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Chapter 2

Chapter 2 Notes.docx

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Dave Swanston

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Chapter 2 – The Evolution of Management Theory th - Evolution of modern management began in closing decades of 19 century, after Industrial Revolution (Europe, Canada, USA) o Small workshops run by skilled workers replaced by large factories o Large factories had hundreds/thousands of unskilled employees to control machines - Many managers were technically skilled but unprepared for social problems that occur between people Job Specialization and Division of Labour - Adam Smith compared relative performance of 2 manufacturing methods o First; similar to crafts-style production, each employee responsible for all 18 tasks involved in making a pin o Second; each employee performed one or few tasks in 18 pin making tasks o Found that 10 employees specializing in task could make 48000 pins/day o Employees that did everything made only few thousands - Job Specialization; the process by which a division of labour occurs as different employees specialize in different tasks over time (increases efficiency and leads to higher organizational performance) F.W. Taylor and Scientific Management - Frederick W. Taylor known for defining - Scientific management; the systematic study of relationships between people and tasks for purpose of redesigning the work process to increase efficiency - Believed production process is more efficient if amount of time and effort each employee spent to produce unit of output could be reduced - Noted increased specialization and division of labour could increase efficiency - Developed 4 principles to increase efficiency in the workplace o Study way workers perform tasks, gather all informal job knowledge workers possess and experiment ways of improving way tasks are performed o Codify new methods of performing tasks into written rules and standard operating procedures o Carefully select workers so they possess skills and abilities that match needs of task, train them to perform task according to established rules and procedures o Establish fair or acceptable level of performance for a task, then develop a pay system that provides reward for performance above acceptable level The Gilbreths - Followers of Taylor (Frank Gilbreth & Lillian Gilbreth) - Made contributions to time-and-motion study - Aims were to o Break up a particular task into individual actions, and analyze each step needed to perform the task o Find better ways to perform each step o Reorganize each step so that action as whole could be performed more efficiently- at less cost in time and effort - Often filmed employee performing task then separated task actions, speculated frame by frame, many small differences add up to enormous savings of time and effort - Jobs became boring, repetitive, employees dissatisfied - Managers tried to introduce work practices to increase performance, employees tried to hide true potential efficiency of work setting in order to protect own well-being Administrative Management Theory - Administrative Management; study of how to create an organizational structure that leads to high efficiency and effectiveness - Organizational structure is system of task and authority relationships that control how employees use resources to achieve organization’s goals - Two most influential views regarding creation of efficient systems of organizational administration developed in Europe - Max Weber, German prof of SOC developed one - Henri Fayol, French manager developed another The Theory of Bureaucracy th - Max Weber wrote at start of 20 century, when Germany undergoing Industrial Revolution - Bureaucracy; formal system of organization and administration designed to ensure efficiency and effectiveness o First; in bureaucracy, manager’s formal authority derives from position he/she holds in organization  Obedience is owed to manager, because manager occupies position that is associated with certain level of authority and responsibility o Second; in bureaucracy, people should occupy positions because of their performance, not because of social standing or personal contacts  Not always followed in Weber’s time, often ignored today o Third; extent of each position’s formal authority and task responsibilities, and its relationship to other positions in organization, should be specified  When tasks are specified, managers and employees know what is expected of them and each other  Authority; power to hold people accountable for their actions and to make decisions concerning use of organizational resources o Fourth; for authority to be exercised effectively in organization, positions should be arranged hierarchically, helps employees know whom to report and vice versa  Managers must create organizational hierarchy of authority that makes clear; • Who reports to whom • To whom managers and employees should go if conflicts or problems arise (Armed Forces, CSIS, RCMP) o Fifth; managers must create well-de
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