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MGMT320 Lecture 1 (test 1)

What is management?
describes all of the managers in an organization; leading it.
actual study of what the managers do within a business.
What is a manager?
individual, who is responsible for helping an organization achieve its objectives through the efficient use of resources
What do managers do? (hint: P.O.L.C. Stages)
Planning Stage
Organizing Stage
Leading Stage
Controlling Stage
Planning Stage: What is it? What does it begin with?
it is looking to the future; setting the objectives/outline for the future of the organization; making a vision to bring the business further into the future; looking ahead for the success of the organization.
Planning begins with the mission statement for the business.
Organizing Stage: What is it? What question does it ask and how is it answered?
looking at day-to-day activities and taking the appropriate resources on hand and incorporating them into the daily work tasks.
What do we need to do to get a job done today? This question can be answered by performing whatever means necessary to complete said tasks.
Leading Stage: What is it? What must managers do to achieve the desired outcome?
influencing people in a positive way in order to achieve full productivity from their workers; influencing the workers to do better and be better at their jobs.
managers have to set an example, be the ideal employee/role model to show their workers how the business should be run.
Controlling Stage
setting standards that should be followed in order to make the business successful; setting performance standards
Top Managers
making the big picture decisions for the business; looking at things from a whole perspective instead of individually dissecting the business’s aspects
Which stage is important for Top Managers? Why?
Planning Stage.
these managers are responsible for every single unit in the company.
Middle Managers
the liaisons (go-between) for the top level and first line managers; they facilitate communication and manage the head of their units; answers to the top level managers.
Ex. – VP of Acct. in the Accounting subsidiary
First-Line Managers
the department head who answer to the middle managers; looks at daily functions of businesses and oversees the actual workers to ensure that they are doing their jobs efficiently and effectively; they have regular employees/factory workers as subordinates
Understanding MGMT has progressed slowly for what 3 major reasons?
1.) Until around a century ago, there were few large organizations to provide both the stimulus and the laboratory for management research.
2.) It was assumed that management and other business issues were part of the subject matter of economics.
3.) Because management is a social science, its variables and concepts are more difficult to identify, define, and measure, and predict than those associated with physical phenomena.
True or False: Management is not an exact science or mathematical equation. Explain.
True. What works for some companies may not be as effective for others.
Schools of Management Thought
different classifications of management approaches
What are the different Schools of Management Thought? (Hint: there are 4 types)
Classical School of MGMT focuses on what primarily? Did its focus overlook something important in the organization?
they focus on rationality, efficiency, and standardization and, in the process, overlooked the roles of people in the organization.
What is included in the Classical School of MGMT Thought? (Hint: topics covered)
Scientific Management
Bureaucratic Organization Theory
14 Principles of MGMT
What was Frederick Taylor’s basic assumption of the common worker? Where did he get his ideals from?
made the assumption that humans are solely rational creatures, meaning they would take criticisms well and work on bettering themselves.
looked at a basic factory machine and watched its functions to get his ideas
Who is considered the “father of scientific management”?
Frederick Taylor
What did Frederick Taylor introduce into the workplace that is still implemented today?
Piece-rate (incentive plan to ensure full productivity)
work breaks (designed to give the worker a break from work to reduce the amount of work related injuries; before this companies would literally work their employees to death)
Pig Iron Experiment
created by Frederick Taylor; Pig Iron Steel Co. located in Bethlehem, PN.
got 10 best workers to load as much pig iron onto railroad cars in 1 day as quickly and efficiently as possible
What was the average amount of pig iron on the railroad cars? (Hint: 10 workers got this amount each, not as a total)
75 tons each were loaded in 1 day
What did the Pig Iron Experiment prove?
that if given an incentive, workers will perform at a higher standard; they will be more efficient if given a benefit
What was the average amount that Taylor suggested each regular worker strive for?
12.5 tons per day but businesses were advised to make their workers achieve a goal of 40 tons per day
What was the incentive(s) given to those who could reach the goal amount of pig iron?
for every ton over the 40 ton minimum, the worker would receive $.03 per ton
if they reached 45 tons in a day then they were awarded $1.69 per day that it was reached (originally workers made about $1.15 per day)
Who were the original Cheaper by the Dozen Family?
Frank and Lilian Gilbreth
What are the Gilbreth’s known for?
the Motion Study and Therbligs
Motion Study
filming the individual movements of a worker performing a certain task and step-by-step recording/counting each movement until job was done; then trying to reduce the number of movements required to finish the job
What did the motion study contribute to? (Hint: it was something useful to Frank Gilbreth’s everyday job) How did it help?
building the first scaffolding for brick layers.
creation put the starting bricks at shoulder level, instead of on the ground, so the layers could limit their movements and preserve energy (didn’t have to bend over to pick up the brick and then lay it)
17 steps of movements that were commonly performed in each job
What were the Therbligs used for?
used these steps to demonstrate to workers, doctors, and baseball players how they could maximize efficiency and reduce motion and time to achieve their goal/finish the tasks
How did Frank and Lilian’s research help improve the medical profession?
changed the way doctors and nurses exchanged tools; Ex. – nurses used to grab a scalpel by the handle and hand it, by the bladed side, to the doctor, who would then have to turn it around before using it
What is Lilian’s role in her husband’s research? How did she bring the motion study into the household?
she is considered the 1st lady in MGMT because she picked up Frank’s work after his sudden death.
She used his work to show women how to run households more efficiently; everyday chores done in smaller, quicker movements
Max Weber
Prussian born into a wealthy family; very well educated; developed a nervous condition early in life which affected his work study
What term was first coined by Weber?
Max Weber’s Ideal Bureaucracy
a division of labor and specific allocation of responsibility based on functional specialization
What did Max Weber study?
took a look at the way religion ties into the workplace; questioned the influence of the Protestant religion, stating that it shaped modern capitalism
What was different about Max Weber’s study?
he would take 1 organization and examine it thoroughly before making suggestions and changes; he didn’t generalize his findings to all organizations, but instead to one singular business at a time
Who created the 14 principles of MGMT?
Henri Fayol
Why is Henri Fayol important?
he was the first to identify the major functions of management (P.O.L.C.)
What were the 5 positive bureaucratic features?
1.) a well-defined hierarchy of authority
2.) formal rules and procedures
3.) a clear division of labor, with parts of a complex job being handled by specialists
4.) impersonality, without reference or connection to a particular person
5.) careers based on merit
Why is Weber important?
though his work was not translated to English until 1947, it came to have an important influence on the structure of large corporations (Ex.- Coca-Cola Co.)
How did Weber define a bureaucracy?
a rational, efficient, ideal organization based on principles of logic
Why is Frederick Taylor important?
although “Taylorism” met considerable resistance from employees fearing that working harder would lead to lost jobs except for the highly productive few, Taylor believed that by raising production both labor and management could increase profits to the point where they no longer would have to quarrel over them
Scientific Management
emphasized the scientific study of work methods to improve the productivity of individual workers
What are the 4 Principles of Scientific MGMT?
1.) evaluate a task by scientifically studying each part of the task.
2.) carefully select workers with the right abilities for the task.
3.) give workers the training and incentives to do the task with the proper work methods.
4.) use scientific principles to plan the work methods and ease the way for workers to do their jobs.
Robert Owen
age 9: taken out of school and placed in draper’s factory
age 16: borrows hundred pounds and bought factory in New Land Arc which turned out to be a village of workers (~2,000) left by previous owners
made changes to the standard of living for these people that influenced their work ethic
What changes did Robert Owen make to New Land Arc?
built a school, thinking that the educated worker was more efficient
prevented any child under the age of 10 to work in a factory
those ages 10 and older could only work 10-hour workdays
mandated that youngsters attend school and high schoolers would work then attend school
What did these changes do for the children in Owen’s village?
they were healthier and could achieve social points throughout childhood; they were no longer stunted by the harmful factory fumes and tight spaces
Hugo Munsterberg
raised in Germany by both parents
well educated with Psychology degrees
believed that psychologists contributed to industry in 3 ways
Why is Munsterberg important?
his ideas led to the field of industrial psychology, the study of human behavior in workplaces.
What were the 3 ways that psychologists contributed to industry?
1.) study jobs and determine which people are best suited to specific jobs.
2.) identify the psychological conditions under which employees do their best work.
3.) devise management strategies to influence employees to follow management’s interests.
Mary Parker Follett
U.S. born
father died and mother was an invalid
went to Radcliffe College
degrees in law and politics
thought organizations should become more democratic, with managers and employees working together
Why is Follett important?
she anticipated some of today’s concepts of “self-managed teams”, “worker empowerment”, and “interdepartmental teams” – members of different departments working together on joint projects
Follett’s ideas
1.) organizations should be operated as “communities” with managers and subordinates working together in harmony.
2.) conflicts should be resolved by having managers and workers talk over differences, and find solutions that would satisfy both parties (integration)
3.) work process should be under the control of workers with the relevant knowledge, rather than of managers, who should act as facilitators.
Chester Barnard
manager of New Jersey Telephone Co.
focused on informal organizations (water cooler talks)
Why is Barnard important?
he wanted to call attention to control the social atmosphere at the workplace; the interrelationships between bosses v. workers and workers v. workers
Why are the Hawthorne Studies important?
though they were faulted, they still brought attention to the importance of “social man” and how managers using good human relations could improve worker productivity
Who conducted the illuminated experiments? Where? What are they?
Elton Mayo
Western Electric Company
a process of turning up the lighting in a factory to improve worker productivity (the better one can see, the better one can work)
What did Mayo discover when he took 6 women form the factory floor into a personal observation room?
he discovered that they worked more productively when they knew they were being watched. Also, they were given extra money for this experiment which in turn increase their productiveness. He found out that they began to form relationships with one another after spending all day in a room together.
Theory X and Theory Y: What are they?
Theory X managers – pessimistic, negative view of workers
Theory Y managers – optimistic, positive view of workers
Who devised the Theories of X and Y?
Douglas McGregor
Why are the Theories of X and Y important?
it helps managers understand how their beliefs affect their behaviors and how those behaviors affect their workers
MGMT Science
using mathematics to actually make a decision in the business; making business decisions using an actual mathematical equation
Rensis Likert: Job-Centered v. Employee-Centered
Job-centered – focuses on the job at hand
Employee-centered – focuses on social aspects of the job; working conditions are sound, they like the managers and are happy
was later proved that both aspects were important and could work in either workplace experience depending on the business
Systems Theory
talking about biology/physical science portion of business; an input goes in and is processed with the environment and is produced as an output with feedback
a set of interrelated parts that operate together to achieve a common purpose
Why is MGMT science important?
it stresses the use of rational, science-based techniques and mathematical models to improve decision making and strategic planning.
Why is Operations MGMT important?
through the rational management of resources and distribution of goods and services, operations management helps ensure that business operations are efficient and effective
Quantitative MGMT
the application to management of quantitative techniques, such as statistics and computer simulations
What are the 4 parts of a system?
1.) inputs
2.) transformation processes
3.) outputs
4.) feedback
Organic Structure
capable of change; absorbs/adapts to the differences in the environment
Mechanistic Structure
does not change; hard to change; stays constant and makes it difficult to change certain things with lots of committees there to discuss the issues; more like a bureaucracy because it is slow to evolve
Project-based Process
putting together a team to build something and finish it; more unpredictable/uncertain; unstructured with not a lot of instructions; more innovative (Ex. – Google)
Job Shop Process
has a bunch of specific tasks that certain people work on; has more restrictions
Batch Process
more routines; only do certain jobs; very restricted
Assembly Line
same thing happening all the time, down the line, everyday
Continuous Flow
same thing happening day in and day out; everyday, all day, never changing
What are the 2 types of Environment for a system?
1.) High uncertainty which is always changing (stable/innovative)
2.) Low uncertainty which is hardly ever changing (unstable/constant)
Contingency Theory
emphasizes that a manager’s approach should vary according to the individual and the environmental situation

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