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Chapter 2 History of Management © 2015 Cengage Learning MGMT7.

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1 Chapter 2 History of Management © 2015 Cengage Learning MGMT7

2 © 2015 Cengage Learning 2-1 explain the origins of management 2-2 explain the history of scientific management 2-3 discuss the history of bureaucratic and administrative management 2-4 explain the history of human relations management 2-5 discuss the history of operations, information, systems, and contingency management

3 Management Ideas and Practices throughout History © 2015 Cengage Learning 2-1

4 Sir (Saint) Thomas More Machiavelli © 2015 Cengage Learning

5 Why We Need Managers Today During the Industrial Revolution… Availability of power enabled low-paid, unskilled labor to replace high-paid skilled artisans – Production Systems Job carried out in large, formal organizations rather than fields, homes, or small shops – Factories – Transportation – Urbanization © 2015 Cengage Learning 2-1

6 Scientific Management The thorough study and testing of different work methods to identify the best, most efficient ways to complete a job. Studies of Management begin to occur in the late 1800’s Why did this become necessary? © 2015 Cengage Learning 2-2

7 Taylor’s Four Principles of Scientific Management 2-2 © 2015 Cengage Learning

8 Frank and Lillian Gilbreth Motion study – breaking each task or job into separate motions and then eliminating those that are unnecessary or repetitive Typically yielded production increases of 25 to 300 percent. © 2015 Cengage Learning 2-2

9 Henry Gantt Gantt Chart – visually indicates what tasks must be completed at which times in order to complete a project One of the first to recommend that companies train and develop workers – “A scientific investigation in detail of each piece of work, and the determination of the best method and the shortest time in which the work can be done. “ – “A teacher capable of teaching the best method and the shortest time.” – “Reward for both teacher and pupil when the latter is successful.” © 2015 Cengage Learning 2-2

10 Gantt Chart 2-2 © 2015 Cengage Learning

11 Bureaucratic Management: Max Weber Bureaucracy – “the exercise of control on the basis of knowledge” – people led by virtue of rational-legal authority – “rule from a desk” © 2015 Cengage Learning 2-3

12 Elements of Bureaucratic Organizations 2-3 © 2015 Cengage Learning

13 Administrative Management: Henri Fayol “The success of an enterprise generally depends much more on the administrative ability of its leaders than on their technical ability.” © 2015 Cengage Learning 2-3

14 Fayol’s Functions of Management © 2015 Cengage Learning 2-3

15 Fayol’s Fourteen Principles of Management 1.Division of work 2.Authority and responsibility 3.Discipline 4.Unity of command 5.Unity of direction 6.Subordination of individual interests to the general interest 7.Remuneration © 2015 Cengage Learning 2-3

16 Fayol’s Fourteen Principles of Management 8.Centralization 9.Scalar chain 10.Order 11.Equity 12.Stability of tenure of personnel 13.Initiative 14.Esprit de corps © 2015 Cengage Learning 2-3

17 Constructive Conflict: Mary Parker Follett Conflict – “the appearance of difference, difference of opinions, of interests” Domination v. Compromise Integrative conflict resolution – have both parties indicate their preferences and then work together to find an alternative that meets the needs of both – What might we call this today? © 2015 Cengage Learning 2-4

18 Hawthorne Studies Human factors related to work were found to be more important than physical conditions or design of work. Workers not just extensions of machines, and financial incentives weren’t necessarily the most important for motivating workers. Managers better understood effect of group social interactions, employee satisfaction, and attitudes on individual and group performance. © 2015 Cengage Learning 2-4

19 Cooperation and Acceptance of Authority: Chester Barnard Organization – “system of consciously coordinated activities or forces of two more persons” The extent to which people willingly cooperate in an organization depends on how workers perceive executive authority and whether they’re willing to accept it. © 2015 Cengage Learning 2-4

20 Zone of Indifference “Acceptance is Automatic” People will be indifferent to managerial directives if they… are understood are consistent with organization’s purpose are compatible with people’s personal interests can actually be carried out by those people © 2015 Cengage Learning 2-4

21 Total Quality Management © 2015 Cengage Learning

22 Operations Management Eli Whitney – standardized, interchangeable parts Garspard Monge – techniques for drawing 3-D objects on paper Oldsmobile Motor Works – “hand-to-mouth inventory” What is inventory?? – Do businesses make money from stock piling inventory? – Just-in-time inventory systems © 2015 Cengage Learning 2-5

23 Information Management Throughout history, organizations have pushed for and quickly adopted new information technologies to reduce the cost or increase the speed with which they can acquire, retrieve, or communicate information. © 2015 Cengage Learning 2-5

24 Systems Management System – a set of interrelated elements or parts that function as a whole Subsystems – smaller systems within a larger system Synergy – occurs when two or more subsystems working together can produce more than they can working apart © 2015 Cengage Learning 2-5

25 Systems Closed systems – can function without interacting with their environments Open Systems – interact with their environments and depend on them for survival © 2015 Cengage Learning 2-5

26 Systems View of Organizations 2-5 © 2015 Cengage Learning

27 Contingency Management 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. © 2015 Cengage Learning 2-5

28 Barcelona Restaurant Group 1.What aspects of restaurant work are especially challenging to wait staff, and how does Barcelona’s approach to management help employees overcome the downsides of the job? 2.What steps do the leaders of Barcelona Restaurant Group take to insure cooperation and acceptance of authority from their employees? 3.Would the management style of Barcelona Restaurant Group best be described as scientific management or contingency management? © 2015 Cengage Learning

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