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MGMT Mid-term

Frederick W. Taylor
father of scientific management
Define: Viziers
Ancient managers who used the managerial functions of planning, organizing, leading, and controlling
What is modern management closely associated with?
The industrial revolution and the immigration from the old world to the new world
Define: Managers
they are decision makers who allocate society’s resources to various ends
Classical Management
a management theory that emphasized greater workforce productivity
Scientific Management
a theory that concentrates on top-level managers and problems of managing the entire organization
What are the two ideas at the heart of scientific management?
efficiency and standardization
Specialization
Taylor believed each person should become a specialist and master of specific tasks
Cooperation
Taylor believed that conflict would be replaced by this if workers and managers knew what was expected from them and saw the positive benefits of achieving mutual expectations
Motivation; Equitable Compensation
Those who produced more would receive more
Main criticism of scientific management
Taylor & other scientific management supporters did not fully understand the psychological and sociological aspects of work
Frank & Lillian Gilbreth
Main contribution was their time and motion studies of work processes. First to use motion picture movies to show human movement at work. Famous study; Bricklaying
Gantt Chart
A tool developed by Henry Gantt, that visually depicts the steps in a process, the time and the sequence of steps required to complete the entire project
Classical Organization Theory vs. Scientific Management
C.O.T= focused on the management of organization
S.M= focused on the management of work
Henri Fayol
Wrote General and Industrial Management; he divided an organization’s activities into six categories. First major thinker to address problems of managing large-scale business organizations
Fayol’s division of an organization’s activity; (six categories)
-Technical (production & manufacturing)
-Commercial (buying & selling)
-Financial
-Security (protecting property & persons)
-Accounting
-Managerial (planning, organizing, commanding, coordinating, & controlling)
Four Management functions
Planning
Organizing
Commanding
Controlling
Max Weber
studied organizations like ant farms; his theory of organization included what we refer to today as the bureaucratic form.
Bureaucracy
refers to a management approach based on formal organizational structure with set rules and regulations that rely on specialization of labor, an authority hierarchy, and rigid promotion and selection criteria
What did Weber think the benefits of the bureaucratic form were?
-Efficiency
-Predictability
-Calculability
-Control
Weber’s concept of authority
Made a distinction between power as forced compliance and authority as the voluntary compliance expected of a subordinate
Weber’s concept of authority
Made a distinction between power as forced compliance and authority as the voluntary compliance expected of a subordinate
Weber’s meaning of charisma
used to mean any quality of an individual’s personality that sets him or her apart from ordinary people
Weber’s meaning of charisma
used to mean any quality of an individual’s personality that sets him or her apart from ordinary people
Another way of exercising authority: (bureaucracy)
Precedent and usage. In such usage managers have authority by virtue of the status and the position they have achieved or inherited.
Another way of exercising authority: (bureaucracy)
Precedent and usage. In such usage managers have authority by virtue of the status and the position they have achieved or inherited.
What was the greatest contribution of classical management?
it identified management as an important element of organized society
What was the greatest contribution of classical management?
it identified management as an important element of organized society
What is one major criticism of classical management?
most of its insights are too simplistic for today’s complex organizations.
What is one major criticism of classical management?
most of its insights are too simplistic for today’s complex organizations.
What are the two branches of behavioral management?
Human relations approach & behavioral science approach
What are the two branches of behavioral management?
Human relations approach & behavioral science approach
What is a human relations approach?
Founded by Elton Mayo. It is a behavioral management theory that focuses on individuals working in group settings and in which managers and workers are studied in relation to what occurs in the group
What is a human relations approach?
Founded by Elton Mayo. It is a behavioral management theory that focuses on individuals working in group settings and in which managers and workers are studied in relation to what occurs in the group
Hawthorne studies
Famous studies conducted by Elton Mayo at Hawthorne Works of Western Electric in Cicero, Illinois; initially aimed to determine the relationship between the intensity of lighting and the efficiency of two groups of workers; the workers were impacted by researchers
Hawthorne studies
Famous studies conducted by Elton Mayo at Hawthorne Works of Western Electric in Cicero, Illinois; initially aimed to determine the relationship between the intensity of lighting and the efficiency of two groups of workers; the workers were impacted by researchers
Hawthorne effect
The unexpected results of the Hawthorne studies indicated that productivity increased in relation to the presence and attention of the researchers. This pointed out that workers are motivated by more than money
Hawthorne effect
The unexpected results of the Hawthorne studies indicated that productivity increased in relation to the presence and attention of the researchers. This pointed out that workers are motivated by more than money
Behavioral Scientists
they have advanced training in applying the scientific approach to the study of human behavior.
Behavioral Scientists
they have advanced training in applying the scientific approach to the study of human behavior.
Behavioral Science
a behavioral management theory that views workers as much more complex than the “economic man” described in the classical approach or the “social man” described in the human relations approach
Hugo Musterberg
was interested in the application of psychology to industrial settings. Considered an early contributor to both the fields of industrial psychology and human relations
Mart Parker Follett
Often considered the first female industrial psychologist. She recognized that not all conflict is dysfunctional.
Decision Sciences
modern management theories decision making, information systems, mathematics, and statistics to aid in making choices
Decision Sciences
modern management theories decision making, information systems, mathematics, and statistics to aid in making choices
Herbert Simon
Viewed management as equivalent to decision making
Simon’s three stages of decision making
1. Finding occasions requiring a decision (intelligence)
2. Inventing, developing, and analyzing possible courses of action (design)
3. Selecting a course of action (choice)
What are the Decision Support Systems?
neural networks, transportation models, mathematical analysis, transportation models, operations research, and computer simulation
James March
Developed a concept called the “Garbage Can” model of decision making in which he cast decisions as existing problems waiting to be solved. Saw decision makers, problems and leadership as intertwined.
Production Management
a sphere of management science that focuses on manufacturing technology and the flow of material in manufacturing.
Operations management
A sphere of management science that includes the areas of purchasing, materials management, production, inventory and quality control, maintenance and plant management. Produce services
Information system
A computerized system that helps managers make better decisions by permitting them to gather and accurately process large volumes of data.
Define: information
data evaluated or processed for a particular use
Systems theory
A way of thinking about organizations and management problems from a systems point of view
General Environment
The overall environment containing the elements that affect all organizations
Task Environment
the environment containing elements that can have an immediate impact on organizational success
Synergistic Effect
The sum total effect of all systems components, as in an organization in which each of its parts performs a specific function
Open System
A system that is open to influences from the environment
Chester Barnard
ideas reflected a new understanding of leadership, motivation. Introduced the concept of the “system of coordination”. Believed that an essential element of organizations is people’s willingness to contribute their individual efforts to the cooperative system
Cooperative System
it is a complex of physical, biological, personal, and social components which are in a specific systematic relationship by reason of the cooperation of two or more persons for at lest one definite end
What type of systems do most organizations operate as today?
An open system & utilize a systems perspective of management
the systems approach:
forces individual managers to consider a broader perspective. Managers can more easily achieve coordination between the objectives of the organization’s various parts and the objectives of the organization as a whole.
-Critics consider this to be abstract & not very practical
Contingency theory
a management theory describing the unique aspects of the situation that effect performance such as technology and the environment
Universal theorists
believe there is “one-best way” to perform different management functions.
Situational theorists
believe there is no one best approach to management because each situation is too different
Technology
the conversion process used in organizations to transform raw materials into a complete product
Joan Woodward
Had the idea that technology determines the choice of structure. Her research and case studies showed that a firm’s technology plays a significant role in it’s structure
Contingency Variables
Contingency theorists argue that situations are often similar to the extent that some principles of management can be effectively applied. However, the appropriate principles must be identified. They must first identify the Contingency Variables and then evaluate them
Peter Drucker
Believed that managers must always make economic performance the top priority. His central issue was how it was best to manage a business so that it was successful over time. Argued that profit were not the major objective of business
What did Drucker consider the present era of management to be?
a period of transformation; thus the modern organization must be organized in such a way to be flexible to accommodate the constant changes
Kaizen
Japanese word for the continuing improvement of everything an organization does
Drucker proposed to stay abreast of changes, management must engage in 3 practices:
1. Kaizen
2. Every org. needs to learn how to exploit its knowledge
3. Every firm must innovate

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