Business Management 1 - Chapter 2 Flashcards
Why study management theory?
To guide and assist management with the following
- Develop holistic understand;
- Develop professional competence;
- Guide management decisions;
- Shape the manager’s view of organisations;
- Make the manager aware of the business environment;
- Provide the manager with a source of new ideas.
What is the management theory?
Management theory provides a framework of principles which serve to guide not only the manager’s understanding of management issues, but his/her management-related actions as well.
Define the concept “theory”
Definition of Theory
Stoner and Freeman (1992) define a “theory‟ as a “coherent group of assumptions put forth to explain the relationship between two or more observable facts and to provide a sound basis for predicting future events”. Another definition of the word “theory‟ is “a supposition or system of ideas explaining something”. In essence, therefore, a theory is a framework of principles.
What factors influence the development of a theory?
- Economic Forces
- Political Forces
- Social Forces
- Ecological Forces
- International Forces
Draw a diagram depicting the evolution of management theory.
PG 13 study guide
List the four schools/approaches of management (theories of management)
- Classical Approach.
- Behavioral and Human Relations Approach.
- Quantitative Approach
- Contemporary Approach.
When did the “Classical management school” emerge?
EARLY 1900’S
What Influenced “Classical management school”?
ECONOMIC, TECHNICAL AND CULTURAL CHANGES OF INDUSTRIAL REVOLUTION AND INTRODUCTION OF STEAM POWER
When did the “Behavioral Management School” emerge?
1920’s / 1930’s
What Influenced “Behavioral Management School”?
WORLD WAR II, DECLINE IN PROSPERITY, LACK OF WORKPLACE HARMONY
When did the “Quantitative Management Approach” emerge?
1940’s
What Influenced “Quantitative Management Approach”?
MATHEMATICAL APPROACHES AND TECHNOLOGY TO SOLVE WAR-RELATED PROBLEMS
When did the “Contemporary Management Approach” emerge?
1950’S
What Influenced “Contemporary Management Approach”?
RAPID AND ONGOING CHANGE AFTER WORLD WAR II
List the two major theories which comprise the Classical Management Approach.
- Scientific Management Theory
- Administrative Management Theory
Briefly explain the Classical management school.
- Influenced by the steam engine and the Industrial
Revolution - Shift from farm work to factory work
- Mass production was possible
- Poor motivation of workers lead to development of
Classical Theories
What is the focus of the “Scientific Management Theory”?
Increase worker productivity
List the four names of the people that are best known for their contributions to the field of Scientific Management
- Fredrick Taylor
- Henry Gantt
- Frank and Lillian Gilbreth
List Frederick Taylor’s principles to increase efficiency in the work place.
- Examine the way in which workers perform their tasks
- Record the new methods as rules and standard operating procedures
-Train workers to perform the task according to the
written rules and standard operating procedures - Develop a remuneration system which rewards
performance which exceeds the acceptable level
List Frank and Lillian Gilbreth’s principles to simplify work.
- Analysing each individual action required to perform a task
- Identifying better ways of performing each action
- Increasing the efficient performance of the whole task
through reorganizing the individual actions
How did Henry Gantt redesign the incentive system?
- Payment of bonuses to workers who
exceed daily targets - Payment of bonuses to their supervisors
- production scheduling – Gantt chart
What is the overall result of the “Scientific management Approach”
Scientific Management approach succeeded in increasing productivity, however, it lead to worker dissatisfaction and distrust of management, as it ignored the human element
What is the focus of the “Administrative Management Theory”?
Increase organisation productivity
List the two names of the people that are best known for their contributions to the field of Administrative Management
- Henri Fayol
- Max Weber
