Business Studies in Action: HSC Course 3rd edition
Topic 1: Business management and change
Chapter 2 Understanding business organisations with reference to management theories
• The management philosophy adopted by a business will have an enormous impact on all aspects of the business’s operations.
• A classical perspective on management, pioneered by Max Weber and Henri Fayol, emphasises how best to manage and organise work so as to improve productivity.
• A scientific approach to management, pioneered by Frederick Taylor, studies a job in great detail to discover the best way to perform it.
Classical and scientific management theory:
- Time and motion studies used to reduce inefficiencies
- Hierarchical organisational structure (bureaucracy)
- Clear lines of authority (chain of command)
- Narrow span of control
- Productivity improvements through division of labour
- Production line methods
- Discipline as a feature of leadership
- Autocratic leadership style; rules and procedures.
• Management functions:
- planning: a predetermined course of action. Involves strategic, tactical and operational planning.
- organising: the range of activities that translate the objectives into reality.
- controlling: compares what was intended to happen with what has actually occurred.
• Management hierarchy is the arrangement that provides increasing authority at higher levels of the hierarchy.
• Senior managers have greater accountability, responsibility and power compared to those managers at lower levels of the pyramid.
Board of directors; CEO; CFO;CIO
Divisional manager; Store manager.
Middle management team
Team manager; Supervisor
Frontline management team
Traditional management hierarchy
• Managers should bring a range of leadership styles to their...