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GMS 200 Chapter Notes -Mary Parker Follett, Henri Fayol, Morale

Global Management Studies
Course Code
GMS 200
Shavin Malhotra

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Chapter 2: Management- Past to Present
Mary Parker Follet advocated co-operation and better horizontal relationships in organizations, taught respect
for the experience and knowledge of workers, warned against the dangers of too much hierarchy and called for
visionary leadership.
History of management theory has been grouped into five eras or phases of development:
share a common assumption: people at work act in a rational manner that is
primarily driven by economic concerns. Workers are expected to rationally
consider opportunities made available to them and do whatever is necessary
to achieve the greatest personal monetary gain.
Frederick W. Taylor (father of scientific management)
× “the principle object of management should be to secure maximum prosperity for the employer, coupled with
the maximum prosperity for the employee”
×Goal: improve productivity of people at work.
×Used “motion study” to analyze motions required & developed the most efficient ways to perform them. He linked
job requirements with training and support from supervisors through direction, assistance, monetary incentives.
×motion study - science of reducing a task to its basic physical motions and improve performance.
×The Gilbreths (Taylor, frank, and Lillian) pioneered motion studies as a management tool. Their work established
the foundation for later advanced in the areas of job implications, work standards, and incentive wage plans.
-In one famous study they reduced number of motions used by bricklayers and tripled productivity.
Scientific Management
: emphasizes careful selection and training of workers and supervisory support with an emphasis on improving
efficiency. Had the following four guiding principles
-Develop for every job a “science” that includes rules of motion, standardized work implements and proper
working conditions.
-Carefully select workers with the right abilities for the job
-Carefully train workers to do the job and give them the proper incentives to cooperate with the job ‘science’
-Support workers by carefully planning their work and by smoothing the way as they go about their jobs
Henri Foyal and Mary Parker Follet
Includes attempt to document and understand the experiences of successful managers
Henri Fayol
×14 principles based on experience as an engineer leading large-scale enterprises of thousands of employees.
1. Division of Labour
specialization of work will result in continuous improvements in skill and methods
2. Authority:
Understand that managers have the right to give orders.
3. Discipline:
Behaviour needs to be grounded in obedience and derived from respect. No bending rules.
4. Unity of Command:
Each employee should have one, and only one, manager.
5. Unity of Direction:
The leader generates a single plan and all play part in executing plan
6. Subordination of
Individual Interests:
Only work issues should be undertaken and considered.
7. Remuneration
Fair payment for work, employees are valuable not an expense.
8. Centralization
Recognizing difficulties in large organizations, decisions are made from top primarily
9. Scalar Chain
Line of authority. Clear, formal chains of command running from top to bottom of organiz.
10. Order
There is a place for everything, and all things should be done in their place.
11. Equity
Fair and Kind
12. Personnel Tenure
Unnecessary turnover is avoided and lifetime employment for good workers
13. Initiative
Undertake work with zeal and energy
14. Esprit de corps
Work to build harmony and cohesion among personnel.

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The following five rules of management are also identified by Fayol they closely resemble the four functions of
management planning, organizing, leading and controlling.
1. Foresight to complete a plan of action for the future
2. Organization to provide and mobilize resources to implement the plan
3. Command- to lead, select, and evaluate workers to get the best work toward the plan
4. Coordination- to fit diverse efforts together, and ensure information is shared and problems solved
5. Control- to make sure things happen according to plan, and to take necessary corrective action.
×Fayol wanted to show that management can be worked on in order to improve one’s managerial skill set
×scalar chain principle: there should be a clear and unbroken line of communication from the top to the bottom in
the organization
×command principle:each person should receive orders from only one boss
×unity of direction principle:one person should be in charge of all activities that have the same performance
×Mary Parker Follet: displayed an understanding for groups and a deep commitment human co-operation
-groups were mechanisms through which diverse individuals could combine their talents for a greater good.
-viewed organizations as communities in which managers and workers should labour in harmony without one
party dominating the other.
-believed that every employee is an owner in the business and it would create feelings of collective responsibility.=
employee ownership-profit sharing-gain sharing programs.
-business problems involve a wide variety of factors that should be considered in relationship to one another =
-believed that businesses were services and that private profits should always be considered vis-a-vis the public
good. managerial ethics- corporate social responsibility.
-impact on field of management and the sociology of organizations
-ideas developed somewhat in reaction to what he considered to be performance deficiencies in the organization
-concerned that people were in positions of authority not because of capabilities but their social standing
×bureaucracy is a rational and efficient form of organization founded on logic, order, and legitimate authority.
The defining characteristics of Weber’s bureaucratic organizations:
clear division of labour: jobs well defined and workers
highly skilled
Excessive paperwork or “red tape”
-clear hierarchy of authority: authority and
responsibility are well defined for each position and
reports to higher one.
Slowness in handling problems
-formal rules and procedures: written guidelines direct
behaviour and decisions in jobs and are kept in records
Rigidity in the face of shifting needs
-impersonality: rules and procedures are impartially
and uniformally applied with no one receiving
preferential treatment
Resistance to change
-careers based on merit: workers are selected and
promoted on ability, performance.
Employee apathy
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