MGMT 320 1st Edition Lecture 5 Outline of Last Lecture I. Scientific ManagementOutline of Current Lecture I. Administrative managementa. Max Weberb. Henry FayolII. Behavioral viewpointCurrent Lecture1. Classical viewsa. Scientific managementi. See notes 1-23-2015b. Administrative managementi. Focuses on achieving increased output through better coordination of the parts of a business, in addition to increasing individual productivity ii. Max Weber (late 1800’s)1. Bureaucracy: a way to coordinate a business so it’s run in a systematic & rational mannera. Specialization of laborb. Formalization (documented rules) causes everyone to do things the same wayc. Impersonal don’t hire someone because you want to dosomeone a favor, hire someone because they’re the best person for the job d. Well defined hierarchy (well defined jobs & lines of authority) people know who they’re supposed to listen to These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.e. Leads to efficiency & consistencyi. Rules & “red tape” get in the way of creativity & slow responsivenessf. Quality: meeting or exceeding customer expectations create satisfied customersi. Marketing:1. Fids out what they want2. Creates expectationsii. Production:1. Produces consistentlyiii. Marketing:1. Follow up with customer service g. Bureaucracy helps with productioniii. Henry Fayol (late 1800’s)1. 14 principles of managementa. Division of laborb. Authority comes with responsibility & accountabilityi. You cannot have one without the otherii. Authority: right to give orders and/or, make decisions and/or, allocate resourcesiii. Responsibility: obligation to use authority in the best interest of an organizationiv. Accountability: justification for everyone who has authority must prove that they used it responsibly c. There is an unbroken line of authority from the top to the bottom of the organizationi. Scalar principle/scalar chain (chain of command goes down, chain of responsibility goes up1. Modern corporations would not be able to exists without this d. Unity of command: no one takes direct orders from more than 1 immediate superiori. If they do, then the orders are likely to conflict & it’s inefficient to have the subordinate try to figure out what to doii. IF this is violated, the superiors should coordinate their orderse. Unity of direction: people need to share common goals to be efficient1. This is done by grouping jobs together that share/perform like activities functional structure2. Behavioral viewpointa. Focuses on helping managers deal with the human side of the organizationb. Early to middle 1900’s (Shortly after WWI early 1970s)c. Economic environment i. Boom bust (depression) war boom recessionii. Boom1. Winning side of major way iii. Bust1. Great depressioniv. War (WWII)v. Boom 1. Winning side of major
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