,Chapter 1: The evolution of organisation and management thoughts
Organisational behaviour is an interdisciplinary science that focuses on the study of behaviour in
organisations. Key areas studied include factors that determine this behaviour, and the most
effective ways of directing organisations.
1469 - 1527 Niccolo Machiavelli Provides numerous guidelines for rulers and other leaders. These
guidelines are especially directed towards the preservation and expansion of power.
1723 – 1790 Adam Smith Wrote an influential book, it put forward the notion that productive
work is the source of prosperity and that effective division of labour can raise levels of productivity.
With the publication of these ideas, Adam Smith rejected the principles of mercantilism completely.
From this time on, management would take a more systematic approach, with much more
attention being paid to efficiency.
1856 – 1915 Frederick Taylor He was the first to suggest a systematic, coherent approach to
determine the manner in which factories should be organised. The Scientific Management.
Scientific Management:
Key elements that have grown out of Taylor’s theory of scientific management are:
1. Scientific analysis of the activities that should be carried out and the time and motion studies
to be used. The results can be used to standardise and normalise the production process and
the machines and materials used.
2. Clear division of tasks and training for the workforce so that each task and operation can be
precisely identified and allocated. This results in worker routines, leading to an improvement
in production.
3. Close and friendly working relationships between managers and workers being regarded as
essential.
4. Managers being held responsible for seeking and analysing appropriate working methods
and for creating optimum conditions for production. Formerly, this was left to the
implementation phase.
5. Use of careful selection processes to obtain the best person for the job.
6. Financial rewards being given for following prescribed methods in order to reduce
production costs.
The eight-bosses system:
Furthermore, Taylor proposed a division of the front-line supervisory responsibilities within the
production department into eight separate areas. Also known as the eight-bosses system. Each area
and its tasks was to be the sole responsibility of a particular individual:
1. Time and costing
2. Task instructions
3. Order of work
4. Work preparation and allocation
5. Maintenance
6. Quality control
, 7. Technical guidance
8. Personnel management
1841 – 1925 Henri Fayol He was the first one to develop a coherent set of guidelines relating to
the way in which organisations could manage their operations as a whole. The General management
theory.
The General management theory:
The general management theory is was intended to be an educational model. In it he identified six
independent management activities:
1. Technical
2. Commercial
3. Financial
4. Security (safeguarding people and properties)
5. Accounting
6. Directing
Activities 1 to 5 would be coordinated via activity 6 (directing), which would consist of five tasks:
1. Planning Setting up of an action plan for the future.
2. Organising Structuring the organisation, its people and its resources.
3. Commanding Leading in a way as to ensure full participation.
4. Coordinating Gearing each activity to the plan.
5. Controlling Ensuring that the results are as planned.
1864 – 1920 Max Weber He studied on government organisations and large businesses from a
sociological perspective. Weber stated that when an organisation functions according to some
characteristics, it can be termed an ideal bureaucracy.
Ideal bureaucracy:
- Clear and define division of tasks.
- A hierarchical command structure.
- Carefully defined authority and responsibilities.
- Impersonal relations between officials (the position is more important than the person).
- Recruitment on the basis of ability and knowledge instead of cronyism and contacts.
- Promotion and reward on the basis of objective criteria and procedures.
- All information, procedures and details written down, so that full control of every aspect is
possible.
- The power of officials, even the most senior executives, bound by documented guidelines.
1880 – 1949 Elton Mayo Invented the Human Relations Movement
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