This is a fast reading summary of Organisation and Management by van Dam 3rd edition 2015. Chapters 1 -4 and 7 are compacted in an easy to read fashion.
1. The Evolution of organisation and management
thoughts
§1.1 Introduction
Organisational behaviour= an interdisciplinary science that is concerned with the study of the
behaviour of organizations as well as the factors that determine this behaviour, and the manner
in which organizations can be directed.
-> descriptive aspect description of behaviour
-> prescriptive aspect advice about organisational design
Interdisciplinary= involves many disciplines from various scientific fields
Multidisciplinary= the various contributions made by the various sciences are weighed up,
compared with one another en then used to develop a new approach – one in which the subject
is seen in its entirety.
-> direction targeted persuasion, guiding activity
-> effectiveness overall measure of activities
§1.2 Origins of the field of study
One of the first persons that suggested management was a science that could be learned, instead
of inborn talent, was Henry Fayol (1841-1925). (§1.7) Organisational behaviour was introduced
as a major study at technical colleges soon after WWII. The subject was initially called business
organization and it had more technical content than now. Organisational behaviour as we now
know it was introduced into the Dutch higher education system during the 1960s and 70s. Many
interdisciplinary are divided in courses or minors whom are given a different label such as
organization and management.
§1.3 The development of trading and the emergence of multinational enterprises
Silk Road= The Silk Road was one of the oldest trade routes. It was set up in 1 st century BC en
encompassed Europe, the Middle East and Asia. It linked the Roman and Chinese civilizations.
One of the first multinationals where the English East India Company and the Dutch East India
Company.
§1.4 Schools of thought and personalities
Some individuals represent a particular idea or school thought within the field of organisational
behaviour.
§1.5 Events prior to the industrial revolution (400 BC-1900 AD)
It all began with the ancient Greek philosophers Socrates and Plato. And later on in the work of
the Italian Niccolo Machiavelli (1469-1527) in his book Il Principe. These guidelines are
especially directed towards the preservation and expansion of power. Until the second half of
the 18th century, the dominant economic school of thought was mercantilism. One of its key
beliefs was that the possession of bullion (gold and money) was the only measure of national
wealth. The aim was therefore to export more than was imported in order to accumulate money
which could be kept in reserve for times of war. This view started to change in 1776 when Adam
Smith (1723-1790) wrote an influentional book, called An Inquiry into the Nature and Causes of
the Wealth of Nations. Amongst other things, it put forward the notion that productive work is
the source prosperity and that effective division of labour can raise levels of productivity. Key
word: efficiency. In the 18th century pioneers developed the pressurized coal-fired steam engine,
making mass production in factories possible. By the end of the 19 th century, American
companies had grown dramatically. In this situation, there was clearly a need for a more
structured and systematic approach, the one who saw this and decided to do something about
this was engineer Frederick Winslow Taylor (1856-1915).
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§1.6 Frederick Taylor and scientific management (±1900)
Frederick Taylor was the first to suggest a systematic, coherent approach to determine the
manner in which factories should be organised. The manager should be focusing on planning,
coordination and overseeing, and checking of results. Key elements are:
Scientific analyses of the activities that should be carried out and the time and motion
studies to be used.
Clear division of tasks and training for the workforce so that each task and operation can
be precisely identified and allocated. Working routines -> improvement production.
Close and friendly relationship between managers and workers
Managers being held responsible for seeking and analyzing appropriate working
methods and for creating optimum conditions for production.
Use of careful selection processes to obtain the best person for the job.
Financial rewards being given for following prescribed methods in order to reduce
production costs.
Furthermore, Taylor proposed a division of front-line supervisory responsibilities within the
production of department into eight separate areas. Each area and its tasks was to be the sole
responsibility of a particular individual:
1. Time and costing
2. Task instructions
3. Order of work
4. Work preparation and allocation
5. Maintenance
6. Quality Control
7. Technical guidance
8. Personnel Management
This system has become known as the eight-bossed system. However, the increased efficiency
was rarely matched by an increase in wages or an improvement in relations with management,
as Taylor had suggested would happen. The impact of such consequences, which the Charlie
Chaplin film Modern Times had immortalized and in which the names Taylor and scientific
management will forever be linked, was the idea of workers simply being an extension of a piece
of machinery, with boring tasks, restriction of freedom and reduced job satisfaction.
§1.7 Henry Fayol and the general management theory (±1900)
In Europe it was Henry Fayol (1841-1925) who first developed a coherent set of guidelines
relating to the way in which organisations could manage their operations as a whole. His general
management theory was intended to be an educational model. In it, he identified six
independent management activities:
1. Technical
2. Commercial
3. Financial
4. Security (safeguarding people and properties)
5. Accounting
6. Directing
Activities 1 to 5 would be coordinated via activity 6 (Directing), which would consist of five tasks
1. Planning Setting up of an action plan for the future
2. Organising Structuring the organisation, its people and its resources
3. Commanding Leading in a way as to ensure full participation
4. Coordinating Gearing each activity to the plan
5. Controlling Ensuring that the results are as planned
For Fayol, unity of command was the most important principle. His legacy includes more
attention being paid to the tasks of managers.
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