Mgt 5 - Ch. 1

Front 1

Classical Management Theory

Back 1

The study of the principles and functions of management and the authority structures of organizations

Front 2

Henry Fayol (wrote)

Back 2

General and Industrial Management

Front 3

Henry Fayol (stated and defind)

Back 3

- Five Functions of Management
- 14 Priinciples of Management

- He focused on middle and upper management activities in multi-unit organizations

Front 4

Five Functions of Management

Back 4

organizing, command, coordination, control

Front 5

What was the purpose of the 14 management principles?

Back 5

to improve the performance of a wide varietyyy of organizations

Front 6

(14 Principles of Management)

1. Division of Work

Back 6

Divide work into specialized tasks and functions

Front 7

(14 Principles of Management)

2. Authority

Back 7

Authority must be accompanied by responsibility

Front 8

(14 Principles of Management)

3. Discipline

Back 8

Sanctions are necessary to minimize or prevent the recurrence of behavior that violates agreed-upon expectations

Front 9

(14 Principles of Management)

4. Unity of comman

Back 9

For any action whatsoever, an employee should receive orders from one superior only

Front 10

(14 Principles of Management)

5. Unity of direction

Back 10

There should be 'one head and one plan for a group of activities having the same objective'

Front 11

(14 Principles of Management)

6. Subordination

Back 11

The interest of one employee or group of employees should not prevail over that of the organization

Front 12

(14 Principles of Management)

7. Remuneration

Back 12

should be fair and, as far as is possible, afford satisfaction both to personnel and firm (employee and employer)

Front 13

(14 Principles of Management)

8. Centralization

Back 13

The amount of centralization or decentralization necessary to a firm is a function of both of the size of the firm and the ability of the manager(s). Organizational effectiveness is increased by determining the optimal level of centralization

Front 14

(14 Principles of Management)

9. Scalar chain

Back 14

The scalar chain is the chain of supervisors ranging from the ultimate authority to the lowest ranks. The line of authority is the route followed - via every link in the chain - by all communications which start from or go to the ultimate authority

Front 15

(14 Principles of Management)

10. Order

Back 15

There must be order in both material and personnel.

Front 16

(14 Principles of Management)

11. Equity

Back 16

To encourage employee lyoalty and performance, employers must treat employees fairly, combining kindness and justice, but not excluding forcefulness or sternness.

Front 17

(14 Principles of Management)

12. Stability of Tenure of Personnel

Back 17

It requires time for an employee to develop the skills necessary to perform his or her work well. Therefore, successful companies are those with low turnover of personnel.

Front 18

(14 Principles of Management)

13. Initiative

Back 18

At all levels of the organizational ladder zeal and energy on the part of employees are augmented by initiative. The initiative of all, added to that of the manager, and supplementing it if need be, represents a great source of strength for businesses

Front 19

(14 Principles of Management)

14. Esprit de Corps

Back 19

Union is strength. Harmony, union among the personnel of a concern is great strength in that concern. Effort, then, should be made to establish it

Front 20

Max Weber (book)

Back 20

The Theory of Social and Economic Organization

Front 21

Max Weber (stated and defined)

Back 21

- The Three Basic Types of Authority Relationships
- Bureacracy

- writings aimed more for scholars than practicing managers, but ultimately influenced society as a whole

Front 22

J.D. Mooney and A.C. Reiley (book)

Back 22

Onward Industry!

Front 23

J.D. Mooney and A.C. Reiley (stated/defined)

Back 23

Four Basic Principles of Management

Front 24

Three types of authority relationship

Back 24

Traditional authority, Charismatic authority, Rational-legal authority

Front 25

Traditional authority

Back 25

authority exercised on the basis of custom or past practice

weakness: it emphasizes precedent for its own sake rather than making the best possible decision

Front 26

Charismatic authority

Back 26

devotion to the specific and exceptional sancuity, heroism, or exemplary character of an individual person

weakness: does not provide a basis for succession of authority relationships when the charismatic leader leaves the scene

Front 27

Rational-legal authority

Back 27

authority exercised to achieve specifically designated goals and based on the legal right of the person in a particular office. Best suited for larger, complex organizations because it emphasizes OBEDIENCE
It fulfills an official position and acting on the basis of powers conferred on that position (and not to a particular person)

Front 28

Main point of Max Weber

Back 28

Bureaucracy would be if the rational-legal authority were maximized. It would have certain features such as a set of rules to govern official actions, clearly defined duties for each office,

competence and technical qualifications as the basis for selection of officeholders,

comprehensive training for people occupying particular positions.

Front 29

Classical Approach to Management

Back 29

Coordinative principle, scalar principle, functional principle, staff principle

Front 30

Coordinative principle

Back 30

need to obtain a high degree of coordination of actions toward a common purpose

Front 31

Scalar principle

Back 31

need to designate the precise delegation of authority from the top to the bottom of the organization

Front 32

Functional principle

Back 32

need to achieve a tight grouping of specialized functions or duties

Front 33

Staff principle

Back 33

need to provide managers in the direct chain of command (the line) with ideas and information from specialized experts (the staff), and the related need to distinguish clearly between the two types of positions

Front 34

Critiques of Classical Management Theory

Back 34

Limited view on the role of people in organization

- Did not deal sufficiently with the effects of changing conditions

- Assumed there is 'one best way' to manage a business

Front 35

Contributions of Classical Management Theory

Back 35

A rational way to think about structure and management of organization

- Provided direction for increasing effectiveness and efficiency of organizations

- Many of the principles have persisted in one form or another to the present

Front 36

Neoclassical management theory

Back 36

continued to emphasize the study and analysis of managerial functions and organizational structures but expanded to include situational and social considerations such as communication and cooperation

Front 37

Mary Parker Follett (book)

Back 37

Creative Experience

Front 38

Mary Parker Follett (emphasized)

Back 38

- cooperation between managers and subordinates
- integration of interests of organization and employees
- the use of the type of authority appropriate to the situation

Front 39

Law of the situation

Back 39

based on a person's knowledge and experience - that seems appropriate to the circumstances

Front 40

Chester Barnard (book)

Back 40

The Functions of the Executive

Front 41

Chester Barnard (emphasized)

Back 41

- A view of organizations as cooperative social systems
- The need for managers to obtain voluntary cooperation from their workers
- The 'zone of indifference'
- The need for efficient organizational communication

Front 42

Chester Barnard (believed)

..what three things?

Back 42

1. willingness to cooperate
2. common purpose
3. communication

He stressed the need for managers in organizations to obtain the voluntary cooperation of those they lead

Front 43

Humans Relations Approach

Back 43

approach that focused on the importance of relationships among people in the workplace

Front 44

Hawthorne studies

Back 44

a series of research studies that focused a spotlight on the importance of the human factor in productivity

Front 45

Human resources approach

Back 45

approach involving a basic belief that people possess and want to make greater use of their talents and capabilites and that if allowed to do so, performance and satisfaction will increase

Front 46

Behavioral Decision-Making Approach

Back 46

- Herbert Simon
- Administrative man vs. Economic Man
- Bounded rationality

Front 47

"economic man"

Back 47

notion that individuals are totally rational and that in their decisions they can evaluate all alternative courses of action and their consequences and then select that one that has the best chance of maximizing goal attainment (profit)

Front 48

"administrative man"

Back 48

managers in real-life organization does not have information on all possible alternative courses of action and also does not have complete information on the probabilities of various consequences arising from particular actions.

Front 49

bounded rationality

Back 49

cooncept that managers attempt to make rational decisions, but their thinking is constrained by human limitations

Front 50

Satisficing

Back 50

decisions that result in an acceptable course of action rather than the best alternative, or goal maximization

Front 51

Quantitative Decision-Making

Back 51

- Emerged after WWII
- Management Science/Operations Research
- Mathematical modeling tools for planning and forecasting

Front 52

management science (operations research)

Back 52

quantitative or mathematical approaches to managerial problems, especially those requiring specific decisions

Front 53

simulation

Back 53

a set of techniques in which various potential combinations of variables can be mathematically manipulated in advance of actual decisions to determine the possible effects of changes in one or more variables

Front 54

integrative approaches

Back 54

recent approaches to management that include systems theory and contingency approaches and emphasize a consideration of a wide range of factors

Front 55

systems theory

Back 55

- based on biological theory
- systems theory refers to the process of transorming inputs into outputs

processes involved in how inputs gets transformed by the organization into outputs

Front 56

open system

Back 56

constantly interact with their environment

Front 57

closed system

Back 57

a system in which there is no interaction with the outside environment

Front 58

mechanistic approach

Back 58

highly structured traditional management approach, which may be better suited to stable external environments, highly repetitive tasks, and employees with limited technical or professional expertise

Front 59

organic approach

Back 59

a flexible, employee-centered management approach that seems better suited for rapidly changing and complex environments, nonrepetitive tasks, and employees with considerable training and competence

Front 60

contigency approach

Back 60

- IT DEPENDS
- management theory that emphasizes matching a structured or flexible management style to the organization's environment, its technology, the tasks to be performed, and the types of employees.