1、PRINCIPLE OF MANAGEMENTEvolution of Management TheoryChapter 2.Evolution of Management Theory.Job Specialization and the Division of LaborAdam Smith (18th century economist)Observed that firms manufactured in one of two different ways:- Craft-styleeach worker did all steps. - Productioneach worker s

2、pecialized in one step.Job Specialization and the Division of LaborAdam Smith (18th century economist)Realized that job specialization resulted in much higher efficiency and productivityBreaking down the total job allowed for the division of labor in which workers became very skilled at their specif

3、ic tasks.Frederick W Taylor (1856 1917)Father of Scientific ManagementPublished “Principles of Scientific Management in 1911;The systematic study of the relationships between people and tasks for the purpose of redesigning the work process for higher efficiency.Frederick W Taylor (1856 1917)Taylor l

4、isted “new duties for management. There were:The development of a true science;The scientific selection, education and development of workmen;Friendly, close co-operation between management and workers. .Four Principles of Scientific Management1) Study the ways jobs are performed now and determine n

5、ew ways to do them.Gather detailed time and motion information.Try different methods to see which is best.Four Principles of Scientific Management2) Codify the new methods into rules.Teach to all workers the new method.Four Principles of Scientific ManagementSelect workers whose skills match the rul

6、es.Establish fair levels of performance and pay a premium for higher performance.Workers should benefit from higher output.Administrative Management TheoryAdministrative ManagementThe study of how to create an organizational structure that leads to high efficiency and effectiveness.Max Weber (1864 1

7、920)German sociologistFormulated ideas on ideal management approach for large organization.Developed a set of ideas about the structure of an organization that define what we know as bureaucracy .Max Weber (1864 1920).Max Weber (1864 1920)Webers perspective on administrative management are:A divisio

8、n of labor. In which authority and responsibility are defined very clearly and set out as official duties. Hierarchy of authority. Office or positions are organized in a hierarchy of authority resulting in a chain of command.Formal selection. All employees are selected on the basis of technical qual

9、ifications through formal examinations or by education or training.Max Weber (1864 1920)Webers perspective on administrative management are:Career manager. Managers are professionals who work for fixed salaries and pursue “careers within their respective fields. They are not “owners of the units the

10、y administer.Formal rules. Administrators should be subject to strict formal rules and other controls regarding the conduct of their official duties.Henry Fayol (1841 1925)A mining engineer and managing director of a large French company;Published “General and Industrial Management in 1918;.Henry Fa

11、yol (1841 1925)Fayols 14 principles of management1. Division of Labor. Work should be divided to assist specialization2. Authority. Authority and responsibility should be equal.3. Discipline. Discipline helps workers develop obedience, diligence, energy and respect.4. Unity of Command. No subordinat

12、e should report to more than one superior.Henry Fayol (1841 1925)Fayols 14 principles of management5. Unity of Direction. All operations with the same objective should have one manager and one plan.6. Subordination of individual interest to general interest. The interest of one individual or group s

13、hould not take precedence over the interest of the enterprise as a whole.7. Remuneration. Remuneration and methods of payment should be fair. .Henry Fayol (1841 1925)Fayols 14 principles of management8. Centralization. Managers must maintain final responsibility but should delegate certain authority

14、 to subordinates.9. Scalar chain. A clear line of authority or chain of command should extend from the highest to the lowest level of an enterprise. This helps to ensure an orderly flow of information and supplement the principle of unity and command. .Henry Fayol (1841 1925)Fayols 14 principles of

15、management10. Order. A place for everything and everything in its place. Proper scheduling of work and timetables to complete work are important. This can ensure materials are in the right place at the right time.11. Equity. Employees should be treated with kindness and justice.12. Stability of tenu

16、re of personnel. Management should work towards obtaining long-term commitments from staff. .Henry Fayol (1841 1925)Fayols 14 principles of management13. Initiative. Workers should be allowed to conceive and execute plans in order to develop their capacity to the fullest and feel like an active part

17、 of the organization.14. Esprit de corps. Harmony and union help to build the strength of an enterprise. It is an extension of the principle of unity of command, emphasizing the need for teamwork and the importance of communication.Behavioral Management TheoryThe study of how managers should behave

18、to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals.Focuses on the way a manager should personally manage to motivate employees.Elton MayorIn 1941 the publication of the results of the psychological experiments of Elton Mayor

19、 at the Hawthorne (Illinois) plant of the Western Electric Company was a notable landmark.It focused on the components of the job and work satisfaction on the part of employees.Elton MayorThe Hawthorne Experiments were divided into three phasesTest room studiesInterviewing studiesObservational studi

20、es.Elton MayorTest room studiesA group of women were segregated and variations made in the intensity of illumination, in temperature, hours of work and rest periods, and their performance was noted.The results were surprising, as output rose, even though some changes were made which made working con

21、ditions poorer. .Elton MayorInterviewing studiesFocus on the attitudes of people at the plant towards their jobs, working conditions and supervision;A morale survey comprising over 21,000 was taken by EltonObservational studiesStudy the normal group working, and the individual in the group relations

22、;Showed the importance of informal organization.Theory X and Theory YTheory XThe average people dislikes work and will avoid it if possible;People therefore must be manipulated, controlled, directed and threatened with punishment;The average person prefers to be directed and wants avoid responsibili

23、ty, has little ambition and desires security above all.Theory X and Theory YTheory YExpenditure of physical and mental effort in work is as natural as play or rest. Work can be a source of satisfaction;People can exercise self-direction and control to achieve objectives to which they are committed;C

24、ommitment to objectives is a function of the rewards associated with their achievement;.Theory X and Theory YTheory Y (continue)Under proper conditions people can learn to accept and seek responsibility;Ability to use imagination and creative thinking is widely distributed in population;The intellec

25、tual potential of the average person in industrial life is only partially realized.Management Science TheoryAn approach to management that uses rigorous quantitative techniques to maximize the use of organizational resources.Management Science TheoryQuantitative management utilizes linear programmin

26、g, modeling, simulation systems and chaos theory.Operations management techniques used to analyze all aspects of the production system.Management Science TheoryTotal Quality Management (TQM) focuses on analyzing input, conversion, and output activities to increase product quality.Management Information Systems (MIS) provides information vital for effective decision making.Organizational Environment TheoryOrganizational Environment The set of forces and conditions that operate beyond an organizations boundaries but affect a manag