Week 2 Introduction into management

Origins of organisations & reasons for their existence

Classical Theories

Human Relations Theory

Scientific Management

Hawthorne Studies

System Theory

Contingency Theories

Conclusions

Organisation - 'social arrangements for the controlled performance of collective goals'

General characteristics of orgs

consist of people

collective goals

clearly defined hierarchy

limits are clearly defined

Why Orgs exist

to facilitate 'synergy'

to facilitate 'division of labour'

establishment of formal systems of responsibility and authority

Ideas on management developed by the earliest theorists

Emphasised the purpose of organisations and highlighted formal structures

effective management a product of rules and guidelines II rigid principles

focused on organisational productivity rather than individual productivity

assumed human beings work in a predictable manner

Key thinkers

Henri Fayol

Principles & functions of management

Frederick Taylor

Scientific management

Time & motion study

Scientific methods instead of old rule of thumb techniques

Scientific selection & training

Money as a motivational tool

Frank & Lillian Gilbreth

Henry Gantt

Charles Bedaux

Criticisms

Ignores psychological needs of workers

Assumes money is the only motivator

Adopts a simplistic view of productivity

Ignores the importance of formal and informal work groups

Anti-union

Key thinkers

Max Weber

Human are innately wired to follow those is presumed positions of authority (position status, legal, formal appointment, charisma, tradition)

Purpose is to maximise organisational efficiency

Argues for focus to be directed at humans