Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Why...

Chapter 2Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved

Why We Need Managers Today

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Work in familiesWork in families

Skilled laborersSkilled laborers

Small, self-organizedgroups

Small, self-organizedgroups

Unique, small batchesof production

Unique, small batchesof production

ThenThen

Work in factoriesWork in factories

Specialized,unskilled laborers

Specialized,unskilled laborers

Large factoriesLarge factories

Large standardizedmass production

Large standardizedmass production

NowNow

1.21.2


Scientific Management

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Studies and tests methods to identifythe best, most efficient ways


Studies and tests methods to identifythe best, most efficient ways

“Seat-of-the Pants” Management

No standardization of procedures

No follow-up on improvements

“Seat-of-the Pants” Management

No standardization of procedures

No follow-up on improvements


Frederick W. Taylor

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Frederick Taylor is known today as the "father of scientific management." One of his many contributions to modern management is the common practice of giving employees rest breaks throughout the day.

Frederick W. Taylor, 1856-1915


Taylor’s Four Management Principles

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2.12.1

Develop a science for each element of a man’s work,which replaces the old rule-of-thumb method.

Develop a science for each element of a man’s work,which replaces the old rule-of-thumb method.

Scientifically select and then train, teach, and develop the workman.

Scientifically select and then train, teach, and develop the workman.

Cooperate with the men to insure all work is done inaccordance with the principles of the science.

Cooperate with the men to insure all work is done inaccordance with the principles of the science.

There is almost equal division of the work and theresponsibility between management and workmen.

There is almost equal division of the work and theresponsibility between management and workmen.

Adapted from Exhibit 2.2


Frank & Lillian Gilbreth

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2.22.2

Frank and Lillian Gilbreth were prolific researchers and often used their family as guinea pigs. Their work is the subject of Cheaper by the Dozen, written by their son and daughter.


Motion Studies: Frank & Lillian Gilbreth

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2.22.2

Time Study

Timing how long it takes good workers to complete each part of their jobs.

Motion Study

Breaking each task into its separatemotions and then eliminating those that are unnecessary or repetitive.


Charts: Henry Gantt

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2.32.3


General Administrative Theorists

• Henri Fayol– Believed that the practice of management was distinct from other

organizational functions – Developed fourteen principles of management that applied to all

organizational situations

• Max Weber– Developed a theory of authority based on an ideal type of

organization (bureaucracy)• Emphasized rationality, predictability, impersonality, technical

competence, and authoritarianism

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Bureaucratic Management

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3.13.1

Bureaucracy

The exercise of control on the basis ofknowledge, expertise, or experience.

Max Weber, 1864-1920


The Aim of Bureaucracy

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3.13.1

1. Qualification-based hiring1. Qualification-based hiring

2. Merit-based promotion2. Merit-based promotion

3. Chain of command3. Chain of command

4. Division of labor4. Division of labor

5. Impartial application of rules and procedures5. Impartial application of rules and procedures

6. Recorded in writing6. Recorded in writing

7. Managers separate from owners7. Managers separate from owners


Administrative Management: Henri Fayol

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3.23.2

1. Division of work1. Division of work

2. Authority and responsibility

2. Authority and responsibility

3. Discipline3. Discipline

4. Unity of command4. Unity of command

5. Unity of direction 5. Unity of direction

6. Subordination ofindividual interests

6. Subordination ofindividual interests

7. Remuneration7. Remuneration

8. Centralization8. Centralization

9. Scalar chain9. Scalar chain

10. Order10. Order

11. Equity11. Equity

12. Stability of tenure of personnel

12. Stability of tenure of personnel

13. Initiative13. Initiative

14. Esprit de corps14. Esprit de corps

Adapted from Exhibit 2.4


Human Relations Management

Efficiency alone is not enough to produce organizational success.

Success also depends on treating workers well.

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Mary Parker Follett Mary Parker Follett is known today as the “mother of scientific management." Her many contributions to modern management include the ideas of negotiation, conflict resolution, and power sharing.

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Mary Parker Follett, 1868-1933


Constructive Conflict and Coordination:Mary Parker Follett

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4.14.1

Dealing withConflict

Dealing withConflict CompromiseCompromise

DominationDomination

IntegrationIntegration


Constructive Conflict and Coordination:Mary Parker Follett

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4.14.1

1. Coordination as reciprocal relating all the factors in a situation

2. Coordination by direct contact of theresponsible people concerned

3. Coordination in the early stages

4. Coordination as a continuing process

1. Coordination as reciprocal relating all the factors in a situation

2. Coordination by direct contact of theresponsible people concerned

3. Coordination in the early stages

4. Coordination as a continuing process

Fundamental Principals of Organizations


Hawthorne Studies: Elton Mayo

• Workers’ feelings and attitudes affected their work

• Financial incentives weren’t the most important motivator for workers

• Group norms and behavior play a critical role in behavior at work

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4.24.2


Cooperation and Acceptance of Authority: Chester Barnard

Managers can gain cooperation by:

• Securing essential services from individuals

• Unifying people by clearly formulating an organization’s purpose and objectives

• Providing a system of effective communication

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4.34.3


Cooperation and Acceptance of Authority: Chester Barnard

People will be indifferent to managerial directives if they…

1. are understood

2. are consistent with the purpose of the organization

3. are compatible with the people’s personal interests

4. can actually be carried out by those people

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4.34.3


Operations, Information, Systems, and Contingency Management

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Information ManagementInformation Management

Operations ManagementOperations Management

Contingency ManagementContingency Management

Systems ManagementSystems Management


Operations Management Tools

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5.15.1

Quality controlQuality control

Forecasting techniquesForecasting techniques

Capacity planningCapacity planning

Productivity measurement and improvement Productivity measurement and improvement

Linear programmingLinear programming

Scheduling systemsScheduling systems

Inventory systemsInventory systems

Work measurement techniquesWork measurement techniques

Project managementProject management

Cost-benefit analysisCost-benefit analysis


Information Management

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5.35.3

Milestones in information management:

1400s Horses in Italy1500-1700 Creation of paper and the printing press1850 Manual typewriter1860s Vertical file cabinets and the telegraph1879 Cash registers 1880s Telephone1890s Time clocks1980s Personal computer1990s Internet


Systems Management

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5.35.3


Systems management

• System is a set of interrelated elements or parts that function as a whole

• Closed systems can sustain themselves without interacting with their environments

• Open systems sustain themselves by interacting with their environments

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Contingency Management

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5.45.4

Contingency Approach

Holds that the most effective managementtheory or idea depends on the kinds ofproblems or situations that managers arefacing at a particular time and place.


Contingency Management

• Management is harder than it looks

• Managers need to look for key contingencies that differentiate today’s situation from yesterday’s situation

• Managers need to spend more time analyzing problems before taking action

• Pay attention to qualifying phrases, such as “usually” 25

5.45.4


Current Trends and Issues

• Globalization• Ethics• Workforce Diversity• Entrepreneurship• E-business• Knowledge Management• Learning Organizations• Quality Management

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Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Why...

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