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GMS 200 (566)
Chapter 2

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

Description
Chapter 2 – Management Learning Past to Present Classical approaches to Management Include: • Scientific management • Administrative principles • Bureaucratic organization Scientific Management (Frederick Taylor): Emphasizes careful selection and training of workers and supervisory support • Four guiding action principles o Develop rules of motion, standardized work implements, and proper working conditions for every job o Carefully select workers with the right abilities for the job o Carefully train workers and provide proper incentives o Support workers by carefully planning their work and removing obstacles • Motion Study is the science of reducing a job or task to its basic physical motions to improve performance Practical Lessons from Scientific Management • 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) • Division of labour – specialization of work will result in continuous improvements in skills and methods • Authority – managers have the right to give orders • Discipline – Be obedient and respectful • Unity of command – each employee should have one, and only one, manager • Unity of direction – leader generates a single plan • Subordination of individual interests – While at work, only work issues should be undertaken • Remuneration – Fair payment, and employees are valuable and not simply an expense • Centralization – Decisions are made from the top • Scalar chain – Have clear, formal chains of command 1 • Order – Place for everything • Equity – Managers should be kind and fair • Personnel tenure – lifetime employment for all • Initiative – Undertake work with zeal and energy • Espirit de corps – work to build harmony Administrative Principles Rules of Management: • 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 divers 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 Administrative Principles Key Principles of Management: • 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 o An ideal, intentionally rational, and very efficient form of organization o Based on principles of logic, order, and legitimate authority • Characteristics: o Clear division of labour o Clear hierarchy of authority o Formal rules and procedures o Impersonality o Careers based on merit • Disadvantages: o Excessive paperwork or “red tape” o Slowness in handling problems o Rigidity in the face of shifting needs 2 o Resistance to change o Employee apathy Behavioural Management Approaches Organizations as Communities (Follett) • Groups and human cooperation: o Groups are mechanisms through which individuals can combine their talents for a greater good o Organizations are cooperating “communities” of managers and workers o Manager’s job is to help people in the organization cooperate and achieve an integration of interests • Forward-looking management insights: o Making every employee an owner creates a sense of collective responsibility (precursor of employee ownership, profit sharing, and gain sharing) o Business problems involve a variety of interrelated factors (precursor of systems thinking) o Private profits relative to public good (precursor of managerial ethics and social responsibility) Hawthorne Studies • 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 o Designed to minimize the “psychological factors” of previous experiment o Factors that accounted for increased productivity:  Group atmosphere  Participative supervision • Employee attitudes, interpersonal relations and group processes o Some things satisfied some workers but not others o People restricted output to adhere to group norms • Lessons from the Hawthorne Studies: o Social and human concerns are keys to productivity o Hawthorne effect – people who are singled out for special attention perform as expected Maslow’s Theory of Human Needs 3 • A need is a physiological or psychological deficiency a person feels compelled to satisfy • Ne
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