Chapter 2 Summary Notes môn Principle of Management | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

1. Classical management approaches a. Scientific management b. Administrative principles c. Bureaucratic organization
2. Behavioral Management Approaches a.
Follett’s organizations as communities b. The Hawthorne studies c.
Maslow’s theory of human needs d.
McGregor’s Theory X and Theory Y e.
Argyris’s theory of adult personality
3. Modern Management Foundations a.
Quantitative analysis and tools b. Organization as systems c. Contingency thinking d. Quality management e.
Knowledge management and organizational learning f. Evidence-based management
CLASSICAL MANAGEMENT APPROACHES: assumes that people are rational in taking opportunities to
achieve personal and monetary gain
I. Sciencetific management: emphasizes careful selection and training of workers and supervisory support.
It comes with 4 guiding principles:
-A “science” that includes rules of motion, standardized work implements, and proper working conditions.
-Carefully selection of workers with the right abilities.
-Carefully training workers to do the job and proper incentives to cooperate with job “science.”
-Supporting workers by planning and by smoothing the jobs.
Motion study means reducing a task to its basic physical motions. It is encourage that wasted activities
in a task should be eliminated in order to improve efÏciency
Insights from scientific management approach: -Advances of job design,
-Work standards, and incentive wage plans.
II. Administrative Principles
Fayol identifies the five “rules” of management:
1. Foresight—to complete a plan for the future
2. Organization—to provide and allocate resources to implement the plan
3. Command—to lead and evaluate workers to get the best work
4. Coordination—to fit diverse efforts and to ensure information is shared and problems are solved
5. Control—to make sure things happen according to plan and to take necessary corrective action
The foundation for the 4 functions of management
Principles to guide managers including:
-Scalar chain principle—a clear and unbroken line of communication from the top to the bottom
in the organization. So that information can be shared and transparency of a business is secured
-Unity of command principle—each person should receive orders from only one boss in order to
avoid confusion and power overlapping
-Unity of direction principle—one person should be in charge of all activities that have the same performance objective
III.Bureaucratic Organization: a rational and efÏcient form of organization founded on logic, order,
and legitimate authority. His ideas developed after noticing organizations performed poorly since
people holding positions of authority not because of their capabilities, but because of their
“privileged” social status. So according to Weber’s approach, people with ability will take authority
and be in charge. A whole organization will be run based on a hierarchy structure where managers
give out order to their lower level and then it is passed on to the subordinates.
The characteristics of bureaucratic organization are:
-Clear division of labor: Jobs are well defined, and workers become highly skilled at performing them
-Clear hierarchy of authority: Authority and responsibility are well defined for each position, and
employees know who they report to
-Formal rules and procedures: established written guidelines and written files are kept for historical record
-Impersonality: Rules and procedures are impartially and uniformly applied, with no one receiving special treatment
-Careers based on merit: Workers are selected and promoted on ability, competency, and performance
BEHAVIORAL MANAGEMENT APPROACHES: assume that people are social and self-actualizing,
responding to group pressures, and searching for personal fulfillment.
-Follett’s notion of organizations as communities -The Hawthorne studies
-Maslow’s theory of human needs -Douglas McGregor -Chris Argyris
I. Follett’s Organizations as Communities
Organizations as “communities”: managers and workers labor in harmony without one party dominating
the other, and with the freedom reconcile conflicts and differences , the respect for the experience and
knowledge of workers, warned against the dangers of too much hierarchy
Based on Follet’s study, there are insights that are still helpful:
-Emphasis on employee ownership in order to enhance their commitment
-Business problems involve a variety of factors that are in relationship to one another
-And private profits should always be considered vis-D-vis the public good: ethics and CSR
II. The Hawthorne Studies: people’s feelings, atÝtudes, and relationships with coworkers affected their
work, and that groups were important influences on individuals
Social setÝng and human relation affect productivity: pleasant social interactions with one another and
received special attention that made employees feel important
Members would restrict their output to avoid the displeasure of the grou p -> groups have strong
negative/ positive influences on individual productivity
Hawthorne effect: the tendency of people who are singled out for special attention to perform as
anticipated because of expectations created by the situation
III. Maslow’s Theory of Human Needs
Maslow’s theory is based on two underlying principles:
-Deficit principle—a satisfied need is not a motivator of behavior. It means people act to satisfy “desired” needs, a deficit
-Progression principle—a need at any level is activated only when the next-lower-level need is satisfied
IV. McGregor’s Theory X and Theory Y
managers holding Theory X assumes that those who work for them generally dislike work, lack ambition,
are irresponsible, are resistant to change, and prefer to be led rather than to lead
Theory Y assumes that manager believes people are willing to work, capable of self-control, willing to
accept responsibility, imaginative and creative, and capable of self-direction
V. Argyris’s Theory of Adult Personality
Managers who treat people positively and as responsible adults will achieve the highest productivity.
Theory is contradict to the classical management approaches:
-In scientific management, people will work more efÏciently as tasks become simpler and better
defined. Argyris believes that this limits opportunities for self-actualization
-In Weber’s bureaucracy, people work in a clear hierarchy of authority . Argyris worries that this
creates dependent, passive workers
-In Fayol’s administrative principles, the concept of unity of direction assumes that efÏciency will
increase when a person’s work is planned and directed by a supervisor. Argyris suggests that this
creates conditions for psychological failure.
MODERN MANAGEMENT FOUNDATIONS I.
Quantitative Analysis and Tools
Managers mine data in order to make decisions --> analytics: the systematic analysis of large databases
to solve problems and make informed decisions.
Organizations as Systems
One company achieves great things by combining resources and the contributions of many individuals to achieve a common purpose.
Subsystems are formed which are interrelated to each other
High performance occurs only when each subsystem both performs its tasks well and works well in cooperation with others
II. Contingency Thinking
Contingency thinking matches responses with problems and opportunities specific to different people and setÝngs
 The contingency perspective tries to help managers understand situational differences and
respond to them in ways that fit their characteristics.
III. Quality Management
TQM makes quality principles part of the organization’s strategic objectives, applying them to all aspects
of operations. TQM approaches begin with the total quality commitment applies to every subsystem in an organization
Measure and control the quality of the whole open system from the inputs to outputs as well as
the feedback which contributes to the improvement of input resources
Continuous improvement: always looking for new ways to improve on current performance.
ISO certification is a global quality benchmark that businesses want to achieve in order to define their quality level
IV. Knowledge Management and Organizational Learning
Knowledge management describes the processes through which organizations use information
technology to develop, organize, and share knowledge to achieve performance success
Intellectual assets such as patent, intellectual property rights, trade secrets, etc. need to be well
managed and continually enhanced
A learning organization is the one that people, values, and systems continuously change and improve its
performance based upon experience
Help all members to learn through information sharing, teamwork, empowerment, and participation.
V. Evidence-Based Management
Evidence-based management means making management decisions based on what really works rather
than on things that sound good but lack of empirical proof. Four sources of information:
-Practitioner expertise and judgment: knowledge and past experience
-Evidence from the local context
-Critical evaluation of the best available evidence
-Perspectives of those people who might be affected by the decision