Management 300. Week 5 Notes. Chapter 2
Management 300. Week 5 Notes. Chapter 2 MGT 300
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This 5 page Class Notes was uploaded by Annalisa Notetaker on Tuesday February 9, 2016. The Class Notes belongs to MGT 300 at Ball State University taught by Charles Michael Horvath in Fall 2016. Since its upload, it has received 56 views. For similar materials see Managing Behavior in Organizations in Business, management at Ball State University.
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Date Created: 02/09/16
Week 5 Chapter 2 Management 300 Scientific Management Theory =the systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency. Most well defined by Frederick W. Taylor. Job specialization= —the process by which a division of labor occurs as different workers specialize in tasks—improves efficiency and leads to higher organizational performance. Specialized jobs became very dull, boring, and repetitive Scientific Management Principle1 : Study the way workers perform their tasks, gather all the informal job knowledge that workers possess, and experiment with ways of improving how tasks are performed. Principle 2: Codify the new methods of performing tasks into written rules and standard operating procedures. Principle 3 : Carefully select workers who possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures. Principle 4 : Establish a fair or acceptable level of performance for a task, and then develop a pay system that rewards performance above the acceptable level. Gilbreths Followers of Taylor Studied fatigue and how physical characteristics of the workplace affected job stress and performance. Administrative Management = The study of how to create an organizational structure and control system that leads to high efficiency and effectiveness. Organizational structure – system of task and authority relationships that control how employees use resources to achieve the organization’s goals Max Weber = created principles of bureaucracy Principle 1: In a bureaucracy, a manager’s formal authority derives from the position he or she holds in the organization. Principle 2: In a bureaucracy, people should occupy positions because of their performance, not because of their social standing or personal contacts. Principle 3: The extent of each position’s formal authority and task responsibilities, and its relationship to other positions in an organization, should be clearly specified. Principle 4: 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. 20 Principle 5: Managers must create a welldefined system of rules, standard operating procedures, and norms so they can effectively control behavior within an organization. Authority= The power to hold people accountable for their actions and to make decisions concerning the use of organizational resources. Rules= are formal written instructions that specify actions to be taken under different circumstances to achieve specific goals Standard Operating Procedures= Specific sets of written instructions about how to perform a certain aspect of a task. Norms: 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. Fayol’s Principles of Management Division of labor= Job specialization and the division of labor should increase efficiency, especially if managers take steps to lessen workers’ boredom. Authority and responsibility= Managers have the right to give orders and the power to exhort subordinates for obedience. Unity of command= An employee should receive orders from only one superior. Line of authority= The length of the chain of command that extends from the top to the bot tom of an organization should be limited. Centralization= Authority should not be concentrated at the top of the chain of command. Unity of direction= The organization should have a single plan of action to guide managers and workers. Equity =All organizational members are entitled to be treated with justice and respect. Order = Arrangement of organizational positions should maximize organizational efficiency and provide employees with satisfying career opportunities. Initiative =Managers should allow employees to be innovative and creative. Discipline= Managers need to create a workforce that strives to achieve organizational goals. Remuneration of personnel =The system that managers use to reward employees should be equitable for both employees and the organization. Stability of tenure of personnel= Longterm employees develop skills that can improve organizational efficiency. Subordination of individual interests to the common interest =Employees should under stand how their performance affects the performance of the whole organization. Esprit de corps =Managers should encourage the development of shared feelings of comrade ship, enthusiasm, or devotion to a common cause. Behavioral Management Theory = study of how managers should personally behave to motivate employees and encourage them to perform at high levels and be committed to achieving organizational goals. Mary Parker Follett Brought out the human side of the organization Suggested that workers help with analyzing the work Workers should be in control of the work process, and managers should be coaches and facilitators—not as monitors and supervisors. Hawthorne Studies Worker productivity was measured at various levels of light illumination. Whether the light levels were raised or lowered, worker productivity increased. >Hawthorne Effect: manager’s behavior or leadership approach can affect workers’ level of performance Human relations movement = which advocates that supervisors be behaviorally trained to manage subordinates in ways that elicit their cooperation and increase their productivity. Informal organization =The system of behavioral rules and norms that emerge in a group. Organizational behavior =The study of the factors that have an impact on how individuals and groups respond to and act in organizations. Theory X and Y Theory X= A set of negative assumptions about workers that leads to the conclusion that a manager’s task is to supervise workers closely and control their behavior. Theory Y= 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 selfdirection. Theory X o The average employee is lazy, dislikes work, and will try to do as little as possible. o To ensure that employees work hard, managers should closely supervise employees. o Managers should create strict work rules and implement a welldefined system of rewards and punishments to control employees. Theory Y o Employees are not inherently lazy. Given the chance, employees will do what is good for the organization. o To allow employees to work in the organization’s interest, managers must create a work setting that provides opportunities for workers to exercise initiative and selfdirection. o Managers should decentralize authority to employees and make sure employees have the resources necessary to achieve organizational goals. Management Science Theory =Contemporary approach to management that focuses on the use of rigorous quantitative techniques to help managers make maximum use of organizational resources to produce goods and services. Open System= A system that takes in resources from its external environment and converts them into goods and services that are sent back to that environment for purchase by customers. Closed System= A system that is selfcontained and thus not affected by changes occurring in its external environment. Entropy= The tendency of a closed system to lose its ability to control itself and thus to dissolve and disintegrate. Synergy= Performance gains that result when individuals and departments coordinate their actions. Contingency Theory =The idea that the organizational structures and control systems manager choose are contingent on characteristics of the external environment in which the organization operates. Tom Burns and G.M. Stalker “there is no one best way to organize” Mechanistic Structure =An organizational structure in which authority is centralized, tasks and rules are clearly specified, and employees are closely supervised. Organic Structure =An organizational structure in which authority is decentralized to middle and firstline managers and tasks and roles are left ambiguous to encourage employees to cooperate and respond quickly to the unexpected
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