Fayol’s Principles of Management

• Division of Labor: allows for job specialization.
– jobs can have too much specialization leading to poor quality and worker dissatisfaction.
• Authority and Responsibility
– both formal and informal authority resulting from special expertise.
• Unity of Command
– Employees should have only one boss.
• Line of Authority
– A clear chain of command from top to bottom of the firm.
• Centralization
– The degree to which authority rests at the top of the organization.
• Unity of Direction
– A single plan of action to guide the organization.
• Equity - The provision of justice and the fair and impartial treatment of all employees.
• Order - The arrangement of employees where they will be of the most value to the organization and to provide career opportunities.
• Initiative - The fostering of creativity and innovation by encouraging employees to act on their own.
• Discipline
– Obedient, applied, respectful employees are necessary for the organization to function.
• Remuneration of Personnel
– An equitable uniform payment system that motivates contributes to organizational success.
• Stability of Tenure of Personnel
– Long-term employment is important for the development of skills that improve the organization’s performance.
• Subordination of Individual Interest to the Common Interest
– The interest of the organization takes precedence over that of the individual employee.
Esprit de corps
– Comradeship, shared enthusiasm foster devotion to the common cause (organization).


Discussion Question?
Which of the following is the most important aspect of Fayol’s principles of management?
A. Division of Labor
B. Unity of Command
C. Remuneration of Personnel
D. Esprit de corps


Behavioral Management Theory
Behavioral Management
– The study of how managers should personally behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals.
Mary Parker Follett
– Concerned that Taylor ignored the human side of the organization
• Suggested workers help in analyzing their jobs
• If workers have relevant knowledge of the task, then they should control the task


The Hawthorne Studies
Studies of how characteristics of the work setting affected worker fatigue and performance at the Hawthorne Works of the Western Electric Company from 1924-1932.
– Worker productivity was measured at various levels of light illumination.
– Researchers found that regardless of whether the light levels were raised or lowered, worker productivity increased.
Human Relations Implications
– Hawthorne effect — workers’ attitudes toward their managers affect the level of workers’ performance
– Human relations movement – advocates that supervisors be behaviorally trained to manage subordinates in ways that elicit their cooperation and increase their productivity
Implications
• Behavior of managers and workers in the work setting is as important in explaining the level of performance as the technical aspects of the task
• Demonstrated the importance of understanding how the feelings, thoughts, and behavior of work-group members and managers affect performance

What theory assumes the average worker is lazy, dislikes work and will do as little as possible?
A. Theory X
B. Theory Y
C. Theory Z
D. Theory QZ