Test 1 Flashcards
What is the origin of Management?
Traced back to the construction of the Egyptian pyramids
Who is Adam Smith?
- Came up with ‘ Division of Labour’ - Dividing up the work
- Gave people one specialized task to repeat
- They became experts
- When everyone is an expert, the organization is more efficient
What is the Classical Management Theory?
Based on the belief that workers are rational and willing to work
Who is Henry Ford?
- First person to make affordable cars
- Came up with ‘mass production’ and the ‘assembly line’
What did Frederic Taylor notice?
Scientific Management
Noticed that most people didn’t know what they were actually doing so he came up with -
Need to be super clear about instructions, People becoming experts, Division of Labour, Pay people well
He times employees and studied their motions to determine how they can become faster and more efficient
Scientific Management Characteristics
Specialization
Clear expectations and instructions
Monetary Incentives
Rules of Motion
Select workers carefully based on abilities
Carefully train workers
What did Henry Fayol believe the key to managing was?
Administrative Principles
He believed the key to managing was to have clear rules and duties like the 4 functions of management (planning, controlling, organizing, leading)
He created 14 rules but we focus on 7
What are the 7 rules Henry Fayol created?
- Foresight - to complete a plan of action for the future
- Organization - provide needed resources
- Command - to lead, select and evaluate workers
- Coordination - to ensure information is shared
- Control - make sure things happen according to plan
- Scaler Chain Principle - a clear and unbroken line of communication from the top to the bottom of the organization should exist
- Unity of Command - each person receives orders from only one boss
Administrative Principle Characteristics
Clear rules
Foresight, organization, command, coordination, control, scalar chain, unity of command
What did Max Weber believe?
Bureaucracy
He believed that people got their positions due to their social status and nepotism and not their actual abilities
Bureaucracy Characteristics
Division of Labour
Clear hierarchy of authority
Formal rules and procedures
Impersonal, position based on merit
Used to run large organizations
Very time consuming
Inflexible, generic solutions
Not easily adaptable to new technology
Behavioural Approaches
Mary Parker Follett believed organizations to be “communities”, people working in harmony
Focuses on human side of workplace, social needs and group pressure affect workers
Manager’s job to help people cooperate and combine talents for the greater good
Hawthorne Study
Employees’ performance is influenced by surroundings and coworkers as much as by employee ability and skill
Studied how economic incentives and physical conditions affect labour/behaviour
Results showed that the employees worked harder because they thought they were being monitored individually
People’s work performance is largely dependent on social issues (desire to belong, be included in decision making, relations with co-workers)
These studies led to the Human Relations Movement → A movement towards a mindset where managers realized that if they concentrated on human relations with their workers, they would achieve higher productivity
Hawthorne Characteristics
How you treat people affects how they work
The work environment, social relations may improve productivity
McGregor’s Theory X and Y
Douglas McGregor believed that there are 2 types of managers:
Theory X managers - believe employees don’t like their jobs, lack ambition and want to be led
Theory Y managers - believe employees are willing to work, are creative and ambitious
