Management Theory & Practices (classic Approches)

Management Theory & Practices

“CLASSIC APPROACHES”

I- SYSTEMATIC MANAGEMENT

Key Concepts

• Systematic manufacturing operations

• Coordination of procedures & processes built into internal operations

• Emphasis on economical operations, inventory management & cost control.

Contributions

• 1890-1900 = Beginning of formal management in the US promotion of efficient, uninterrupted production.

Limitations

• Ignored relation ship between an organization & its environment.

• Ignored difference in manager’s & worker’s views.

During the 19 th century growth in U.S businesses centered on manufacturing.

Early writers such as Adam Smith believed the management of these firms was chaotic [disordered] & there ideas held to systemize it.

Most organizational tasks were subdivided & performed by specialized labor. However poor coordination among subordinates & different levels of management caused frequent problems & breakdown of the manufacturing process.

The Systematic Management approach attempted to build specific procedures & processes into operations to ensure coordination of effort. Systematic management emphasized economical operations, adequate staffing, maintenance of inventories to meet customer demand & organizational control. These goals were achieved through:

• Careful definition of duties & responsibilities.

• Standardized techniques for performing these duties.

• Specific means of gathering, handling, transmitting & annualizing information.

• Cost according wage, & production control systems to facilitate internal coordination & communication.

Systematic management emphasized internal operations because managers were concerted primarily with meeting the explosive growth in demand bought about by the industrial revolution.

II- SCIENTIFIC MANAGEMENT

Systematic Management failed to lead into the widespread production efficiency.

Taylor – US Engineer

Midvale Steel Company – 1878

Discovered:

Production & pay are poor

Inefficiency & waist is prevalent [Common]

Companies have tremendous unused potential.

Solution = Scientific Management

a) Analyze work

b) How to complete the Tasks effectively

c) Scientific calculations instead of General guidelines

Example:

U.S Steel’s contract with the United Steel Workers of America specified that:

Shovelers should move 12.5 shovelfuls p/m

Shovelfuls should average [W]15 pounds of River Sand Composed of 5.5 % moisture

Taylor’s Four Principles of Management

1. Develop a precise scientific approach to replace general guidelines

2. Mgt should scientifically select, train, teach & develop each worker so that the right person is at the right job.

3. Management should cooperate with workers to ensure the jobs match plans & principles

4. Mgt to ensure an appropriate division of work & responsibility between management & worker.

Key Concepts

– Choosing one best way to complete production tasks.

– Emphasized study of tasks, selection & training of workers.

– Cooperation between workers and management.

– systematic analysis of