MNGT1001 Lecture Notes - Lecture 2: Queueing Theory, Mary Parker Follett, Value Chain

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Management D2: Historical Foundations of Management.
LO1: What can be learned from classical management thinking?
There are 3 major branches within a classical approach to management:
Scientific management:
oIntroduced by Frederick W. Taylor.
oEmphasis on careful selection and training of workers and supervisory
support.
1. Develop for every job a ‘science’ that includes standardised work
processes and proper working conditions.
2. Carefully select workers with the right abilities for the job.
3. Carefully train and incentivise workers.
4. Support workers with carefully planned work.
oTaylor tried to use these techniques to improve the productivity of workers.
oPractical lessons from scientific management include:
Make results-based compensation as a performance incentive.
Carefully design jobs with efficient work methods.
Carefully select workers with the ability to do these jobs.
Train workers to perform to the best of their abilities.
Train supervisors to support workers so they can perform jobs to the
best of their abilities.
oFrom Taylor’s ‘scientific management’ came Frank and Lillian Gilbreth’s
Motion Study’, which included reducing a job or task to its basic physical
motions in order to increase productivity. This established the foundation
for later advances in the areas of job simplification, work standards and
incentive wage plans- all still used today.
Administrative Principles:
oHenry Fayol identified the following rules or duties of management:
Foresight- complete action plan.
Organisation- provide and mobilise resources.
Command- lead, select and evaluate workers.
Coordination- fit diverse efforts together.
Control- making sure things happen according to plan.
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oFayol believed management could be taught, and set forth a number of
management ‘principles:’
The Scalar Chain Principle:
There should be a clear and unbroken line of
communication from the top to the bottom in the
organisation.
The Unity of Command Principle:
Each person should receive order from only one boss.
The Unity of Direction Principle:
One person should be in charge of all activities that have the
same performance objectives.
oMary Parker Follet created a further set of administrative principles:
Organisations are ‘communities’ where individuals combine talents
for greater good.
Making every employee an owner creates collective responsibility.
Business problems involve wide variety of factors that must be
considered in relationship to one another.
Private profits should always be considered in the interest of public
good.
Bureaucratic Organisation:
oMax Weber described a bureaucracy as a rational and efficient form of
organisation founded on logic, order and legitimate authority.
oThe defining characteristics are a clear division of labour; clear hierarchy of
authority; formal rules and procedures; impersonality; careers based on
merit.
LO2: What ideas were introduced by the human resource approaches?
An emphasis on the human side of the workplace began to form during the 1920’s. The
major branches in behaviour include the famous Hawthorn Studies, Maslows theory of
human needs and the theories generated by Douglas McGregor, Chris Argyris and others.
They all hold that people are social and self-actualising.
The Hawthorn Studies began in 1924, testing how economic incentives and physical
conditions of workplace affected work output. They failed to find this relationship,
instead determining ‘psychological factors’ interfered with experiment.
oIn 1927, Elton Mayo continued by studying effect of worker fatigue on
output, failing to find any relationship between physical conditions and
output and concluded that new ‘social settings’ in test room accounted for
increased productivity.
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Document Summary

There are 3 major branches within a classical approach to management: Make results-based compensation as a performance incentive. Carefully select workers with the ability to do these jobs. Train workers to perform to the best of their abilities. Train supervisors to support workers so they can perform jobs to the best of their abilities: from taylor"s scientific management" came frank and lillian gilbreth"s. Motion study", which included reducing a job or task to its basic physical motions in order to increase productivity. This established the foundation for later advances in the areas of job simplification, work standards and incentive wage plans- all still used today. Administrative principles: henry fayol identified the following rules or duties of management: Control- making sure things happen according to plan: fayol believed management could be taught, and set forth a number of management principles:". There should be a clear and unbroken line of communication from the top to the bottom in the organisation.

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