The industrial revolution had a major part to play in the defining of management theories. This was down to the new ablilites of mass production and the expansion of the railway systems. Products were now being manufactured in factories at quicker rates than ever before and could also be easily transported. More and more companies were being set up to cater for a new demand. It became apparent that to run these companies more effiently there would be a need to formalise management to assist the owners in running their businesses more productively.
It wasn’t until the early 1900’s that management theorists came forward with defined principles of management. We refer to these original ...view middle of the document...
Although this tool is considered a basic and common charting tool today, it was revolutionary of it’s time.
Frank and Lillian Gilbert, a husband and wife team developed time studies known as time in motion. Frank was a bricklayer and observed other bricklayers and the steps they were taking to lay the bricks, they were slow and inefficient. He was interested in standardisation and so set out the basic movements for the most efficient way to do the job. This proved a success when the average number of bricks laid per day increased from 1000 to 2700 per person.
These people along with others defined what we refer to as Scientific Management which is also referred to as ‘Taylors Four Principles of Scientific Management’.
1. Developing new standard methods for doing each job.
2. Selecting, training and developing workers instead of allowing them to choose their own tasks and train themselves.
3. Develop a spirit of co-operation between workers and management to ensure that work is carried out in accordance with devised procedures.
4. Dividing work between workers and management in equal shares with each group taking over the work that is best fitted to them.
The scientific approach concentrates on the productivity of individuals, the administrative approach concentrates of the whole organization. The emphasis is on managerial principals rather than work methods.
Max Weber was one of the contributors to the administrative management approach. He disliked the way that most European companies were ran on a personal family-like basis. Employees were loyal to individual supervisors rather than the company as a whole. He believed that companies should be managed impersonally with a formal structure and specific rules. He believed that people should gain authority by their job title, not by their personality. When a person left their position, another person would move up and fill it and gain the authority, he called this a bureaucracy which he defined by 6 principles.
1. A well defined hierarchy – Structured in a way that lets those in higher positions control those below them, in a chain downwards effectively controlling the entire organization.
2. Division of labour and specialization – Tasks are distributed to those who specialize in the area, each employee is hired to do a specific task.
3. Rules and regulations - To regulate the actions of employees and to facilitate co-ordination.
4. Impersonal relationships between managers and employees - To eliminate decisions being made on personal basis or favouritism.
5. Competence – People should be hired on what they know, not who they know.
6. Records – A bureaucracy needs to retain files of all its activities.
Henry fayol was the main contributor to the administrative management approach. He developed 15 principles of management based on his experience as a manager.
1. Division of Work and Specialization - Achieves better work for the same effort.
2. Authority & Responsibility – A manager...