Chapter 2 Flashcards
(28 cards)
Industrial Revolution
- Shift from agrarian society to an industrialized society.
- Power, transportation, and communication
Captains of the Industry
- John D. Rockefeller (oil)
- James B. Duck (tobacco)
- Andrew Carnegie (steel)
- Cornelius Vanderbilt (steamships and railroads)
Sherman Antitrust Act
- sought to check corporate practices in restraint of trade.
Frederick W. Taylor & Scientific Management
- Found that workers put forth less than 100% effort.
- Soldiering = ees who intentionally restrict output.
- Focus on improving EFFICIENCY
- Workers were paid for attendance and position, not output.
- One best way to perform a task
- Work out most efficient way (custom to empiricism)
- Max output with minimum effort
- Incentives (piecework)
- Management vs. operations (workers)
Henry Towne
- Stressed that engineers should be concerned with the financial and profit orientations of the business as well as their traditional technical responsibilities.
Morris Cooke
The application of scientific management to educational and municipal organizations.
- Labor was as responsible for the production as scientific management was.
Henry Gantt
- Work in production control and his invention of the Gantt chart (depicts expected and completed production).
- Stated publicly the social responsibility of management and business.
Frank and Lillian Gilbreth
- Used motion picture films to study hand and body movements to eliminate wasted motion.
- Concern for the worker (first lady of management)
- efficiency
Taylor’s 4 main points
- The one best way to perform a task
- Value of matching the job to the worker
- Understand reasons for changes
- Interdependence between mgmt and workers
Fayol’s Theory of Mgmt
- Looked at the whole organization & mgmt.
- Mgmt has an impact on business success
- 1st statement on a theory of general mgmt.
- Emphasized the management of organization.
- Fairness for workers is important
Fayol’s 14 principles
- Division of work
- Authority
- Discipline
- Unity of Command (one superior)
- Unity of direction
- Subordination of individual interests to general interests
- Remuneration (wages depended on a lot)
- Centralization
- Scalar Chain (shows the line of authority)
- Order
- Equity
- Stability of tenured personnel (orderly planning)
- Initiative
- Esprit de corps (harmony)
Fayol’s 5 primary mgmt functions
- Planning
- Organizing
- Commanding
- Coordinating
- Controlling
Period of Solidification
A period in the 1920s and 1930s in which mgmt became recognized as a discipline.
Human Relations
- Impact of Great Depression
- Rise of Unions
- Greater focus on the employee
Hawthorne Studies
- Western Electric
- Regardless of the level of light or other factors that were changed, output of the workers increased
- Showed that small level of observation makes ees feel valued.
- 1974
- Moved away from treating workers as an extension of the machine.
- Significance of effective supervision to both productivity and ee morale as well as being included in decisions.
- Psychological and social conditions rather than the environment.
Mary Follett
- The fundamental problem of any organization is to build and maintain dynamic yet harmonious human relations within the organization.
Lincoln Electric Company
- Effective cooperation requires rewards
- EE stocks
- Incentive system with a request for cooperation
- Advisory board of ees
- Piece-rate system
- Suggestion system
- year-end bonuses
- life insurance for all ees
- 2 weeks of paid vacation
- Annuity pension plan
- promotion policy
Henry Dennison
- Strengths of an organization come from its members and the sources of power are incentives, habits, and traditions.
- Mgmt to provide conditions and draw like minded people together.
McCormick multiple-mgmt plan
Uses participation as a training and motivational tool by selecting promising young ees from various company departments to form a junior board of directors.
Bottom up mgmt
- Encouraged widespread delegation of authority to solicit the participation of all employees from the bottom up.
Scanlon Plan
- Group rewards for participation
- Employees shared in reduced costs rather than increased profits.
- Unions and mgmt could work together.
Process/Functional Approach to Mgmt
Focuses on the mgmt functions of planning, controlling, organizing, staffing, and leading.
- Sheldon, Davis, and Fayol
Management Theory Jungle
- Koontz
- The division of thought that resulted from the multiple approaches to studying the management process.
The systems approach
- Internal and external environmental factors as an integrated whole.
- Closed system that is influenced by its internal and external environmental factors.
- Suppliers and receivers viewed in a minimalistic way.