, Evolution of Management Theory 3 8
Managing in a changing environment 9 14
Managerial decision-making 15 20
Individuals in an organisation 21 27
Motivation 28 35
Communication and interpersonal
36 43
relationships
RESOURCES FOR COMPILING THIS DOCUMENT:
Book Title: Contemporary Management Principles [Author(s):Vrba M J
Brevis Tersia Edition:2021 ISBN:9781485131007 Edition: 7th Chapters:
2,3,6,12,14,15]
STADIO MAN201 2023 Study Guide
Additional resources from Google.
CAUTION:
When doing assignments please reference the textbook and documents
as above and note that this document is merely A GUIDE NOT TO BE USED
SOLEY FOR ASSIGNMENTS AND CAN NOT BE REFERENCED! Please use correct
referencing in your assignments.
FAST CHANGING BUSINESS ENVIRONMENT = no single best way to manage a business organisation
[evolution of management theory & thoughts = satisfy changing needs of society = explains the dominant
issues & culture of a specific time, and management approaches to dealing with them]
W Ancient civilians = basic principles
W Egyptians > management principles = planning, organising & controlling [building pyramids]
W ALEXANDER THE GREAT = strategic plans, organising & leading by example
W 19th century entrepreneurs [Henry Ford, Alexander Graham Bell, Colonel Harland David Sanders] =
capitalists risking their own money in organisations > self-appointed managers risking it all alone and
take all the profits = ENTREPRENEURIAL CAPITALISM
W Technical innovation [Industrial Revolution] = cheaper & more affordable products = agrarian lifestyle →
industrialised lifestyle [exposed to working environment]
W Relocation of people from farms → cities = need created for new products & services [housing,
sanitation, transport, schools etc.]
SPLIT BETWEEN OWNERS & MANAERS = need for professional managers developed
WHY STUDY MANAGEMENT THEORY?
1. Not repeating mistakes > past managers
2. Better understand current principles
[Managers = know the different classical / contemporary management concepts, tools and techniques >
able to select best approached when needed]
Creation of management theory [THEORISTS]:
W Identify the dominant variables in the business environment
W Rely on observation of what happens in the real workplace
W Make assumptions
W Construct a model / theory [explains above points]
MANAGEMENT THEORIES
UNDERSTANDING THEORIES
Theories = based on assumptions
Productivity = complex issue > management theorists provide explanations & solutions to optimising a
business organisations scarce resources & improve productivity in the organisation
Subject = changed / shaped over time by environmental influences [social changes = society change in
attitude towards child labour, woman in the workplace etc.] THUS as environmental forces change =
management has to change = adapt / adjust to new realities
TECHNOLOGICAL CHANGES [implications > managers]
Work = knowledge based [knowledge workers = use brains and owns the means of production in the new
economy → knowledge (portable = mobile workforce > new organisational structures implemented >
networks / virtual organisations)
New organisational structures = affect way in which managers lead & control subordinate activities
The focus for managers is no longer on input-output only > well being of people & planet = major focus of
management decisions
W Late 19th century > 1920’s
W Developed in response to changes in the environment requiring new way of thinking about managing
business organisation
FOCUS
= determine most efficient way to
perform specific tasks
SCIENTIFIC MANAGEMENT SCHOOL = issue of MANAGING work (not people)
Frederic W Taylor [mechanical engineer] > late 1800’s > ways to improve productivity of workers
Harvard Business Review = BUSINESS REENGINEERING
= one best way to perform any task
= money motivates workers [piecework system = basis for pay]
= has dehumanising effect on workers [treats workers like machines > movements comply with rigid
standards]
= approach ignores > workers are humans & have emotions
W Analysed each aspect of each task & measured everything measurable
W Physical movements slowing down production = eliminated & exact sequence of activities determines
= standard time for accomplishment of each task determined [ > describe performance objectives
quantitively = TIME AND MOTION STUDY]
u Frank & Lillian Gilbreth > work simplification [productivity] (Frank > movements of bricklayers +
determined what body movements could be eliminated]
u Henry L Gantt > productivity at shop-floor level → chart showing the relationship between work planned
& completed on one axis and time elapsed on the other → Gantt Chart
LIMITATIONS:
W Workers cannot be viewed as parts of a smoothly running machine
W Assumptions about the motivation of employees are stated too simplistically
W This approach creates the potential for the exploitation of labour → possible strikes by employees
W Can lead to the IGNORATION of the RELATIONSHIP between the organisation and its changing external
environment [focus remains on the internal issues > workers & productivity]
FOCUS
= focuses on the 5 elements
PROCESS [ADMINISTRATIVE] APPROACH [fuctions] of management which
forms a process.
→ grew from the need to find guidelines for managing complex organisations
Henri Fayol > greatest European management pioneer → described the practise of management as being
different from finance, production, marketing & other typical business functions
5 BASIC FUNCTIONS OF ADMINISTRATION
1. Planning [formulation of goals]
2. Organising [effective coordination of resources > attain set goals]
3. Commanding → leading / leadership [art of leading people]
4. Coordinating → activities of groups > provide unity of action > smooth functioning organisation
5. Controlling [seeing that everything was done according to the set plans & that the stated goals
were indeed attained]
14 GUIDELINES / PRINCIPLES FOR EFFECTIVE MANAGEMENT [FAYOL]
1. Division of labour → specialisation increases output > employees more efficient
2. Authority & responsibility → authority (responsibility) gives managers the right to give orders
3. Discipline → employees must respect rules governed by an organisation
4. Unity of command → employee receive orders from one superior
5. Unity of direction → same goal = one manager = one plan
6. Subordination of individual interest to the common good → interest of individuals > not take
precedence over interests of organisation
7. Remuneration → fair to employee AND employer
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller notedx19. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.18. You're not tied to anything after your purchase.