introduction to management 2

Chapter 2
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
MANAGEMENTMANAGEMENT
Chapter 2
MBH1113MBH1113

Chapter 2
2
Why We Need Managers Today
Work in familiesWork in families
Skilled laborersSkilled laborers
Small, self-organized
groups
Small, self-organized
groups
Unique, small batches
of production
Unique, small batches
of production
ThenThenThenThen
Work in factoriesWork in factories
Specialized,
unskilled laborers
Specialized,
unskilled laborers
Large factoriesLarge factories
Large standardized
mass production
Large standardized
mass production
NowNowNowNow
1.21.2

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Scientific Management
22
 Studies and tests methods to identify
the best, most efficient ways
 Studies and tests methods to identify
the 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

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Frederick W. Taylor
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

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Taylor’s Four Management Principles
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 in
accordance with the principles of the science.
Cooperate with the men to insure all work is done in
accordance with the principles of the science.
There is almost equal division of the work and the
responsibility between management and workmen.
There is almost equal division of the work and the
responsibility between management and workmen.
Adapted from Exhibit 2.2

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Frank & Lillian Gilbreth
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.

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Motion Studies: Frank & Lillian Gilbreth
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 separate
motions and then eliminating those that
are unnecessary or repetitive.

Chapter 2
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Charts: Henry Gantt
2.32.3

Chapter 2
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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
3.13.1
Bureaucracy
The exercise of control on the basis of
knowledge, expertise, or experience.
Max Weber, 1864-1920

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The Aim of Bureaucracy
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

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Administrative Management:
Henri Fayol
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 direction5. Unity of direction
6. Subordination of
individual interests
6. Subordination of
individual 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

Chapter 2
13
44
Human Relations Management
Efficiency alone is not
enough to produce
organizational success.
Success also depends on
treating workers well.

Chapter 2
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Mary Parker Follett
Mary Parker Follett, 1868-1933
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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4.14.1
Constructive Conflict and Coordination:
Mary Parker Follett
Dealing withDealing with
ConflictConflict
Dealing withDealing with
ConflictConflict CompromiseCompromise
DominationDomination
IntegrationIntegration

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4.14.1
Constructive Conflict and Coordination:
Mary Parker Follett
1. Coordination as reciprocal relating all
the factors in a situation
2. Coordination by direct contact of the
responsible 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 the
responsible people concerned
3. Coordination in the early stages
4. Coordination as a continuing process
Fundamental Principals of Organizations

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4.24.2
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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4.34.3
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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20
55
Operations, Information, Systems,
and Contingency Management
Information ManagementInformation Management
Operations ManagementOperations Management
Contingency ManagementContingency Management
Systems ManagementSystems Management

Chapter 2
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5.15.1
Operations Management Tools
Quality controlQuality control
Forecasting techniquesForecasting techniques
Capacity planningCapacity planning
Productivity measurement and improvementProductivity 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

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5.35.3
Information Management
Milestones in information management:
1400s Horses in Italy
1500-1700 Creation of paper and the printing press
1850 Manual typewriter
1860s Vertical file cabinets and the telegraph
1879 Cash registers
1880s Telephone
1890s Time clocks
1980s Personal computer
1990s Internet

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5.35.3
Systems Management

Chapter 2
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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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5.45.4
Contingency Management
Contingency Approach
Holds that the most effective management
theory or idea depends on the kinds of
problems or situations that managers are
facing at a particular time and place.

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5.45.4
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”

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Current Trends and Issues
 Globalization
 Ethics
 Workforce Diversity
 Entrepreneurship
 E-business
 Knowledge Management
 Learning Organizations
 Quality Management

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