Why study management theory? 1. Guides management decision -Comes out of Practice Assumption Relationships 2. Provides a stable focus for understanding what we experience -We get ideas about organizations and the people -1908 Henry Ford- Apostle of mass production - First model took 12 1/2 hours - 12 Years later in 1920 - one per minute -In 1925 Model T was rolling off one every 5 seconds
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Why study management theory?
1. Guides management decision
-Comes out of Practice
Assumption
Relationships
2. Provides a stable focus for understanding what we experience
-We get ideas about organizations and the people
-1908 Henry Ford- Apostle of mass production
- First model took 121/2 hours
- 12 Years later in 1920 - one per minute
-In 1925 Model T was rolling off one every 5 seconds
Henry Ford born in 1863 grew in Michigan when he died in 1945 he was worth $600 million.
3. Theories makes us challenge
- to keep learning
4. Theories area sources of ideas
- Alfred Sloan vs Henry Ford
5. Coherent Group of assumption put forth to explain the relationship between two or more observable facts and to provide a sound basis for predicting future events.
Evolution of management theory
Three established school
Scientific
- Classical
Organizational
- Behavioral
- Management science school
Historically not replaced - layered
- supplemented
Frederick TAYLOR- [1856-1915]
1. Development of a true science of management to identify the best way
2. Scientific selection of workers
3. Scientific education and development
4. Initiate friendly cooperation
between management and workers
Contribution
“ Production” miracle
Use for fast food industry to training of surgeons
Use rational approach to solve
Problem Solving – balanced – no emotions
Limitations
Human being are assumed rational, motivated.
Productivity to profitability
Labour
exploitation
Customers
Henri Fayol[1841-1925]
• Disprove managers were/are born and they are made
• Good for large organisations, Ford benefited, GM, GE, Xerox trusted it
Main characteristics are
• Rules and regulations
• Impersonality
• Division of labor
• Hierarchical structure
• Life long career
• Rationality
Believes in authority – charisma sound’s legal
• Compliance based
- ideal for governments
- inflexible
inhibits productivity
Behavioural school
Organisation is people
Classical school – ‘people side’ neglected
Use sociology psychology and related fields to purpose more effective ways to manage people.
Hawthorne Experiments
1. Sympathetic supervision reinforced motivation – Employee works harder if they believed that management was concerned about their welfare and special attention was paid
2. The social environment of employees have a positive influence on productivity
• Work is dull
• Coworkers influence
• Shared antagonism
• Peer pressure, group pressure has a stronger influence
SYSTEMS APPROACH• Organization considered as unified
purposeful system composed of interrelated parts.
- Activity of one affects the others- meshed – integrated – coordinated made up of subsystem
- those that make up the whole system.
Each subsystem works independently.
SYNERGY
• Whole is greater than the sum of its parts as separate departments cooperate and interact, they become more productivity than if they each were to WORKWORK in ISOLATION.ISOLATION.
Open system Interacts with environment
- automobile plant
CLOSED SYSTEM – Does not
A prison or church
External Environment
INPUT
HUMAN
CAPITAL
LAND Process
BLDG transformation
EQUIPMENT
Technology
Information Feedback
OUTPUT• GOODS• SERVICES• OTHERS
Managers plays dominant role
- in inputs
- in transformation process
- uses feedback continual to improve inputs/ transformation
University system vs fast food joint
High Performance
- Japanese management idea
- TQM
- Re engineering
- Bench marking
- Learning Organisation
Management DefinedProcess of working with and through others to achieve organizational objectives in a changing environment.
Derailed• Problem with interpersonal• Failure to meet business objectives• Failure to build & lead a team.• Inability to change and adapt during a transition
Effectiveness and efficiency
• Do right things• Choose right goals• Concentrate resources
and efforts on them• The job gets done
but…..
• Do things right• Limited Resources
are underutilized or wasted.
Balanced emphasis
The job gets
done and
……….
Limited resources are not
wasted
Achieving organizational objectives
Getting the most of limited resources
Balance effectiveness
efficiency
Working with &through others
Key Aspects
Management Process
- Planning
- decision making
- organising
- staffing
-communicating
- motivating
- leading
-controlling
Managerial Roles: ten roles Figurehead ceremonial. Leader The liason role;
communicating particularly with external, horizontal and vertical
Informational Role (securing information above the operation
The disseminator
- to subordinates The Spokesperson role
- external
Decision role The entrepreneur role The disturbance handler The resource allocator The negotiator