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Chapter 2

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Global Management Studies
GMS 200
Masoomeh Moharrer

What can be learned from CLASSICAL management thinking? 2/9/2013 7:31:00 PM CLASSICAL MANAGEMENT APPROACHES: SCIENTIFIC Management – Frederick Taylor 1. Develop rules of motion, standardized work implements, proper working conditions for every job 2. Select workers w/ right abilities for job 3. Train workers and provide proper incentives 4. Support workers by planning their work/removing obstacles The Gilbreths  Motion study science of reducing job/task to its basic physical motions  Eliminating wasted motions improves performance Lessons:  Make results-based compensation a performance incentive  Carefully design jobs with efficient work methods  Carefully select workers with the abilities to do these jobs  Train workers to perform jobs to the best of their abilities  Train supervisors to support workers so they can perform jobs to the best of their abilities ADMINISTRATIVE PRINCIPLES – Henri Fayol 1. Division of Labour specialization of work result in improvement in skills/methods 2. Authority – understand that managers have rght to give orders 3. Discipline – no slacking/bending rules 4. Unity of Command – each person should receive orders from only one boss 5. Unity of Direction – one person in charge of all activities w/ same performance objective 6. Subordination of individ. Interests only work issues heard 7. Remuneration all receive fair payment, employees = valuable 8. Centralization – decisions made from top management 9. Scalar Chain – clear/unbroken line of communication from topbottom of org. 10.Order –things shuld be in their place 11.Equity - managers be kind n fair 12.Personnel Tenure – lifetime employment for good workers 13.Initiative - energy 14.Espirit de Corps – build harmony & cohesion Fayol’s 5 Rules of Management: 1. Foresight complete a plan action for the future 2. Organization provide/mobilize resources to implement the plan 3. Command lead, select, evaluate workers to get best work toward the plan 4. Coordinationfit diverse efforts together/ ensure information is shared/problems solved 5. Control things happen according to plan/take necessary corrective action Fayol’s Principles : 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. BUREAUCRATIC ORGANIZATION – Max Weber Bureaucracy ideal, intentionally rational, very efficient form of org. (based on principles of logic, order, legit authority) Characteristics:  Clear division of labour – jobs well defined for each position, each worker become skilled  Clear hierarchy of authority – each position report to higher-lvl one  Formal rules/procedures – written guidelines direct behavior/decisions  Impersonality  Careers based on merit - workers promoted on ability, competency, performance Disadvantages:  Excessive paperwork/ ―red tape‖  Slowness in handling problems  Rigidity in the face of shifting needs  Resistance to change  Employee apathy Fig. 2.1 Major branches in the classical approach to management What insights come from BEHAVIOURAL management approaches? 2/9/2013 7:31:00 PM HUMAN RESOURCE APPROACHES: Fig. 2.2 Foundations in behavioural/human resource approaches to management ADMINISTRATIVE PRINCIPLES – Mary Parker Follett Follett’s notion of Organizations as Communities Groups and Human Cooperation:  Groups mechanisms which individuals can combine their talents for greater good  Organizations cooperating ―communities‖ of managers and workers  Manager’s job help ppl in the org. cooperate and achieve integration of interests Forward-looking Management Insights:  Making every employee an owner creates sense of collective responsibility (employee ownership, profit sharing, gain sharing)  Business problems involve variety of interrelated factors (systems thinking)  Private profits relative to public good (managerial ethics/social responsibility) HAWTHORNE STUDIES  First study examined how economic incentives/physical conditions affected worker output  No consistent relationship found  ―psychological factors‖ influenced results Relay Assembly Test-Room Studies:  manipulated physical work conditions to assess impact on output  designed to minimize ―psychological factors‖ of previous experiment  factors accounted for increased productivity:  group atmosphere  participative supervision Employee Attitudes, Interpersonal Relations/Group Process:  some things satisfied some workers, not others  ppl restricted output to adhere to group norms  social/human concerns are keys to productivity Lessons:  Hawthorne effect ppl who are singled out for special attention perform as expected  human relations movement suggested that managers using good human relations will achieve productivity  organization behavior study of individuals/groups in orgs MASLOW’S THEORY OF HUMAN NEEDS  Need physiological/psychological deficiency a person feels compelled to satisfy  Deficit principle satisfied need is not motivator of behaviour  Progression principle need becomes mot
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