Management of People Flashcards
What is management?
The act of getting things done through others. It is the process of achieving objectives by planning, organizing, controlling and motivating resources.
The Classical Theory
Had little concern for human element. FW Taylor (1856-1917) the father of Scientific Management viewed man as an economic animal.
Principles of Scientific Management
1) Management should have rules, laws and principles
2) Workers needed to be trained and given best suited jobs
3) Equal division of tasks and responsibility between workers and management
4) Consistent co-operation between management and employees
Elements of Scientific Management
1) Separate planning from actual performance
2) Careful selection of workers for tasks
3) Closely monitor workers performance and document findings
4) Job analysis
5) Standardization of tasks based on job analysis
Success and Applications of SM
1) Factory benefited from increased profuctivity
2) Some organizations benefited from increased profits
3) Theories led to development of specialization
Limitations of SM
1) Tasks become boring
2) Output was the only measure of workers day tasks
3) His view of man as only motivated by money was criticized
Contributions of SM to society
1) Specialization
2) Piece rate system of payment
3) Economic Man principle
4) Staff Appraisals
5) Recruitment and Selection Process
Administrative Management
Popularized by french industrialist Henry Fayol who is regarded as Father of Modern Day Management
Six Business Activity Groups
1) Technical - Production
2) Commercial -Buying or selling
3) Financial - raising capital
4) Security - job or physical
5) Accountant - record keeping
6) Managerial
Five Functions of Management
1) Planning - establishing objectives and developing strategies
2) Organising - delegation of responsibility to get job done
3) Commanding - giving clear instructions
4) Coordinating - harmonizing the activities of employees towards a common goal
Fayol’s 14 Principles of Management
1) Division of Labour
2) Authority or Responsibility
3) Obedience or Discipline
4) Unity of Command
5) Unity of Direction
5) Co-ordination of individual interest with general interest of firm
7) Remuneration - workers must be paid fairly
8) Centralization - degree of which subordinates are involved in decision making
9) Scalar Chain - must be clear line of authority
10) Equity - employees should be traeted fairly
11) Order
12) Stability of the Tenure or Personnel - high turnover rates are deemed inefficient
13) Initiative - employees should bde allowed to orginate and implement plans
14) Espirit De Corp - Siprit of Co- operation
Bureaucratic Management
Founding Father Max Weber
Three Types of Legitimate Authority
1) Traditional Authority - monarchies, tribal hierarchies
2)Charismatic Authority - Acceptance from personal qualities of a ruler of leader
3) Legal or Rational Authority - Acceptance arises from position or rank in organization
Main Features of Bureaucratic Management
1) Division of Labour
2) Authority if Hierarchy
3) Formal Selection
4) Career Orientation
5) Formal rules and control
6) Impersonality - rules and controls should be applied and adhered impersonally
Advantages of Bureaucracy
1) Ideal for Standardized routine
2) Efficiency
3) Rigid adherence to procedures is necessary for fairness
4) Some people like structure
Disadvantages of Bureaucracy
1) Slow decision making because organization’s complexity
2) inhabits people’s growth
3) Represses creativity and initiative
4) Communication is restricted
5) Difficult to deal with change in environment
Contributions to modern organizations
1) Design prototype for large organizations
2) Offices, positions and skills needed to be organized into a hierarchy
3) Employees still depend heavily on formal selection and rules
4) Importance of accountability
The Human Relations or Behavioural School
Emphasized the importance of human attitudes, values and relationships for effective functioning
Elton Mayo (1880-1890)
The Hawthrone Study - conducted at electronic company Hawthrone plant to determine the effects of working conditions on productivity. With help of Fitz Roethlisberger the study switch from effect if lightning to effect when female workers could supervise themselves. The study reveaked the privilege boosted workers morale
Outlines of Hawthrone Study
1) Workers were not only motivate by money
2) Management needed to analyse employee’s atitudes
3) Effective supervision should be place on informal groups
Contributions of Hawthrone study to Modern Organizations
1) Brought human dimension of working into management
2) Paved way and justified modern-day employee assistance
3) Developed the feild of HRM
Limitations of Hawthrone Study
Complexity - People were motivated by more than one need and there was no simple formula
The Douglas McGregor Theory
Behavioural Theorists who formed Theory X and Theory Y
Theory X
Assures some employees are lazy , unmotivated, unambitious, avoid responsibility, self-centered, in-different about organizational goals and prefer to be directed. This calls for a proactive leader managing who will most likely use the Authoritative Style of Management
Theory Y
Assumes subordinates are self motivated, seeks responsibility, can be creative and self directed. Leaders must use a Participative style of management.
The Classical View
1) People try to satisfy economic needs at work
2) No conflict between individual and organizational needs
3) People believe more money = better work
4) People act to satisfy individual needs
Human Behavioural View
1) People are motivated by many needs
2) We are independent - behaviour is shaped by social context
3) Management is only factor affecting behaviour
4) Teamwork is essential for co-operation
5) Job Satisfaction leads to Productivity
6) Good managers need social and technical skills
The Systems Approach
Katz & Khan - focuses on organization as a system that transform inputs and outputs. There are a number of subsystems that connect to accomplish a purpose/task
Four Elements of a Organization (Systems Approach)
1) Input - people, material, money or information
2) Transformation - managerial or technological process
3) Output - goods and services that are produces
4) Feedback - includes possible reactions from enviroment
Characteristics of Systems Theory
1) Subsystems - e.g production, marketing, and accounting are all dependent
2) Entropy - natural pricess which things die, if a sytsem is closed (shuts out effects of external enviroment) the system will not survive
3) Cyclical - returns of outputs are plunged back to gain inputs to complete the cycle of production once again.
4) Synergy - this is the concept that total output of the system is greater than sum of parts
The Contingency Theory
Popularized by Joan Woodward (1950s) and Lawerence and Lorsch (1967). Based on premise that management was dependent on variables of situation faced. “It all depends”
Main Ideas of Contingency Theory
1) A universale one best way to manage does not exist
2) Organisations should ensure coordination between design and subsystems and enviroment
3) For organizations to be effective, subsystems must be in sync
Contributions of Contingency Theory
1)It can be applied to alomst any organization
2) To experiment until you find the right means
3) To think outside the box
Functions of Management
Planning
Organizing
Staffing
Leading
Controlling
