization sboundariesbutaffectamanager sabi
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