Ch 2- Management, Yesterday and Today

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Industrial revolution

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30 Terms

1

Industrial revolution

Substitute machine for human labour Created large organisms in need for management

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2

Management Theories

Scientific management, general administrative theory, quantitative theory, organisational behaviour, systems approach, contingency approach

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3

Scientific Management history

Frederick Winslow Taylor: father of scientific management

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4

Scientific Management theory

Theory: using scientific methods to define define the “one best way” for a job to be done Putting the right person on the job with the correct tools and equipment Having standardised method of doing the job Providing an economic incentive to the worker

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5

Current uses of scientific method

-Use time and motion studies to increase productivity -Hire qualified employees -Provide incentive systems based on output

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6

General Administrative Theory

Is characterised by people "on the ground" who share personal experiences, improve practices, and help others to run an organisation. Administrative management theory primarily focuses on improving the efficiency of management so that lower-level employees can recognize appropriately and the tasks can be done consistently

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7

Founders of GAT

Henri Foyol Believed that the practice of management was distinct from other organisational functions Developed 14 principles of management that applied to all organisation situations

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8

Founders of GAT

Max Weber Developed a theory of authority based on an ideal type of organisation (bureaucracy) Emphasized: rationality, predictability,impersonality, technical skills, authoritarianism

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9

Quantitative approach

Is a research strategy that focuses on quantifying the collection and analysis of data. Evolved from maths and statistical methods to solve WW2 problems

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10

Quantitative approach focuses on

improving managerial decision making by: -Statistics -Optimisation models -Information models -Computer simulations

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11

Organisation behviour

The study of people at work, people are the most important asset of an organisation

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12

Organisation behaviour experiments

productivity increased under imposed adverse working conditions Effect incentive plans was less than expected

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13

OB research findings

Social norms, group standards, and attitudes influence individual output and work behaviour more strongly than monetary incentives

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14

Systems approach

the study of a firm in its totality so that the men and material resources of the firm can be organized to realize the firm's overall objectives as efficiently as possible.

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15

systems

set of interrelated and interdependent parts arranged in a manner that provides a unified whole

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16

Types of Systems

open system, closed system

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17

open system

dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments

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18

closed system

are not influenced by and do not interact with their environment (all system input/output is internal)

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19

Contingency approach

“Situational approach”: no one universally applicable set of management rules by which to manage organisations

  • Organisations are individually different, face different situations (contingency variables), and require different ways of managing

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20

The Contingency Variables

Organisation size Routineness of task technology Environmental uncertainty Individual differences

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21

Workforce diversity

increasing heterogeneity in the workforce

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22

Entrepreneurship

process of starting new businesses, generally in response to opportunities

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23

Entrepreneurship process

Pursuit of opportunities Innovation in products, services, or business methods Desire for continual growth of the organisation

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24

e-business

electronic business

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25

Types of E-business: E-business enhanced organisation

e-business units within traditional organisations

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26

E-business enabled organisation

e-business tools and applications used within traditional organisation

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27

Total E-business organisation

organisation’s entire work processes revolve around e-business model

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28

Learning organisations

organisation that has been developed the capacity to continuously learn+adapt, and change

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29

Knowledge organisations

cultivation of a learning culture where organisation members gather and share knowledge to achieve better performance

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30

Quality Management

Philosophy of management driven by continual improvement in the quality of work processes + responding to customer needs and expectations

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