Summary of Lecture 1 The Study of Management and Organisations

Transcription

1 Summary of Lecture 1 The Study of Management and Organisations Highlight The lecture delivers the development of management theories from early history to present. This forms the foundation for students to study the subsequent lectures of the unit. Early history: Early practice developed in Egypt, China, India, Britain Scientific management: Frederick Taylor (an engineer) and Henry Gantt (Gantt chart designer) General administrative theorists: Henri Fayol (14 principles) and Max Weber (bureaucracy) Quantitative approach: operations research, management science Organisational behaviour: Hawthorne Studies, human relations, behavioural science Key concepts Frederick Taylor each element of work can be defined, measured,... staff can be selected, trained, developed based on welldefined procedures, evaluation criteria, KPIs, good job design to coordinate tasks among workers to avoid redundancy workers and management share equal portion of responsibility Page 1

2 Henry Gantt To hire the best qualified worker To use incentive systems based on output To eliminate wasted motions Henri Fayol Fayol's management function Planning Organising Commanding Coordinating Controlling Plan Organise Lead Control 1. Division of Work work be broken down into specialisations to make employees more efficient 2. Authority and Responsiblity manager has the authority to give orders and should then be responsible for the outcomes 3. Discipline employees should obey and respect the rules 4. Unity of Command every employee receive order from one superior 5. Unity of Direction have a single plan of action 14 Principles of Management 8. Centralisation decision making should be centralised 9. Scalar chain have a clear chain of authority from the top management to the lowest level 10. Order resources in the right place at the right time 11. Equity should be kind and fair to the subordinates 12. Stability of tenure manager should ensure the career development of the subordinates have been planned 6. Subordination of individual match their own interests to the interests of the organisation 7. Remuneration organisation should pay a fair wage to each worker 13. Initiative workers are allowed to originate and carry out plans that they can generate high effort 14. Espirt de corps promote team spirit is important to the organisation Page 2

3 Max Weber developed a theory of authority structures and relations that remove inefficiency described an 'ideal' organisation called bureaucracy being criticised as takes away creativity division of labour 2. authority hierarchy 3. formal selection 4. rules and regulations 5. impersonality 6. career orientation Operations research or management science involves the applications of statistics, optimisation models, information models, computer simulations to improve managerial decision making Hawthorne Studies illumination: level of light varying relay assembly: varying set of variables interviewing: abandoned bank wiring: group pressures Page 3

4 Illumination not influenced by the varying level of light Relay assembly mainly influenced by extra interest and management attention Questionnaire instead of interviewing unintended discovery Small group Type of supervision New and interesting situation Interest in experiment Attention received in the test room Bank wiring productivity affected by group presssures rather than financial incentives Situation: lack of a test room and new personnel Findings: Workers formed informal groups and teams Individuals, teams, groups work on own pattern Incentive has no effect on the productivity Page 4

5 Human relations: Maslow's hierarchy of needs, McGregor's Theory X and Y, and Carnegie needs in levels, climbing up one by one, but dropping down one by one or in a sudden revised by his follower making motivators and hygiene factors author of the textbook for managers to win friends and influence people people of Theory X style needed strict supervision, reward and punishment work well people of Theory Y style are motivated by job satisfaction Behavioural science: Theory integration, management practice Integration of management theories Process approach management performs the fuctions of planning, organising, leading, and controlling Systems approach recognises the interdependency of internal organisational activities, and of the organisation, and its external environment as a whole Contingency approach recognises and responds to situational variables as they arise Page 5

6 Management practice Globalisation no longer constrained by national borders Workforce diversity combination of workforce in terms of gender, race, ethnicity, and age to introduce a broader range of viewpoints and problem-solving skills Entrepreneurship capitalising on environmental change to create value; introducing new approaches to satisfy unfulfilled market needs; to remain small Electronic business expand the business to regional or global based on the Internet and improve internal process by means of intranet Total quality management to continuously improve the quality of work; have to define quality, how to measure, and empower employees Workplace spirituality to recognise an inner life that develops meaningful work; the sense of calm, belonging, connection, fulfillment, and meaning; may improve productivity, job commitment, and reduce staff turnover Learning organisation to recognise that knowledge is an important resource; develop the organisation capacity to continuously learn, adapt, and change Knowledge management organisation members gather knowledge and share it with others; that means collaborate rather than compete among members; managers transform from bosses to team leaders, becoming active listeners, motivators, coaches, and trainers Innovation and flexibility without a constant flow of new ideas, an organisation comes failure; organisation should be flexible to accommodate changing customer needs, appearance of new competitors, employees turnover - End - Page 6