Chapter Summary Notes

Adam Smith – argued the economic advantages of vision of labor, and the breakdown of Jobs into narrow and repetitive tasks, known as Job specialization. Division of labor increased productivity by increasing each worker’s skill and dexterity, by saving time lost in changing tasks. 2. 18th Century – Industrial Revolution – the main contribution of the Industrial revolution was that human power was replaced by machine power, which then made it more economical to manufacture goods In factories rather than at home.
Large, efficient factories require managerial skills, as they had to ensure that demand was met, enough eternal was on hand to continue production, assign tasks to people, direct daily activities, coordinate various tasks, ensure the machines were still running efficiently and were kept in good condition while maintaining standards, etc. There are 6 different approaches to management: 1. Scientific management: an approach that involves using scientific methods to define the ‘one best way for a Job to be done. The aim of this method is to make organizations and workers be as efficient as possible.
Frederick W. Taylor was one of the first to Introduce methods of scientific management. He Introduced 4 principles of management: a. Develop a science for each element of an Individual’s work with standardized work Implements and efficient methods for all to follow b. Scientifically select workers with skills and abilities that match each job and train them in the most efficient ways to accomplish tasks c. Ensure cooperation through incentives and provide the work environment that reinforces optimal work results in a scientific manner d. Vivid responsibility for managing and for working, while supporting individuals in work groups doing what they do best. Some people are more capable of managing, whereas others are better at performing tasks laid out to them. These guidelines are still used today for improving efficiency and production. They are used when managers analyses the basic work tasks that must be performed, use time-and-motion study to eliminate wasted motions, hire the best-qualified workers for a Job and design incentive systems based on output. . General administrative theory: an approach to management that focuses on describing what managers do and what constituted good management practice. There were 2 significant theorists in developing this method: Henry Offal and Max Weber. Henry planning, organizing, commanding, coordinating and controlling. He stated 14 principles of management, which are fundamental rules of management that could be taught and applied to all organizational situations.

They include: a) division of work – specialization increases output by making employees more efficient b) authority: managers must be able to give orders c) discipline: employees must obey and respect the rules that govern the organization d) unity of command: every employee should receive orders from only nee superior e) unity of direction: organization should have a single plan of action to guide managers and workers f) subordination of individual interests to the general interest: interests of one employee should not take precedence of the organization as a whole g) remuneration: workers must be paid a fair wage for their services h) concentration: the degree to which subordinates are involved in decision making I) scalar chain: line of authority from top to bottom j) order: people and materials should be in the right place at the right time k) equity: managers should be kind and fair to their subordinates l) stability of tenure of response: management should provide orderly personnel planning to ensure that replacement are available to fill vacancies m) initiative: employees who are allowed to originate and carry out plans will exert high levels of effort n) esprit De corps: promoting team spirit will build harmony and unity within the organization Max Weber: he developed a theory of authority structures based on an ideal type of organization he called a bureaucracy: a form of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships. 3. Initiative approach: the use of quantitative techniques to improve decision making. Total Quality Management: a philosophy of management driven by continual improvement and responding to customer needs and expectations.
This approach has contributed directly to managerial decision making in the areas of planning and control, such as when managers need to budget, schedule, quality control and similar decisions are made. 4. Organizational behavior: a field of study concerned with the actions (behaviors) of people at work. Hawthorne studies: a series of studies during the sass and ass that provided insight into individual and group behavior. Human relations movement: the belief, for the most part unsubstantiated by research, that a satisfied worker will be productive. Behavioral science theorists: psychologists and sociologists who relied on scientific method for study of organizational behavior. 5. Yeasts approach: known as one of the contemporary approaches. It is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole. Closed systems: systems that are not influenced by and do not interact with their environment.