Presentation on theme: "Classical- scientific theories. What is it? Ideally aim establish business to achieve rational goals such as profit or return on assets Reduce cost."— Presentation transcript:
What is it? Ideally aim establish business to achieve rational goals such as profit or return on assets Reduce cost of productions + increase sales Improve efficiency of the business
Frederick Taylor and scientific managment Four principles: Scientifically selected or test, train, teach and develop the worker Develop a science for each part of an individuals work which will replace the rule of thumb-method – specialisation Division of labour: management take harder jobs or responsibilities Cooperate: workers will only work, if they get incentive $$$
Taylorism: introduced when mass production started reduce cost of many products Improve production efficiency
Henri Fayol and the functions of management Focus on function of management Develop the business as a whole
Fayol's 14 principles division of work: specialisation increase - Authority of manager: give order - disciplines of employees: obey and respect the rules - unity of command: receving the orders from superior - unity of direction: single plan of business - remuneration: fair wage
subordination of individual interests to the general interest: employees should not take precedence over the interest - stability of tenure of personnel: provide orderly personnel planning - centralisation: degree to which subordinates are involved in decision making - order: at the right place at the right time - initiative - equity: fair to their subordinate - scalar chain: the rank from top to lowest - esprit de corps: promoting team spirit
Max Weber he developed the bureaucracy Bureaucracy is characterised by...
Bureaucracy Career orientation Division of labour Authority hierarchy Formal selection Formal rules and regulation Impersonality
Management as planning, organizing and controlling Division between managers (planning and controlling) and workers (follow) Manager: work out the best way job could be done/ ensure Management: train and motivate workers ensure they work best
Management function Planning, organising, commanding, coordinating and controlling Setting the strategies and direction for business organisatio Measure performance of the business
Hierarchical organisation structure based on division of labour The chain of command Authority running from upper level to lower level management Generally narrow span of control – layers and levels Levels of management: Pyramid (number of employees are greater than managers)
First line manager lowest level Supervisors line manager, office manager or foremen Work of non-managerial employees (day- to-day)
Middle line manager All level between first line managers and top level of business Work for first line Title: department head, project leader or division manager
Top manager Main responsibility in setting up strategic direction Making decision Plan Goal Title: managing director, chief executive officer or chairman of the board
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