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Chp 2 The History of Management

Scientific management

recommended studying and testing different work methods to identify the best, most efficient ways to complete a job

Frederick W. Taylor

the father of scientific management, managers should follow four scientific management principles

First scientific management principle

study each element of work to determine the "one best way" to do it

Second scientific management principle

scientifically select, train, teach, and develop workers to reach their full potential

Third scientific management principle

cooperate with employees to ensure implementation of the scientific principles

Fourth scientific management principle

divide the work and the responsibility equally between management and workers

"fair day's work"

what an average worker could produce at a reasonable pace

"a fair day's pay"

what management should pay workers for that effort

Taylor felt

these principles could be used to align managers and employees by determining a "fair day's work," and "a fair day's pay," and that incentives were one of the best ways to align management and employees

Frank and Lillian Gilbreth

are best known for their use of motion studies to simplify work

Henry Gantt

best known for the Gantt chart, which graphically indicates when a series of tasks must be completed to perform a job or project, but he also developed ideas regarding pay-for-performance plans (where workers were rewarded for producing more but were not punished if they didn't) and worker training (all workers should be trained and their managers should be rewarded for training them)

Max Weber

came up with the idea that bureaucracy would accomplish organizational goals much more efficiently than monarchies and patriarchies, where decisions were based on personal or family connections, personal gain, and arbitrary decision making

bureaucracy

is running organizations on the basis of knowledge, fairness, and logical rules and procedures

Bureaucracies are characterized by seven elements

qualification-based hiring; merit-based promotion; chain of command; division of labor; impartial application of rules and procedures; recording rules, procedures, and decisions in writing; and separating managers from owners

bureaucracies

are often inefficient and can be highly resistant to change

The Frenchman Henri Fayol

best known for developing five management functions (planning, organizing, coordinating, commanding, and controlling) and 14 principles of management (division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interests to the general interest, remuneration, centralization, scalar chain, order, equity, stability of tenure of personnel, initiative, and esprit de corps). He is also known for his belief that management could and should be taught to others

five management functions

planning, organizing, coordinating, commanding, and controlling

14 principles of management

division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interests to the general interest, remuneration, centralization, scalar chain, order, equity, stability of tenure of personnel, initiative, and esprit de corps

Mary Parker Follett

believed that human relations management should be embraced and not avoided, and that, of the three ways of dealing with conflict (domination, compromise, and integration), the latter was the best because it focuses on developing creative methods for meeting conflicting parties' needs

Elton Mayo

is best known for his role in the Hawthorne Studies at the Western Electric Company

The Hawthorne Studies

demonstrated that workers' feelings and attitudes affected their work, that financial incentives weren't necessarily the most important motivator for workers, and that group norms and behavior play a critical role in work behavior

Chester Barnard

emphasized the critical importance of willing cooperation in organizations

Operations management

uses a quantitative or mathematical approach to find ways to increase productivity, improve quality, and manage or reduce costly inventories

system

a set of interrelated elements or parts that function as a whole

Organizational systems

obtain inputs from the general and specific environments. Managers and workers then use their management knowledge and manufacturing techniques to transform those inputs into outputs, which, in turn, provide feedback to the organization. Organizational systems must also address the issues of synergy, open versus closed systems, and entropy

contingency approach to management

precisely states that there are no universal management theories. The most effective management theory or idea depends on the kinds of problems or situations that managers or organizations are facing at a particular time. This means that management is much harder than it looks

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