Classical organisation theory looks to explain the behaviour of these organisations in terms of the ways in which decisions are made, power and control is distributed etc. in order to solve problems, improve outcomes and productivity [encyclopedia.com]. The first scientific analysis of organisations was done by Fredrick W. Taylor in the twenties [Lunenberg and Ornstein. pg. 6.
Profit from increase production used to invest further innovations and inventions. Factory systems were so good because of the efficiency, productivity, and quality control of a factory was because of the division of labor. This was a process by which the key tasks in manufacturing were identified and assigned to individual workers to specialize, perfect and repeat with dispatch. Introduction of financial innovations such as stock markets, joint stock companies, and national banks were all instruments for a new free-market economic system that had been evolving over centuries. The feudal system was the old system.
It is perhaps best understood as any effort designed to ensure the continued effective performance of an organization by making provision for the development, replacement, and strategic application of key people overtime’ (Roth well, 2005) Mattel strives to implement a systematic succession strategy that would help it to nourish and preserve its local talent. Robert Eckert devised a plan in which executives were to identify possible leaders within the organization and help them in the role. 8.3 Performance Management Performance management tracking at Mattel assists the employees to assess their progress their objectively and have easy and timely access to actual performance levels. In addition, setting of short term goals helps motivate the employees and instills in them the discipline necessary to achieve those goals. 9.
1. How did the information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy? Knudstrop made some very important organizational changes to support their business strategies. The new organizational culture of Lego made it clear that the company should not sacrifice the profit for doing innovation, which was a practice often done in past. He also changed its employee pay structure and offering incentives which encouraged employees to strive for success.
It brings home the idea of creating a stable organizational flow pre hand, creating efficient hierarchy, standardizing product and creating flawless market feedback based improvement mechanisms. If you are looking to diversify your portfolio, Matsushita offers you strategy, motivation and process to do so. From sockets to complex electrical and electronics equipment, he developed a range of products to cater to market needs and kept a sharp eye on pricing. Market positioning, a concept still not so popularly focused in the east back then, was always at the prime focus of this visionary leader. This book throws a fresh light on how critically IPR was perceived even in early 1900s, how Matsushita traded exclusive selling rights of his products to a wholeseller against a yen 3000 loan then!
From the advantages that were discussed in the previous paragraph, it shows that the organization where collective leadership exists consist of different workers that specialize in different fields. When those different roles combine, they ensure the success of the organization just like in the town planning of construction site where there is engineer that ensure that proper equipment is being used and draw the whole plan that is wanted by the client. There is also marketing director who is responsible in making the budgets and meet the budget projections, they also create new ideas to keep the shareholders happy and attract new clients. Human resources department is responsible to assist managers with employee-related concerns (Bernard et al, 2001:544). When looking at the tasks in construction site/ town planning it is impossible for one person to complete them alone, this shows that different roles must come together.
Frederick Taylor’s Scientific Management is popularly known as the first theory in management history (Stoner, Edward, Gilbert, 2003). Scientific management (also known as TAYLORISM) is an approach that was created in order to increase the productivity of workers and to ensure that there was no hostility between the workers and the management. It included a set of principles that were drawn up as a conclusive result of systematic study of the work in industries. The father of the ‘human relations’ approach is Elton Mayo (1880-1949). He is famous for his well-known “Hawthorne Studies”.
According to William Avery, "From his initially days at the work, Mr. Connelly organized the organization to be efficient". He supervised the day today expenditure and made a huge show of taking us toward getting to be holder administrators. Connelly, accentuated expense proficiency, quality, and client benefit as the crucial elements for Crown's methodology in the decades Recognizing Crown's position as a little maker in an industry ruled by American Can and Continental Can, Connelly looked to create a product offering manufactured around Crown's customary qualities in metal structuring and manufacture. He decided to stress the zones Crown knew best—tin-plated jars and crowns—and to focus on specific uses and global markets. In 1960, Crown
Frederick Taylor related reward to efficiency, which means that the “Manager‘s job is to make a ‘scientific’ study of tasks and on this basis to develop the most efficient form of work that could then be taught to new employees”. Taylor also said that if an employee is promised a reward, he will be more inclined to work efficiently. Abraham Maslow complements this thought by assessing that individuals are motivated by a “hierarchy of needs” (physiological needs, safety needs, love affection & belonging needs, esteem needs and self-actualization