Max Weber (1864–1920)

 considered the father of modern sociology.

 Economist, Political Scientist, Educator, Philosopher, Scholar, Sociologist, Anti-War

Activist, Literary Critic, Journalist

 Born in Germany in 1864. He went to university and became a professor, but suffered a
mental breakdown in 1897 that left him unable to work for five years. In 1905 he
published his most famous work, The Protestant Ethic and the Spirit of Capitalism. He
returned to teaching in 1918 and died in 1920. He is the foremost pioneer in the
development of a theory of bureaucracy.

Bureaucratic Theory

 An ideal, intentionally rational, and very efficient form of organization founded on

principles of logic, order, and legitimate authority

Characteristics of Bureaucratic Model

1. Clear division of labor

 Jobs are well defined and workers become highly skilled at performing them

2. Clear hierarchy of authority

 Authority and responsibility are well defined for each position, and each position reports
to a higher-level one

3. Formal rules and procedures

 Written guidelines direct behavior and decisions in jobs, and written files are kept for
historical record

4. Impersonality
 Rules and procedures are impartially and uniformly applied, with no one receiving
preferential treatment

5. Careers based on merit

 Workers are selected and promoted on ability, competency, and performance, and
managers are career employees of the organization
3 Types of Authority

1. Traditional authority

This type of authority rests on an established belief that leaders have a traditional and
legitimate right to exercise authority, where different traditional circumstances enable and
legitimize those in command to exercise authority.

2. Rational-legal authority

This type of authority rests on the belief in the "legality" of formal rules and hierarchies,
and in the right of those elevated in the hierarchy to possess authority and issue commands.

3. Charismatic authority

This type of authority rests on the belief in an exceptional sanctity, heroism or exemplary
character of an individual, and on the normative patterns or orders revealed and issued by him or
her.
Mary Parker Follett (1868-1933) was a visionary and pioneering individual in the field of
human relations, democratic organization, and management. Born in Massachusetts, She worked
as a management and political theorist, introducing such phrases as conflict resolution, authority
and power, and the task of leadership. In 1892 she entered what would become Radcliffe
College, the women's branch of Harvard. She graduated from Radcliffe summa cum laude in
1898. Follett's intensive research into government while at Radcliffe was later published in her
first book, The Speaker of the House of Representatives (1909), which was lauded (by, among
others, Theodore Roosevelt) as the best study of this office of government ever done.

Follett's Four Principles of Coordination

1. Principle of Early Stage

According to this principle, coordination must start at an early stage in the management
process. It must start during the planning stage. This will result in making the best plans and
implementing these plans with success. If coordination is started early only then all the
management functions will be performed successfully. Thus by initiating proper coordination the
organization will achieve all its objectives easily and quickly.

2. Principle of Continuity

According to this principle, coordination must be a continuous process. It must not be a

one-time activity. The process of coordination must begin when the organization starts, and it
must continue until the organization exists. Coordination must be done continuously during the
management process. It must be done during planning, organizing, directing and controlling.

3. Principle of Direct Contact

According to this principle, all managers must have a Direct Contact with their
subordinates. This will result in good relations between the manager and their subordinates. This
is because direct contact helps to avoid misunderstandings, misinterpretations and disputes
between managers and subordinates. It enables the managers to coordinate all the different
activities of their subordinates effectively and efficiently.

4. Principle of Reciprocal Relations

The decisions and actions of all the people (i.e. of all managers and employees) and
departments of the organization are inter-related. So, the decisions and actions of one person or
department will affect all other persons and departments in the organization. Therefore, before
taking any decision or action all managers must first find out the effect of that decision or action
on other persons and departments in the organization. This is called the Principle of Reciprocal
Relations. Coordination will be successful only if this principle is followed properly.
 After Mary Parker Follett, modern management experts have extended her list by adding four
additional principles of coordination. These additional or supplementary principles of
coordination are explained as follows:

5. Principle of Effective Communication

Co-ordination will be successful only in the presence of an effective communication.

Good communication must be present between all departments, within employees themselves
and even between managers and their subordinates. All communication barriers and gaps must
be avoided and fixed. Good communication helps to avoid misunderstandings in the
organization. This overall helps in coordination.

6. Principle of Mutual Respect

Coordination will be successful only if there exist a mutual respect throughout the
organization. All managers working at different levels (top, middle or lower) must respect each
other. Similarly, all employees must show a friendly attitude and should respect each other
during interactions. There must also exist a feeling of brotherly hood among managers and
employees. The managers must respect the feelings and emotions of the employees. On the other
hand, employees too must understand and acknowledge their bosses. Without mutual respect,
coordination may not survive, and it will eventually fail.

7. Principle of Clarity of Objectives

Coordination will be successful only if the organization has set its clear objectives.
Everyone in the organization must know the objectives very clearly. No one must have any
doubts about the objectives of the organization. Clear objectives can be achieved easily and
quickly.

8. Principle of Scalar Chain

Henri Fayol, a French industrialist, was born in 1841 in Istanbul, is often known as the person
who developed a general theory of business administration is now recognized as the Father of
Modern Management. In year 1916 Fayol wrote a book entitled "Industrial and General
Administration". In this book, he gave the 14 Principles of Management. These 14 principles of
management are universally accepted and used even today.

14 Principles of Management

1. Division of Work

The full work of the organization should be divided among individuals and departments. This
is because a division of work leads to specialization, and specialization increases efficiency, and
efficiency improves the productivity and profitability of the organization.

2. Discipline

Discipline means a respect for the rules and regulation of the organization. Discipline may be
Self-discipline, or it may be Enforced discipline. Self-discipline is the best discipline. However,
if there is no self-discipline, then discipline should be enforced through penalties, fines, etc. No
organization can survive without discipline.

3. Authority and responsibility

According to Henri Fayol, there should be a balance between Authority (Power) and
Responsibility (Duties). Authority must be equal to Responsibility. If the authority is more than
responsibility then chances are that a manager may misuse it. If responsibility is more than
authority then he may feel frustrated.

4. Subordination of Individual Interest to General Interest

In an organization, there are two types of interest: the individual interest of the employees,
and the general interest of the organization. The individual interest should be given less
importance, while the general interest should be given most importance. If not, the organization
will collapse.

5. Remuneration

Remuneration is the price for services received. If an organization wants efficient employees
and best performance, then it should have a good remuneration policy. This policy should give
maximum satisfaction to both employer and employees. It should include both financial and non-
financial incentives.

6. Centralization

In centralization, the authority is concentrated only in few hands. However, in

decentralization, the authority is distributed to all the levels of management. No organization can
be completely centralized or decentralized. If there is complete centralization, then the
subordinates will have no authority (power) to carry out their responsibility (duties). Similarly, if
there is complete decentralization, then the superior will have no authority to control the
organization. Therefore, there should be a balance between centralization and decentralization.

7. Order

There should be an Order for Things and People in the organization. Order for things is called
Material Order. Order for people is called Social Order. Material Order refers to "a place for
everything and everything in its place." Social Order refers to the selection of the "right man in
the right place". There must be orderly placement of the resources such as Men and Women,
Money, Materials, etc. Misplacement will lead to misuse and disorder.

8. Equity

The managers should use the equity while dealing with the employees. Equity is a
combination of kindness and justice. Equity creates loyalty and devotion in the employees.

9. Initiative

Management should encourage initiative. That is, they should encourage the employees to
make their own plans and to execute these plans. This is because an initiative gives satisfaction
to the employees and brings success to the organization.

10. Esprit De Corps

Esprit de Corps means "Team Spirit". Therefore, the management should create unity, co-
operation and team-spirit among the employees. They should avoid the divide and rule policy.

11. Stability of Tenure

An employee needs time to learn his job and to become efficient. Therefore, he should be
given time to become efficient. When he becomes efficient, he should be made permanent. In
other words, the employees should have job security.

12. Unity of Direction

All activities which have the same objective must be directed by one manager, and he must
use one plan. This is called Unity of Direction. For example, all marketing activities such as
advertising, sales promotion, pricing policy, etc., must be directed by only one manager. He must
use only one plan for all the marketing activities.

13. Scalar Chain

Scalar Chain is a line of authority. This line joins all the members (managers and employees)
from top to bottom. Every member must know who his superior is. He must also know who his
subordinate is. Scalar Chain is necessary for good communication. Scalar Chain must not be
broken in norm circumstances. However, if quick action is necessary, then this chain can be
broken. This is done using "Gang Plank" / "Bridge" / "Direct Contact".

14. Unity of Command

According to this principle, a subordinate (employee) must have only one superior (boss or
manager). A subordinate must receive orders from only one superior. In other words, a
subordinate must report to only one superior. According to Fayol, if one subordinate receives
orders from more than one superior then there will be disorder. This will affect the discipline,
efficiency, productivity and profitability of the organization.
Chester Irving Barnard (1886 – 1961) Born the son of a mechanic in 1886 in New England
was a telecommunications executive and author of Functions of the Executive, an influential
20th century management book. In this work he introduced the concepts of informal
organization, decision making, status and communications that became important topics for
management consideration. This book provides a comprehensive theory of cooperative behavior
in formal organizations. He is the leader in stressing sociological aspects of management
concentrated on the concept of authority, the importance of communication and informal
organizations in management.

The Theory of Cooperation

 This theory defines a “foreman organization as any cooperative system in which there are
persons able to communicate with each other and who are willing to contribute action
toward a conscious common purpose

The Functions of the Executive

1. Implementation and development of an effective system of communication

3 Principles for Effective Communication

1. Everyone in the organization must know what the channels of communication are
2. Everyone must have access to a formal communication channel
3. Lines of communication should be kept short and direct.

2. Appointment and retention of effective workers

3. Motivation of workers
References:

Books:

Aquino, Gaudencio V. (2001). Educational Management, Rex Bookstore, Manila.

Massie, Joseph L. (1987). Essentials of Management, 4th Ed. JMC Press, Inc., Quezon City

Schermerhorn, John Jr. R. (2011). Introduction to Management, 11th Ed., John Wiley and Sons
Singapore, Ltd.

Venzon, Lydia M. et al. (2006). Nursing Management Towards Quality Care, 3rd Ed., C&E
Publishing, Inc., Quezon City

Internet:

http://www.businessmate.org/Article.php?ArtikelId=30
http://www.businessmate.org/Article.php?ArtikelId=29
http://www.biography.com/people/max-weber-9526066#early-life-and-education&
http://kalyan-city.blogspot.com/2011/05/four-principles-of-coordination-given.html
http://kalyan-city.blogspot.com/2011/04/henri-fayol-14-principles-of-management.html
http://www.vectorstudy.com/management-gurus/chester-barnard