MNG2601
G E N E R A L MA N A G E ME NT
Chapter 1
TEXTBOOK NOTES
, The Evolution of Management Theory
Lesson 1: The Evolution of Management Theory
- The business world is the transformation of inputs (resources) into outputs (products & services)
- All managers are searching for an answer to: "What is the best way to manage a business?"
- All businesses change — theories of management change too
TRADITION THEORIES OF MANAGEMENT Learning Outcome 01: Explain the
traditional theories of management by
Management theories: concepts, principles, and general rules that guide managers in effectively & referring to the scientific, bureaucratic,
efficiently managing a business administrative, human relations,
operations, quality, information,
systems and contingency approaches
Scientific management: an attitude and philosophy — eliminates the errors of hit and miss, rule of thumb
to management
& trial and error in managing work and workers
Scientific approach to management
• Involved a thorough study & testing of different work methods to identify the best/most efficient
way to complete a job
1. Frederick W Taylor ('father of scientific management')
2. Frank Gilbreth
3. Lillian Gilbreth
4. Henry Gantt
Frederick W. Taylor (1856 — 1915)
▪ Scientific management is about finding the 'one best way' to perform each task
4 Principles of management:
1. Each part of individual's work is 'scientifically' analysed ; most efficient/'one best way' of working is
devised
▪ Consists of:
a. Examining the implements & equipment required to carry out the work
b. Measuring the maximum amount a 'first-class' worker could do in a day
○ Workers are expected to do this much work every day
2. Most suitable person to undertake the job is 'scientifically' chosen again
▪ Individual is taught to do the job exactly as devised
▪ Taylor believes everyone has the ability to be 'first-class' at a job
○ Management's role to discover which job suits each employee & train them to be 'first-class'
3. Managers have to cooperate with employees to ensure implementation of scientific principles
4. Clear 'division' of work & responsibility between management and workers
○ Managers plan and supervise the work ; workers carry it out
Frank Gilbreth (1868 — 1924) and Lillian Gilbreth (1878 — 1972)
Pioneered the study of 'time and motion' at work
Set up experiments to examine movements that individual workers made while doing their daily work
3 Steps of management theory:
1. Reduce the number of motions in a task
▪ Working efficiently benefits the employer and worker: employees gain more productivity ; workers
have reduced stress & fatigue
▪ Determined which motions are necessary ; eliminated unnecessary motions to increase efficiency
2. Focus on the incremental study of motions and time
▪ Studied motion and time to calculate the most efficient method to complete a task
▪ Motion studies → used to simplify work, improve productivity & reduce level of effort required to
safely perform a job
▪ Time studies → timed the duration a 'first-class worker' took to complete each part of their job
○ Established a standard time
3. Increase efficiency to increase profit and worker satisfaction
▪ Manager's main goal should be to increase efficiency in each individual employee — as a result, in the
business as a whole
▪ Believed that happy, healthy workers were vital to an efficient, successful workplace
○ Could reduce employee fatigue — allows them to do work for longer & feel less exhausted ;
profits improved
Bureaucratic management
• Top leaders in monarchies and patriarchies achieved their positions by virtue of birth right
• Promotion to prominent positions was based upon who you knew, who you were or ancient rules
and traditions
Max Weber (1864 — 1920)
▪ Viewed bureaucracy as the exercise of control based on knowledge, experience or expertise
▪ Aim of bureaucracy (according to Weber): not to protect authority, rather, to achieve a business's
