Scientific Management • Fredrick Winslow Taylor The “father” of scientific management Published Principles of Scientific Management (1911) The theory of scientific management – Using scientific methods to define the “one best way” for a job to be done: • Putting the right person on the job with the correct tools and equipment. • Having a standardized method of doing the job. • Providing an economic incentive to the worker.
1. Develop a science for each element of an individual’s work, which
will replace the old rule-of-thumb method. 2. Scientifically select and then train, teach, and develop the worker. 3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 4. Divide work and responsibility almost equally between management and workers. 5. Management takes over all work for which it is better fitted than the workers.
General Administrative Theorists • Henri Fayol Believed that the practice of management was distinct from other organizational functions Developed fourteen principles of management that applied to all organizational situations • Max Weber Developed a theory of authority based on an ideal type of organization (bureaucracy) Emphasized rationality, predictability, impersonality, technical competence, and authoritarianism
The Hawthorne Studies • A series of productivity experiments conducted at Western Electric from 1927 to 1932. • Experimental findings Productivity unexpectedly increased under imposed adverse working conditions. The effect of incentive plans was less than expected. • Research conclusion Social norms, group standards and attitudes more strongly influence individual output and work behavior than do monetary incentives.
Current Trends and Issues (cont’d) • Globalization Management in international organizations Political and cultural challenges of operating in a global market • Ethics Increased emphasis on ethics education in college curriculums Increased creation and use of codes of ethics by businesses
Current Trends and Issues (cont’d) • Workforce Diversity Increasing heterogeneity in the workforce More gender, minority, ethnic, and other forms of diversity in employees Aging workforce Older employees who work longer and do not retire The increased costs of public and private benefits for older workers An increasing demand for products and services related to aging.
Current Trends and Issues (cont’d) • Entrepreneurship Defined The process whereby an individual or group of individuals use organized efforts to create value and grow by fulfilling wants and needs through innovation and uniqueness.
• Entrepreneurship process Pursuit of opportunities Innovation in products, services, or business methods Desire for continual growth of the organization
Current Trends and Issues (cont’d) • Knowledge Management The cultivation of a learning culture where organizational members systematically gather and share knowledge with others in order to achieve better performance. • Learning Organization An organization that has developed the capacity to continuously learn, adapt, and change.
