GMS 200 Chapter 2: Chapter 2
21 Feb 2021
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Management Learning Past to Present
Chapter 2 Textbook Notes
Jan 20, 2020
Scientific Management
● Fredrick W. Taylor published The Principles of Scientific Management in 1911
○ “The principal object of management should be to secure maximum prosperity for
the employer, coupled with the maximum prosperity for the employee”
○ Often called “father of scientific management”
○ Goal was to improve workers’ productivity
○ Used concept of “time study”
● Motion Study: Science of reducing a job or task to its most basic physical aspects
Administrative Principles
● By Henry Fayol in 1916
● Identifies 5 rules/duties
○ Foregisht
○ Organization
○ Command
○ Coordination
○ Control
● Believed management could be taught
● Defined 14 principes to help managers
○ Scalar chain principle
■ 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 that have the same
performance objective
Bureaucratic Organization
● By Max Weber
● At the heart of Weber’s thinking was an ideal; an intentionally rational and very efficient
form of an organization called a bureaucracy
● Founded on the principles of logic, order, and legitimate authority
● Defining characteristics:
○ Clear division of labour
○ Clear hierarchy of authority
○ Formal rules and procedures
○ Impersonality
○ Careers based on merit
● Now commonly perceived as negative
Behavioural Management Approaches
● Follett’s ideas about organizations as communities
● Hawthrone studies
● Maslow’s theory of human needs
● Related ideas of Douglas McGregor and Chris Argyris
● Organizational Behaviour: The study of individuals and groups in organizations
Follet’s Organizations as Communities
● Managers and workers should labour in harmony without one party dominating the other,
with freedom to talk over and truly reconcile conflicts and differences
● Believed it was the manager's job to help workers corporate and to integrate their goals
and interests
● Believed business were service organizations
The Hawthorne Studies
● Social Setting and Human Relations
○ “Social setting” in the test room made workers want to do a good job
○ Work conditions or wages were found to increase satisfaction for some workers
and dissatisfaction for others
● Lessons of the Hawthorne Studies
○ Studies shifted managers' and researchers’ attention towards social and human
factors as drivers of productivity
○ Hawthorne Effect: The tendency of workers singled out for special attention to
perform well or better than expected because of expectations created by the
situation
Maslow’s Theory of Human Needs
● Need: Physiological or psychological deficiency a person feels compelled to satisfy
● Based on 2 underlying principles
○ Deficit principle
■ Satisfied need does not motivate behaviour
○ Progression principle
■ The five needs that exist in a hierarchy of “prepotency”
■ A need at any level becomes active only when the nest-lower-level need
is satisfied
● Implies that managers who understand and help workers to satisfy their important needs
at work will get more productivity out of their employees
McGregor’s Theory X and Theory Y
● Influenced by hawthorne and Maslow
● Argued managers should give more attention to workers’ social and self-actualizing
needs
● Managers to shift their view of human nature away from a set of assumptions he called
Theory X towards ones he called Theory Y
● Theory X Assumptions
○ Employees generally dislike work
○ Have little ambition
○ Are irresponsible
○ Resist change
○ Prefer to be led rather than to lead
● Theory Y Assumptions
○ Employees are willing to work hard
○ Accept responsibility
○ Capable of self-control and self-direction
○ Imaginative and creative
● Believed these assumptions created self-fulfilling prophecies
Argyris’s Theory of Adult Personality
● Inspired by Maslow and McGregor
● Believed that common problems may be signs of a mismatch
● Argued that managers who treat employees as responsible adults will achieve the
highest productivity
Quantitative Analysis Tools
● A problem is encountered, it is systematically analyzed, appropriate mathematical
techniques applied, and an optimum solution is identified
● Analytics is becoming indispensable to organizations of all types
○ Systematic analysis of big data to solve problems and make informed decisions
Organizations As Systems
● System: interrelated parts or subsystems that work together to achieve a common goal
● Organizations function as open systems that interact with their environment in a
continual process of transforming inputs
Contingency Thinking
● Matches actions with problems and opportunities specific to different people and settings
Quality Management
● Total Quality Management (TQM): Incorporates quality principles in organizations'
strategic objectives
● Most TQM approaches begin with buy-in on total quality commitment
● Continuous Improvement: Always looking for new ways to improve on current practises
● ISO Certification: To obtain businesses undergo a rigorous assessment by independent
authority to determine whether ISO’s strict quality requirements have been met
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GMS 200 Full Course Notes
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Document Summary
Fredrick w. taylor published the principles of scientific management in 1911. The principal object of management should be to secure maximum prosperity for the employer, coupled with the maximum prosperity for the employee . Motion study: science of reducing a job or task to its most basic physical aspects. Should be a clear and unbroken line of communication from the top to the bottom of the organization. Each person should receive orders from only one boss. One person should be in charge of all activities that have the same performance objective. At the heart of weber"s thinking was an ideal; an intentionally rational and very efficient form of an organization called a bureaucracy. Founded on the principles of logic, order, and legitimate authority. Related ideas of douglas mcgregor and chris argyris. Organizational behaviour: the study of individuals and groups in organizations.
