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Chapter 2

Chapter 2 gmd.docx


Department
Global Management Studies
Course Code
GMS 200
Professor
Shavin Malhotra
Chapter
2

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Chapter 2
Classical management approaches
There are three approaches to management, scientific management, administrative principles
and bureaucratic organization
The three approaches share a common assumption: people in the workplace act rationally by
being motivated by economic concerns
Scientific Management
Fredrick W Taylor believed that due to the lack of clarification of what employees were expected
to do this led to a loss of efficiency and productivity, he believed that this problem can be
corrected by having managers correct and help them do their jobs the proper way
Taylor’s goal was to improve the productivity of the workforce thus he created the scientific
management approach which includes four principals
For every job there are sets of actions that must be carried out, standard work
implements and proper working conditions
Handpick employees who have the abilities to perform the job
Train these employees to be able to complete the job and give them incentives to follow
the set procedures and etc
Help workers by carefully planning their work and smoothing the way as they go
through their jobs
Motion study is the science responsible for reducing the amount of work that has to be done by
reducing a task to its simple physical motions
2.1 management smarts practical lessons from scientific management
- make results based rewards an incentive for people to work hard
-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
Administrative principles
Division of labor; expertise in a certain field of work will allow individuals to continuously
improve their skills and methods

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Authority: the workforce needs to acknowledge the fact the managers have the power to
give orders
Discipline: Behavior needs to be grounded in obedience and derived from respect. No one
shall slack or manipulate the rules
Unity of command: each employee will have one manager and will take orders from one
boss
Unity of direction: There will be a single plan made, and the rest have to help execute the
plan; one person is in charge of all the activities that have the same performance objective
Subordination of individual interests: While at work, only work issues should be worried
about
Remuneration: All should be paid for their work as employees are valuable, not an expense
Centralization: While recognizing the difficulties in large organizations, decisions are made
from the top
Scalar chain/line of authority: organizations need a clear, formal chains of command running
from the top to the bottom
Order- there is a place for everything and everything should be in their place
Equity managers should be kind and fair
Personnel tenure : unnecessary firing is to be avoided and good employees should be kept
for a life time
Initiative- workers should engage work with zeal and energy
Esprit de corps: work to build harmony and cohesion among employees
Fayol’s five rules of management
Resemble the four functions of management
Foresight: to complete a plan of action for the future
Organization: to provide and utilize resources to execute the plan
Command : to lead, select and evaluate workers to put forth best work toward the plan
Coordination: to fit diverse efforts together and to make sure information is shared and
problems solved

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Control: to make sure the plan flows without a problem and to take any action
necessary in order to execute the plan without error
Fayol compiled a list of principles that are set to guide managers in their decision making such as
the Fayol’s scalar chain principle where there should be a clear and unbroken line of
communication between the top and bottom of an organization
Bureaucratic organization
Weber’s ideas were reactive to his belief that organizations were unable to reach their
maximum potential due to the fact that people were hired not because of their competencies,
rather their status in society
Weber came up with the idea of a bureaucracy to resolve these issues, a bureaucracy is a
rational and efficient variation of an organization whose foundations consist of logic, order and
legitimate authority
Characteristics of a bureaucratic organization
Clear division of labor: jobs are clear to workers and employees become more efficient
in those fields
Clear hierarchy of authority: authority and responsibility are well defined for each
position where one position will report to a higher ranking one
Formal rules and procedures: Set rules direct behavior and influence decisions made in
jobs, and written files are kept for historical record
Impersonality: rules and procedures are neutrally and uniformly applied where no one
recieves favoritism
Careers based on merit: Workers are selected and promoted on ability, competency,
and performance and managers are career employees of the organization
Weber believed the advantages of a bureaucracy included efficiency in using its resources, and
fair treatment of its employees and clients
Disadvantages include a lot off paper work/red tape, it takes a long time to solve problems,
rigidity in the face of shifting customer or client needs, it is conservative, and employee apathy.
This form of an organization may be a problem for organizations that need to quickly adjust to
its environment
Behavioural management approaches
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