1. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Why We Need Managers Today 1 Work in families Skilled laborers Small, self-organized groups Unique, small batches of production ThenThen Work in factories Specialized, unskilled laborers Large factories Large standardized mass production NowNow 1.2

2. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Scientific Management 2 2 2 Studies and tests methods to identify the best, most efficient ways Scientific Management Studies and tests methods to identify the best, most efficient ways Seat-of-the Pants Management No standardization of procedures No follow-up on improvements Seat-of-the Pants Management No standardization of procedures No follow-up on improvements

3. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Frederick W. Taylor 3 Frederick Taylor is known today as the "father of scientific management." One of his many contributions to modern management is the common practice of giving employees rest breaks throughout the day. Frederick W. Taylor, 1856-1915

4. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Taylors Four Management Principles 4 2.1 Develop a science for each element of a mans work, which replaces the old rule-of-thumb method. Scientifically select and then train, teach, and develop the workman. Cooperate with the men to insure all work is done in accordance with the principles of the science. There is almost equal division of the work and the responsibility between management and workmen. Adapted from Exhibit 2.2

5. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Frank & Lillian Gilbreth 5 2.2 Frank and Lillian Gilbreth were prolific researchers and often used their family as guinea pigs. Their work is the subject of Cheaper by the Dozen, written by their son and daughter.

6. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Motion Studies: Frank & Lillian Gilbreth 6 2.2 Time Study Timing how long it takes good workers to complete each part of their jobs. Motion Study Breaking each task into its separate motions and then eliminating those that are unnecessary or repetitive.

7. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Charts: Henry Gantt 7 2.3

8. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved General Administrative Theorists Henri Fayol – Believed that the practice of management was distinct from other organizational functions – Developed fourteen principles of management that applied to all organizational situations Max Weber – Developed a theory of authority based on an ideal type of organization (bureaucracy) Emphasized rationality, predictability, impersonality, technical competence, and authoritarianism 8

9. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Bureaucratic Management 9 3.1 Bureaucracy The exercise of control on the basis of knowledge, expertise, or experience. Max Weber, 1864-1920

10. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved The Aim of Bureaucracy 10 3.1 1. Qualification-based hiring 2. Merit-based promotion 3. Chain of command 4. Division of labor 5. Impartial application of rules and procedures 6. Recorded in writing 7. Managers separate from owners

11. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Administrative Management: Henri Fayol 11 3.2 1. Division of work 2. Authority and responsibility 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interests 7. Remuneration 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability of tenure of personnel 13. Initiative 14. Esprit de corps Adapted from Exhibit 2.4

12. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Human Relations Management Efficiency alone is not enough to produce organizational success. Success also depends on treating workers well. 12 4 4

13. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Mary Parker Follett Mary Parker Follett is known today as the mother of scientific management." Her many contributions to modern management include the ideas of negotiation, conflict resolution, and power sharing. 13 Mary Parker Follett, 1868-1933

14. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Constructive Conflict and Coordination: Mary Parker Follett 14 4.1 Dealing with Conflict Compromise Domination Integration

15. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Constructive Conflict and Coordination: Mary Parker Follett 15 4.1 1.Coordination as reciprocal relating all the factors in a situation 2.Coordination by direct contact of the responsible people concerned 3.Coordination in the early stages 4.Coordination as a continuing process 1.Coordination as reciprocal relating all the factors in a situation 2.Coordination by direct contact of the responsible people concerned 3.Coordination in the early stages 4.Coordination as a continuing process Fundamental Principals of Organizations

16. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Hawthorne Studies: Elton Mayo Workers feelings and attitudes affected their work Financial incentives werent the most important motivator for workers Group norms and behavior play a critical role in behavior at work 16 4.2

17. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Cooperation and Acceptance of Authority: Chester Barnard Managers can gain cooperation by: Securing essential services from individuals Unifying people by clearly formulating an organizations purpose and objectives Providing a system of effective communication 17 4.3

18. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Cooperation and Acceptance of Authority: Chester Barnard People will be indifferent to managerial directives if they… 1.are understood 2.are consistent with the purpose of the organization 3.are compatible with the peoples personal interests 4.can actually be carried out by those people 18 4.3

19. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Operations, Information, Systems, and Contingency Management 19 5 5 Information Management Operations Management Contingency Management Systems Management

20. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Operations Management Tools 20 5.1 Quality control Forecasting techniques Capacity planning Productivity measurement and improvement Linear programming Scheduling systems Inventory systems Work measurement techniques Project management Cost-benefit analysis

21. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Information Management 21 5.3 Milestones in information management: 1400sHorses in Italy 1500-1700 Creation of paper and the printing press 1850Manual typewriter 1860sVertical file cabinets and the telegraph 1879Cash registers 1880s Telephone 1890sTime clocks 1980sPersonal computer 1990sInternet

22. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Systems Management 22 5.3

23. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Systems management System is a set of interrelated elements or parts that function as a whole Closed systems can sustain themselves without interacting with their environments Open systems sustain themselves by interacting with their environments 23

24. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Contingency Management 24 5.4 Contingency Approach Holds that the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and place.

25. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Contingency Management Management is harder than it looks Managers need to look for key contingencies that differentiate todays situation from yesterdays situation Managers need to spend more time analyzing problems before taking action Pay attention to qualifying phrases, such as usually 25 5.4

26. Chapter 2 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Current Trends and Issues Globalization Ethics Workforce Diversity Entrepreneurship E-business Knowledge Management Learning Organizations Quality Management 26