Principles of Management Chapter 2
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Questions and Answers

What is the primary purpose of bureaucracy according to Weber?

  • To prioritize job-related skills in hiring
  • To establish informal codes of conduct
  • To ensure efficiency and effectiveness in organization and administration (correct)
  • To enhance personal relationships within organizations
  • What gives managers the authority to direct and control their subordinates?

  • Their personal qualities and achievements
  • Their ability to build social networks
  • The skills they possess in the workforce
  • The power granted by their organizational position (correct)
  • What is the significance of defining tasks and authority within an organization?

  • To reduce the need for formal rules
  • To ensure accountability and clear expectations (correct)
  • To enhance interpersonal relationships
  • To allow for flexible job descriptions
  • What must managers establish to clarify reporting relationships within an organization?

    <p>An organizational hierarchy of authority (C)</p> Signup and view all the answers

    Which of the following represents formal written instructions for achieving specific goals?

    <p>Rules (A)</p> Signup and view all the answers

    Which concept refers to specific sets of written instructions on how to perform tasks?

    <p>Standard Operating Procedures (SOPs) (A)</p> Signup and view all the answers

    What often influences hiring and promotional decisions in certain organizations?

    <p>Personal contacts and relationships (C)</p> Signup and view all the answers

    What are unwritten, informal codes of conduct known as in organizational behavior?

    <p>Norms (B)</p> Signup and view all the answers

    What has primarily guided the evolution of management theory?

    <p>The need to increase organizational efficiency and effectiveness (D)</p> Signup and view all the answers

    Which principle is essential for increasing organizational efficiency?

    <p>Job specialization and division of labor (C)</p> Signup and view all the answers

    How did managers in early factories typically respond to the social problems of large groups?

    <p>By focusing solely on technical skills (A)</p> Signup and view all the answers

    What should managers consider to effectively motivate their employees?

    <p>Changing external environments affecting organizations (A)</p> Signup and view all the answers

    What is necessary for creating the most efficient system of organization and management?

    <p>Establishing principles of administration and organization (B)</p> Signup and view all the answers

    What was a significant change in management theory after the industrial revolution?

    <p>A focus on measuring and controlling performance (A)</p> Signup and view all the answers

    What aspect of management theory focuses on matching people to tasks?

    <p>Quantitative techniques for performance management (B)</p> Signup and view all the answers

    What concept is emphasized for increasing performance in organizations?

    <p>Understanding person-task relationships (C)</p> Signup and view all the answers

    What is the primary benefit of the division of labor according to Fayol's principles?

    <p>Increased efficiency and reduced boredom (A)</p> Signup and view all the answers

    Which concept does Fayol's principle of authority and responsibility emphasize?

    <p>Informal authority can stem from personal skills and leadership ability (C)</p> Signup and view all the answers

    What does the principle of unity of command advocate for in an organization?

    <p>Employees should receive orders from only one superior (D)</p> Signup and view all the answers

    What is meant by the line of authority in Fayol's management principles?

    <p>Limiting the chain of command for efficiency (D)</p> Signup and view all the answers

    According to Fayol, what is essential regarding decentralization?

    <p>Decentralization allows for greater decision-making at all levels (D)</p> Signup and view all the answers

    Fayol's line of direction states that an organization should have what?

    <p>A single plan of action to guide efforts (A)</p> Signup and view all the answers

    What does Fayol’s principle of equity emphasize for organizational members?

    <p>Equal treatment regardless of personal connections (A)</p> Signup and view all the answers

    How did Fayol propose to maximize organizational efficiency in terms of order?

    <p>Through the use of organizational charts to clarify roles (C)</p> Signup and view all the answers

    What does the principle of 'initiative' emphasize in a management context?

    <p>Employees should be allowed to be innovative and creative. (B)</p> Signup and view all the answers

    Which principle suggests that managers need to create a respectful relationship among organizational members?

    <p>Discipline (B)</p> Signup and view all the answers

    How does 'stability of tenure of personnel' contribute to an organization?

    <p>By improving organizational efficiency through long-term employee skills. (D)</p> Signup and view all the answers

    According to the principle of 'subordination of individual to the common interest,' what should employees understand?

    <p>Their performance impacts the overall organization’s performance. (C)</p> Signup and view all the answers

    What role does 'esprit de corps' play in an organization?

    <p>It encourages feelings of comradeship and dedication to common goals. (D)</p> Signup and view all the answers

    What key aspect did Mary Follett advocate for in terms of authority?

    <p>Authority should align with the level of knowledge. (A)</p> Signup and view all the answers

    What was a significant finding from the Hawthorne studies?

    <p>Worker productivity increased regardless of light illumination changes. (C)</p> Signup and view all the answers

    What was a focus of Behavioral Management theory regarding employee motivation?

    <p>Encouraging high levels of commitment to organizational goals. (A)</p> Signup and view all the answers

    What is the primary benefit of Management Information Systems (MIS) in organizational decision-making?

    <p>They provide vital information for effective decision making. (D)</p> Signup and view all the answers

    Which statement best defines the open-system view in organizational theory?

    <p>A system that transforms external resources into goods and services. (D)</p> Signup and view all the answers

    In contingency theory, organizational structures depend on what?

    <p>Characteristics of the external environment. (D)</p> Signup and view all the answers

    Which characteristic defines a mechanistic structure?

    <p>Centralized authority with strict discipline. (B)</p> Signup and view all the answers

    What is meant by synergy in an organizational context?

    <p>The gains from combined efforts of individuals and departments. (B)</p> Signup and view all the answers

    What defines an organic structure in an organization?

    <p>Decentralization of authority throughout the organization. (D)</p> Signup and view all the answers

    Why might a mechanistic structure be beneficial in a stable environment?

    <p>It maximizes control and efficiency in processes. (C)</p> Signup and view all the answers

    Which of the following best describes the term 'organizational environment'?

    <p>External forces and conditions that influence the organization. (C)</p> Signup and view all the answers

    What does the Hawthorne effect suggest about workers' attitudes?

    <p>Workers' attitudes toward their managers affect their performance. (D)</p> Signup and view all the answers

    What is the primary focus of the human relations movement?

    <p>Training supervisors to enhance cooperation and productivity. (A)</p> Signup and view all the answers

    According to Theory X, how is the average worker perceived?

    <p>As apathetic and avoiding responsibility. (A)</p> Signup and view all the answers

    What is the key assumption of Theory Y regarding workers?

    <p>Workers seek to do well and need supportive management. (A)</p> Signup and view all the answers

    What is the primary objective of management science theory?

    <p>To utilize rigorous quantitative techniques for resource optimization. (D)</p> Signup and view all the answers

    Which technique is associated with quantitative management?

    <p>Linear and nonlinear programming. (D)</p> Signup and view all the answers

    What does Total Quality Management (TQM) primarily focus on?

    <p>Analyzing input, conversion, and output processes. (C)</p> Signup and view all the answers

    Which aspect of management does operations management primarily analyze?

    <p>An organization's production processes. (B)</p> Signup and view all the answers

    Flashcards

    Evolution of Management Theory

    The development of ideas about how to manage organizations effectively, driven by the need for increased efficiency and effectiveness.

    Job Specialization & Division of Labor

    Breaking down tasks into smaller, specialized roles to increase efficiency and productivity.

    Person-Task Relationships

    Matching people's skills and abilities to their tasks to maximize efficiency in a workplace.

    Principles of Administration & Organization

    Essential guidelines for creating and managing effective organizations.

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    Managerial Behavior

    The way managers motivate and control employees for improved organizational performance.

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    Craft Production to Factories

    Shift in production from smaller, individual crafts to larger, factory-based mass production

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    Industrial Revolution

    A period of significant industrial change leading to factories and mass production.

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    External Environment impact on Organizations

    How the outside world influences how organizations operate and what managers do.

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    Bureaucracy

    A formal organizational structure with clear rules and procedures to maximize efficiency and effectiveness.

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    Authority

    The power to hold people accountable and make decisions about resources.

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    Organizational Hierarchy

    A clear structure showing who reports to whom within an organization.

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    Rules

    Formal written instructions specifying actions in different circumstances to achieve goals.

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    Standard Operating Procedures (SOPs)

    Specific sets of written instructions for performing tasks.

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    Norms

    Unwritten, informal codes of conduct prescribing how people act in situations.

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    Organizational Accountability

    Holding employees responsible for their actions when responsibilities are clear.

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    Weber's Theory of Bureaucracy

    A theory proposing a formal system of organization and administration to increase operational efficiency.

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    Division of Labor

    Job specialization increases efficiency, crucial to lessen worker boredom.

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    Authority and Responsibilities

    Formal and informal authority, not just position, matters for leading and commitment.

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    Unity of Command

    Employees report to only one superior.

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    Line of Authority

    Short chain of command to maintain efficiency, ideally limit the length.

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    Decentralization

    Distribute authority, not centralize it, throughout the organization.

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    Line of Direction

    Clear plan for the organization, guiding all people involved to the same goal.

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    Equity in Organization

    Treat all members of the organization fairly and with respect.

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    Organizational Order

    Arrange organizational positions for maximum efficiency and employee satisfaction.

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    Fayol's 9th Principle: Initiative

    Managers should encourage employees to be creative and come up with new ideas. This promotes innovation and problem-solving within the organization.

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    Fayol's 10th Principle: Discipline

    Maintaining order and respect within the organization, achieved through clear rules, fair leadership, and consistent enforcement. This leads to a productive and harmonious workplace.

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    Fayol's 11th Principle: Remuneration

    The system used to pay employees should be fair and equitable to both employees and the organization. This ensures motivation and satisfaction.

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    Fayol's 12th Principle: Stability of Tenure

    Long-term employees develop valuable skills that can benefit the organization. High employee turnover can disrupt efficiency, so managers should aim for stability.

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    Fayol's 13th Principle: Subordination

    Employees should understand how their individual actions contribute to the success of the entire organization. This fosters a sense of collective responsibility.

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    Fayol's 14th Principle: Esprit de Corps

    Creating a sense of shared purpose, enthusiasm, and team spirit within the organization. This fosters strong bonds and a positive work environment.

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    Behavioral Management Theory

    Focuses on how managers should interact with employees to motivate them to perform at their best and achieve organizational goals. It emphasizes the human side of management.

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    Mary Follett: Human Side of Organization

    Follett believed that Taylor's management approach ignored the importance of people. She advocated involving employees in decision-making, considering their perspectives, and empowering them to contribute.

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    Hawthorne Effect

    The phenomenon where workers' performance improves when they know they're being observed or studied, regardless of actual changes in work conditions.

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    Human Relation Movement

    A management approach that emphasizes the importance of understanding human behavior and relationships in the workplace to improve productivity.

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    Theory X

    Assumes workers are inherently lazy, dislike work, and need close supervision and control through rewards and punishments.

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    Theory Y

    Assumes workers are motivated, want to do good work, and can take responsibility. Managers should create a supportive environment to unleash their potential.

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    Management Science Theory

    A management approach that uses quantitative techniques (like math and statistics) to improve efficiency and decision-making in organizations.

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    Quantitative Management

    Using mathematical models and simulations to optimize various aspects of an organization, such as inventory levels or factory locations.

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    Operations Management

    Techniques used to analyze and improve the production processes within an organization.

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    Total Quality Management (TQM)

    A management philosophy that aims to improve every aspect of an organization by focusing on customer satisfaction and continuous improvement.

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    Organizational Environment

    The forces and conditions outside an organization that influence its ability to get resources and operate effectively.

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    Open System

    An organization that interacts with its external environment, taking in resources and transforming them into goods or services for customers.

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    Synergy

    The combined effort of different parts of an organization leading to better outcomes than if they worked alone.

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    Contingency Theory

    The idea that the best organizational structure depends on the specific situation and external environment.

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    Mechanistic Structure

    A highly centralized organization with strict rules, clear roles, and close supervision. Best for stable environments.

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    Organic Structure

    A decentralized organization with flexible roles, less formal rules, and more adaptable to change. Ideal for dynamic environments.

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    What are the characteristics of a Mechanistic Structure?

    Centralized authority, strict discipline, clearly defined tasks and roles, and close monitoring of employees. Best suited for stable environments.

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    What are the characteristics of an Organic Structure?

    Decentralized authority, less formal rules, flexible roles, and a focus on adaptability. Best suited for dynamic environments.

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    Study Notes

    Principles of Management

    • This is a course on the principles of management.

    Chapter Two: Evolution of Management Thoughts

    • The evolution of management theory is driven by the need to improve efficiency and effectiveness in using organizational resources.
    • Modern management emerged in the late 19th century, following the industrial revolution in Europe and America.
    • Early managers, often engineers, lacked experience managing people in large-scale factories. This presented new social challenges.

    Learning Objectives

    • Describe the role of increasing organizational efficiency in the evolution of management.
    • Explain specialization and division of labor, and how person-task relations are vital for efficiency.
    • Identify principles of administration and organization that underpin effective organizations.
    • Analyze the evolution of managerial approaches to motivation and control.

    Overview

    • The drive behind management theory is better ways to use organizational resources efficiently to produce goods and services.
    • The evolution started in the late 19th century, after the industrial revolution transformed Europe and America.
    • Early industrial managers, who were mostly engineers, focused on technical orientations rather than social aspects, and were unprepared for the complex challenges of managing large groups of workers.

    The Evolution of Management Theory

    • Scientific Management Theory (1890-1920s): Focuses on identifying principles that lead to increased efficiency and organization. Matching people and tasks to maximize efficiency.
    • Administrative Management Theory (early-mid 1900s): Building organizational structures and control systems that promote high efficiency and effectiveness.
    • Behavioral Management Theory (1930s-1950s): Studying manager behavior to motivate and encourage high employee performance.
    • Management Science Theory (1960s-present): Utilizing rigorous quantitative techniques to make maximum use of organizational resources.
    • Organizational Environment Theory (1970s-present): Examining how external factors affect organizational operations and management.
    • All these theories have gradually evolved over time.

    Scientific Management Theory: Job Specialization and Division of Labor

    • Adam Smith (18th century economist) observed that manufacturing pins was more efficient when workers specialized in individual steps.
    • This "craft-style" versus "production-style" approach highlights the value of specialization and division of labor for efficiency.
    • F.W. Taylor (scientific management): Systematically studied worker tasks to identify efficiencies. He believed reducing the time and effort of employees via specialized roles created more efficiency in the production process.
    • Taylor's four principles of scientific management aim to improve efficiency.
      • Study worker tasks: Understand existing processes.
      • Standardize methods: Document and implement optimized procedures.
      • Select competent workers: Train employees in new/improved methods.
      • Establish fair compensation: Reward workers for exceeding efficiency standards.

    Job Specialization

    • Adam Smith's studies led to recognizing the high level of efficiency by increasing job specialization.
    • The division of labor through specialization improves efficiency by allowing different individuals to specialize in executing specific tasks, rather than having one person perform several different tasks.

    F. Taylor and Scientific Management

    • Taylor's systematic study of tasks led to better work methods in manufacturing.
    • Reducing worker time/effort via efficient task division and specialization will create more efficient production processes.

    Four Principles to Increase Efficiency

    • Principle 1 : Study workers' tasks, gather knowledge and experiment with improvements.
    • Principle 2 : Formalize improved methods into rules and processes.
    • Principle 3 : Carefully select and train workers to follow those rules and processes.
    • Principle 4 : Establish fair performance standards and a compensation plan that rewards exceeding those standards.

    Administrative Management Theory

    • Focuses on creating effective organizational structures and systems to improve efficiency and effectiveness.
    • Organizational structure is the system of task and authority relationships that directs how employees leverage resources to achieve organizational goals.
    • Key theorists include Max Weber and Henri Fayol.

    The Theory of Bureaucracy (Max Weber)

    • Developed during Germany's industrial revolution.
    • Weber outlined principles of bureaucracy to create effective organizations.
    • Key principles: formal authority, performance-based positions, hierarchical authority, and established rules/procedures.

    Weber's Principles of Bureaucracy

    • Principle 1: Formal authority derives from one's hierarchical position.
    • Principle 2: Positions are filled based on individual performance.
    • Principle 3: Authority and responsibilities are clearly defined by the organization.
    • Principle 4: Authority is most effectively exercised in a hierarchical structure.
    • Principle 5: Rules and procedures guide individual behavior and ensure consistency.
    • Authority stems from position, not personal characteristics. Obedience is owed to the position, not a specific person.

    Fayol's Principles of Management

    • Fayol outlined 14 principles to enhance management process efficiency.
    • Principle 1: Division of Labor
    • Principle 2: Authority & Responsibility
    • Principle 3: Unity of Command
    • Principle 4: Line of Authority
    • Principle 5: Decentralization
    • Principle 6: Unity of Direction (single plan of action)
    • Principle 7: Equity
    • Principle 8: Order (arrangements for efficiency and career opportunities)
    • Principle 9: Initiative
    • Principle 10: Discipline
    • Principle 11: Remuneration
    • Principle 12: Stability of Tenure
    • Principle 13: Subordination of individual interests to the common good
    • Principle 14: Esprit de Corps (unity or organizational culture)

    Behavioral Management Theory

    • Focuses on how managers interact with employees to enhance motivation and performance.
    • Key figures include Mary Parker Follett.
    • The Hawthorne studies, exploring how work characteristics affect worker performance, highlighted the importance of a worker's attitude.

    Hawthorne Studies

    • Demonstrated the influence of social factors (interpersonal relationships, manager behavior) on worker productivity.
    • Hawthorne effect: workers' attitudes toward their managers influenced performance.

    Theory X and Theory Y (Douglas McGregor)

    • Theory X: Assumes workers are inherently lazy and dislike work. Closely supervise and heavily control employees.
    • Theory Y: Assumes workers are not inherently lazy; they will work in the organization’s best interest with proper motivation and encouragement. Employees are motivated when they understand how their performance contributes to organizational outcomes.

    Management Science Theory

    • Uses quantitative techniques (modeling, simulation, etc.) to optimize resource use, investment decisions, and production systems.
    • Key areas include: quantitative management and operations management.

    Organizational Environment Theory

    • Recognizes that external factors (economic, political, social) can affect organizational operations.

    The Open Systems View

    • Organizations interact with their external environment, taking inputs (resources), transforming them, and releasing outputs (products or services).
    • An important principle is that the whole is greater than the sum of the parts. Synergy results from cross-functional team work.

    Contingency Theory

    • Organizational structures and control systems are contingent on the external situation. There are many effective organizational structures, depending on the environment. No one approach is best in all situations.
    • Mechanistic structures are ideal in stable environments, while organic structures function better in dynamic environments.

    Types of Structures

    • Mechanistic Structure: Centralized authority, strict discipline, clear roles/tasks. Ideal in a stable environment.
    • Organic Structure: Decentralized authority, encourage diverse perspectives, adapts to changes. Ideal in a rapidly changing environment.

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    Principles Of Management PDF

    Description

    Explore Chapter 2 of the Principles of Management course, focusing on the evolution of management thoughts. Learn about the historical context that shaped modern management practices, including the importance of efficiency, specialization, and organizational administration. This chapter delves into the foundational principles required for effective managing in various settings.

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