Chapter 2 Summary Notes

Decent Essays
Chapter 2 Summary

Organisations often face new and sometimes threatening challenges.

The 4 contemporary management functions have been around for years: planning, controlling, leading and organizing.
Managers need to plan what works is to be done, organize people and materials to do it, lead and direct the workers, and impose some controls to ensure everything was done according to plan.
Eg, the pyramids in Egypt.

Two significant events pre-20th century, played an important role in promoting the study of management:
1. 1776 – Adam Smith – argued the economic advantages of division of labour, and the breakdown of jobs into narrow and repetitive tasks, known as job specialization. Division of labour increased productivity by
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3. quantitative approach: the use of quantitative techniques to improve decision making. Total Quality Management: a philosophy of management driven by continual improvement and responding to customer needs and expectations. This approach has contributed directly to managerial decision making in the areas of planning and control, such as when managers need to budget, schedule, quality control and similar decisions are made.
4. organizational behavior: a field of study concerned with the actions (behaviours) of people at work. Hawthorne studies: a series of studies during the 1920s and 30s that provided insight into individual and group behaviour. Human relations movement: the belief, for the most part unsubstantiated by
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