Management Williams Chapter 2 PDF

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Notes on chapter 2 of the book: MGMT by Williams...

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Management 3rd and 4th lesson – Chapter 2 Why do we need managers today? Industrial revolution  Unskilled laborers to skilled artisans  Formal organizations Good managers were needed to organize large groups, work with employees and make good decisions Scientific Management  The thorough study and testing of different work methods to identify the best, most efficient ways to complete a job  Father of Scientific Management – Frederick W Taylor  Time study: Time taken by good workers to complete each part of their jobs  Taylor’s four principle of scientific management:

Motion studies: Frank & Lillian Golbreth  Motion study o 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 Gantts Charts: Henry Gannt  Gannt chart: Indicates what tasks must be completed at which times in order to complete a project

Bureaucratic Management: Max Weber Simple meaning of bureaucracy: There is a prescribed way of doing things  Bureaucracy – the exercise of control on the basis of knowledge, expertise and experience  Elements of Bureaucratic Organizations:

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”  Effective management is based on the fourteen principles of management Principles of Management: Henri Fayol Each of these principles give you an idea of how to organize a business 1. Division of work  Each worker completes smaller tasks of job elements because the work is divided and hereby the production is increased. 2. Authority and responsibility  The managers authority (right to give orders) should correspond with the responsibility, without them being able to abuse this authority. 3. Discipline  To ensure proper behavior, there are clearly defined rules and procedures at all organizational levels. 4. Unity of command  Each employee should report to and receive orders from just one boss to avoid conflict. 5. Unity of direction  To accomplish each organizational objective, one person and one plan should be used in deciding the activities to be carried out 6. Subordination of individual interests to the general interest

 Employees must put the organization/s interests and goals before their own. 7. Remuneration  Don’t overpay or underpay employees, if this is the case, compensation should be Fair. 8. Centralization  Balance the organization, avoid too much centralization or decentralization. 9. Scalar chain  Communication outside the normal work departments should follow the vertical chain of authority. 10. Order  There should be no overlapping responsibilities to avoid confusion and conflict. 11. Equity  The same kind and fair treatment for everyone will develop loyalty and devotion. 12. Stability of tenure of personnel  A stable work force with high tenure benefits an organization by improving performance, lowering costs, and giving employees and managers time to learn their jobs. 13. Initiative  Managers should encourage the ability to develop and implement a plan in others. 14. Esprit de corps  Encourage coordination of efforts by developing a strong sense of morale and unity among workers. Constructive Conflict and Coordination: Mary Parker Follett  Conflict – “the appearance of difference, difference of opinions, of interests”  Integrative conflict resolution o Approach to dealing with conflict by having both parties indicate their preferences and then work together to find an alternative that meets the needs of them both Human Relations Management Hawthorne Studies: Elton Mayo  Human factors related to work were found to be more important than physical conditions or design of work  Workers were 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 Operations Management Involves mainly managing the daily production of goods and services Operation management tools and methods:  Quality control  Forecasting techniques  Capacity planning  Productivity measurement and improvement  Linear programming  Scheduling systems  Inventory systems  Work measurement techniques  Project management  Cost-benefit analysis

Eli Whitney introduced the concept of manufacturing using standardized, interchangeable parts  Oldsmobile Motor Works – Invented Just-In-Time inventory systems Information Management Business looking for information technologies that would speed access to information  Telegraph, telephone, and the internet increased access to timely information

System Management  System: Set of interrelated elements or parts that function as a whole o Subsystems: Smaller systems that operate within the context of a larger system  Types of systems o Closed systems: Sustain themselves without interacting with their environments  Example: A lab where no one can come inside o Open systems: Sustain themselves only by interacting with their environments  Every business is an open system, almost everything in are lives is an open system Systems view of Organizations

Contingency Management  The uniqueness in the way the business are  Holds that there are no universal management theories Effective management theory depends on the kinds of problems that managers are facing at a particular time and place

Summary of chapter 2 

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Scientific management o Frederick W. Taylor – Time study o Frank and Lillian Gilbreth – Motion study o Henry Gantt – Gant chart Bureaucratic management o Max Weber – Proposed the idea of bureaucracy Human relations management o Mary Parker Follett – Integrative conflict resolution o Elton Mayo – Hawthorne Studies

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Operations Management Information Management Systems Management Contingency Management...