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Management Theory & Practices
"CLASSIC APPROACHES"“
I- SYSTEMATIC MANAGEMENT
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 & worker 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.
II- SCIENTIFIC MANAGEMENT
Systematic Management failed to lead into the widespread production efficiency.
Taylor *ƒ²*ƒ"€š US Engineer
Midvale Steel Company *ƒ²*ƒ"€š 1878
Discovered:
Production & pay are poor
Inefficiency& waist is prevalent [Common]
Companies have tremendous unused potential.
Solution = Scientific Management
a) Analyze work
b) How to complete the Tasks effectively
