Principles of Management: History of Management
Max Weber believed in well-defined organization, called the Hierarchical Management Structure. Humanistic management did not disagree but recognized the power of
the informal structure
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
Gantt promoted a task-and-bonus pay plan that modified Taylor's "a fair day's pay for a fair day's work" premise. If a worker took more than the standard time, his pay was docked. If he took less time, he was paid for the additional pieces of work and a bonus of up to 20% more. This was also known as
The progressive rate system
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 systems approach to management is
akin to the Circle of Life in Disney's movie The Lion King
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
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
Management is much harder than Taylor, Mayo, or Follett would have us believe. Instead of one correct way to manage, the best solution depends on the situation, and management must
look for key contingencies
The systems approach to management looks at companies as
processes with inputs and outputs
Taylor and Gantt were the management consultants of their day. Workers were concerned the increased efficiency would mean less work and less pay. Gantt proposed to mitigate this concern with
the task and bonus pay plan
The Gantt chart is a tool that provides a visual (graphic) representation of
what occurs over the course of a project
Taylor's Four Principles of Scientific Management included which of the following?
Develop a science for each element of man's work, which replaces the old rule-of-thumb method.
Taylor's Four Principles of Scientific Management included which of the following?
Management takes over all the work for which they are better suited than the workmen.
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
Google has indexed the World Wide Web to make sure information is available quickly in a form that people can apply. Google's competitive advantage depends on
information management
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
Criticism of Taylor's Scientific Management sparked a new movement called Humanistic Management. This movement shifted management emphasis to
people and work relationships
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
Mary Parker Follett anticipated the work of Elton Mayo at a high level. She recognized the importance of
informal processes within organizations
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
One graphic representation of the tasks required over the course of a project is called a
Gantt chart
Mayo predicted that a group with ________ behaviors and ________ social bonds would have very little chance of succeeding at the task.
negative, few
What are Frank and Lillian Gilbreth most noted for studying?
time and motion studies
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
One approach to organization is putting activities that are similar under one person. ________ called this "unity of direction."
Fayol
Which is a limitation of scientific management?
It is based on upon best way and more applicable to simple organizations than to today's dynamic and complex organizations.
An effective organizational structure for an Internet company such as Google would not be the same as for a manufacturing company such as General Motors. Another ________ factor is the country in which the company operates. U.S. management methods do not work well in France.
contingency
Bureaucratic Management looked at how large organizations with layers of management could operate in an
efficient, rational manner
Max Weber believed that bureaucratic management was the only logical and efficient way to manage an organization. Many organizations do follow bureaucratic principles, but Valve's Gabe Newell disagrees. His company has almost no management, and employees are expected to pursue their own projects. ________ shares this view that there are no universal management theories.
Contingency management
The Gilbreths' work eventually led to the science of
ergonomics and industrial psychology
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
Scientific management principles
favored a division of labor so that workers became more efficient
The Gilbreth's research provided many important principles that were later incorporated into
quality assurance and quality control programs
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
Bureaucracy has taken on negative connotations in popular culture. It is associated with excessive paperwork, apathy and unresponsiveness, slowness in responding to problems, and inflexibility. But most organizations use most or all of the principles, because the principles promote
decisions for efficiency and effectiveness instead of favoritism and incompetence
Walmart is the master of supply chain management, finding the best sources for high-quality materials and supplies at the lowest cost. Walmart excels at
operations management
Prior to Taylor, managers were owners or appointed by the owners with no role beyond oversight. Taylor said managers had responsibilities such as
optimizing the work process and training employees to follow it
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
the whole production process, including the customers
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
A motivation for scientific management, which uses time and motion studies and work standardizations, is to:
make manual labor run more efficiently
The financial crisis of 2008 revealed a huge failure at the major banks. The banks did not know their risk positions in credit-default derivatives. It often took months to process contracts and reconcile with counterparties. This type of activity falls under
operations management
Walmart developed its supply chain and inventory management to be very efficient and set the standard for other companies. These specialties are grouped under
operations management
Scientific Management focused on productivity and reducing costs by developing efficiency. Its critics took issue with scientific management's emphasis on
quotas and standards that were the same for all workers
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 systems approach to management
The Gilbreths both belonged to the classical school of management, which emphasized increasing
worker productivity by scientific analysis
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
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
Today we define the four functions of management as plan, organize, lead, and control. These were derived from Fayol's five duties of management. Where we say "lead", Fayol used
Command and Coordinate
Principles from the ________ school of management were originally designed to prevent favoritism and incompetence.
bureaucratic
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
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.
Henri Fayol was a mining engineer in the 1800s and later the head of a large mining firm. His experience led him to formulate principles for organization, including what he called
Scalar chain: An unbroken chain of command extends from the top to the bottom of the organization.
Which of the following is one of Taylor's Four Principles of Scientific Management?
Scientifically select and then train, teach, and develop the workman.
Mayo theorized that management workers at the Hawthorne Western Electric plant were motivated more by
social dynamics than by economic or environmental factors