Chapter 3 provides knowledge of the evolution of management theory: Scientific management theory, the 4 principles, problems of scientific management, the gilbreths, bureaucratic principles. | Management Practices Lecture 03 1 Recap Management Levels Restructuring Management Trends Managerial Roles 1. Interpersonal 2. Informational 3. Decisional 2 1-3 Building Blocks of Competitive Advantage Figure Increasing efficiency Reduce the quantity of resources used to produce goods or services Increasing Quality Improve the skills and abilities of the workforce Introduce total quality management Increasing speed, flexibility, and innovation How fast a firm can bring new products to market How easily a firm can change or alter the way they perform their activities Innovation Process of creating new or improved goods and services that customers want Developing better ways to produce or provide goods and services 3 Today’s Lecture The Evolution of Management Theory Scientific Management theory The 4 Principles Problems of Scientific Management The Gilbreths Bureaucratic Principles Fayol’s Principles 4 Scientific Management theory Modern management began in the late 19th century. . | Management Practices Lecture 03 1 Recap Management Levels Restructuring Management Trends Managerial Roles 1. Interpersonal 2. Informational 3. Decisional 2 1-3 Building Blocks of Competitive Advantage Figure Increasing efficiency Reduce the quantity of resources used to produce goods or services Increasing Quality Improve the skills and abilities of the workforce Introduce total quality management Increasing speed, flexibility, and innovation How fast a firm can bring new products to market How easily a firm can change or alter the way they perform their activities Innovation Process of creating new or improved goods and services that customers want Developing better ways to produce or provide goods and services 3 Today’s Lecture The Evolution of Management Theory Scientific Management theory The 4 Principles Problems of Scientific Management The Gilbreths Bureaucratic Principles Fayol’s Principles 4 Scientific Management theory Modern management began in the late 19th century. Organizations were seeking ways to better satisfy customer needs. Machinery was changing the way goods were produced. Managers had to increase the efficiency of the worker-task mix. 5 Job specialization Adam Smith, 18th century economist, found firms manufactured pins in two ways: Craft -- each worker did all steps. Factory -- each worker specialized in one step. Smith found that the factory method had much higher productivity. Each worker became very skilled at one, specific task. Breaking down the total job allowed for the division of labor. 6 The Evolution of Management Theory Scientific Management Defined by Frederick Taylor, late 1800’s. The systematic study of the relationships between people and tasks to redesign the work for higher efficiency. Taylor sought to reduce the time a worker spent on each task by optimizing the way the task was done. 8 The 4 Principles Four Principles to increase efficiency: 1. Study the way the job is performed now & determine new ways to do it. .
