ACCT 301 Lecture Notes - Morale, Human Relations Movement, Scientific Management

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25 Feb 2013
Department
Course
Professor
The role of management
Classical theories
Scientific
• Planning
• Standardizing
• Improving human effort at the operative level
• To maximize output with minimum input
Administrative
Fayol divides the activities into six main groups:
• Technical – production, manufacturing
• Commercially – buying, selling, exchange
• Financial – obtaining and using capital
• Security protection of people and property
• Accounting stocktaking, costing, statistics, balance sheet
• Managerial – planning, organizing, commanding, coordinating and controlling
Fayol’s fourteen rules of management conduct are:
1. division of work
2. Authority
3. Discipline
4. Unity of command
5. Unity of directors
6. Subordination to the
general interest
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Tenure of personnel
13. Initiative
14. esprit de corps
Bureaucratic
• Rational – legal authority
• Traditional based upon custom & practice
Charismatic the individual has some special personal quality
Rosemary Steward summarizes the four main features of bureaucracy as:
• Specialization
• Hierarchy of authority
• System of rules
• Impersonality
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Document Summary

Scientific: planning, standardizing, improving human effort at the operative level, to maximize output with minimum input. Fayol"s fourteen rules of management conduct are: division of work, authority, discipline, unity of command, unity of directors, subordination to the general interest, remuneration, centralization, scalar chain, order, equity, tenure of personnel, initiative, esprit de corps. Bureaucratic: rational legal authority, traditional based upon custom & practice, charismatic the individual has some special personal quality. Rosemary steward summarizes the four main features of bureaucracy as: specialization, hierarchy of authority, system of rules, impersonality. She explains the high growth of bureaucracy as due to: increasing size of the organization, greater complexity, scientific management stresses rationale and prescribed processes, demands for equality of treatment. Elton mayo"s hawthorne experiment brought about the human relations movement, which emphasizes social factors at work, groups, leadership, the organization and the behavior of people.

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