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Modern Corp > Chapter 3 > Flashcards

Chapter 3 Flashcards

1
Q

The theories of classic management thinking share a……?

A

Normative perspective

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2
Q

What is the context of classic management thinking?

A

Concerned w the growth and influence of a particular way of thinking about org. and management.

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3
Q

When was classic management thinking had its’ greatest significance?

A

First half of the 20th century

Basic ideas it promotes are still the base of manga. theory today

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4
Q

What happened at the end of the 19th century to industries?

A

Huge changes in industrial capitalism though tech and economic developments. Especially in the US - a growing concentration of industry

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5
Q

What did the changes in industrial capitalism lead to in the US?

A
  1. Smaller firms urged into larger units for benefits
  2. Legislative chnges (US Sherman Act, 1890) forced informal ways (e.g cartel methods) in firms to have a legal form
  3. Start of monopoly capitalism where huge industries combine and corporations will produce the largest part of national output
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6
Q

What did the growth in size of US industries in the 19th century lead to?

A

growth in size w the intensified division of labour created huge

  1. Logistical probs
  2. Social probs
    - all of coordination and control
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7
Q

What else was occurring int he 19th century in the US and Europe?

A

Cultural change was occurring where “Rationalism” was taking over “Traditionalism”

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8
Q

The change of rationalism to traditionalism created?

A

Major solutions for org control and cordination

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9
Q

Acc. do Max Weber (German Sociologist) why did rationalism take over?

A

Due to rise of capitalism (under the influence of “Protestant Ethic” and the reformation Weber, 1952) and demise of feudal christian societies.
Traditional feudalism was now fading away and Formal rationality was taking over economic and social life

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10
Q

Weber’s “formal rationality” consists of?

A

Logic
Reason
Precision
Formality

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11
Q

What were the results of Weber’s “Rational Bourgeois Capitalism?”

A 
Trad. Society Values vs. Capitalism Values:
Emotion and affection - Reason
Involvement and partiality - Neutrality
Approximation - Precision and calculation
Humanity - Efficiency
Quality - Quantity
Mañana - Speed
Custom and practice - Formal law
Religion - science
Intuition - reason
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12
Q

How did concept of time change w Capitalism ?

A

Before general feel of time was fine like using sundials but now newer tech w precision of measure time to the millisecond and workers w exact working hours lead to more stress due to attentions to such precision

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13
Q

What did the emergence of formal rationality make writers do?

A

Lament on dilettantism and ask 2 modern question on managerialism :

  1. What should professional management be about
  2. How should large modern companies be organised to be efficient
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14
Q

Out of 10 important classical management thinkers who was the most representative of all?

A

Frederick Winslow Taylor

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15
Q

What was common of all these 10 administration theorists?

A 
Male
Anglo American 
Practitioners (rather than academic)
Successful managers
Engineers by trade, training or industry
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16
Q

What is the approach of classical manage. theorists?

A

Org and manage is very practical and hoped to develop systems to solve management issues caused by large scale orgs.

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17
Q

What are classical manage. theorists?

A

Where normative/prescriptive theorists produce managerialist theories

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18
Q

What is managerialist theories?

A

used to refer to theories that:

  1. take side of management
  2. Tend to produce ideas that help managers solve problems of control
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19
Q

What are management theories?

A

Refer to theories concerned w explaining management rather than solving its’ issues

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20
Q

What are the main characteristics of CMT ideas?

A
  1. Firmly believed in the application of rational principles
  2. Pushed new ideas but were still inspired by existing notions
  3. Hence, the org of work was defined as a formal problem of planning and design
  4. Classical manag. approach to solve problems of size and complexity was w the use of 2 structural principles of org design.
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21
Q

Explain “Firmly believed in the application of rational principles”

A

The say how in the past use of principles of natural sciences had solved material and technical problems. E.6 200 years ago Scientists build bridges.
Thus saw management as neutral & a technical issue - question of formal design

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22
Q

Explain Pushed new ideas but were still inspired by existing notions?

A

Late 19th to early 20th century only 3 large fields of org structure existed: Army, Military and Gov Admin
Thus much of the features and bcba was borrowed from them, esp Military

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23
Q

Explain “the org of work was defined as a formal problem of planning and design” ?

A

This managerial formalism is contrasted w managerial “informalism” of the HR movement

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24
Q

What are the 2 structural principles of org design?

A
  1. Application of a horizontal division of labour. - required breakdown of whole org. tasks into basic functions - then breakdown further into specialised tasks - as Adam Smith recognised having huge efficiency benefits
  2. In order to control this horizontal division Vertical division was introduced - layered system of management to control work process
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25
Q

What are the 2 major varieties of classical management thinking?

A
  1. Detailed analysis analysis and org of work and working “Scientific management” of shop floor activities (i.e the labour process)
  2. Design of corporate structures and the prescription of corporate management referred to as “Classical Management Theory”
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26
Q

What is Classical Manag. Theory?

A

Approaches concerned w designing efficient org. structures considered here.

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27
Q

How did the Classical Manag. Theory come about?

A

Theorists were successful managers mostly from large engineer companies - found many lesser managers in need of their wisdom - thus published their management manuals and became industrial consultants (first managm. gurus)

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28
Q

What did all Classical Manag. Theorists share?

A

Underlying assumption that it’s possible to derive principles or “laws of org” - when put into practice will definitely improve org. efficiency

29
Q

How did being engineers affect these Classical Manag. Theorists?

A

They looked as org. as a machine. - issue was how to design the components and assemble them into a good system.

30
Q

What did these Classical Manag. Theorists disagree about?

A

How many principles they had but had 1 overall message.

31
Q

What did James Mooney & Alan Riley explain teh focus of their book regarding classical manag.?

A

“The entire book is based on the thesis that there are fundamental principles of org.,..which may be identified in every form of human asscn.”

32
Q

Lyndall Urwick, collator of classical writer’s works says?

A

“There are organisational principles which can be arrived at inductively from the study of human experience of org. which should govern arrangements for human association of any kind”

33
Q

What does Classical Manag. Theory presume? (2 points)

A
  1. There are universal principles of management and org design
  2. Thus, possible to prescribe structural solutions for all orgs.
34
Q

Background of Henri Fayol?

A

Father of modern management

Qualified mining engineer that rose the guest levels of a large French company in the last 1800s

35
Q

Fayol’s work published in french in 1916 as Admin Industrielle et Generale has 3 parts?

A

Functional principles of organisation
Basic activities of management
Principles of organisational design

36
Q

What are the 6 essential functions areas for orgs. identified by Fayol? (After Fayol 1916)

A 
Technical (Production)
Commercial (Purchasing and sales)
Financial
Security
Accounting
Administration
37
Q

How are these 6 functional areas grouped?

A

Grouped according to similarity in function - w tight control from the top.
“This structural logic remains to be a widely used functional organisational form” (Huczynski & Buchanan 6th edition pp. 455-458)

38
Q

Fayol: The activities of management. What are the 5 main activities of his analysis?

A 
Prevoyance
Organising
Commanding
Coordinating
Controlling
39
Q

Explain Prevoyance?

A

Refers to making informed predictions (Forecasting) and projecting courses of action to respond to forecasts (Planning)
- Combination of Forecasting and Planning

40
Q

Explain Organising?

A

Allocation of separate tasks to separate functions, sections and people in a formal structure - along functional lines (marketing, production, accounting etc.)

41
Q

Explain Commanding?

A

Direction and motivation of employees towards org. task - to do this managers need to possess knowledge of task and ppl doing them

42
Q

Explain Coordinating?

A

Ensuring all parts are the system are working well together - done by communication through emails, meetings, personal contacts

43
Q

Explain Controlling?

A

Monitoring and checking actual plans against plans - deviations need to be rectified

44
Q

What does Fayol’s activities of management condense?

A

A condensed description of how management as a whole function should work - a rational model and continuing cycle of activity.
Still influential today

45
Q

What is Fayol’s principles of organisation?

A

Contribution to understanding modern management - prescribed 14 principles of management.
“Without principles one is in darkness and chaos” - Fayol

46
Q

What are the 14 principles of management generalised into?

A

2 basic elements of modern org. design:

  1. Division of work
  2. Hierarchy and scalar chain - Structure of management w line of command from top to bottom of org.
47
Q

Explain division of work.

A

First and primary argument - causes org. dilemmas, lack of control etc. Thus largely other 13 principles attempts to impose controls on this work process.
“Leads to more work and better work w same effort” - Fayol, 1997, p.254

48
Q

What are the 14 principles of management?

A

Division of work
Authority - managerial authority
Discipline - training ppl to obey rules
Unity of command - 1 master
Scalar chain - Org’s hierarchy
Unity of direction - 1 goal
Interest subordination - No self interest
Remuneration - Fairness in pay
Centralisation - Concentration of authority
Order - Place for everything
Equity of interest - Treat workers fairly
Stability of employment
Opp. for initiative
Esprit de corps - managments responsibility to boost morale

49
Q

What did the 14 principles of management set a pattern for?

A

Set a general pattern for classical administration theory which attempted to establish universal principles of org and management - classical writers argue that this framework will increase efficiency of org goals

50
Q

From a social scientific view how is classical management flawed?

A
  1. What sort of principles are they?
  2. Can management be merely a technical problem
  3. There is an implicit org. consensus in classical thinking
  4. No sense of human side of org.
  5. Deteminism and universalism ignore complexity of diversity of org.
  6. Mechanistic, bureaucratic solutions offer limited options to org. design
  7. Much evidence for these solutions are anecdotal
51
Q

Define hierarchy?

A

No of levels of authority to be found in an org. - a coordinating tool that helps bring together the act. of individuals and groups that was separated by the division of labour

52
Q

Define span of control?

A

number of subordinates that report back directly to a single manager

53
Q

Every org has?

A
  1. Staff employees - contr. indirectly occupy advisory positions to support line employees
  2. Line workers/employees - contribute directly manufacturing goods
54
Q

What is authority?

A

have the right to give commands and receive responses to pursue org. goal

55
Q

If management gives you responsibility..?

A

They are responsible of your actions to senior management

56
Q

What is a line relationship?

A

Where manager has authority over lower pistons in same line (vertical hierarchy) creates a chain of command

57
Q

What is chain of command?

A

Auhoirty flows from top to bottom in org clarifying who reports to whom

58
Q

What is staff relationship?

A

Staff dept provides a service to line managers by advising - can’t force

59
Q

What is functional relationship?

A

Areas where staff dept specialists (e.g HR) have authority to insist on implementing on line managers

60
Q

What is formal org?

A

Documented, planned relationships established by management to coordinate activities of different employees to achieve org. goals

61
Q

What is informal org?

A

undocumented, relationships that arise spontaneously as employees interact, to meet their own psychological and physical needs - conflicting w formal org.

62
Q

What happened to organisation in the 1930s?

A

Formalisation took over

63
Q

What were the adv of formalisation?

A
  1. Ensure predictability of human behaviour
  2. Employees can’t be oppressed but managers makes rules thus can ignore these rules
  3. Avoid personal biases
  4. Rules coordinate act. of different employees to achieve org. goals
  5. Establish conformity
64
Q

What is organisation design?

A

Senior management’s choice and implementation of a structural configuration which is utilised to achieve org. goals - what employees are doing with their time

65
Q

How did Fayol define management?

A

As a separate activity and defined the elements it was made of.
Started from top of hierarchy to bottom.
Viewed management objectively

66
Q

Characteristics of the 6 managerial activities?

A

All 6 occurs simultaneously but province usually occurs first - original plans may change due to loops in resources organising for example

67
Q

Define managerial act?

A

Activities performed by managers to support org’s operations and ensure its’ success

68
Q

Fayol’s ideas are referred to as ?

A

Classical Management Theory

69
Q

Fayol wanted to standardise?

A

Efficiency where it was based on a natural order of centralisation in which everything tends towards the brain and directives come from it

Modern Corp (5 decks)

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