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Learning Outcomes
Describe how the need to increase organizational efficiency and effectiveness has guided the evolution of management theory. Explain the principle of job specialization and division of labor, and tell why the study of person-task relationships is central to the pursuit of increased efficiency.
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production) were replaced by large factories. In these factories, hundreds or even thousands of unskilled or semiskilled employees controlled the sophisticated machines that made products.
Based on his experiments and observations as a manufacturing manager in a variety of settings, he developed four principles to increase efficiency in the workplace:
acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level.
principles that he believed to be essential to increasing the efficiency of the management process.
organizational goals.
Follett concerned that Taylor ignored the human side of the organization. - Suggested workers help in analyzing their jobs. - If workers have relevant knowledge of the task, then they should control the task.
Behavioral Management Theory The Hawthorne Effect Studies conducted at the Hawthorne Works of the Western Electric Company:
Researchers found that regardless of whether the light levels were raised or lowered (characteristics of the work setting), worker productivity increased. Concluded that a managers behavior or leadership approach can affect workers level of performance (Hawthorne Effect).
Behavioral Management Theory Theory X and Theory Y Douglas McGregor proposed the two different sets of assumptions about workers.
Theory X assumes the average worker is lazy, dislikes work and will do as little as possible.
Managers must closely supervise and control through reward and punishment.
Theory Y assumes workers are not lazy, want to do a good job and the job itself will determine if the worker likes the work.
Managers should allow workers greater latitude, and create an organization to stimulate the workers.
4. Management Information Systems (MISs) help managers design systems that provide information about events occurring inside
Organizations are open systems that are influenced by and interact with their environments. An open system is a system that takes in resources from its external environment and converts or transforms them into goods and services that are sent back to that environment, where they are bought by customers.
A closed system, is a self-contained system that is not affected by changes in its external environment. Organizations that operate as closed systems, that ignore the external environment, and that fail to acquire inputs are likely to experience entropy.
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