Chapter 2

The Machine Metaphor Importance of specializationDivision of labor

Standardization Replaceability Predictability

Fayol’s Theory of Classical Management Fayol – French industrialist of late

19th/early 20th centuries Elements of management PlanningDetermine best way to attain goals

Organizing Arrangement of human resources

Fayol’s Theory of Classical Management CommandManagers set tasks

Coordination Activities harmonized into single whole

Control Comparison between goals and activities

Principles of ManagementPrincipals of Organizational Structure

Scalar chain Unity of command Unity of direction

Division of labor Order Span of control

Principles of Organizational Power Centralization Authority and responsibility Discipline

Principles of Organizational Reward Remuneration of personnel Equity Tenure stability

Principles of Organizational Attitude Subordination of individual interest to

general interest Initiative Esprit de corps

Weber’s Theory of BureaucracyWeber was a German sociologist of the late

19th/early 20th century Six facets of bureaucracy Clearly defined hierarchyDivision of labor Centralization of decision making and power

Weber’s Theory of Bureaucracy Six facets of bureaucracy (continued) Relatively closed system Technical cores (Thompson, 1967)

Importance of rules Functioning of authority

Weber’s Theory of Bureaucracy Authority is based on one of three grounds Traditional (legitimate) authority Charismatic authority Rational-legal authority Dominates in bureaucratic systems

Taylor’s Theory of Scientific Management Taylor – U.S. businessman – early 20th

century Concentration on micro level of

organizational functioning

Components of Scientific Management There is one best way to do every job Time and motion studies

Proper selection of workers Training workers in manner suggested by

time and motion studies

Components of Scientific Management Inherent difference between management

and workersManagers best suited for thinking and planning

Workers best suited for laboring

Scientific Management Scientific Management should correct past

problems Problem of uneven work should be eliminated

Piece rate should be based on minimum standards set

Systematic soldiering would be diluted

Classical management in Organizations Today Classical management prevalent

Classical Structure in Today’s Organizations Division of labor and strict hierarchyMilitary organizationsManufacturing and service organizations Nonprofit organizations

Not All Organizations Use Classical Structure Division of labor blurred Cross-functional teamsMatrixing of tasks Freer flow of communication

Classical Job Design and Rewards in Today’s Organizations Often looking for one best way to

accomplish tasks Fitting the job to the individual Concerned with role of financial rewards in

motivation

McGregor's Theory X and Theory Y Theory XManager influenced by most negative aspects of classical management

Theory YManager who adheres to precepts of human relations movement

Propositions of Theory X Manager Responsible for organizing People must be controlled and motivated Average man is indolent Lacks ambition Inherently self-centered Resistant to changeGullible

Theory Y View of Human Nature Expenditure of effort natural External control and punishment not only

means Commitment to objectives function of

rewards associated with achievement Average human accepts responsibility Capacity to exercise imagination and

ingenuity not rare Intellectual potentialities only partially

utilized

Human Relations and Human Resources in Organizations Today Human relations ideas seen in attitude of

management toward employees Human relations principles seen in job

design

Human Resources Developments Consideration of organizations as learning

systems Development of systems of knowledge

management Learning organizations (Senge, 1990)

The “What” of Human Resources Programs Team management Employee involvement

The “How” of Human Resources Programs Research suggests these programs often

don’t workMore than a belief is required for success