Principles and practices of management lecture 2 – 22/10/2007
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Principles and practices of management lecture 2 – 22/10/2007
History of management thought
2000 = today
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Traditional viewpoint 1890 – 2000
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Behavioural viewpoint 1930 – 2000
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Systems viewpoint 1940 – 2000
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Contingency viewpoint 1960 – 2000
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Quality viewpoint 1980 – 2000
Scientific management
Focused on lowest level of the organisation.
How can jobs be designed more efficiently.
Taylor – steel co. engineer consultant
Increasing man efficiency.
Gilbreth – Husband + wife team
Study of motion and work methods, Fatigue and morale.
Cooke – Taylor’s disciple
Application of scientific to educational/municipal organisation.
Gantt – Taylor’s colleague.
Production control, social responsibility of business.
Emerson – efficiency engineer
Importance of good organisation. Scientific management could eliminate waste and efficiency.
Ideas of scientific management
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Realisation that current management practices were inefficient.
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Management must adopt scientific methods – problem solving by intuition/rule of thumb.
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Specialisation should be practised – the manager should be a specialist, he should be able to train others.
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Planning was essential – everything should follow a plan.
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Proper selection should be done – right man for right job, need for using special tests.
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The standard method should be found – importance for work methods, efficient design of workplace.
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Standard times for each task to be established – work analysis, time averaging, helps protect output levels.
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Wage incentives should be used – man should be paid for what he does not for the amount of time spent, paying a bonus if a standard time is surpassed.
The administrative theory
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The job of the administration was the concern of a number of writers.
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Most of the conclusions were similar.
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The most prominent contributors.
Fayol
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Distinguished management activities from technical activities.
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Need for management education.
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Lack of management theory.
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Produced the following principles of managent.
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Importance of specialisation of labour;
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responsibility must increase as authority increases;
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discipline is essential;
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orders should be received from 1 person;
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management decisions should be made at the proper organisational level;
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equality of treatment;
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supervisors should encourage initiative;
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wages should fit type of job.
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The administrative point of view
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Authority and responsibility – seen as rights and obligations of employees and managers. One should not be responsible for those things about which he has no authority.
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Emphasis on objectives – clearly stated goals help better utilisation of resources.
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Importance of organisation structure – principle of functional homogeneity, principle of complementary functions, principle genuity of command.
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Rational approach of management – define objectives then organise resources to achieve them.
The behavioural approach
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Scientific management analysed activities of workers.
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Administrative focused on the activities of managers.
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Behavioural approach sought to understand how human psychological processes motivation and attitude – interact with activities, to affect performance.
Two schools:
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Study of organisational behaviour – the individual as point of focus.
Mayo – the Hawthorne experiments in the late 20’s.
A.The first relay assembly group
Effect on worker output, after varying physical conditions.
Increased production result of:
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Improved methods of work.
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Reduction in fatigue with shorter hours and rest periods.
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Reduction in monotony.
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Effect of wage incentive plan.
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Effect of new method of supervision.
B The second relay assembly group
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group rivalry as a result of different incentive schemes.
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The MICA – splitting test room
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the effect of different supervision.
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The Interviewing Process
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Conclusions reached after 21,000 interviews.
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Morale improves if one is allowed to air complaint.
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Complaints are not objective statements of fact.
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Influence of outside experiences.
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Worker satisfaction is influenced by how employee views his social status relative to others.
E. The bank wiring observation room
Groups affect the behaviour of individuals.
The Hawthorne studies – an overview
Highlighted the importance of:
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Leadership practices.
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Work group pressures on employees satisfaction.
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Downgrade importance of economic incentives.
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Employees react not to one but to whole complex of forces.
The organisational theory model
Barnard – acceptance theory of authority. Authority is not seen as a right authority works when it is accepted.
March + Simon – concept of bounded rationality – the administrative manager is limited by his own perceptions – he cannot make optimal decisions.
Mc Gregor – Managers make a set of incorrect assumptions about employees. These he called Theory X and Theory Y.
Theory X
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Man was essentially lazy.
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Man’s goal ran counter the organisation therefore need for supervision and guidance.
Theory Y
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Man was more mature.
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More self motivated therefore little need for right organisation.
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