Management Flashcards
What is management?
The term ‘management’ may be defined as organising the business’s available resources to achieve desired results.
Who are the theorist of management?
Frederick Taylor
Max Webber
Elton Mayo
What is Taylor’s theory?
Frederick Taylor’s study (Scientific Management) outlined ways managers could use his theory’s principles to improve productivity. His theory suggested that work should be broken down into smaller components or tasks to enable workers to specialise and become competent.
What are the four principles of Taylor
*Develop a scientific study of management, with stated rules, laws and principles to replace the outdated ‘rule of thumb’ methods
*Workers should be selected scientifically, trained and developed as opposed to past practices where they were chosen randomly and usually untrained
*Cooperate with workers to ensure that work is done following the prescribed scientific principles
*Managers and workers should have an equal division of tasks and responsibilities. This will allow managers to apply Scientific Management principles in planning the work that the workers will perform
Benefits of Scientific Management are:
- Increased Efficiency: Businesses can reduce wasted time and resources by focusing on optimizing tasks and improving workflow.
- Higher Productivity: Workers can perform tasks faster and more accurately when using the most efficient methods.
- Consistency: Standardization of tools, methods, and procedures leads to more consistent output.
Criticism of Scientific Management are:
- Dehumanizing Work: Some critics argue that scientific management treats workers as mere cogs in a machine, ignoring their creativity, job satisfaction, and well-being.
- Lack of Worker Input: Since management is in full control, workers may have little input into the decision-making process or how their work is organized.
- Over-Simplification: Reducing work tasks to their simplest components can sometimes lead to oversimplified processes that don’t account for human behaviour or innovation complexities.
What is Webber’s theory?
Bureaucratic Management is a management theory developed by Max Weber. It focuses on creating a structured, formal, and efficient organization by establishing clear rules, roles, and hierarchical levels of authority.
What are Weber’s developed six characteristics of bureaucracy?
- Division of labour – this will lead to an increase in efficiency due to specialisation. By dividing labour, authority and responsibility will be clearly defined
- Authority hierarchy – the chain of command should be clearly outlined from the top to bottom in the organisation. Each employee must be aware of the person to whom he reports. Likewise, a manager must be aware of the people for whom he is responsible
- Formal selection – employees should be hired based on their qualifications, education and training
- Career orientation – managers were seen as professionals instead of just owners of units they managed. As a result, they were expected to pursue ‘careers’ in their respective fields
- Formal rules and controls – the organisation have formal rules and controls which must be adhered to by employees in the performance of their duties
Advantages of Bureaucratic Management:
- Efficiency: By establishing clear rules and a structured hierarchy, bureaucratic management aims to create efficiency in operations. Standardized procedures help streamline work processes, reduce confusion, and eliminate inefficiencies.
- Predictability and Stability: Bureaucratic organizations provide stability and predictability because they rely on fixed rules and procedures. This allows for a consistent approach to decision-making, which can be particularly important in large organizations or government institutions.
- Fairness and Equality: Since decisions are made based on objective rules and procedures, bureaucratic management reduces the potential for favouritism or bias. Employees are treated equally based on their qualifications and adherence to established norms.
- Clear Authority and Accountability:
The hierarchical structure ensures that authority and responsibility are clearly defined. This helps in assigning accountability for actions, making it easier to monitor performance and manage conflicts.
Disadvantages of Bureaucratic Management
- Rigidity and Inflexibility: One of the main criticisms of bureaucratic management is that it can be rigid and slow to adapt to change. The strict adherence to rules and procedures may limit creativity, innovation, and the ability to respond quickly to new challenges or opportunities.
- Impersonality: The emphasis on impersonal decision-making can create a sense of alienation among employees. This can lead to low morale and job dissatisfaction, as employees may feel like mere cogs in a machine rather than valued individuals.
- Overemphasis on Rules:
o In some cases, bureaucratic organizations can become overly focused on procedures and regulations, leading to red tape. This can result in inefficiencies, delays, and frustration, especially when employees focus more on following rules than achieving results.
Red tape- overly complicated or unnecessary regulations and administrative processes that can cause delays and hinder decision-making. - Lack of Innovation: Since bureaucratic systems prioritize standardization and adherence to established procedures, they may stifle creativity and innovation. Employees may be less likely to propose new ideas or think outside the box, which can hinder progress in a rapidly changing environment.
What is Henri Fayol’s theory?
His theory is based on the idea that increasing productivity is achieved through emphasizing human behavior and organizational structure.
What are his five functions of management?
Planning: A tool for achieving organizational.
Organizing: Providing the organization with what it needs, such as personnel and raw materials.
Command: Establishing the chain of authority and ensuing that subordinates having only one direct superior.
Coordination: Optimizing resources and time to ensure that everything is available when needed and works well together.
Control: Ensuring that organizational tasks and objectives are not deviated from.
What are the 14 principles of Fayol’s management theory?
Division of work
Authority
Discipline
Unity of command
Unity of direction
Subordination
Remuneration
Centralization
Scalar of chain
Order
Equity
Stability
Initiative
Esprit de crops
What is division of work
Dividing work among employees help improve productivity, accuracy and efficiency.
What is Authority?
Managers have the authority to enforce processes that make employees work as efficiently as possible; they are responsible for their team’s output.
What is discipline?
It is up to managers to discipline their workers to ensure compliance and collaboration.
What is unity of command?
To streamline the chain of command and avoid confusion, employees should answer to only one manager
What is unity of direction?
Everyone in an organization should work toward the same goal.
What is subordination of individual?
All employees, includes managers, should set aside their personal interests and focus solely on the company’s success.
