MGT100 - Topic 2
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- Scientific Management
- Administrative Principles
- Bureaucratic Organisation
4 Guiding Principles of Scientific Management (Frederick Taylor)
Develop for every job a ‘science’ that includes rules of motion, standardised work processes and proper working conditions.
Carefully select workers with the right abilities for the job.
Carefully train workers to do the job and give them the proper incentives to cooperate with the job ‘science’.
Support workers by carefully planning their work and by smoothing the way as they go about their jobs.
Motion Study (Frank and Lilian Gilbreth)
The science of reducing a job or task to its basic physical motions.
Administrative Principles (Henry Fayol, p 39)
Foresight — to complete a plan of action for the future.
Organisation — to provide and mobilise resources to implement the plan.
Command — to lead, select and evaluate workers to get the best work towards the plan.
Coordination — to fit diverse efforts together and ensure information is shared and problems solved.
Control — to make sure things happen according to plan and to take necessary corrective action.
Administrative Principles (Mary Parker Follet, p 39)
Believed that making every employee an owner in the business would create feelings of collective responsibility.
Believed that business problems involve a wide variety of factors that must be considered in relationship to one another.
Bureaucratic Organisation (Max Weber, p 40-41)
- Clear division of labour. Jobs are well defined, and workers become highly skilled at performing them.
- Clear hierarchy of authority. Authority and responsibility are well defined for each position, and each position reports to a higher level one.
- Formal rules and procedures. Written guidelines direct behaviour and decisions in jobs, and written files are kept for historical record.
- Impersonality. Rules and procedures are impartially and uniformly applied with no one receiving preferential treatment.
- Careers based on merit. Workers are selected and promoted on ability and performance, and managers are career employees of the organisation.
Hawthorne Studies (1927 Elton Mayo, p 42)
Initial studies - sought to determine how economic incentives and the physical conditions of the workplace affected the output of workers.
Two factors were singled out as having special importance. One was the group atmosphere — the workers shared pleasant social relations with one another and wanted to do a good job. The other was more participative supervision. Test-room workers were made to feel important, were given a lot of information and were often asked for their opinions.
Hawthorne Effect (p 43)
The tendency of people who are singled out for special attention to perform as anticipated merely because of expectations created by the situation.
Human Relations Movement
Managers who used good human relations in the workplace would achieve productivity.
The study of individuals and groups in organisations.
Theory of Human Needs (Fig 2.3, p 44)
- Self-actualisation needs
- Esteem needs
- Social needs
- Safety needs
- Physiological needs
Theory X and Theory Y (McGregor, p 44)
Urged managers to shift their view of human nature away from a set of assumptions he called ‘Theory X’ and towards ones he called ‘Theory Y’.
Holding Theory X assumptions approach their jobs believing that those who work for them generally dislike work, lack ambition, are irresponsible, are resistant to change and prefer to be led rather than to lead.
The manager believes people are willing to work, are capable of self-control, are willing to accept responsibility, are imaginative and creative, and are capable of self-direction.
Through their behaviour they create situations where subordinates act in ways that confirm the original expectations.
The assumption that mathematical techniques can be used to improve managerial decision-making and problem-solving.
The scientific applications of mathematical techniques to management problems.
- Problem encountered
- Systematically analysed
- Apply mathematical models and calculations
- Identify solution
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