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Management Chapter Two

Sumerians
practiced the management function of controlling by keeping records of tax receipts, real estate holdings, and lists of farm animals
Egyptians
used planning, organizing, leading, and controlling to build their great pyramids
Chinese
applied the managerial concepts of delegation, cooperation, efficiency, organization, and control
Sun Tzu
discussed the importance of planning and leading in his book The Art of War
Greeks
recognized management as a separate art and advocated a scientific approach to work
Venetians
standardized production through the use of an assembly line, building warehouses and using an inventory system to monitor the contents
Adam Smith
discussed control and the principle of specialization with regard to manufacturing workers
economies of scale
reductions in the average cost of a unit of production as the total volume produced increases
economies of scale
played a large role in the Industrial Revolution
systematic management, scientific management, bureaucracy, administrative management, human relations
classical approaches of management thought (in chronological order)
sociotechnical systems, quantitative management, organizational behavior, systems theory, modern contributions to current and future revolutions
contemporary approaches of management thought (in chronological order)
management
emerged as a formal discipline at toward the end of the Industrial Revolution
classical period
extended from the mid-19th century through the early 1950s
systematic management
attempted to build into operations the specific procedures and processes that would ensure coordination of effort to achieve established goals and plans
scientific management
applied scientific methods to analyze and determine the “one best way” to complete production tasks
systematic management
emphasized economical operations, adequate staffing, maintenance of inventories to meet consumer demand, and organizational control
systematic management
when the government did not constrain business practices significantly, labor was poorly organized, and managers were oriented toward things other than people
precise, scientific, general guidelines, scientifically, job, cooperate, plans, principles, division, work, responsibility
Taylor’s four principles of Scientific Management: 1. Management should develop a _____, _____approach for each element of one’s work to replace _____, 2. Management should _____ select, train, teach, and develop each worker so that the right person has the right _____, 3. Management should _____ with workers to ensure that jobs match _____ and _____, and 4. Management should ensure an appropriate _____ of _____ and _____ between managers and workers.
Frederick Taylor
introduced scientific management
Lillian Gilbreth
the “mother of modern management,” studied how job satisfaction motivated employees and how fatigue and stress affected workers’ well-being and productivity
time and motion studies and differential piecerate system
two key elements to Taylor’s scientific management approach
differential piecerate system
a pay system in which workers were paid additional wages when they exceeded a standard level of output for each job, used in scientific management
bureaucracy
emphasized a structured, formal network of relationships among specialized positions in the organization
Weber
showed in his book “The Theory of Social and Economic Organizations” how the ideal model for management is the bureaucracy approach
bureaucracy
can be very difficult to dismantle once established, quite permanent
administrative management
emphasized the perspective of senior managers within the organization, and argued that management was a profession and could be taught
administrative management
a classical management approach that attempted to identify major principles and functions that managers could use to achieve superior organizational performance
human relations
a classical management approach that attempted to understand and explain how human psychological and social processes interact with the formal aspects of the work situation to influence performance
hawthorne effect
people’s reactions to being observed or studied resulting in superficial rather than meaningful changes in behavior
Henri Fayol
laid out a framework for administrative management when he published a book identifying five functions and fourteen principles of management
Chester Barnard
outlined the role of the senior executive (formulating the organization’s purpose, hiring key individuals, and maintaining organizational communications) in his book “The Functions of the Executive
Fayol and Barnard
the two associated with administrative management
human relations
the first major approach to emphasize informal work relationships and worker satisfaction
Hawthorne Studies
research project that involved Western Electric hiring a team of Harvard researchers to investigate the influence of physical working conditions on workers’ productivity and efficiency in one of the companies factories outside Chicago, found that workers acted differently when watched–no change in productivity with lighting
Hawthorne Studies
concluded with the idea that productivity may be affected more by psychological and social factors than by physical or objective influences
Maslow
a contributor to the field of human relations with his five levels of needs
sociotechnical systems theory
an approach to job design that attempts to redesign tasks to optimize operation of a new technology while preserving employees’ interpersonal relationships and other human aspects of the work
quantitative management
a contemporary management approach that emphasizes the application of quantitative analysis to managerial decisions and problems
sociotechnical systems theory
suggests that organizations are effective when their employees (the social system) have the right tools, training, and knowledge (the technical system) to make products and services that are valued by customers
social system (of sociotechnical systems theory)
the employees of a company
technical system (of sociotechnical systems theory)
the right tools, training, and knowledge to make a product or products
quantitative management
helps a manager make a decision by developing formal mathematical models of the problem, usually as a supplement to other decision-making factors
quantitative management
not used very often, perhaps because many managers have not been trained in using the techniques, because many aspects of a decision can’t be expressed through formulas/symbols, and because many of the decisions managers face are non-routine and unpredictable
organizational behavior
a contemporary management approach that studies and identifies management activities that promote employee effectiveness by examining the complex and dynamic nature of individual, group, and organizational processes
systems theory
a theory stating that an organization is a managed system that changes inputs into outputs
inputs
goods and services organizations take in and use to create products or services
outputs
the products and services organizations create
organizational behavior
draws from a variety of disciplines, including psychology and sociology, to explain the behavior of people on the job
Theory X managers
assume workers are lazy and irresponsible and require constant supervision and external motivation to achieve organizational goals–a self-fulfilling prophecy
Theory Y managers
assume employees want to work and can direct and control themselves
Douglas McGregor
suggested the idea of Theory X and Theory Y managers, preferring Theory Y managers
organization, external environment, one aspect, other considerations
The classical approaches as a whole were criticized because they 1. ignored the relationship between the _____ and its _____, and 2. usually stressed _____ of the organization or its employees at the expense of _____.
systems theory
emphasizes that an organization is one system in a series of subsystems
contingency perspective
an approach to the study of management proposing that the managerial strategies, structures, and processes that result in high performance depend on the characteristics or the situation in which they are applied
contingencies
factors that determine the appropriateness of managerial actions
systems theory
Which management theory deals with the contingency perspective?
contingency perspective
holds that there is no “one best way” to manage and organize because circumstances vary, gives the “it depends” answer within management
Jim Collins
researched 1435 companies to understand why some reached high levels of sustained performance and others did not, discovered that some are managed by “level 5 leaders” who often display humility while simultaneously inspiring those in the organization to apply self-discipline and self-responsibility while pursuing high standards
Jack Welch
transformed General Electric and is known to have mastered “all of the critical aspects of leadership: people, process, strategy and structure” although he does rank employees and sell off underperforming divisions
Michael Porter
a Harvard professor who is a well-known and influential expert on competitive strategy
Gary Hamel
recently ranked as the “world’s most influential business thinker” by the WSJ, has published numerous influential articles as well as a book
Peter Drucker
a management guru who first discussed “management by objective” (MBO) by which a manager must be self-driven to meet goals, also championed decentralization, employees as assets and not liabilities, and corporation as a human community
Collins, Welch, Porter, Hamel, Drucker
five “modern contributors” to management”
teamwork, work groups
According to sociotechnical systems theory, _____ and _____ are key to creating efficient work systems.
participative management
a value of organizational behavior stressed by Rensis Likert
pin factory
Adam Smith studied _____ workers with respect to specialization.
Adam Smith
Who introduced the notion of economies of scale?
Henry Gantt
expanded on the piecerate system to include bonuses to supervisors whose workers completed their assigned daily tasks
Gantt chart
a device helpful for completing daily tasks
motion studies
when the Gilbreths filmed workers to identify and remove wasteful movements
Frank and Lillian Gilbreth
associated with scientific management, used motion studies, learned from their 12 children (popularized in Cheaper by the Dozen)
administrative management
still had a primary focus on efficiency, but now at the level of the whole organization rather than on the individual
whole organization, individual
Administrative management still had a primary focus on efficiency, just at the level of the _____ rather than on the _____.
business executives
Major contributors to administrative management were _____ writing about their experiences.
five, fourteen
How many functions of management did Henri Fayol identify? How many principles?
espirit de corps
promotes a unity of interests between management and employees
bureaucracy
has roots in a variety of ancient cultures (Sumer, Egypt, Rome, China)–usually tied to systems of taxes, collection and distribution of resources, etc.
division of labor, authority, qualifications, ownership, rules and controls
five characteristics of an effective bureaucracy
Mary Follett
social worker and social philosopher who emphasized cooperation and involvement of workers in decisions
Elton Mayo
Who is associated with the Hawthorne effect?
Follett and Mayo
two people associated with Human Relations
human relations
proponents argued that better human relations could improve productivity and that social needs were at least as important as economic needs for motivating employees
organizational behavior
What is Douglas McGregor’s Theory X/Y associated with?
competition, zero-sum outcomes, cooperation, growth
Traditional economists tend to take a Theory X view of people, companies, and countries, leading to _____ and _____. If we view them through a Theory Y lens, we get _____ and _____.
organizational behavior
the outgrowth of the human relations movement
organizational behavior
studies and identifies management activities that promote employee effectiveness
organizational behavior
first system that focuses on the complex and dynamic nature of the individual, group, and organizational processes
systems theory
takes inputs from the environment outside the firm and transforms them into outputs that go back in to the environment
does not, very limited
Contingency Perspective _____ mean that you can just do anything, it means that given a set of contingencies, there may be a _____ set of appropriate responses.
institutional theory
there are a variety of institutional components necessary for business, many institutional constraints on businesses, businesses must seem “legitimate” to be successful, management might do things that are not “legitimate” do be successful
institutional theory
under “current contributions”

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