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Terms

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Definition

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job specialization

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the process by which a division of labor occurs as different workers specialize in different tasks over time

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scientific management

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the systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency

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Frederick W. Taylor

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defined techniques of scientific management

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administrative management

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the study of how to create an organizational structure and control system that leads to high efficiency and effectiveness

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bureaucracy

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a formal system of organization and administration designed to ensure efficiency and effectiveness

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authority

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the power to hold people accountable for their actions and to make decisions concerning the use of organizational resources

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rules

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formal written instructions that specify actions to be taken under different circumstances to achieve specific goals

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standard operating procedures (SOPs)

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Specific sets of written instructions about how to perform a certain aspect of a task

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norms

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unwritten informal codes of conduct that prescribe how people should act in particular situations and are considered important by most members of a group or organization

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unity of command

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a reporting relationship in which an employee receives orders from, and reports to, only one superior

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line of authority

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the chain of command extending from the top to the bottom of an organization

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centralization

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the concentration of authority at the top of the managerial hierarchy

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unity of direction

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the singleness of purpose that makes possible the creation of one plan to guide managers and workers as they use organizational resources

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equity

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the justice, impartiality, and fairness to which all organizational members are entitled

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order

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the methodical arrangement of positions to provide the organization with the greatest benefit and to provide employees with career opportunities

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initiative

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the ability to act on ones own without direction from a supervisor

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discipline

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obedience, energy, application, and other outward marks of respect for a superior's authority

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esprit de corps

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shared feelings of comradeship enthusiasm or devotion to a common cause among members of a group

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behavioral management

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the study of how managers should behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals

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Hawthorne effect

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the finding that a manager's behavior or leadership approach can affect workers' level of performance

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human relations movement

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a management approach that advocates the idea that supervisors should receive behavioral training to manage subordinates in ways that elicit their cooperation and increase their productivity

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informal organization

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the system of behavioral rules and norms that emerge in a group

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organizational behavior

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the study of the factors that have an impact on how individuals and groups respond to and act in organizations

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Theory X

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a set of negative assumptions about workers that leads to the conclusion that a mangers task is to supervise workers closely and control their behavior

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Theory Y

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a set of positive assumptions about workers that leads to the conclusion that a manager's task is to create a work setting that encourages commitment to organizational goals and provides opportunities for workers to be imaginative and to exercise initiative and self-direction

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management science theory

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an approach to management that uses rigorous quantitative techniques to help managers make maximum use of organizational resources

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organizational environment

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the set of forces and conditions that operate beyond an organization's boundaries but affect a mangers ability to acquire and utilize resources

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open system

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a system that takes in resources from its external environment and converts them into goods and services that are then sent back to the environment for purchase by customers

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closed system

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a system that is self-contained and thus not affect by changes occurring in its external environment

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entropy

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the tendency of a closed system to lose its ability to control itself and thus dissolve and disintegrate

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synergy

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performance gains that result when individuals and departments coordinate their actions

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contingency theory

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the idea that the organizational structures and control systems managers choose depend on (are contingent on) characteristics of the external environment in which the organization operates

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mechanistic structure

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an organizational structure in which authority is centralized, tasks and rules are clearly specified, and employees are closely supervised

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organic structure

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an organizational structure in which authority is de-centralized to middle and first-line managers and tasks and roles are left ambiguous to encourage employees to cooperate and respond quickly to the unexpected

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Important Points

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Column1

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Lessons from Ford

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mass production: conveyor belts, single task for each worker; raised output and reduced price, extremely controlling, strict at work, sociological department, clear effort to control employees

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evolution of management theory

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sci management theory, admin management, behavioral management, management sci, organizational environment theory

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FW Taylor

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defined principles of sci management:

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taylor principle 1

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study the way workers perform their tasks, gather all informal knowledge workers posses, and experiment with ways of imporiving how tasks are performed

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taylor principle 2

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codify new methods of performing tasks into written rules and SOPs

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taylor principle 3

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select workers who posses skills/knowledge that match the needs of the task. And train them to perform the task according to the established rules and procedures

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taylor principle 4

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establish a fair or acceptible level of performance for a task and the develop a pay system that rewards performance above the acceptable level

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Andrew Carnegie

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Scotland: ambitious entrepreneur; dived into combining steel business into one, gained huge at workers expense, low wages, long work hours etc

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Max Wever

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germany, developed bureaucracy

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Weber's 1st principle

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in a bureaucracy, a manger's formal authority derives from derives from the position he or she holds in the organization

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Weber's 2nd Principle

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in a bureaucracy, people should occupy positions because of their performance not because of their social standing or personal contacts

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Weber's 3rd Principle

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the extent of each persons formal authority and task responsibilities and relationship to other positions in an organization should be clearly specified

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Weber's 4th Principle

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authority can be exercised effectively in an organization when positions are arranged hierarchically, so employees know whom to report to and who reports to them

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Weber's 5th Principle

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Manager's must create a well-defined system of rules, standard operating procedures, and norms so they can effectively control behavior within an organization

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Henri Fayol

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Comambault Mining; same time as Weber, 14 principles

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Fayol's 14 Principles

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Division of Labor, Authority and Responsibility, Unity of Command, line of authority, centralization, unity of direction, equity, order, initiative, discipline, remuneration of personnel, stability of tenure of personnel, subordination of individual interests to the common interests, esprite de corps

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Tom Peters and Robert Waterman

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top managers encourage initiative, managers should have a central plan, and that companies should establish division of work and authority that motivate towards common interest

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Mary P Follet

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Behavioral Management Theory: authority should go with knowledge; saw self-managed teams coming;

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Gilbreth

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Cheaper by the dozen;

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Hawthorne Studies

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investigated how work settings affected output

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Mayo & Roethlisberger

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discovered that workers as a group adopted a norm of output restriction: chislers and busters

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HP

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founded on Theory Y: people oriented; long term employment (minimul layoffs), cut pay and shorten workday, communicative environment; eventually had to lay off

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Joe Coulombe

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Trader Joes:specialty products; good planning, allowed employees great freedom, hawaiian shirts, policy of promotion within the company

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Management Science Theory

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Quantitative management, operations management, TQM, MIS (Management information systems)

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Contingency theory

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Tom Burns and GM Stalker in Britian; Paul Lawrence and Jay Lorsch in US: there is no best way to organize

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Mr. Eden

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order and control is everything in this business: big brother attitude; cant talk about anything except work, control cards, RM

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Lecture Notes

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Column1

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ShortComings of Bureaucracies

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too many rules & SOPs; too many levels, too specialized, centralized authority

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necessity of flexibility

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organization is a collection of systems interdependent on each other: managers must coordinate their functinos and actions with one another

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Probably of Success

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Open Systems/Organic structures > contingency > proactive > timely decisions leading to opportunites over threats

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Classical Approachs

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Sci/Admin management theory

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4 Principles of Scientific management

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study the workers task performance, codify new methods, carefully select skilled workers, establish level of acceptable performance

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Contributions of Behavioral Management Theory

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Importance of: employees/groups as people, understanding motivation, interpersonal relations, meaning of work to people, manager/s characteristics/behavior

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Components of an Open-System View

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External Factors: resources to good, organization (system interdependent with other systems in the environment) Internal Factors: managers must mesh with the entire organization

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