Management Theory & Practices (Classic Approches)
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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.
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