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ClassicalBehavioural Contingency SummaryFrederick W. Taylor: Advocate of the production line method of manufacturing –he believed was the most efficient form of production.Planned Scientific management: An approach that studies a job in great detail to discover the best way to perform anising Division of labour into function-related units: Small, specialised activities.Controlling Autocratic Management: Tight control to ensure workers followed instructions by rigid rules and regulations based on a hierarchy of authority.Improve Efficiency: Assembly line, mass-production techniques.Bureaucratic approach pioneered by Max Weber and Henri Fayol.Chain of command: Clear lines of authority.Employees: Main focus of the way the business is organised.Democratic Leadership: Depends largely on the manager’s ability to understand and work with people with a variety of diverse backgrounds, hopes, desires and expectations.Elton Mayo: A major contributor to behavioural management theories.‘Hawthorne effect’: Demonstrates that meeting people’s social needs has a significant impact on productivity. Worker Satisfaction: Non-economic (to a large extent), workers have social needs as well.Teams: Increases job satisfaction and output.Social responsibility: Extra facilities for workers, e.g. canteen, counselling, flexible working conditions, etc.Need for FlexibilityAdaptation of Management Practises and Ideas: To suit changing circumstances.Blending of Management Approaches: Contingency theorists do not stress that traditional classical management was necessarily wrong, but it is no longer adequate for our needs today.Technique to Solving Problems: Must be adaptable and flexible – management is a discipline continually evolving, frequently producing new ideas and theories.AdvantagesIncreased efficiency and productivity.Better planning and decision making.Increased empowerment of employees and relationship between managers and staff.Worker recognition and appreciation = increased motivation.Acknowledges the impact of changes in the business and enables more flexible reaction to change.Recognises multiple approaches to management and the approaches demanded of different situations.DisadvantagesMay result in unhappy workers (lack of job satisfaction).Control-oriented approach creates inflexible, mechanistic organisation.Lack of control and large communication can lead to confusion.Difficult to accurately predict employee behaviour.Adapting to constant changes in the business environment can be challenging for management.Selecting alternative courses of action depending on the situation can be costly in terms of time and money.ExamplesHenry Ford: Developed his famous mechanised assembly line, to reduce hours spent on the assembly of a car.McDonald’s: Uses scientific management in preparation of food – Big Mac is produced according to a set number of monwealth Bank: Has an ongoing commitment to looking after staff, by offering a variety of perks – e.g. discounts on electricity and insurance, priority long day childcare places, and offers flexible working arrangements.Identify the (Classical, Behavioural or Contingency) management theory that is listed below. Encourages teamwork.Management structures have a shorter chain of command and wider span of control.Conflicts are less likely to occur under my theory.Managers like to use monetary rewards as a form of motivation.Planning, organising and controlling are three management functions which are focused on.Some workers rely too much on the work of others and thus create an unequal level of work.Managers like to be autocratic and bureaucratic.Manager’s focus is productivity and efficiency.Some workers become bored and dissatisfied with the repetitive tasks they perform using this theorySometimes referred to as “Open Door Management”.Focuses on human resources.Does not use ONE management approach all the time their approach changes with the situation.Multiple-choice questionsStephen tells all staff what to do and how to do it. MCQ1: Which management approach is Stephen most likely to be using?behaviouralcontingencyclassical-scientificdemocraticMCQ2: Two benefits of a move to a flatter management structure are: Improved promotions prospects, increased personal rewardsLesser number of employees, more management positionsImproved work culture, quicker decision makingReduced costs, de-skillingAs a new manager of a well-established retail organisation, Robert decides to decrease the chain of command and increase the span of control.MCQ3: Which management theory is he adopting?Classical BehaviouralContingencyAutocraticA telecommunications company has a narrow span of control, based on the division of labour with rigid lines of communication.MCQ4: Which management approach does this reflect?Classical BehaviouralContingencyAutocraticMCQ5: Which of the following is an advantage of classical management?Two-way communication increases motivationWorkers are multi-skilledEmployees are autonomous/self-directedApplying scientific measurement to increase productivityDrapes and Sew Much More Ltd has decided to alter its management practices in order to promote job specialisation in the hope of increasing efficiency and productivity. MCQ6: Which management approach best describes the above situation?ContingencyBehaviouralClassical-ScientificBureaucraticMCQ7: Which management style best represents the use of the classical management theory?Democratic StyleNegotiation StyleMotivating StyleAutocratic StyleAldi is a global retailing business. Its store managers are paid $110,000 per annum plus a car. It employs people on a full-time basis only and organises them in teams. It has a flat organisational structure and the store managers have a high degree of decision-making authority.MCQ8: Which of the following theories of management has had a significant influence on the management of Aldi?Scientific approachClassical approachBehavioural approachContingency approachSpectrum Pty Ltd a manufacturer of nails has been operating for 20 years. They have decided to alter their hierarchical management structure in order to improve problems of communication and motivation amongst employees.MCQ9: Which of the following describes the changes most likely to occur?Change from classical-scientific to behavioural management with the implementation of induction programsChange from behavioural to classical-scientific management with the use of non-financial rewardsChange from classical-scientific to behavioural management with the use of financial rewardsChange from behavioural to classical-scientific management with the implementation of team briefingsShort Answer Questions SAQ1: List 2 advantages and 2 disadvantages of job specialisation. (4 marks)Advantages of job specialisation include expertise, improved efficiency, and higher pay. Some disadvantages include job boredom and the inability to do other types of work.SAQ2: Distinguish between: a. A narrow span of control and a wide span of control. (2 marks)A narrow span of control means there is a smaller number of subordinates reporting directly to the manager. A firm with a wide span of control has a higher number of subordinates reporting directly to the manager.b. A long chain of command and a short chain of command. (2 marks)A long chain of command is one that has several levels of management between the top and bottom of the chain, while a short chain of command means an organisation has a flat structure.c. A flat management structure and a pyramid organisation structure. (2 marks)A pyramid organisation structure has several levels, which descends down to its base level. It is a hierarchical structure, where every employee, except in the top level, is subordinate to someone else in the organisation. Communication will flow from top to bottom. A flat organisation structure has fewer to no levels of middle managers. There may be one or two layers between the top management and lower levels of employees, with a short and wide structure, with communication flowing in all directions. ................
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