Chapter 2: The Evolution of Management

economies of scale
reductions in the average cost of a unit of production as the total volume produced increases
5 classical approaches to management
systematic, scientific, bureaucracy, administrative, and human relations
systematic management
attempted to build into operations the specific procedures and processes that would ensure coordination of effort to achieve established goals and plans. Specific rules, techniques, means of manufacturing, etc.
scientific management
advocated the application of the scientific method to determine how to be efficient. 4 principles: management should develop a precise scientific approach for each element, it should scientifically select and train eahc worker, it should cooperate with workers to ensure job matches plans and principles, and it should ensure an appropriate division of work and responsibility between managers and employees. more popular because it tied togehter work and reward. however criticized for machine like ways
Frank and Lillian Gilbreth
advocated for scientific management. showed employees to work smarter, not harder. She is known as the mother of modern management. they raised 12 children
bureacracy
emphasizes structures, formal network of relationships among specialized positions in the organization. Could eliminate the variability that occurs when managers in the same organization have different skills
administrative management
emphasized the perspective of senior management within the organization, and argued the management was a profession and could be taught. 5 functions and 4 principles
5 functions of administrative management
planning, organizing, commanding, controlling and coordinating
14 principles of administrative management
division of work, authority, discipline, unity of command, unity of direction, subordination of individual interest, remuneration, centralization, scalar chain, order, equity, stability and tenure of personnel, initiative, and esprit de corps ( a feeling of pride shared by the group)
human relations management
aimed at understanding how psychological and social processes interact with the work situation to influence performance
hawthorne effect
A change in a subject’s behavior caused simply by the awareness of being studied
sociotechnical systems theory
suggests that organization arre effective when their employees have the right tools and training to make products and services that are valued by customers
quantitative management
emphasizes the application of quantitative analysis to management decisions and problems. developing formal mathematical models of the problem
organizational behavior
identifying management activities that promote employee effectiveness through an understanding of the complex nature of the individual, group and organizational process
douglas mcgregor theory x
managers assume workers are lazy and irresponsible and require constant supervision and external motivation to achieve organizational goals
douglas mcrgregor theory y
managers assume employees want to work and can direct and control themselves
criticisms of systems theory
they ignored the relationship between the organization and the external environment, and they usually stressed one aspect of the organization at the expense of others
systems theory
a theory stating that an organization is a managed system that changes inputs into outputs. the environment reacts to the outputs through a feedback loop, which provides input for the next cycle
contingency perspective
states that a variety of factors may affect the organization’s performance. no “one best way” to manage becasue circumstances vary
contingencies, or situational characteristics
circumstances in external environment; internal strengths and weaknesses; values goals, skills and attitudes of managers and workers; types of tasks, resources and technologies