Business management Quiz #1

Many companies are organized along functional lines. In these companies, accountants report to a senior accountant; salespeople report to an executive of sales. These companies follow which organization design thinker from 100 years ago, who said activities that are similar should be the responsibility of one person?

Henri Fayol

A company is like a body with guts, a heart, and a nervous system. ________ is the nervous system, concerned with business signals and recording facts and processing them.

Information Management

Which is a limitation of scientific management?

Knowledge-based work can't be observed and broken down for efficiencies for manual labor

The Boston Consulting Group's Yves Morieux argues for increasing the total quantity of power in a firm. Morieux echoes the earlier ideas of ________ about sharing power and empowering employees.

Mary Parker Follett

Bureaucratic Management

Methods defined by pyramid, hierarchical organizational structure

Humanistic Management

Methods that emphasize interpersonal relationships

Current Developments in Management Practices

Operations management and supply chain, systems management, information management, contingency management

Scientific Management

Profitability and productivity, "one best way" to perform a job, hire the right workers and train them for maximum efficiency

Elton Mayo (Humanistic Management)

The Hawthorne Experiments. Hawthorne studies, group cohesion, a friendlier attitude of the supervisors, high sense of mission and team closeness

Controlling

The process of monitoring activities, measuring performance, comparing results to objectives, and making modifications and corrections when needed

The division of labor was first explained by Adam Smith in The Wealth of Nations. According to ________, the division of labor means tasks are clearly defined and employees become skilled by specializing in doing one thing.

Weber

The work of ________ and ________ forms the basis of organization designs today. The principles of bureaucracy govern most large organizations, from multinational organizations, to armies, hospitals, and universities.

Weber and Fayol

Researchers at ________ sought help after their studies, based on scientific management procedures, produced inconsistent results. Elton Mayo designed new studies where research conducted nondirective interviews.

Western Electric near Chicago

Which is a limitation of scientific management?

Workers were able to eliminate movements in product assembly, making labor more efficient. (Wrong) It is based on upon best way and more applicable to simple organizations than to today's dynamic and complex organizations.

Frank and Lillian Gilbreth (Scientific Management)

Wrote Cheaper by the Dozen. Worker welfare and motivation, ergonomics and industrial psychology

Anson Dorrance, coach of the UNC women's soccer team, fostered an almost family-like sense of the team while also bringing out his players' aggressiveness. This created ________ that was not easily duplicated by other teams.

a competitive advantage

The systems approach to management is

akin to the Circle of life in Disney's movie the Lion King

Vertical management

also called top-down management

Some office supply stores have increased profits by selling more than paper and ink cartridges. They manage the customer's supplies, checking inventories and replacing used materials in the customer's office. This systems approach considers

an untapped profit center based on charging the customers for inventory management

Although it may seem straightforward, the management process is complex. The management functions include:

applying and distributing organizational resources effectively

Max Weber believed a structured organization, a bureaucracy, would be the most logical and efficient. One of his rules was that

authority and responsibilities are clearly defined for each position

Principles from the ________ school of management were originally designed to prevent favoritism and incompetence.

bureaucratic

Max Weber believed that management should be separate from ownership and managers should be protected from arbitrary dismissal. These are aspects of his rule called

career orientation

Mary Parker Follett's approach to conflict resolution built upon her Quaker background and training. She believed in

constructive consultation of equals rather than compromise, submission, or struggle

True Story is a podcast where people tell personal stories. To create a card game, they created a pop-up or flash company. There were no employees, only contractors hired through Upwork.com. They broke the rules of bureaucratic management in the process. The management "theory" that considers exceptions is

contingency management

Contingency Management

contingency management is not a specific function. It is a general approach to management practice that basically says there is no one best way to manage.

Planning means

defining performance goals for the organization and determining what actions and resources are needed to achieve the goals.

Bureaucratic Management looked at how large organizations with layers of management could operate in an

efficient, rational manner

The systems approach to management looks at companies as

feedback in a control loop (wrong) process with input and output

Controlling may be the most important management function. The control process is also described as

feedback loops

Top managers are the public face of the management team and represent the business in legal, economic, and social forums. Uber's CEO Travis Kalanick resigned because he could not fill this ________ role.

figurehead

Mary Parker Follett has been called the "mother of modern management." Her ideas anticipated employment relationships that are more common today than in the 1920s. She focused on the

informal and lateral processes within an organization

Mary Parker Follett anticipated the work of Elton Mayo at a high level. She recognized the importance of

informal processes within organizations

Apple's current vision statement was introduced by CEO Tim Cook, who stated, "We believe that we are on the face of the earth to make great products." This is part of the ________ role of managers.

informational

Leading

inspire people to support plans, creating belief and commitment

Managers must motivate employees, negotiate salaries, and encourage employees toward innovation and creativity. Sheryl Sandberg, now COO of Facebook, is great at encouraging fellow employees, but this is usually the ________ role of middle management.

interpersonal

Organizing

involves deciding how the organization will be structured (by departments, matrix teams, job responsibilities, etc.)

Southwest Airlines is famous for operating at low cost. They achieve low costs because they are very selective in the people they hire and they create a friendly and supportive environment. In return, the employees support the company. Competitors have failed to duplicate this and Southwest has retained

its competitive advantage

Nokia transitions caused disruptions in its labor force. New skills were needed and old skills were less important. Managers needed to motivate employees to adapt to the changes. Managers needed to be

leaders

Google's mission statement is "to organize the world's information and make it universally accessible and useful." When the CEO, Sundar Pichai, espouses this, he performs the management function of

leading

Google's motto is "Don't be evil." When the company neglects this to make more money, consumers are quick to criticize. Management has neglected its function of

leading

Strategic plans are

long-term and affect the entire organization

A motivation for scientific management, which uses time and motion studies and work standardizations, is to:

make manual labor run more efficiently

Richard Branson of Virgin Enterprises says, "The people out on the front line, they know when things are not going right and they know when things need to be improved. And if you listen to them you can soon improve all those niggly things which turns an average company into an exceptional company." Branson believes in

managing people well to create a competitive advantage

Managers encourage, support, and foster talented employees. The managers who focus in this area are

middle managers

Information management is the ________ of a company. Information management is concerned with the collection, preservation, storage, processing, and delivery of information. The purpose of information management is to make sure information is available to the right people at the right time in a form that they can apply.

nervous system

Walmart developed its supply chain and inventory management to be very efficient and set the standard for other companies. These specialties are grouped under

operation management

Whole Foods uses teams to manage its stores. Each team is responsible for stocking shelves, ordering inventory, and hiring new team members. To shoppers it does not appear much different, but to employees the ________ is very different from other grocers.

organization

Google has unusual work teams. Each team is 3 to 4 people who work independently of other teams, but each team posts weekly to a company blog about what they are doing. Google's management has chosen an unusual

organizational structure

In the past, Microsoft used a Human Resources policy sometimes called "rank and yank." They ranked employees and made personnel decisions based on this rank. Employees naturally focused on beating the guy in the next cubicle. Microsoft's competitive advantage did not depend on

people

The alternative to viewing management as a process is to focus on

people

Criticism of Taylor's Scientific Management sparked a new movement called Humanistic Management. This movement shifted management emphasis to

people and work relationships

Management can be approached as either

people or a process

Management activities are often grouped into four categories. These are

planning, organizing, leading and controlling

Management as a process means

planning, organizing, leading and controlling resources and people to meet organizational goal

A systems approach to management

recognizes that organizations are open systems that interact with and are dependent on their environment

Employees that understand how their company operates and competes can make better decisions. Therefore management can create a competitive advantage by

sharing information with employees

Dorrance, the coach of the UNC women's soccer team, has an eye for recruiting outstanding talent. In business language, this is called

team development

Mary Parker Follett (Humanistic Management)

the "Mother of Modern Management." Lateral processes, matrix organization, importance of informal processes, empowerment and facilitation, constructive conflict. Wrote Creative Experience.

Frederick W. Taylor (Scientific Management)

the Father of Scientific Management. Methods defined by work that could be studied and work processes improved

Taylor and Weber agreed on hiring the right worker for the job. Employee selection and promotion should be based on experience, competence, and technical qualification demonstrated by examinations, education, or training. There is no nepotism. Weber called this

the Formal Selection Process rule

Scientific management engendered workers' fears that all but an elite few would soon be out of work. The humanistic approach focused on

the effects of group dynamics on efficiency and productivity

One definition of management is

the people with the responsibility and authority to determine the overall direction of the organization

Biologists have learned to look at animals as part of a web of life. Grasshoppers don't live in isolation away from the birds who prey on them or the vegetation that feeds them. Businesses cannot be perfected in isolation from their customers, competition, and community. This view of management is

the system approach to management

What are Frank and Lillian Gilbreth most noted for studying?

time and motion studies

Managers pay careful attention to the external environment of the organization: the economy, proposals for laws that would affect profits, stakeholder demands, and consumer and public relations. The managers most involved in these activities are

top managers

Google has a flatter organization chart than most large companies. Engineers talk to each other across the organization. But Google still has the basic levels of management, including

top, middle, and first-level management and team leaders

Some managers set long-term goals and define strategies to achieve them. These are

top-level managers

Tactical plans

translate strategic plans into specific actions that need to be implemented by departments throughout the organization

A military organization is very structured. Ranks are very clear, defining who can give and who must take orders. This is an example of

vertical management

The Gantt chart is a tool that provides a visual (graphic) representation of

what occur over the course of a project.

The Gilbreths both belonged to the classical school of management, which emphasized increasing

worker productivity by scientific analysis

One graphic representation of the tasks required over the course of a project is called a

Gantt chart

Henry Gantt (Scientific Management)

Gantt chart. Sequential performance of tasks within a project, key tasks and assigned time, start dates for each task, project management

Characteristic of the Bureaucracy + Hierarchical Management Structure + Division of Labor + Formal Selection Process + Career Orientation + Formal Rules and Regulations + Impersonality

+ Each level controls the levels below and is controlled by the level above. Authority and responsibilities are clearly defined for each position. + Tasks are clearly defined and employees become skilled by specializing in doing one thing. There is clear definition of authority and responsibility. + Employee selection and promotion are based on experience, competence, and technical qualification demonstrated by examinations, education, or training. There is no nepotism. + Management is separate from ownership, and managers are career employees. Protection from arbitrary dismissal is guaranteed. + Rules and regulations are documented to ensure reliable and predictable behavior. Managers must depend on formal organizational rules in employee relations. + Rules are applied uniformly to everyone. There is no preferential treatment or favoritism.

Management functions include

+ applying and distributing organizational resources effectively + acquiring new resources when necessary + analyzing and adapting to the ever-changing environment in which the organization operates + complying with legal, ethical, and social responsibilities of the community + developing relationships with and among people to execute the strategies and plans

Henri Fayol (Bureaucratic Management)

Administrative Management Theory. Wrote General and Industrial Management. Foresight, Organization, Command, Coordinate, Control

Max Weber (Bureaucratic Management)

Bureaucratic Theory. Success of industrial capitalism, rational authority, Hierarchical Management Structure, Division of Labor, Formal Selection Process, Career Orientation, Formal Rules and Regulations

Taylor's Four Principles of Scientific Management included which of the following?

Heartily cooperate with the men to ensure all the work is done in accordance with the science that has been developed.

The Hawthorne studies began as the type of experiment recommended by Scientific Management. Researchers were trying to find the optimal working conditions. But the outcomes defied explanation in the frame of scientific management. ________ changed the frame and focused on social dynamics.

Elton Mayo