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Chapter 2

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Ryerson University
Global Management Studies
GMS 200
Shavin Malhotra

Chapter 2 – Management Learning Past to Present Classical Management Approaches - Assumption: that people at work act in a rational manner that is primarily driven by economic concerns; achieve greatest personal and monetary gain 1. Scientific Management (Frederick Taylor) - “The principal object of management should be to secure maximum prosperity for the employer, coupled with the maximum prosperity for the employee.” - Scientific management: emphasizes careful selection and training of workers and supervisory support 1) Develop for every job a “science” that includes rules of motion, standardized work implements, and proper working conditions i. Motion Study: the science of reducing a task to its basic physical motions 2) Carefully select workers with the right abilities for the job. 3) Carefully train workers to do the job and give them the proper incentives to cooperate with the job “science.” 4) Support workers by carefully planning their work and by smoothing the way as they go about their jobs. 2. Administrative Principles (Henri Fayol) - Believed management could be taught - 14 Principles of Management: 1) Division of Labour 2) Authority 3) Discipline 4) Unity of Command 5) Unity of Direction 6) Subordination of Individual Interests 7) Remuneration – receive fair payment for work 8) Centralization – decisions are made from the top 9) Scalar Chain (line of authority) 10)Order 11)Equity 12)Personnel Tenure – avoid turnover; lifelong workers 13)Initiative 14)Esprit de corps – build harmony and cohesion among personnel - 5 Rules, Duties of Management • Foresight • Organization • Command • Coordination • Control 3. Bureaucratic Organization (Max Weber) - Thought that people had positions of authority because of their status instead of work proficiency - Bureaucracy: a rational efficient form of organization founded on logic, order, and legitimate authority - Defining Principles of Bureaucratic Organization: • Clear division of labour • Clear hierarchy of authority • Impersonality • Careers based on merit - Negative connotation for excessive paper work/red tape, no flexibility or change, and lack of empathy Behavioural Management Approaches - Assumption: that people are social and self-actualizing 1. Organizations As Communities (Mary Parker Follett) - One of the most important American women in civics and sociology - Emphasized on human cooperation, “communities” that diverse individuals should combine their talents for greater good and work in harmony 2. Hawthorne Studies (Elton Mayo) - In 1924 the Western Electric Company conducted a study to determine how economic incentives and physical conditions of the workplace affected the output of workers • Instead they found unforeseen psychological factors which directed attention toward better understanding human interactions in the workplace - Created interesting employee attitudes, interpersonal relations, and group processes - Concluded groups have strong influences on individual productivity - Hawthorne effect: the tendency of persons singled out for special attention to perform as expected - Human relations movement: suggested that managers using good human relations will achieve productivity - Organizational behaviour: the study of individuals and groups in organizations 3. Maslow’s Theory of Human Needs (Abraham Maslow) - Need: A physiological or psychological deficiency that a person wants to satisfy - Maslow’s theory is based on 2 underlying principles: • Deficit principle – a satisfied need is not a motivator of behaviour. People act to satisfy “deprived” needs, those for which a satisfaction “deficit” exists • Progression principle – the five needs exist in a hierarchy of “prepotency.” A need at any level is activated only when the next- lower-level need is satisfied - A deprived need dominates individual attention and determines behaviour before it is satisfied - Managers whom understand and help people satisfy their important needs at work will achieve productivity • Maslow’s Hierarchy of Needs  Self-actualization • Esteem needs o Social needs  Safet
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