SCIENTIFIC MANAGEMENT THEORY :
Modern management began in the late 19th century.
Organizations were seeking ways to better satisfy customer needs.
Machinery was changing the way goods were produced.
Managers had to increase the efficiency of the worker-task mix.
Defined by Frederick Taylor, late 1800’s.
The systematic study of the relationships between people and tasks to redesign the work for higher efficiency.
Taylor sought to reduce the time a worker spent on each task by optimizing the way the task was done.
Four Principles to increase efficiency:
1. Study the way the job is performed now & determine new ways to do it.
Gather detailed, time and motion information.
Try different methods to see which is best.
2. Codify the new method into rules.
Teach to all workers.
3. Select workers whose skills match the rules set in Step 2.
4. Establish a fair level of performance and pay for higher performance.
Workers should benefit from higher output.
PROBLEMS OF SCIENTIFIC MANAGEMENT :
Managers often implemented only the increased output side of Taylor’s plan.
They did not allow workers to share in increased output.
Specialized jobs became very boring, dull.
Workers ended up distrusting Scientific Management.
Workers could purposely “under-perform”
Management responded with increased use of machines.
BEHAVIOURAL MANAGEMENT THEORY:
Focuses on the way a manager should personally manage to motivate employees.
Mary Parker Follett: an influential leader in early managerial theory.
Suggested workers help in analyzing their jobs for improvements.
The worker knows the best way to improve the job.
If workers have the knowledge of the task, then they should control the task.
THEORY X AND Y:
Douglas McGregor proposed the two different sets of worker assumptions.
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 the worker great latitude, and create an organization to stimulate the worker
THEORY Z:
William Ouchi researched the cultural differences between Japan and USA.
USA culture emphasizes the individual, and managers tend to feel workers follow the Theory X model.
Japan culture expects worker committed to the organization first and thus behave differently than USA workers.
Theory Z combines parts of both the USA and Japan structure.
Managers stress long-term employment, work-group, and organizational focus.
MANAGEMENT SCIENCE THEORY :
Uses rigorous quantitative techniques to maximize 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 improved quality.
Management Information Systems (MIS): provides information about the organization
ORGANISATION-ENVIRONMENT THEORY :
Considers relationships inside and outside the organization.
The environment consists of forces, conditions, and influences outside the organization.
Systems theory considers the impact of stages:
Input: acquire external resources.
Conversion: inputs are processed into goods and services.
Output: finished goods are released into the environment.
Tuesday, June 30, 2009
Monday, June 29, 2009
Fayol's Management principles
Henry Fayol, a French mining engineer, developed 14 principles of management based on his management experiences. These principles provide modern-day managers with general guidelines on how a supervisor should organize her department and manage her staff. Although later research has created controversy over many of the following principles, they are still widely used in management theories.
• Division of work: Division of work and specialization produces more and better work with the same effort.
• Authority and responsibility: Authority is the right to give orders and the power to exact obedience. A manager has official authority because of her position, as well as personal authority based on individual personality, intelligence, and experience. Authority creates responsibility.
• Discipline: Obedience and respect within an organization are absolutely essential. Good discipline requires managers to apply sanctions whenever violations become apparent.
• Unity of command: An employee should receive orders from only one superior.
• Unity of direction: Organizational activities must have one central authority and one plan of action.
• Subordination of individual interest to general interest: The interests of one employee or group of employees are subordinate to the interests and goals of the organization.
• Remuneration of personnel: Salaries — the price of services rendered by employees — should be fair and provide satisfaction both to the employee and employer.
• Centralization: The objective of centralization is the best utilization of personnel. The degree of centralization varies according to the dynamics of each organization.
• Scalar chain: A chain of authority exists from the highest organizational authority to the lowest ranks.
• Order: Organizational order for materials and personnel is essential. The right materials and the right employees are necessary for each organizational function and activity.
• Equity: In organizations, equity is a combination of kindliness and justice. Both equity and equality of treatment should be considered when dealing with employees.
• Stability of tenure of personnel: To attain the maximum productivity of personnel, a stable work force is needed.
• Initiative: Thinking out a plan and ensuring its success is an extremely strong motivator. Zeal, energy, and initiative are desired at all levels of the organizational ladder.
• Esprit de corps: Teamwork is fundamentally important to an organization. Work teams and extensive face-to-face verbal communication encourages teamwork.
• Division of work: Division of work and specialization produces more and better work with the same effort.
• Authority and responsibility: Authority is the right to give orders and the power to exact obedience. A manager has official authority because of her position, as well as personal authority based on individual personality, intelligence, and experience. Authority creates responsibility.
• Discipline: Obedience and respect within an organization are absolutely essential. Good discipline requires managers to apply sanctions whenever violations become apparent.
• Unity of command: An employee should receive orders from only one superior.
• Unity of direction: Organizational activities must have one central authority and one plan of action.
• Subordination of individual interest to general interest: The interests of one employee or group of employees are subordinate to the interests and goals of the organization.
• Remuneration of personnel: Salaries — the price of services rendered by employees — should be fair and provide satisfaction both to the employee and employer.
• Centralization: The objective of centralization is the best utilization of personnel. The degree of centralization varies according to the dynamics of each organization.
• Scalar chain: A chain of authority exists from the highest organizational authority to the lowest ranks.
• Order: Organizational order for materials and personnel is essential. The right materials and the right employees are necessary for each organizational function and activity.
• Equity: In organizations, equity is a combination of kindliness and justice. Both equity and equality of treatment should be considered when dealing with employees.
• Stability of tenure of personnel: To attain the maximum productivity of personnel, a stable work force is needed.
• Initiative: Thinking out a plan and ensuring its success is an extremely strong motivator. Zeal, energy, and initiative are desired at all levels of the organizational ladder.
• Esprit de corps: Teamwork is fundamentally important to an organization. Work teams and extensive face-to-face verbal communication encourages teamwork.
MANAGEMENT CONCEPTS
Organizations: People working together and coordinating their actions to achieve specific goals.
Goal: A desired future condition that the organization seeks to achieve.
Management: The process of using organizational resources to achieve the organization’s goals by... Planning, Organizing, Leading, and Controlling
Additional Key Concepts
Resources are organizational assets and include:
People,
Machinery,
Raw materials,
Information, skills,
Financial capital.
Managers are the people responsible for supervising the use of an organization’s resources to meet its goals.
Achieving High Performance
Organizations must provide a good or service desired by its customers.
Physicians, nurses and health care administrators seek to provide healing from sickness.
Organizational Performance
Measures how efficiently and effectively managers use resources to satisfy customers and achieve goals.
Efficiency: A measure of how well resources are used to achieve a goal.
Usually, managers must try to minimize the input of resources to attain the same goal.
Effectiveness: A measure of the appropriateness of the goals chosen (are these the right goals?), and the degree to which they are achieved.
Organizations are more effective when managers choose the correct goals and then achieve them.
Managerial Functions
Henry Fayol was the first to describe the four managerial functions when he was the CEO of a large mining company in the later 1800’s.
Fayol noted managers at all levels, operating in a for profit or not for profit organization, must perform each of the functions of:
Planning, organizing, leading, controlling.
PLANNING:
Planning is the process used by managers to identify and select appropriate goals and courses of action for an organization. 3 steps to good planning :
1. Which goals should be pursued?
2. How should the goal be attained?
3. How should resources be allocated?
The planning function determines how effective and efficient the organization is and determines the strategy of the organization.
ORGANIZING : In organizing, managers create the structure of working relationships between organizational members that best allows them to work together and achieve goals.
Managers will group people into departments according to the tasks performed.
Managers will also lay out lines of authority and responsibility for members.
An organizational structure is the outcome of organizing. This structure coordinates and motivates employees so that they work together to achieve goals.
LEADING : In leading, managers determine direction, state a clear vision for employees to follow, and help employees understand the role they play in attaining goals.
Leadership involves a manager using power, influence, vision, persuasion, and communication skills.
The outcome of the leading function is a high level of motivation and commitment from employees to the organization.
CONTROLLING: In controlling, managers evaluate how well the organization is achieving its goals and takes corrective action to improve performance.
Managers will monitor individuals, departments, and the organization to determine if desired performance has been reached.
Managers will also take action to increase performance as required.
The outcome of the controlling function is the accurate measurement of performance and regulation of efficiency and effectiveness
MANAGEMENT LEVELS: Organizations often have 3 levels of managers:
First-line Managers: responsible for day-to-day operation. They supervise the people performing the activities required to make the good or service.
Middle Managers: Supervise first-line managers. They are also responsible to find the best way to use departmental resources to achieve goals.
Top Managers: Responsible for the performance of all departments and have cross-departmental responsibility. They establish organizational goals and monitor middle managers.
RESTRUCTRING :
Top Management have sought methods to restructure their organizations and save costs.
Downsizing: eliminate jobs at all levels of management.
Can lead to higher efficiency.
Often results in low morale and customer complaints about service
MANAGEMENT TRENDS :
Empowerment: expand the tasks and responsibilities of workers.
Supervisors might be empowered to make some resource allocation decisions.
Self-managed teams: give a group of employees responsibility for supervising their own actions.
The team can monitor its members and the quality of the work performed
MANAGERIAL ROLES : Described by Mintzberg. A role is a set of specific tasks a person performs because of the position they hold.
Roles are directed inside as well as outside the organization. There are 3 broad role categories:
1. Interpersonal
2. Informational
3. Decisional
INTERPERSONAL ROLES : Roles managers assume to coordinate and interact with employees and provide direction to the organization.
n Figurehead role: symbolizes the organization and what it is trying to achieve.
n Leader role: train, counsel, mentor and encourage high employee performance.
n Liaison role: link and coordinate people inside and outside the organization to help achieve goals.
INFORMATIONAL ROLES : Associated with the tasks needed to obtain and transmit information for management of the organization.
Monitor role: analyzes information from both the internal and external environment.
Disseminator role: manager transmits information to influence attitudes and behavior of employees.
Spokesperson role: use of information to positively influence the way people in and out of the organization respond to it.
DECISIONAL ROLES : Associated with the methods managers use to plan strategy and utilize resources to achieve goals.
Entrepreneur role: deciding upon new projects or programs to initiate and invest.
Disturbance handler role: assume responsibility for handling an unexpected event or crisis.
Resource allocator role: assign resources between functions and divisions, set budgets of lower managers.
Negotiator role: seeks to negotiate solutions between other managers, unions, customers, or shareholders
MANAGERIAL SKILLS :
There are three skill sets that managers need to perform effectively.
1. Conceptual skills: the ability to analyze and diagnose a situation and find the cause and effect.
2. Human skills: the ability to understand, alter, lead, and control people’s behavior.
3. Technical skills: the job-specific knowledge required to perform a task. Common examples include marketing, accounting, and manufacturing.
All three skills are enhanced through formal training, reading, and practice.
MANAGEMENT CHALLENGES :
Increasing number of global organizations.
Building competitive advantage through superior efficiency, quality, innovation, and responsiveness.
Increasing performance while remaining ethical managers.
Managing an increasingly diverse work force.
Using new technologies
Goal: A desired future condition that the organization seeks to achieve.
Management: The process of using organizational resources to achieve the organization’s goals by... Planning, Organizing, Leading, and Controlling
Additional Key Concepts
Resources are organizational assets and include:
People,
Machinery,
Raw materials,
Information, skills,
Financial capital.
Managers are the people responsible for supervising the use of an organization’s resources to meet its goals.
Achieving High Performance
Organizations must provide a good or service desired by its customers.
Physicians, nurses and health care administrators seek to provide healing from sickness.
Organizational Performance
Measures how efficiently and effectively managers use resources to satisfy customers and achieve goals.
Efficiency: A measure of how well resources are used to achieve a goal.
Usually, managers must try to minimize the input of resources to attain the same goal.
Effectiveness: A measure of the appropriateness of the goals chosen (are these the right goals?), and the degree to which they are achieved.
Organizations are more effective when managers choose the correct goals and then achieve them.
Managerial Functions
Henry Fayol was the first to describe the four managerial functions when he was the CEO of a large mining company in the later 1800’s.
Fayol noted managers at all levels, operating in a for profit or not for profit organization, must perform each of the functions of:
Planning, organizing, leading, controlling.
PLANNING:
Planning is the process used by managers to identify and select appropriate goals and courses of action for an organization. 3 steps to good planning :
1. Which goals should be pursued?
2. How should the goal be attained?
3. How should resources be allocated?
The planning function determines how effective and efficient the organization is and determines the strategy of the organization.
ORGANIZING : In organizing, managers create the structure of working relationships between organizational members that best allows them to work together and achieve goals.
Managers will group people into departments according to the tasks performed.
Managers will also lay out lines of authority and responsibility for members.
An organizational structure is the outcome of organizing. This structure coordinates and motivates employees so that they work together to achieve goals.
LEADING : In leading, managers determine direction, state a clear vision for employees to follow, and help employees understand the role they play in attaining goals.
Leadership involves a manager using power, influence, vision, persuasion, and communication skills.
The outcome of the leading function is a high level of motivation and commitment from employees to the organization.
CONTROLLING: In controlling, managers evaluate how well the organization is achieving its goals and takes corrective action to improve performance.
Managers will monitor individuals, departments, and the organization to determine if desired performance has been reached.
Managers will also take action to increase performance as required.
The outcome of the controlling function is the accurate measurement of performance and regulation of efficiency and effectiveness
MANAGEMENT LEVELS: Organizations often have 3 levels of managers:
First-line Managers: responsible for day-to-day operation. They supervise the people performing the activities required to make the good or service.
Middle Managers: Supervise first-line managers. They are also responsible to find the best way to use departmental resources to achieve goals.
Top Managers: Responsible for the performance of all departments and have cross-departmental responsibility. They establish organizational goals and monitor middle managers.
RESTRUCTRING :
Top Management have sought methods to restructure their organizations and save costs.
Downsizing: eliminate jobs at all levels of management.
Can lead to higher efficiency.
Often results in low morale and customer complaints about service
MANAGEMENT TRENDS :
Empowerment: expand the tasks and responsibilities of workers.
Supervisors might be empowered to make some resource allocation decisions.
Self-managed teams: give a group of employees responsibility for supervising their own actions.
The team can monitor its members and the quality of the work performed
MANAGERIAL ROLES : Described by Mintzberg. A role is a set of specific tasks a person performs because of the position they hold.
Roles are directed inside as well as outside the organization. There are 3 broad role categories:
1. Interpersonal
2. Informational
3. Decisional
INTERPERSONAL ROLES : Roles managers assume to coordinate and interact with employees and provide direction to the organization.
n Figurehead role: symbolizes the organization and what it is trying to achieve.
n Leader role: train, counsel, mentor and encourage high employee performance.
n Liaison role: link and coordinate people inside and outside the organization to help achieve goals.
INFORMATIONAL ROLES : Associated with the tasks needed to obtain and transmit information for management of the organization.
Monitor role: analyzes information from both the internal and external environment.
Disseminator role: manager transmits information to influence attitudes and behavior of employees.
Spokesperson role: use of information to positively influence the way people in and out of the organization respond to it.
DECISIONAL ROLES : Associated with the methods managers use to plan strategy and utilize resources to achieve goals.
Entrepreneur role: deciding upon new projects or programs to initiate and invest.
Disturbance handler role: assume responsibility for handling an unexpected event or crisis.
Resource allocator role: assign resources between functions and divisions, set budgets of lower managers.
Negotiator role: seeks to negotiate solutions between other managers, unions, customers, or shareholders
MANAGERIAL SKILLS :
There are three skill sets that managers need to perform effectively.
1. Conceptual skills: the ability to analyze and diagnose a situation and find the cause and effect.
2. Human skills: the ability to understand, alter, lead, and control people’s behavior.
3. Technical skills: the job-specific knowledge required to perform a task. Common examples include marketing, accounting, and manufacturing.
All three skills are enhanced through formal training, reading, and practice.
MANAGEMENT CHALLENGES :
Increasing number of global organizations.
Building competitive advantage through superior efficiency, quality, innovation, and responsiveness.
Increasing performance while remaining ethical managers.
Managing an increasingly diverse work force.
Using new technologies
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