Subject Name: Principles of Management
Code: 3
Credit Hours: 3
Chapter: Behavioral Perspective
Institution: Lincoln University College
Ancient Management:
Development of early management practices seen in construction such as the Egyptian pyramids and the Great Wall of China.
Venetians created floating warship assembly lines.
Adam Smith (1776):
Authored 'The Wealth of Nations,' marking a shift to structured economic practices.
Industrial Revolution:
Triggered the need for more formal management practices due to increased scale of production.
Classical Systems:
Scientific Management: Optimization of work processes.
Administrative Management: Focused on the organization structure and function.
Bureaucratic Management: Established formal hierarchical structures.
Neo-Classical Systems:
Emphasized human behavior in management with behavioral management perspectives, contrasting quantitative and systems approaches.
Adam Smith's Findings:
Distinguished between craft production (all steps by one worker) and factory production (specialization).
Factory production resulted in higher productivity due to focus and skill enhancement through division of labor.
Emergence of Modern Management:
Late 19th century focused on satisfying customer needs and increasing worker efficiency through machinery.
Frederick W. Taylor:
Often called the father of scientific management, published "Principles of Scientific Management" in 1911.
Defined scientific management as a systematic study of relationships between people and tasks aimed at optimizing efficiency.
1. Develop science for each job:
Replace rule-of-thumb with scientifically validated methods.
2. Scientifically select and train workers:
Implement formal selection processes and comprehensive training programs.
3. Cooperation between management and workers:
Ensure alignment and adherence to scientific principles to facilitate productivity.
4. Divide responsibilities:
Balance workload effectively between management and workers to maximize efficiency.
Implementation Issues:
Focused only on output, without accounting for worker satisfaction.
High specialization led to boredom, resulting in distrust of management practices.
Workers might underperform, leading management to rely on machinery.
Frank and Lillian Gilbreth's Contributions:
Improved the methods of time and motion studies:
Break down actions into components.
Discover better performance methods.
Reorganize actions for efficiency.
Focus on Worker Well-Being:
Addressed fatigue, work environment issues, and advocated for better conditions (e.g., lunch breaks).
Max Weber's Bureaucratic Management:
Promoted a formal organizational structure to achieve effectiveness.
Identified seven key characteristics of bureaucracy, ensuring jobs are well-defined and standardized roles are followed.
Henri Fayol's 14 Principles:
Division of Labor: Enables specialization but avoids excessive specialization.
Authority and Responsibility: Balances formal and informal authority.
Unity of Command: Employees should report to one manager.
Line of Authority: Clear chain of command.
Centralization: Authority rests at the top.
Unity of Direction: Align activities towards common goals.
Equity: Fair treatment of employees.
Order: Proper organization to place employees where they can be most effective.
Initiative: Encourage innovation.
Discipline: Enforce rules and structures.
Remuneration of Personnel: Fair compensation impacts success.
Stability of Tenure: Long-term employment is beneficial.
General Interest: The organization's interest is prioritized over individual interest.
Esprit de Corps: Fostering strong team spirit.
Core Ideals:
Focuses on human behavior in management.
Mary Parker Follett emphasized collaborative decision-making and employee involvement in work improvement.
Overview:
Conducted at Hawthorne Works from 1924-1932, assessing productivity under varying light levels.
Found that the attention given to workers, not lighting variations, enhanced productivity (Hawthorne Effect).
Humanistic supervision plus morale equals productivity.
Work is inherently a group activity.
Humor and camaraderie are beneficial in the workplace.
Management should avoid micromanagement.
Supervisors should act more as friends than as bosses.
Recognizes complexity of human behavior.
Highlights challenges in motivation, especially in dull work environments.
Workers can discern genuine interest from management, affecting morale.
Douglas McGregor's Concepts:
Theory X: Assumes workers are lazy and need strict oversight.
Theory Y: Assumes workers are self-motivated and thrive in a supportive environment.
Management Implications:
Different approaches stem from these assumptions, impacting management style and structure.
Levels of Needs:
Physiological needs
Safety needs
Love/Belonging
Esteem needs
Self-actualization
Focuses on quantitative techniques to optimize resource use.
Involves methodologies like simulation, linear programming, and Total Quality Management (TQM).
Differentiates between open and closed systems:
Open Systems: Interact with environment; adopt flexibility.
Closed Systems: Self-contained; face risks of ineffectiveness.
Explores how organizations interact with internal and external forces.
Stages of organizational production: Input, Conversion, Output.
States there is no one best way to manage.
Advocates for flexibility to adapt to environmental changes and situational variables.
Organization Size: Larger enterprises face greater coordination challenges.
Routine Technology Needs: Different structures and leadership styles are needed for varied tasks.
Environmental Uncertainty: Approaches effective in stable environments may fail amid rapid changes.
Individual Differences: Recognizes varied employee needs and growth desires.