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Classical Theory Continued

Classical Theory Continued. Administrative Principles. Attempts to document and understand the experience of successful managers. Two prominent writers of the time were Henri Fayol and Mary Parker Follett. Don’t need to write. Herni Fayol.

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Classical Theory Continued

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  1. Classical Theory Continued

  2. Administrative Principles • Attempts to document and understand the experience of successful managers.

  3. Two prominent writers of the time were Henri Fayol and Mary Parker Follett Don’t need to write

  4. HerniFayol • Fayol derived 14 principles and 5 rules/duties based on his career • Fayol’s five rules/duties (Foresight, organization, command, coordination, and control) closely resemble the functions of management

  5. I’ve tried my best to summarize Fayol’s 14 principles by breaking them into three groups: Relating to employees, managers and organization.

  6. Principles Related to Employees • Employees are specialized in their work and are expected to work with zeal and energy. No activities related to personal interests are permitted during work hours. They should expect to have only one manager and understand that their manager has the right to give orders. Employees should expect to be paid fairly.

  7. Principles Related to Managers • Managers have to understand that employees are valued not just an expense, thus they should be kind, fair and try to build harmony among personnel. Unnecessary turnover should be avoided. Obedience is gained through respect and disciple applied without favourtism. Managers are responsible for generating a single plan, but also understand that decisions are made primarily from the top.

  8. Principles Related to the Organization • Organizations should have clear communication from the top to the bottom. Lifetime positions should be available for good employees. There is a place for everything and all things should be in their place.

  9. Henri Fayol’s Principles Employee Manager Generates a single plan Employees are valued not just an expense Decisions are primarily made from the top Behaviour grounded to obedience and derived from respect Managers should be kind and fair Unnecessary turnover should be avoided Work to build harmony and cohesion among personnel Organization Organizations must have clear communication from top to bottom Lifetime employment should exist for good workers There is a place for everything and all things should be in their place • Specialization of work • Only one manager • Understand that managers have the right to give orders • Only work issues are permitted at work • Paid fairly for their work • Undertake work with zeal and energy

  10. Mary Parker Follett • Displayed understanding of groups and a deep commitment to human cooperation • Saw organization as group networks instead of hierarchal structures

  11. Stop here for today

  12. Follett’s Beliefs • Organizations should be divided into managers and workers, where managers dominated the workers but the workers were free to talk • Employees should be made owners to promote collective responsibility

  13. Short biography on Mary Parker Follett (First 2 minutes) • http://www.youtube.com/watch?v=skq-ZsQeRlk

  14. Bureaucratic Organization • Believed that people in positions of authority were there due to social standings, not job-related capabilities • Resulted in performance deficiencies and hinders organizations from reaching full potential • His solution was a Bureaucracy

  15. Bureaucracy • A rational and efficient form of organization founded on logic, order, and legitimate authority

  16. Weber’s Bureaucracy Characteristics • Clear division of labour • Clear hierarchy of authority • Formal rules and procedures • Impersonality • Careers based on merit

  17. What are the advantages and disadvantages of a Bureaucracy? Class Brainstorm

  18. Bureaucracy Advantages Disadvantages Lots of paperwork Lots of rules => Reduced creativity Feedback harder to implement Authorities are not based on social standings Alienation Dehumanization Anti-democratic Inefficient when dealing with exceptions • Better management control • Work divided up equally • Organized • Justification for the labour • It’s fair • Hiring based on merit and skills • Efficient with dealing with routine matters • Consolidation of power and administrative control

  19. Max Weber and the bureaucracy (start at 2minutes and go to 4 minutes) • http://www.youtube.com/watch?v=uyTWKKnDw5o&feature=related

  20. Classwork • Explain the three branches of classical theory and how they affect management. • What are the administrative principle theories based on? • Write out each of Henri Fayol’s principles in your own words. Why might new managers which to know these principles today? • What are Fayol’s five rules and how do they resemble the four functions of management? • A lot of Mary Parker Follett’s work was based on sociology. How did she relate sociology to business management? • How are Follett’s theories strongly relevant to present management issues/theories? • What is a bureaucracy and what problem did Weber think it could fix? What are the advantages and disadvantages of a bureaucracy?

  21. Clips • Henri Fayol’s 14 principles (42 Seconds) • http://www.youtube.com/watch?v=ROFUJbodOeg&feature=related

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