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Chapter 2

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Ryerson University
Global Management Studies
GMS 200
Rodney Umrah

Chapter 2 Management learning past to present Classical management approaches 1. Scientific management 2. Administrative principles 3. Bureaucratic organization Assumption of the classical approach is: - People are rational when it comes to work - They are primarily driven by economic concerns - They do what is necessary to achieve the greatest personal and monetary gains Fredrick taylor conducted studies while working as an engineer o Workers did their jobs in their own way without clear specifications o Believed in training workers in one best way  There is a science to it the most efficient way to do a specific task o There is no room for creativity Scientific management - Secure maximum prosperity for the employer - Maximum prosperity for the employee - Taylors goal was to improve productivity of people at work o Time study analyzed the motions and tasks required in any job and to develop most efficient ways to perform them  Time study has a negative effect on the workers • Reduces productivity - Action principles o Develop for every job a “science” includes rules of motion, standardized work implements and proper working conditions o Carefully select workers with the right abilities for the job o Train workers to do the job and give them proper incentives to cooperate with the job “science” o Support workers by carefully planning their work and by smoothing the way as they go about their jobs - Motion study o Science of reducing a job or task to its basic physical motions  Frank was known for efficiency and productivity  Lilian was more focused on the human side and making sure employees were taken care of Administrative principles o Fayol derived these principles  Division of labour: specialization of work results in improvement of skills and methods  Authority: managers have the right to give orders  Discipline: behavior needs to be grounded in obedience & derived from respect  Unity of command: employee should have only one manager  Unity of direction: leader generates plan and all take part in executing plan  Subordination of individual interests: @ work only work issues should be considered  Remuneration: all should receive fair payment for work, employees are valuable  Centralization: decisions are primarily made from the top  Scalar chain ( line of authority): formal chains of command from top to bottom  Order: place for everything, everything should be in their place  Equity: managers should be kind and fair  Personnel tenure: lifetime employment for good workers  Initiative: undertake work with zeal and energy  Esprit de corps: build harmony and cohesion among personnel o Four functions of management  Planning  Organizing  Leading  Controlling o Fayol five rules  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 to ensure information is shared and problems solved  Control to make sure things happen according to plan and to take necessary corrective action Bureaucratic Organization (Max Weber) Military system o Clear division of labor jobs are defined and workers are highly skilled at performing them o Clear hierarchy of authority and responsibility are defined for each position each position reports to a higher level o Formal rules and procedures written guidelines direct behavior and decisions in jobs & written files are kept for historical record o Impersonality rules & procedures are impartially and uniformly applied with no one receiving preferential treatment o Careers based on merit workers are selected and promoted on ability, competency and performance and managers are career employees of the organization - Disadvantages of bureaucracy o Excessive paperwork or red tape o Slowness in handling problems o Rigidity in the face of shifting needs o Resistance to change o Employee apathy – lack of excitement, emotion and energy in the work Assumption of this approach - People are social and self actualizing - People at work are assumed to seek satisfying social relationships, respond to group pressure and search for personal fulfillment Behavioral management approaches - Follett o Making every employee an owner creates a sense of collective responsibility
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