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PRINCIPLE OF MANAGEMENTEvolution of Management TheoryChapter 2Evolution of Management TheoryJob Specialization and the Division of LaborAdam Smith (18th century economist)Observed that firms manufactured in one of two different ways:- Craft-style—each worker did all steps. - Production—each worker specialized in one step.Job Specialization and the Division of LaborAdam Smith (18th century economist)Realized that job specialization resulted in much higher efficiency and productivityBreaking down the total job allowed for the division of labor in which workers became very skilled at their specific tasks.Frederick W Taylor (1856 – 1917)Father of Scientific ManagementPublished “Principles of Scientific Management” in 1911;The systematic study of the relationships between people and tasks for the purpose of redesigning the work process for higher efficiency.Frederick W Taylor (1856 – 1917)Taylor listed “new duties” for management. There were:The development of a true science;The scientific selection, education and development of workmen;Friendly, close co-operation between management and workers. Four Principles of Scientific Management1) Study the ways jobs are performed now and determine new ways to do them.Gather detailed time and motion information.Try different methods to see which is best.Four Principles of Scientific Management2) Codify the new methods into rules.Teach to all workers the new method.Four Principles of Scientific ManagementSelect workers whose skills match the rules.Establish fair levels of performance and pay a premium for higher performance.Workers should benefit from higher outputAdministrative Management TheoryAdministrative ManagementThe study of how to create an organizational structure that leads to high efficiency and effectiveness.Max Weber (1864 – 1920)German sociologistFormulated ideas on ideal management approach for large organization.Developed a set of ideas about the structure of an organization that define what we know as bureaucra
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