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Chapter 2

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Department
Global Management Studies
Course
GMS 200
Professor
Ricardo Reyes
Semester
Winter

Description
Management Learning Past to Present Origins of management - The activities associated with management are older than recorded history - Historical records indicate that ppl have been getting things done through others since at lest bible times - Prehistoric ppl also practiced management in order to secure the basic necessities of like (food, shelter, clothing) - Old world Europe – Middle Ages, serfs served overlord on the land. In return, they received protection - New world Americas – African slaved, indigenous ppl, and indentured laborers from south Asia worked plantations’ - Child labour was exploited - In England, the factory system and manufacturing replaced agriculture - Innovations in mining iron ore ushered in the first industrial revolution (late 18 century) - The industrial revolution generated major economic productivity and wealth creation - Workers were an indispensible resource to be utilized in wealth creation (foundation stone of capitalism) - To be profitable, workers along with capital, plant, equipment and land must be managed - These resources create wealth when they are properly managed - Proper management: planning, leading, controlling and organizing - During the 1 industrial revolution (1790) Adam Smith in “wealth of nations” est. The principles of specialization and division of labor - Ford and others further used these principles through their emphasis on mass production (assembly line) - At the turn of 20 century, the most notable organizations were large and industrialized In the Evolution of Management Thought - Management studies began in 1900 with Classical management approaches, with: - Scientific Management (Frederick Taylor, Frank & Lillian Gilbreth) - Administrative Principles (Henri Fayol)  Bureaucratic Management (Max Weber) - Basic assumption of classical management: people are rational - People will rationally consider opportunities available to them and do what ever is necessary to maximize their economic gain Classical Management Approaches Scientific Management Theory – careful selection and training of workers and supervisory support - Frederick Taylor (1856-1915) sought to improve industrial efficiency - “The principal object of management should be to secure maximum prosperity for the employer, coupled with maximum prosperity for the employee” - Noticed employees did their job in their own way, losing efficiency and starting to underperform - “Time study” to analyze motions and tasks required in jobs, and to develop efficient ways to perform them - Theories and conclusions:  Develop for every job a “science” that includes rules of motion, standardized work implements and proper working conditions  Carefully select workers with the right abilities for the job  Carefully train workers to do the job and give them the proper incentives to cooperate with the job “science”  Support workers by carefully planning their work and by smoothing the way as they go about their jobs - Frank and Lillian pioneered motion study – as an engineering and management technique, the science of reducing a job or task to its basic physical motions. Wasted motions are eliminated to improve performance - Both frank and Lillian felt that scientific management as formulated by Taylor fell short when it came to managing the human element - Lillian believed poorly planned jobs make work tiresome and destroyed enjoyment of tasks - Managers and owners needed to structure authority in the workplace and that each employee deserve basic human dignity Administrative Principles - Henri Fayol, French industrialist, identified 14 principles of management – universal truth that cant be taught in schools - Five rules or duties of management 1. Foresight – complete a plan of action for the future 2. Organization – provide and mobilize resources to implement plan 3. Command – lead, select, and evaluate workers to get the best work toward /the plan 4. Coordination – fit diverse efforts together and ensure information is shared and problems are solved 5. Control – ensure things happen according to plan and take necessary corrective action - Scalar chain – clear 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 objectives 1. Division of Labor – Specialization of work will result in continuous improvements in skills/methods 2. Authority – managers/workers need to understand that managers have the right to give order 3. Discipline – behavior needs to be grounded in obedience and derived from respect. There will be no slacking or bending of rules 4. Unity of command – each person should receive orders from only one boss 5. Unity of direction – one person should be in charge of all activities with the same performance objectives 6. Subordination od individual interests –while at work, only work issues should be considered 7. Remuneration – all should receive fair payment for their work, employees are valuable and not simply an expense 8. Centralization – while recognizing the difficulties in large organizations, decisions are primarily made from the top 9. Scalar chain – clear unbroken line of communication from the top to the bottom of the organization 10.Order – there is a place for everything and all things should be in their place 11.Equity 0 managers should be kind and fair 12.Personnel tenure – unnecessary turnover is to be avoided, and there should be lifetime employment for good workers 13.Initiative – undertake work with zeal and energy 14. Esprit de corps – work to build harmony among personnel Bureaucratic Organization - Max Weber, German intellectual, viewed a bureaucracy as an ideal, intentionally rational, and every efficient form of organization founded on principles of logic, order and legitimate authority - Bureaucracy - Bureaucratic organizations are/have: o Clear division of labor – well defined jobs, workers high skilled at performing them o Clear hierarchy of authority – each position reports to high level o Formal rules and procedures – written guidelines direct behavior and decisions o Impersonality – rules/procedures uniformly applied, no preferential treatment o Careers based on merit - promoted on ability - Advantages: efficie
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