Chapter 1: Basic Management Principles
This chapter introduces a lot of information regarding management. The topics cover a lot of different areas. There are a lot of different theories presented; be sure students concentrate on the contributions of each. This provides an excellent background for students.
A. Principles and Theories of Management
1. Classical Management Theories focused on the efficiency of the workforce with little regard for the human element.
Scientific management theorists include:
Frederick W. Taylor was known as the father of Scientific Management, the emphasis was efficiency. His belief was that management should plan, select, train, and control, while workers should perform.
Lillian and Frank Gilbreth followed Taylor’s approach. They developed a system for classifying hand motions into 18 elements known as therblig.
Henry L. Gantt became concerned with the human side; he developed the Gantt chart in 1917.
William H. Leffingwell applied principles to office work in his book Scientific Office Management.
Administrative management focused on what good managers do:
It was originated by Henri Fayol in his book General and Administrative Management. He set forth a list of 14 principles. Review in the text.
Max Weber described ideal organization as a bureaucracy.
2. Human Relations Management Theory arose because the human element was being ignored.
Studies began in the early 1920s.
The Hawthorne studies were conducted by Mayo, Roethlisberger, and their associates in the early 1920s. They began as a study of effect of specific factors on productivities, but conclusions showed personal attention made the most difference.
The most prominent theories include:
Maslow’s hierarchy of needs demonstrates human needs Review figure 1-2.
Herzberg’s motivation-hygiene theory of motivation Review figure 1-3.
3. Behavioral Science Approach gained popularity in the mid 1920s and continues through today.
Organizational Behavior Theories were developed by Douglas McGregor and Rensis Likert.
McGregor’s Theory X and Theory Y as the bases for management theories, classical management is based on X and Y and is a more humanistic view
Likerts’ leadership model includes a leadership styles between the two extremes of X and Y
4. Management Science Theory came from the need for better models to help with huge logistical moves as WW II started. More emphasis was placed on operations research and management.
The quantitative approach related to planning and controlling in the decision making process.
Software is available for many of these processes including budgeting, scheduling, and inventory control
5. Contemporary Management Approaches began being applied in management.
Systems theory is an extension of the human relations, it began getting attention in the 1950s
Contingency theory says no one approach can work in all situations and organizations. Facts of a situation must be evaluated and then a tool or process can be chosen.
Total Quality Management was advocated by W. Edwards Deming. He believed in using a constant standard and tracking quality using statistics.
B. The Functions of Management
1. Planning is the most important and basic management function. Its purpose is the define where the organization wants to go, what goals it wants to achieve, who is responsible for what, and how it will be performed. Planning increases the likelihood of success.
Organizational goals should be derived from its mission statement, and the objectives should be based on the goals (both long-term and...
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