GENERAL MANAGEMENT:
MNG 2601
CHAPTER 1: THE EVOLUTION OF THE MANAGEMENT THEORY
UNDERSTANDING THE DIFFERENT MANAGEMENT THEORIES
The environmental forces that shape management thought:
# Environmental Force
1 Social
2 Political
3 Economic
4 Technological
5 International
6 Ecological
Significant developments that have an effect on managers & organisations:
1. Advances in information technology - The internet & other forms of globally connected networks which provide the
ability to share info on a worldwide basis.
- Electronic commerce including EDI (electronic data interchange) enabling
managers to reshape their business processes to improve response time &
efficiency.
- Mobile computing: enables individuals to have access to information technology,
irrespective of their physical location.
2. Globalisation of the marketplace Used to be associated only with large, mature organisations, with the availability of the
internet and the trend toward e-commerce even the smallest business can reach global
marketplace with ease.
3. Increasing predominance of entrepreneurial Entrepreneurs provide opportunities for minorities & others who may face barriers in
firms traditional corporate environments & provides many job opportunities for others.
4. The growing importance of intellectual capitals Many employees will work in knowledge companies, and the value of their knowledge,
as both input & output will determine their value to the organisation.
The key elements of productivity are:
# Element of Productivity
1 The outcome is continuous improvement of performance
2 The improvement must be measurable
3 The key drivers of productivity are:
Effectiveness Doing the right things
Efficiency Doing things the right way
Utilisation Optimum use of human capital and physical resources
Elimination of all forms of waste
4 The benefits of productivity must be:
The environment
The economy
Society
THE CLASSICAL APPROACHES
Scientific Management
Fact Description
Founded by Frederick W. Taylor
What he studied Studied individual workers to see exactly how they performed their tasks
Premise There is 1 best way to perform any task and measure everything that is measurable (time-motion-study)
Problem he addressed How to judge whether an employee had put in a fair day’s work
Limitations Workers cannot be viewed simply as parts of a smoothly running machine
Money is not the only motivator of employees
Creates the potential for exploitation of labour i.e. possible strikes by workers
Can lead to ignorance of the relationship between the organisation and its changing external environment as
MNG 2601
CHAPTER 1: THE EVOLUTION OF THE MANAGEMENT THEORY
UNDERSTANDING THE DIFFERENT MANAGEMENT THEORIES
The environmental forces that shape management thought:
# Environmental Force
1 Social
2 Political
3 Economic
4 Technological
5 International
6 Ecological
Significant developments that have an effect on managers & organisations:
1. Advances in information technology - The internet & other forms of globally connected networks which provide the
ability to share info on a worldwide basis.
- Electronic commerce including EDI (electronic data interchange) enabling
managers to reshape their business processes to improve response time &
efficiency.
- Mobile computing: enables individuals to have access to information technology,
irrespective of their physical location.
2. Globalisation of the marketplace Used to be associated only with large, mature organisations, with the availability of the
internet and the trend toward e-commerce even the smallest business can reach global
marketplace with ease.
3. Increasing predominance of entrepreneurial Entrepreneurs provide opportunities for minorities & others who may face barriers in
firms traditional corporate environments & provides many job opportunities for others.
4. The growing importance of intellectual capitals Many employees will work in knowledge companies, and the value of their knowledge,
as both input & output will determine their value to the organisation.
The key elements of productivity are:
# Element of Productivity
1 The outcome is continuous improvement of performance
2 The improvement must be measurable
3 The key drivers of productivity are:
Effectiveness Doing the right things
Efficiency Doing things the right way
Utilisation Optimum use of human capital and physical resources
Elimination of all forms of waste
4 The benefits of productivity must be:
The environment
The economy
Society
THE CLASSICAL APPROACHES
Scientific Management
Fact Description
Founded by Frederick W. Taylor
What he studied Studied individual workers to see exactly how they performed their tasks
Premise There is 1 best way to perform any task and measure everything that is measurable (time-motion-study)
Problem he addressed How to judge whether an employee had put in a fair day’s work
Limitations Workers cannot be viewed simply as parts of a smoothly running machine
Money is not the only motivator of employees
Creates the potential for exploitation of labour i.e. possible strikes by workers
Can lead to ignorance of the relationship between the organisation and its changing external environment as
