Ch 2: Management Theory

Scientific Management

Frederick Taylor

Problem- poor productivity of individual workers

Solution- Improve productivity of individual workers through scientific management methods

4 principles of scientific management

Four key principles that enhance productivity and efficiency in management?

What are the 4 Principles of Scientific Management?

Scientific Study of Tasks

Selection and Training

Standardization of Tools and Procedures

Performance-Based Incentives

Principles of Scientific Management: Scientific Study of Tasks

Evaluating a task by scientifically studying each part of the task to find the most efficient way to perform tasks

Principles of Scientific Management: Selection and Training

Choosing the right individuals for each job and providing proper training and incentives (incentive pay)

Principles of Scientific Management: Standardization of Tools and Procedures

Establish uniform methods and tools for consistency

Principles of Scientific Management: Performance-Based Incentives

Motivate workers through rewards based on their output and efficiency

17 basic motions (therblig’s)

Frank and Lillian Gilbreth

System for analyzing the motions involved in performing a task (visual study, later motion picture)

Eliminated wasteful motions and reduced fatigue

Administrative Management

Henri Fayol

Focus moved from individual jobs to how organizations should be structured

Identified four main functions of organizations

Administrative Management: 4 main functions of organizations

Planning

Coordinating

Controlling

Organizing

Administrative Management (Beurocracy)

Max Weber

System to achieve orderly, rational, and efficient organization through rules

Administrative Management (Beurocracy): Rules

A well-defined hierarchy of authority

Formal rules and procedures (routines)

Careers based on merit (employment/promotion based on technical competence)

No favoritism (impersonality)

Administrative Management (Beurocracy): Positives

Sharply increased employee productivity, pay, and satisfaction

Fit well with mostly industrial (factory) work

Many other areas have built on this (HR, motivation)

Created an environment where employees were able to buy the products too

Administrative Management (Beurocracy): Negatives

Too mechanic

Treated people like cogs

Productivity can be further increased by paying more attention to those needs

Ways to Increase Productivity: Behavioral Viewpoint

Emphasized the importance of understanding human behavior and motivating employees toward achievement

Early Behaviorism– Hawthorne Studies

Needed new way to increase productivity

Experimented with better lighting and working conditions (rest periods, pay, hours worked

Human Relations Movement– Maslow’s

Needs (psychological, safety, belongingness, esteem, self-actualization) are important

Satisfied needs lead to job satisfaction