Henri Fayol's "Unity of Command
employees should be given non-conflictig orders from superiors, no one should have no more than one supervisor, violation of this principle creates frustration and conflict in an organization
Chain of Command
the chain of authority from top to bottom, resolve problems at lowest level possible, "jumping" the chain is disruptive
departmentalization
to create efficiency and to better serve the customer
advantages of departmentalization
skill development, economies of scale, good coordination
disadvantages of departmentalization
inter-department communications, identification with own departments, response to external demands, breeds narrow specialists
tall" organizations
many layers of management, centralized decision-making, strict adherence to classic principles of management, narrow span of control, unity of command strictly followed, well-definted chain of command
flat" organizations
fewer layers of management, decentralized decision making, less rigid in following classic organizational principles
Max Weber
bureaucracy principle
bureaucracy
emphasized job descriptions, staffing promotions based on qualifications, written rules, procedures, regulations, policies; bad when rules and regulations over-ride common sense
Frederick Taylor
father of scientific management", time-motion studies, concerned with achieving greater efficiency and measuring productivity
money
what Taylor believed was prime motivator
Taylor's contribution
provided us with work standards to go by
The Hawthorne Studies
hypothesis vs. actual results- Elton Mayo
Elton Mayo
Harvard business school professor, believed work is a group/social activity, recognition, social interaction, and having view respected are important motivators
extrinsic rewards
recognition, promotions, gifts, praise, salary increase, status
intrinsic rewards
feeling of job well done, pride, sense of achievement
Maslow
believed specific, basic needs must be met before higher needs to be satisfied
physiological, safety, social, esteem, self-actualization
hierarchy of needs
Frederick Herzberg
believed only real motivations: pride in what we do and how we do it and a sense of achievement; job dissatisfaction can de-motivate us
Herzberg motivation-hygiene theory
contends there are two different sets of job factors. one set SATISFIES (motivators) and the other PREVENTS DISSATISFACTION (hygiene factors)
re-design jobs: rotate, enlarge
provide meaningful job titles
provide more autonomy
give better feedback
application of herzberg's M-H theory
McGregor's Theories
theory x-autocratic, theory y-democratic
theory x-autocratic
dislike work, avoid responsibility, little ambition, force/control/direct/threaten, motivated by fear and money
theory y-democratic
like work, naturally works toward goals, seeks responsibility, imaginative, creative, clever, motivated by empowerment
Vroom's expectancy theory
motivation depends on how much we want something, how likely we can get it, and the value we place on it
equity theory
based on employee's perception of equality between inputs and outputs compared to co-workers
Peter Drucker
goal-setting theory and MBO
goal-setting theory
motivation follows if employees feel they have a stake in the outcome
Management by objectives
MBO stands for...
Human Resources
recruiting, hiring, training, providing the right incentives to keep employees (comp and benefits); process involves every key player in firm
forecast HR needs, take inventory, prepare job analysis, establish a strategic plan
HR recruitment and selection process...
Types of training and development
orientation, on-the-job, apprenticeship, off-the-job, simulation
orientation
to learn companies culture
on-the-job training
for simple tasks
apprenticeship
training typical for trades
off-the-job training
professional development and vestibule training
temporary workers
provide flexibility to meet demand fluctuations, have specific expertise, fill-in for absentees, screen for future employment, control increasing benefit costs, offset effects of downsizing
job analysis
description and specifications for potential employee
FLSA of 1938
law focused on three major issues: minimum wage, overtime pay, and child labor provisions
Civil rights act of 1964 title VII
promotes equal employment opportunities for minorities and women, prohibited discrimination on the basis of race, color, creed, sex or national origin, defined 2 types of discrimination, covered employers with > 15 employees
merit, seniority, quantity or quality of work, Bona Fide
exceptions to title VII
Americans with Disability act of 1990 (ADA)
prohibits discrimination of employees with disabilities, reasonable accommodations, defines "essential functions" of job, enforced by EEOC
FMLA
job protections during family and medical emergencies, guarantee unpaid leave, employee returns with same or similar position, pay, conditions, and benefits
common, statutory, administrative/agency/regulatory
sources of US law
common law
court decisions based on legal precedent, also known as case law
statutory law
authority based on constitutions or legislative acts
administrative/agency/regulatory law
based on executive authority of a government agency
federal court system
to prosecute federal offenses or litigate US constitutional issues: district trial and appellate courts, US supreme court
local and state court system
to prosecute most common law offenses or litigate state, local issues
criminal or civil
two basic types of court cases
typical criminal business offenses
SEC violations, embezzlement, forgery, use of US mail with intent to defraud, filing false income tax return
torts
a wrongful act that causes injury to another person's body, property, or reputation
types of civil offenses (torts)
personal injury due to negligence, slander, libel, product liability lawsuits, medical malpractice
tort, bankruptcy, contract, intellectual property, agency
types of business law
civil
are torts civil or criminal offenses?
compensatory and punitive
two phases of "punishment
patents, copyrights, trademark
types of intellectual property
patents
protect inventors and their inventions
copyrights
protect creator's right to his/her material for a long time
trademark
a legally protected name/symbol
bankruptcy law
limited protection from creditors; court decides what type is allowed
bankruptcy law chapter 11
mostly pertains to businesses/corporations; given time to reorganize (can stay in business)
bankruptcy law chapter 7
for businesses and individuals, broke/out of business, assets are liquidated by the court, debts are mostly forgiven
bankruptcy law chapter 13
applies mostly to individuals trying to file under chapter 7; only portion of debt if forgiven, must come up with repayment plan
contract law
legal and binding agreement: purchase, rental, loan agreements
lawful, voluntary, consideration, mentally competent, proper form
criteria for valid contract
False
T or F: A contract is NOT legally enforceable
Knights of Labor 1869
rise of mass production following civil war, main contribution: the idea of unity and solidarity of ALL labor
AFL Organized, 1886
was a federation of skilled craft workers, concentrated on short-term gains in pay, benefits, conditions
Congress of Industrial Organizations (CIO) 1935
federation of unskilled workers
1955
AFL and CIO form as one organization
membership and money
name two sources of union power- strength in numbers, able to pay lobbyists, etc.
poor management/employee relations, bad organization, poor work conditions, job security
name some reasons why employees join unions...
Norris-LaGuardia Act of 1932
outlawed "yellow-dog" contracts and injunctions; could no longer force workers into promising NOT to form/join a union, basically recognized a union's right to exist
National Labor Relations Act, 1935
Also called the Wagner Act- defined unfair labor practices: right to bargain collectively, union speaks for workers, right to strike
National Labor Relations Board (NLRB)
created by the Wagner Act in order to investigate unfair labor practices and gave tremendous boost to organized labor in America
Taft Hartley Act of 1947
law that swung pendulum back toward management, prohibited compulsory union membership, outlawed strikes that affect national security, prohibited secondary boycotts
closed, union, agency, and open
name the union security clauses
closed shop
(illegal) must be a member to be hired
union shop
must join within specific period
agency shop
must pay dues whether or not a member
open shop
can join or not; all right to work states (22)
mediation
outside mediator attempts to reach consensus
arbitrations
decision by labor judge is binding on both parties
strikes, sickouts, primary and secondary boycotts
name some union tactics
primary boycotts
legal tactic used in conjunction with a strike
secondary boycotts
an illegal tactic urging public to shun suppliers of company being struck
lockouts, injunction/court order, strike-breakers
name some management tactics
lockouts
prevent workers from entering the workplace
injunction/court order
only happens if public safety is at risk
strike-breakers
scabs
goals of management
to hold down labor costs and increase returns to shareholders
goals of labor
to increase material benefits and job security
collective bargaining
negotiation between an employer and trade union
impasse
stalemate