Chapter 1 Managing People Flashcards
Sun Tzu on Management:
o „if the troops do not understand the orders they are given, it is their general’s fault“
o “if soldiers understand but do not obey, it is their officer’s fault”
o “Generals should fulfil the orders they have been assigned completely – even if their sovereign ruler changes his mind halfway
Jeremy Bantham’s management creed – From The Wealth of Nations
all people
“all people are self-interested and are motivated by the desire to avoid pain and find pleasure. Any worker will work only if the reward is big enough, or the punishment sufficiently unpleasant.
Francis Raleigh Batt (1929): The Law of Master and Servant
“the servant must be under the duty of offering personal services to the master or to others on behalf of the master”
Frederick Taylor, Henry Ford:
rsi
o Reorganisation of work via “scientific management”, stopwatch in hand
o Separation of production planning from actual work. Management as a profession.
o Industrial labour replacing craftsmanship
“Scientific management” has led to
mvp
o “manufacturing the employee”
o Vast productivity increases in industry, and somewhat later also in services
o Productivity movement converted workers into consumers
Taylorism and Fordism on their way out, but hardly dead…
Pmks
o Process automatisation increasingly frees workers from repetitive tasks
o Mass production progressively replaced by mass customisation. E.g. Dell
o Knowledge as a tool for the worker
o Separation between “work” and “management” mostly still in place
Fayol’s core functions of management:
foc cdc
o Forecasting & planning o Organising o Commanding -> nowadays referred to as “leading” o Coordinating o Developing output o Controlling
Henri Fayol’s 14 principles
Daho feud uis sed
- Division of work
- Hierarchy
- Authority
- Order (right place, right time)
- Discipline
- Fair remuneration
- Unity of command
- Equity, kindness
- Unity of direction
- Initiative
- Subordination of individual interests to the general interests
- Stability of tenure of personnel
- Degree of Centralisation
- Esprit de corps
Taylorism vs Fayolism
Fredrick W. Taylor
Shop-floor level optimization.
- Centers on improving operational efficiency.
Henri Fayol
Holistic view of management.
- Aims to professionalize Industrial Revolution II era companies.
Max Weber’s “ideal-type” bureaucracy:
Hipsew
o Hierarchy of authority o Impersonality o Written rules of conduct o Promotion based on achievement o Specialised division of labour o Efficiency
Management by Objectives (MBO) –
Sup scr
o Supervisors and subordinates set objectives jointly, define standards, plan actions
o Control and review results jointly
o Responsibility of supervisor is providing support, and for subordinate it’s fulfilling tasks
Managing by SMART objectives:
- Specific:
- Measurable:,
- Attainable:
- Relevant:
- Time-bound:
Management vs Leadership
- Management primarily about continuity -> sensible business practices – Efficiency!
- Leadership (mainly) about change, i.e. the long-term direction of the firm – Effectiveness!
Managing and Leading, two sides of the same coin
MECD and MICT
Managing: Executing Strategy Defined Processes Management by Exception Controlling
Leading: Motivation Inspiration Challenges Tough Love