MGMT 110 Lecture Notes - Lecture 2: Elton Mayo, Iso 9000, Time And Motion Study
Week 2: Managing One Best Way?
Learning Objectives
- After completing this topic, you will be able to:
o Discuss embedded management applications in historical events
o Describe the main approaches that developed in early management theory and continue to
inform management today
o Discuss why there is no one best way to manage
o Explain why McDonaldisation is a major force shaping much of the way we live
Introduction
- The ‘One-Best-Way’
o Many management ideas reduced management to simple principles or ‘one-best-way’ models
o Wherever economic activity has spread across the globe, general management theories have
spread with them, often suggesting that there is one best way to manage – what today is
often called best practice
Industrial Revolution
- The principle of early modern management was the efficient extraction of value from the
labour that was employed
- Adam Smith and the Wealth of Nations
o Capitalism is an economic system founded on the sanctity and dominance of private property
rights organized through markets
o The majority of people sell their labour power in a market for labour to owners of capital
(Capitalists) which is consolidated in an enterprise
Challenges Associated with Mass Expansion Size
- The ‘master’ in charge rather than company that held control
- How could a single master exercise control over so many?
- How was the master to achieve effective governance over a vastly increased scale of operations?
o Internal contracting
o Standards highly variable (tyranny or benevolence)
o Origins of trade unionism
o Downward pressure form finance and upward pressure from trade unions led to
standardisation of workplace routines (often based on military models)
Founding Fathers & Mother
- Max Weber
o Protestant work ethic and the spirit of capitalism
- Jeremy Bentham
o Utilitarianism – act for the greatest good of the greatest number
- Fredrick W. Taylor
o Scientific management – One-Best-Way
- Henri Fayol and his 14 principles
Weber and Bureaucracy
- Bureaucracy is a form of organisational design, where action is as result of rule-based
procedures.
- People do not follow rules because of the personal characteristics or charisma of the officer
holder or because of Title or Bloodline of the officer holder. They follow rules because or the
“office” that is held by that person – this is what is meant by “rational legal” authority of
bureaucracy
- People obey orders as rational-legal precepts because they believe that the person giving the
order is acting in accordance with a code of legal rules and regulations – this is the form of
authority within bureaucracy
For Bureaucracy
- Internal contracting
- Standards highly variable (tyranny or benevolence)
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
The principle of early modern management was the efficient extraction of value from the labour that was employed. The master" in charge rather than company that held control. Max weber: protestant work ethic and the spirit of capitalism. Jeremy bentham: utilitarianism act for the greatest good of the greatest number. Fredrick w. taylor: scientific management one-best-way. Bureaucracy is a form of organisational design, where action is as result of rule-based procedures. People do not follow rules because of the personal characteristics or charisma of the officer holder or because of title or bloodline of the officer holder. Office that is held by that person this is what is meant by rational legal authority of bureaucracy. People obey orders as rational-legal precepts because they believe that the person giving the order is acting in accordance with a code of legal rules and regulations this is the form of authority within bureaucracy.
