Chapter 2

Charles Clinton Spaulding

"Father of African-American management" *the son of a farmer, worked his way up to become president of North Carolina Mutual Life Insurance Company (the Mutual) Created 8 fundamental necessities: (similar to those of Fayol) 1. Authority and responsibility-there should be a manager who has the responsibility and authority to decide on every fundamental issue 2. Division of labor-departmental divisions should function separately under the direction of managers 3. Adequate manpower-there must be a reliable system for acquiring and training the best employees 4. Cooperation and teamwork-cooperation, unity, and regular communication among managers is essential

Maslow's Hierarchy of Needs

(level 1) Physiological Needs, (level 2) Safety and Security, (level 3) Relationships, Love and Affection, (level 4) Self Esteem, (level 5) Self Actualization *Part of Human Resources Perspective

Engagement; to manage millennials

emotional and mental state in which employees enjoy their work, contribute enthusiastically to meeting goals, and feel a sense of belonging and commitment to the organization

Contingency View

tells managers that what works in one organizational situation might not work in others *opposite of the universalist view *this is case view -contingencies = variables -people, the environment, situation o Contingency-one thing depends on other things

Systems Thinking

the ability to see both the distinct elements of a system or situation and the complex and changing interaction among those elements *more recent trend* -systems are important; managers thinking in systems are ahead

Scientific Management

**Fredrick Winslow Taylor** "father of scientific management" **Think about a stopwatch** TIME -emphasizes scientifically determined changes in management practices as the solution to improving labor productivity **improve efficiency and labor productivity through scientific methods Taylor proposed that workers "could be retooled like machines"; treated employees like machines; simply part of the process Taylor worked with the steel industry; calculated how quickly each man could unload the rail car and reload it; convinced owners he could speed up product by keeping employees on time with precise procedures

Bureaucratic organizations approach

**Max Weber** German theorist Emphasizes management on an impersonal, rational basis through elements such as clearly defined authority and responsibility, formal record-keeping, and separation of management and ownership. -Developed in Europe; depends on rules and records -Family-owned businesses were too focused on using resources for their own personal gain; not the organization's as a whole -Managers use power, instead of personality, as a way to lead: control, power, leverage -Standard way of dealing with all employees: rules and procedures are impersonal and applied uniformly to all employees; everyone gets equal treatment, and everyone knows the rules -Seems liked a threat to basic personal liberties (Weber agreed) -Positions are organized in a hierarchy; today this form has a negative meaning of endless rules and red tape *Think of United Parcel Service (UPS); Big Brown

Humanistic Perspective: Behavioral Sciences Approach

-Draws from psychology, sociology, and other social sciences to develop theories about human behavior and interaction in an organizational setting. **Scientific methods + sociology, psychology, anthropology, economics, and others -One specific set of management techniques based in the behavioral sciences approach is organization development (OD) **improves organization's health and effectiveness -OD, OB, MBWA *OB-organizational behavior *MBWA-management by walking around

Classical Perspective

-Earliest focus of management -People's needs were often ignored in interest of higher production and efficiency and profit ("things of production") **FOCUS ON THINGS OF PRODUCTION** -Rise of factory system; issues regarding structure, training, scheduling operations, and employee satisfaction -Large, complex orgs required new approaches to coordination and control -This has switched now to "humanity of production"

Humanistic Perspective: Human Relations Movement

-Effective control comes from within the employee -Hawthorne studies were key contributor (Hawthorne light plant) **meaning that when researches left, efficiency/productivity dropped **studies were a huge failure, but a big win for humanistic perspective o Hawthorne effect-subjects of experiments behaved differently because of the active participation of researchers around them -Human relations played key variable in increasing performance -Employees performed better when managers treated them positively; employees want acknowledgement -Strongly shaped management practice and research **better to give employees criticism than to completely ignore them

Humanistic Perspective Important thoughts

-Empowerment: facilitating instead of controlling employees -Information organization: cliques, informal networks, and social groupings -Acceptance theory of authority: people can choose to follow management orders

subsets of management science

-Operations research-mathematical model building and other applications of quantitative techniques to managerial problems -Operations management-specializes in physical production of goods or services -Information technology (IT)-The hardware, software, telecommunications, database management, and other technologies used to store, process, and distribute information. *most recent

How have good leaders evolved?

-Started with wanting strict, monarchy style (those people wanted power) -Moved to trait theory (what traits made them good leaders) -Then style (tried to imitate leaders/copy them -Finally, contingency (what are the circumstances)

Humanistic Perspective: Human Resources Perspective

-Suggests that jobs should be designed to meet people's higher-level needs by allowing employees to use their full potential. **tasks should not be demeaning, but allow for full potential -Satisfied workers produce more work **Abraham Maslow and Douglas McGregor**

The Bossless Workplace

-work from home - accountability to the customers and team Advantages: increased flexibility, greater initiative and commitment, better and faster decision making Disadvantages: must invest in training and development

6 characteristic of Weberian Bureaucracy

1. Division of labor, with clear definitions of authority and responsibility 2. Positions organized in a hierarchy of authority 3. Managers subject to rules and procedures that will ensure reliable, predictable behavior 4. Management separate from the ownership of the organization 5. Administrative acts and decisions recorded in writing 6. Personnel selected and promoted based on technical qualifications

Other contributors to Scientific Management

1. Henry Gantt: Gantt chart, a bar graph that measures planned and completed work along each stage or production by time elapsed 2. The Gilbreths: pioneered TIME AND MOTION -Frank B. Gilbreth stressed efficiency; known for bricklaying industry & impact on reducing the time medical surgeries took -Lillian Gilbreth: "First lady of management" *Human resource management -"therbligs"? Things the Gilbreth's monitored, I believe

Invisible Hand

A phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefits for all

Administrative Principles

A subfield of the classical perspective that focuses on the total organization rather than the individual worker **Henri Fayol** and his 14 principles -French mining engineer for Comambault; wrote General and Industrial Management **Charles Clinton Spaulding** "father of African-American management"

Tension Between Historical Forces

Have switched from "things of production" to "humanity of production" "Thing": management focus on production efficiency via organization design and workflow systems and control "Humanity": Management focus is on meeting human needs for greater motivation and engagement to increase effectiveness Two are arrows that are facing each other; figure 2.2

3 perspectives to Humanistic perspective

Human relations movement Human resources perspective Behavioral sciences approach

social media programs

Include online community pages, social media sites, video channels, microblogging platforms, and company online forums that enable managers to interact electronically with employees, customers, partners, and other stakeholders. -The YouTube, Facebook, LinkedIn -For the first time, a new technology (thing of production) adds directly to the humanity of production. • Social media can improve efficiency, increase productivity, and facilitate faster and smoother operations by improving communication and collaborating within and across firms • Can also enable a sense of community and facilitate communication, collaboration, and knowledge sharing • Can build stronger, more authentic relationships between managers and employees -Build more trust with customers

Salaried manager

New problems and the development of large, complex organizations demanded a new approach to coordination and control, and a "new sub-species of economic man—the salaried manager" was born. Between 1880 and 1920, the number of professional managers in the United States grew from 161,000 to more than 1 million.

Chester Barnard

One of Barnard's significant contributions was the concept of the informal organization -The (informal organization) occurs in all formal organizations and includes cliques, informal networks, and naturally occurring social groupings. -Another significant contribution was the (acceptance theory of authority), which states that people have free will and can choose whether to follow management orders

Four subfields of classical perspective

Scientific management Bureaucratic organizations Administrative principles Management science *When forces either outside or within the organization suggest a need for change to improve efficiency or effectiveness, managers have often responded with a technology- or numbers-oriented solution that makes people little more than cogs in a big machine. *puts science into making organizations efficient operating machines

Factors affecting management practices and perspectives

Social forces Political forces Economic forces Studying management history helps you understand impact of social forces on organizations

big data analytics

Technologies, skills, and processes for searching and examining massive, complex sets of data that traditional data processing applications cannot handle to uncover hidden patterns and correlations. *descendant of scientific managements and quantitative approach-algorithms Used heavily in advertising: Amazon, Facebook, eHarmony

Quantitative techniques

The use of mathematics, statistics, and computer technology to facilitate management decision making.

McGregor's Theory X and Theory Y

Theory X - the assumption that employees dislike work, are lazy, avoid responsibility, and must be coerced to perform. **Constant supervision** **Have to give them external threat or reward** Theory Y - the assumption that employees are creative, enjoy work, seek responsibility, and can exercise self-direction. **Will contribute to organizational goals when given the opportunity**

Henri Fayol's 14 principles

Unity of command, division of work, unity of direction, scalar chain -2 parts to chain of command 1. Unity of command-each subordinate receives orders from one-and only one-superior 2. Scalar chain-chain of authority extends from top to bottom of the organization and should include every employee Division of work-managerial work and technical work are amenable to specialization to produce more and better work with the same amount of effort Unity of Direction-similar activities in an organization should be grouped together under one manager

Management Science

Uses mathematics, statistical techniques, and computer technology (QUANTITATIVE TECHNIQUES) to facilitate management decision making, particularly for complex problems. **Also called the quantitative perspective -Developed for military during WWII -Widely used today (Think Disney and FastPasses)

PACE

When planning, think PACE Primary Alternative Contingencies Emergencies

Supply chain

a network of multiple businesses and individuals that are connected through the flow of products or services

Humanistic Perspective

emphasizes the understanding of human behavior, needs, and attitudes in the workplace **Primary focus on HUMANITY of production **Mary Parker Follett and Chester Barnard** -Contrast to scientific management-importance of people rather than engineering techniques -Actually thinking of employees as humans!

Quants

financial managers who base their decisions on complex quantitative analysis *algorithmic predictions*

How can scientific management be successful?

if managers develop standard methods for doing each job, select workers with appropriate abilities, train workers in standard methods, support workers and eliminate interruptions, and provide wage incentives -Break things down for greater productivity -Computerized systems can measure these things (individual quantifiable units and devises standard times for completing each task) **problem is that systems ignore the social context and workers' needs *worked for Taylor because there was unlimited labor force

Supply Chain Management

managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to consumers *Just-in-time delivery: raw materials coming in only when needed

Subsystems

parts of a system that depend on one another for their functioning *changes in one part of the system affect other parts

Administrative Principles 5 functions of management

planning organizing commanding coordinating controlling ** From Fayol

Systems

set of interrelated parts that function as a whole to achieve a common purpose

Synergy

the whole is greater than the sum of its parts Sometimes working with each part might not add up to success of the whole *managers must understand subsystem and interdependence and synergy *relationship among the parts that make up the system

Top concerns of managers now

threat of cyber attacks, decreasing customer loyalty, and the pace of change brought about by digital technologies

Mary Parker Follett

trained in philosophy and political science, but she applied herself in many fields, including social psychology and management -concepts of (empowering), facilitating rather than controlling employees, and allowing employees to act depending on the authority of the situation opened new areas for theoretical study "The woman who invented management" -Warren Beenis "Just about everything written today about leadership and organizations comes from Mary Parker Follett's writings and lectures"

Social business

using social media technologies for interacting with and facilitating communication and collaboration among employees, customers, and other stakeholders

Satisfied vs. engaged

workers should be engaged, not just satisfied