A management tool (United Parcel Service)
oEliminating wasted motions improves performance.
Administrative principles (Henri Fayol) — rules of management:
oForesight — to complete a plan of action for the future.
oOrganization — to provide and mobilize resources to
implement the plan.
oCommand — to lead, select, and evaluate workers to get the
best work toward the plan.
oCoordination — to fit diverse efforts together and ensure
information is shared and problems solved.
oControl — to make sure things happen according to plan and to
take necessary corrective action.
Administrative principles (Henri Fayol) — key principles of
oScalar chain — there should be a clear and unbroken line of
communication from the top to the bottom of the organization.
oUnity of command — each person should receive orders from
only one boss.
oUnity of direction — one person should be in charge of all
activities with the same performance objective.
Administrative principles (Mary Parker Follett)
oGroups and human cooperation:
Groups are mechanisms through which individuals can
combine their talents for a greater good.
Organizations are cooperating “communities” of managers
Manager’s job is to help people in the organization
cooperate and achieve an integration of interests.
oForward-looking management insights:
Making every employee an owner creates a sense of
collective responsibility (precursor of employee ownership,
profit sharing, and gain-sharing)
Business problems involve a variety of inter-related
factors (precursor of systems thinking)
Private profits relative to public good (precursor of
managerial ethics and social responsibility)
Bureaucratic organization (Max Weber)
An ideal, intentionally rational, and very efficient form of