kvb-early mgt concepts and influences
DESCRIPTION
o Growth of companies• minor improvements in management tactics produced impressive increases in production quantity and quality• economies of scale - reductions in the average cost of a unit production as the total volume produced increases• opportunities for mass production created by the industrial revolution spawned intense and systematic thought about management problems and issuesTRANSCRIPT
Early management Concepts and influenceso Growth of companies
• minor improvements in management tactics produced impressive increases in production quantity and quality
• economies of scale - reductions in the average cost of a unit production as the total volume produced increases
• opportunities for mass production created by the industrial revolution spawned intense and systematic thought about management problems and issues
Systematic management:o Key concepts
• systematized manufacturing operations• coordination of procedures and processes built into internal operations• emphasis on economical operations, inventory management, and cost
controlo Contributions
• beginning of formal management in the United States• promotion of efficient, uninterrupted production
o Limitations• ignored relationship between an organization and it environment• ignored differences in managers’ and workers’ views
Scientific Management:o Key concepts
• used scientific methods to determine the “one best way’• emphasized study of tasks, selection and training of workers, and
cooperation between workers and managemento Contributions
• improved factory productivity and efficiency• introduced scientific analysis to the workplace• piece-rate system equated worker rewards and performance
o Limitations• simplistic motivational assumptions• workers viewed as parts of a machine• potential for exploitation of labor
Administrative Management:o Key concepts
• Fayol’s five functions and 14 principles of management• executives formulate the organization’s purpose, secure employees, and
maintain communications• managers must respond to changing developments
o Contributions• viewed management as a profession that can be trained and developed• emphasized the broad policy aspects of top-level managers
• offered universal managerial prescriptionso Limitations
• universal prescriptions need qualifications for contingencies
Human Relationso Key concepts
• productivity and employee behavior are influenced by the informal work group
• should stress employee welfare, motivation, and communication• social needs have precedence over economic needs
o Contributions• psychological and social processes influence performance• Maslow’s hierarchy of need
o Limitations• ignored workers’ rational side and the formal organization’s contributions
to productivity• research overturned the simplistic belief that happy workers are more
productive
Bureaucracy:o Key Concepts
• structured network of relationships among specialized positions• rules and regulations standardize behavior• jobs staffed by trained specialists who follow rules
o Contributions• promotes efficient performance of routine operations• eliminates subjective judgment by employees and management• emphasizes position rather than the person
o Limitations• limited organizational flexibility and slowed decision making• ignores the importance of people and interpersonal relationships• rules may become ends in themselves
Quantitative Management:o Key concepts
• application of quantitative analysis to managemento Contributions
• developed specific mathematical methods of problem analysis• helped managers select the best alternative among a set
o Limitations• models neglect non-quantitative factors• managers not trained in these techniques may not trust or understand the
techniques’ outcomes• not suited for non-routine or unpredictable management decisions
Organizational Behaviour:o Key concepts
• promotes employee effectiveness through understanding of individual, group, and organizational processes
• stresses relationships among employees/managers• assumes employees want to work and can control themselves
o Contributions• increased participation, greater autonomy, individual challenge and
initiative, and enriched jobs may increase participation• recognized the importance of developing human resources
o Limitations• some approaches ignored situational factors, such as the environment and
technology
System Theory:o Key concepts
• organization is viewed as a managed system• management must interact with the environment• organizational goals must address effectiveness and efficiency• organizations contain a series of subsystems• there are many avenues to the same outcome• synergies enable the whole to be more than the sum of the parts
o Contributions• recognized the importance of the relationship between the organization
and the environmento Limitations
• does not provide specific guidance on the functions of managers
Contingency theory:o Key concepts
• situational contingencies influence the strategies, structures, and processes that result in high performance
• there is more than one way to reach a goal• managers may adapt their organizations to the situation
o Contributions• identified major contingencies• argued against universal principles of management
o Limitations• not all important contingencies have been identified• theory may not be applicable to all managerial issues