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Chapter 2

Chapter 2 - Management-Past to Present

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Ryerson University
Global Management Studies
GMS 200
Shavin Malhotra

Chapter 2 – Management – Past to Present CLASSICAL MANAGEMENT APPROACHES Scientific Management Frederick W. Taylor o In 1911, he published The Principles of Scientific Management, that makes the following statement: “the principal object of management should be to secure maximum prosperity for the employee. o He believed that those individuals who did work without clear specifications lost efficiency and performed under stated capacities. Teaching and helping was a method of avoiding this. o His overall goal was to improve the productivity through the following criteria: Develop rules of motion, standardized work implements, and proper working conditions for every job. Carefully select workers with the right abilities for the job. Carefully train workers and provide proper incentives. Support workers by carefully planning their work and removing obstacles. The Gilbreths o Like Taylor they believed that there was an importance of studying the motions involved in a talk in order to understand the most efficient way of working (motion study) o Based on one famous study the eliminated wasted motions to improve performance ( number of motions used by brick layers were taken away and therefore tripling their productivity) Administrative Principles Attempts to document and understand the experiences of successful managers Henri Fayol o He believed there were 14 principles of management that should be taught to all aspiring managers: Division of labour – specialization of work Authority – managers have the right to give orders Discipline – behaviour needs to be grounded with obedience and respect Scalar chain — there should be a clear and unbroken line of communication from the top to the bottom of the organization. Unity of command — each person should receive orders from only one boss. Unity of direction — one person should be in charge of all activities with the same performance objective. www.notesolution.com Subordination of individual interests – only work matters should be discussed at work Remuneration – fair payment for work Centralization – decisions are made at the top of the management Order – there is a place for everything Equity – managers should be kind and fair Personal tenure – unnecessary turnover should be avoided. Initiative – undertake work with zeal and energy Esprit de corps – work to build harmony among personnel o He also came up with rules of management that resemble the four functions of management (organizing, leading, controlling and planning) Foresight — to complete a plan of action for the future. Organization — to provide and mobilize resources to implement the plan. Command — to lead, select, and evaluate workers to get the best work toward the plan. Coordination — to fit diverse efforts together and ensure information is shared and problems solved. Control — to make sure things happen according to plan and to take necessary corrective action. Mary Parker Follett o Groups and human cooperation: Groups are mechanisms through which individuals can combine their talents for a greater good. Organizations are cooperating “communities” of managers and workers. Manager’s job is to help people in the organization cooperate and achieve an integration of interests. o Forward-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 o He believed the bureaucracy was the way to correct problems about failed performance potential by only successful or of high rank individuals in the country (authority > job capability) o Bureaucracy : rational and efficient form of organization founded on logic, order and legitimate authority. o Characteristics of his bureaucracy: www.notesolution.com Clear division of labor - jobs are well defined Clear hierarchy of authority - authority for each position is given Formal rules and procedures – written guidelines direct behaviour Impersonality – rules and procedures are impartial and uniformly applied Careers based on merit – workers are promoted based on ability to perform o Disadvantages of Bureaucracy Excessive paperwork or “red tape” Slowness in handling problems Rigidity in the face of shifting needs Resistance to change Employee apathy BEHAVIORAL MANAGEMENT APPROACHES Behavioural approaches maintain that people are social and self-actualizing. People at work are assumed to seek satisfying social relationships, respond to group pressures, and search for personal fulfillment. The Hawthorne Studies and Human Relations Initial study examined how economic incentives and physical conditions affected worker output. No consistent relationship found. “Psychological factors” influenced results. Relay Assembly Test- Room Studies o Manipulated physical work conditions to assess impact on output. (more or less light) o Designed to minimize the “psychological factors” of previous experiment. o Factors that accounted for increased productivity: Group atmosphere Participative supervision www.notesolution.com Employee attitudes, interpersonal relations, and group processes o Work conditions and wages could be sources for some workers satisfaction and dissatisfaction o People restricted output to adhere to group norms, vs. producing more output and making more money Lessons Learned o Social and human concerns are keys to productivity. o Human relations movement : managers who use good human relations will achieve productivity. o Hawthorne effect — people who are singled out for special attention perform a
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