Management 301 Chapter 2

Factors/Forces Effecting Management Theory
1. Social- what society feels
2. Economic- prices, locations, value of $1
3. Political- influence of others
Identified Control Records
Built the Pyramids,
Showed staff authority and span of control
Showed organization and chain of command
Adam Smith
Wrote the Wealth of Nations and is known as “The Father of Economics” and known for his ideals of capitalism
Roberts Owens
“Father of Personnel Management”
Fredrick Taylor
“Father of Scientific Management”
Henry Gantt
Use of bar graph and histogram to track production and make decisions
Principles of Scientific Management
1. Identify the best way to do the work.
2. Train the employee to do it the best way.
3. Separate the worker function and management function
4. Hold staff meetings
Frank and Lillian Gilbreth
Frank= “Father of Motion Study” Frank is the scientific contributor, Lillian is associated with neoclassical management.
various ways to do hand motion and correct ways to do them for particular types of jobs
Eli Whitney
the utilization of repetitive and moving and interchangeable parts
Max Weber
The Father of bureaucratic management. Identified that many organizations were ran chaotically. Advocated items such as policy and procedures and schedules to make things less chaotic like job descriptions.
Henri Fayol
Father of Process Management
Administrative/Process/ Functional Definition of Management
Principle of Management – Division of Labor
Adam Smith. Taylor. Put people in the place they are most suited to work/Specialization of managers/workers
Principle of Management – Authority vs. Responsibility
Authority- right to make a decision/issue a command
Responsibility- Obligation to issue command, make a decision
*both should be in balance*
Principle of Management- Discipline
it should be done in a progressive manner. Good discipline starts with communication.
Principle of Management- Unity of Command
every person should have only one direct supervisor or boss
Principle of Management- Unity of Direction
All the people should be working towards the same goal.
Principle of Management- Subordination of the Individual to the Common Good
When on company time, make sure workers are doing company work.
Principle of Management- remuneration
their should be a fair days wage for a fair days effort.
Principle of Management- Centralization vs. Decentralization
Centralized – more close together. De-Centralization – farther apart.
Positional Authority
authority based on our position in the company
Delegated authority
authority I have because someone gave it to me
Principle of Management- Scalar Chain
chain of command, whose at the top whose at the second level and so on
*Hierarchy of Command*
Principle of Management- Order
Principle of Management- Equity
Fair manner of work should reflect proper equal reward
Principle of Management- Stability
Treat people in a way to keep company stable.
Principle of Management- Initiative
there should be initiative allowed in decision making for employees
Principle of Management- Esprit de Corp
in the spirit of cooperation, working together as a team creates a greater cooperative gain in behavior as well as productivity. Example, race cars drafting.
Chester Barnard
wrote a book in the 1930s, he was an executive of a major company, associated with Neo-Classical (Humanistic) Perspective of Management
Informal Organization
any group/team that comes into existence in the organization, that is not created by the company itself
Acceptance Theory of Authority
authority defined by where it originates, the authority that a person has because of the willingness of the employee to get people to do that they want them to do
Mary Parker Follett
associated with the Neo-Classical Perspective of Management

​1.​Knowledge an ingredient to Leadership

​2.​Shared Leadership (Empowerment)​

Elton Mayo
Father of Human Relations

Conducted The Hawthorne Studies

The Hawthorne Studies, Illumination Study
Wanted to find if there is a correlation b/w lightning and production.

*Found that isn’t a direct relationship*

The Hawthorne Studies, Relay Assembly Test Room
Measures of how long or a schedule effected the production.

*Preferences existed w/schedule.*

The Hawthorne Studies, Attitude/Sentiments Study
Informal interview can be just as helpful as a questionnaire.

Groups surround themselves with people like them.

The Hawthorne Studies, Bank Wiring Observation Test
People can manipulate who they with.

*Informal work group is important formal work group*

One worker can affect the performance level.

William Dickson
Wrote Management and the Worker- explain the Hawthorne Theory, how to handle human nature
Abraham Maslow
Associated with Human Resources Theory
1. Needs Hierarchy Theory
Douglas McGregor
Known for the X Y Theory
X Theory
people are lazy, not trustworthy

X managers are managers that are classic managers, a directing type of manager, autocratic managers – use their own info to make their own decisions and then tell others what to do.

Y Theory
people are not inherently lazy, do not avoid work, do not shun responsibility, they seek it, they are viewed as being more trustworthy, they exist in a democratic management environment, participative leaders
William Ouchi
Created Theory Z
Theory Z
he combined what he thought was the best of the American approach to management. Which was Y but he thought we could learn a lot from Japanese management. The combination of the best of the American approach and the Japanese approach
Organizational Behavior
the new term for human resources. The relationships of people in the organization to improve productivity
Organizational Development
a combination of overall activities and overall approach in order to remain competitive in a changing economy
Management Science
a concentration on the quantitative scientific approach to improve the organization.
Operations Management
Concentrates on the production functions
Total Quality Management
Developed by Edwards Deming – developed 14 points of quality TQM emphasizes quality, was introduced in the 1990
Employee involvement
Make things team based
Customer Focus
3 step process.

1. determine who your best customers are,

2. What to your best customers want,

3. How am I doing?

Continuous involvement
Kaizee: operate based upon trying to be better then before
Decisions based on facts/information
Being able to justify decision based on quantitive info, managers will be a little more lenient
the emphasis of creating synergy through a new organizational structure
Bench Marking
the activities involved in trying to become a benchmark, the best at what you do