Lecture 2: Evolution of Management thinking

Question 1

What are the three factors that change management

Answer 1

1. Social
2. Political
3. Environmental

Question 2

Social

Answer 2

• aspects of a culture that guide and influences relationships, values, needs and behavior
• age, cultural norms, expectations, social pressures…

Question 3

Political

Answer 3

• forces which affect the availability, production, and distribution of resources
• Global Financial Crisis, Great Depression, organizational size, funding…

Question 4

Environmental

Answer 4

• influence of political and legal institutions
• regulations, policies, justice and the law …

Question 5

Classical Perspective

Answer 5

The factory system that emerged in the 1800s with large complex organsiations posed problems
• Eg; tooling the plants, training employees

Commonly used for complex and larger firms

• Achieving goals came at the expense of creativity

Question 6

Human perspectives

Answer 6

• Emphasis on human factors
• Assumptions such as people seeking satisfying social relationships, responding to group pressure, searching for personal fulfillment
• Favorable treatment of employees
  • building moral
  • maintain social interaction
• Human relations/human resources; behavioral sciences

Hawthornes Studies effect

• Conclusion: tendency for people who are singled out for social attention to perform as anticipated merely because of expectations created by the situation

Question 7

Scientific management

Answer 7

Shift all responsibility for the organisation of work from the work to the manager
- Use scientific methods to select best wat to do the job
- Select the best person to perform the job
- Train the workers by planning their work and eliminating interruptions
- Intrinsic motivation by providing wage incentives to increase output
- Monitor worker performance to ensure work procedures are followed and results achieved

Question 8

Scientific management: Fredrick W. Taylor

Answer 8

• He was appalled by worker inefficiencies
• He improved productivity by 200% or more due to applying management thinking to a business but did this unethically

Question 9

Gilbreth

Answer 9

Three parts to their management theory:
1. Reduce wasteful hand-and-body motions required to complete a task (time and motion studies)
2. Focused on the most efficient way to complete a task
3. Increased efficiency to increase profit and work satisfaction

Question 10

Scientific management criticisms

Answer 10

Did not appreciate the social context of work and the higher needs of workers
- Did not acknowledge variance amongst individuals
- Tended to regard workers as uninformed and ignored their ideas and suggestions

Question 11

Bureaucratic Organisations

Answer 11

Systematic approach developed in Europe by Max Weber
- Emphasised management on an impersonal, rational basis at the organisational level

Question 12

Elements of Ideal Bureaucracy:

Answer 12

Bureaucratic Organisations

• Systematic approach developed in Europe by Max Weber
• Emphasised management on an impersonal, rational basis at the organisational level

Elements of Ideal Bureaucracy:
• Division of labour, with clear definitions of authority and responsibility
• Positions organsied in a hierarchy of authority
• Managers subject to rules and procedures that will ensure reliable, predictable behavior
• Management is separate from the ownership of the organisation
• Administrative acts and decisions recorded in writing
• Personnel selected and promoted based on technical qualifications