Contemporary Management

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Types of Structure: Mechanistic structure: Authority is centralized, tasks and rules are clearly specified, and employees are closely supervised Organic structure: Authority is decentralized to middle and first-line managers, and tasks and roles are left ambiguous.

Contingency Theory

Contingency theory is the idea that the organizational structures and control systems managers choose depend on characteristics of the external environment in which the organization operates.

Open system: A system that takes resources for its external environment and transforms them into goods and services that are then sent back to that environment where they are bought by customers.

Closed system: A self-contained system that is not affected by changes in its external environment. Likely to experience entropy: The tendency to lose its ability to control itself and, thus, dissolve and disintegrate.

Input stage: The organization acquires resources such as raw materials, money, and skilled workers to produce goods and services. Conversion stage: Inputs are transformed into outputs of finished goods and services. Output stage: Finished goods are released to the external environment.

Organizational Enviroment Theory

It refers to the set of forces and conditions that operate beyond an organization’s boundaries but affect a manager’s ability to acquire and utilize resources.

Quantitative management: Utilizes mathematical techniques, like linear programming, modeling, simulation, and chaos theory. Operations management: Gives managers a set of techniques they can use to analyze any aspect of an organization’s production system to increase efficiency.

Management Science Theory

focuses on the use of rigorous quantitative techniques to help managers make maximum use of organizational resources to produce goods and services.

Hawthorne looked at how the characteristics of the work setting affected worker fatigue and performance

Hawthorne and Mary Parker

Mary Parker Suggested workers help in analyzing their jobs. Suggested if workers have relevant knowledge of the task they should be in control of the work process.

Behavioral Management Theory

It is the study of how managers should behave to motivate employees.

Authority

Max Weber

Developed the principles of bureaucracy.

Administrative Management Theory

The study of how to create an organizational structure and control system that leads to high efficiency and effectiveness.

1. Study and gather all the information and experiment ways to improve eficency 2. Codify new methods of performing tasks into written rules 3. Select workers that match the needs of the task. 4. Establish a level of performance for a task, and a pay system

It is the systematic study of the relationships between people and tasks to increase eficency.

4 Principles of Scientific Managment

Taylor and Scientific Management

Scientific management

Job specialization

Process by which a division of labor occurs as different workers specialize in different tasks over time.

Job specialization and the division of labor

Smith found that the performance of the factories in which workers specialized in only one or a few tasks was much greater than the performance of the factory in which each worker performed all 18 pin-making tasks.

Contemporary Management

Evolution of management theory.