Industrial revolution
Substitute machine for human labour Created large organisms in need for management
Management Theories
Scientific management, general administrative theory, quantitative theory, organisational behaviour, systems approach, contingency approach
Scientific Management history
Frederick Winslow Taylor: father of scientific management
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
Current uses of scientific method
-Use time and motion studies to increase productivity -Hire qualified employees -Provide incentive systems based on output
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
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
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
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
Quantitative approach focuses on
improving managerial decision making by: -Statistics -Optimisation models -Information models -Computer simulations
Organisation behviour
The study of people at work, people are the most important asset of an organisation
Organisation behaviour experiments
productivity increased under imposed adverse working conditions Effect incentive plans was less than expected
OB research findings
Social norms, group standards, and attitudes influence individual output and work behaviour more strongly than monetary incentives
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.
systems
set of interrelated and interdependent parts arranged in a manner that provides a unified whole
Types of Systems
open system, closed system
open system
dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments
closed system
are not influenced by and do not interact with their environment (all system input/output is internal)
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
The Contingency Variables
Organisation size Routineness of task technology Environmental uncertainty Individual differences
Workforce diversity
increasing heterogeneity in the workforce
Entrepreneurship
process of starting new businesses, generally in response to opportunities
Entrepreneurship process
Pursuit of opportunities Innovation in products, services, or business methods Desire for continual growth of the organisation
e-business
electronic business
Types of E-business: E-business enhanced organisation
e-business units within traditional organisations
E-business enabled organisation
e-business tools and applications used within traditional organisation
Total E-business organisation
organisation’s entire work processes revolve around e-business model
Learning organisations
organisation that has been developed the capacity to continuously learn+adapt, and change
Knowledge organisations
cultivation of a learning culture where organisation members gather and share knowledge to achieve better performance
Quality Management
Philosophy of management driven by continual improvement in the quality of work processes + responding to customer needs and expectations