Contemporary management 8th edition jones solutions manual

Chapter02–TheEvolutionofManagem e n t T h o u g h t Management 8th Edition Jones Contemporary

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Cha pter 2 The Ev ol utio n o f M an agement Tho ug ht CHAPTER CONTE NTS Learni ng Ob ject iv es 2 - 2 Key Defi n iti on s/ Terms 2 - 2 Ch ap ter Ov erv iew 2 - 4 Lect ure Out li ne 2 - 5 Lect ure Enh an cers 2 - 24 Man ag emen t in Action 2 - 26 Bu ild ing Man agemen t Ski lls 2 - 33 Man agi ng Eth icall y 2 - 34 S mal l Grou p Br eak ou t Exerci s e 2 - 35 Ex pl o rin g t he Wo rl d Wi d e Web 2 - 36 Be the Man ag er 2 - 37 Cas e i n t he News 2 - 38 Su ppl emen t al Featu res 2 - 40

Chapter02–TheEvolutionofManagem entThought

Vi d eo Cas e

2 - 40

Man ag er’s Hot Seat

2 - 42

Sel f - As s ess men t (s )

2 - 42

Tes t You r Kno wledge

2 - 42

In st ru ct o r Po werPo int Sli des

2 - 43

Chapter02–TheEvolutionofManagem entThought

LEARNI NG OBJ ECTI VES LO 2-1. Describe how th e n eed to i n crease organ izat ion al efficiency an d effe cti ven ess h as gu ided th e evolu ti on of m an agem ent t h eory.

LO 2-2. E xplai n th e pri ncipl e of job special izat ion an d divisi on of labor, an d tell w h y th e stu dy of person -tas k rel ati on sh ips i s cen t r al t o th e pu rsu it of in creased efficien cy .

LO 2-3. Iden ti fy th e pri ncipl es of adm in istr ati on an d organ ization th at un derli e effe cti ve organ izat ion s.

LO 2-4. Trace th e ch an ges in th eories abou t h ow m an agers sh ou ld behave to m oti vate and con trol em ployees .

LO 2-5. E xplai n th e con tribu ti on of m an agem en t science to t h e effi cient u se of organi zati on al resou rces .

LO 2-6. E xplai n w h y th e stu dy of th e external en viron m ent an d its im pact on an organizat ion h as becom e a cen tral issu e in m an agem en t th ough t.

KEY DEFI NI TIONS/ TERM S Admin istrative man age men t: The stud y of ho w to create an or ganiz ati onal st ructure and control s ystem t hat l e ads to hi gh ef ficienc y and ef f ecti veness Auth ority: The pow er to hold people ac countable for their a cti ons and to m ake de cisi ons concernin g the us e of or ganiz ati onal resources B eh avioral man age men t: The stud y of how m an agers should beh ave to m oti vate empl o ye es and encour a ge them to p erform at hi gh lev els and be comm it ted to the achi evement of organiz ati onal goals B u reau cracy: A formal s ystem of or ganiz ati on and admi nist rati on design ed to ensure effici enc y and eff ecti ven ess Cen trali zation : The con centrati on of authorit y at t he top of the mana ge rial hierar ch y

Chapter02–TheEvolutionofManagem eClosed n t T h osyste u g h tm: A s yste m t hat i s self -contained

a nd thus not affected b y c hanges oc cu rrin

g in i ts ex ternal environment Contin gen cy theory: Th e idea that the or ganiz ati onal st ructures and contr ol s ystems m ana ge rs choose depen d on —ar e c onti ngent on —ch ara cteri sti cs of the ex ternal envir onment in which the organiz ati on operates

Chapter02–TheEvolutionofManagem entThought

Discip li n e: Obedience, e ner g y, appli cati on, and ot her outward m arks of r es pect for a superior ’s authorit y E n trop y: The tendenc y of a closed s ystem t o lose it s abil it y to control i tself and thus to di ssol ve and dis int egr ate E q u ity: The just ice, im partiali t y, and fairn ess t o which all or ganiz ati onal m embersareentitled Espritdecorps:Shared feeli n gs of comr adeship, enthus iasm, or devotiontoacommoncause amongmembersofa gro up Haw thorn e eff ect: The f indi ng that a man a ger ’s behavior or le adership app roach c an a ffe ct workers’ l evel of p erfor mance Hu man relation s move men t: A man a gement ap proach that advo cates th e idea that supervisors shoul d receive b ehavior a l t raini ng to m ana ge subo rdinates in wa ys that eli ci t t heir cooper ati on and incre ase their p roduc ti vit y In f ormal organi zation : The s ystem o f behavior al rules and norms t hat em er ge in a group In itiative: The abil it y to act on one’s own, without directi on from a supe rior Job sp ecial ization : The process b y which a divi sion o f labor oc curs as di f f erent work ers speciali z e in di fferent t as ks over tim e L in e of au thority: The c hain of comm and ex tending f rom the top to t he bott om of an organiz ati on Man age men t sci en ce th eory: An approa ch to m a nagement that uses ri gor ous quanti tative techniques to help mana gers make max im um use of or ganiz ati onal resour ce s Mech an istic stru c ture: An or ganiz ati onal st ructure in which authorit y is c entrali z ed, tasks and rules are clea rl y specifie d, and empl o ye es a re closel y supe rvised Nor ms: Un writ ten, infor mal codes of condu ct t ha t prescribe ho w people sh ould act i n particular sit uati ons and are consi d ered im portant b y most members of a group or or ganiz ati on Op en system: A s ystem that takes in resour ces fr om i ts external environm ent and conve rts them int o goods and se rvices t hat are then s ent bac k to t hat environment for pu rc hase b y custom ers Order: The m ethodi cal a rran gem ent of posit ions t o provide the or ganiz ati o n with t he gr eatest benefit and to provide e mpl o yees with car eer op portunit ies Organi c stru cture : An organiz ati onal st ructure i n which authorit y is d ece ntrali z ed to m iddl e and first -li ne mana gers a nd tasks and roles a re left ambi guous t o encou ra ge empl o ye es to cooperat e and r espond q uickl y to t he unex pected Organi zation al b eh avior: The stud y of the facto r s that have an im pact on how indiv iduals and groups respond t o and a c t i n organiz ati ons

Chapter02–TheEvolutionofManagem eOrgani n t T h ozation u g h t al envi ronmen t: The s et of for ces

a nd condit ions t hat operat e be yond an organiz ati on’s boundarie s but affect a mana ger’s abil it y to acquir e and uti li z e resources Rul es: Formal w ritten inst ru cti ons t hat specif y act ions t o be taken under dif ferent circumst anc es to achieve spe cific goals S cientif ic man age men t : The s yst ematic stud y o f relations hips b etween p e ople and tasks for the purpose of r edesi gnin g the work pro cess t o incr eas e effi cienc y

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S tand ard op eratin g p roced u res (SO Ps): S peci fic sets of writ ten inst ructi ons about how to perform a ce rtain aspe ct of a task S yn ergy: P erforman ce gains t hat result when indi viduals and departments coordinate their acti ons T h eory X: A set of n e ga ti ve assum pti ons about workers that l ead to t he co nclusi on that a mana ger ’s task i s to s upervise worke rs closel y and control t heir behavior T h eory Y: A set of posit ive assum pti ons about workers that l ead to t he co nclusi on that a mana ger ’s task i s to cre ate a work s ett i ng that en c oura ges comm it ment to organiz ati onal goals and provides opportuni ti es for work ers to be im a ginative and to ex ercise in it iative and self - directi on Uni ty of comman d : A r eporting relations hip i n which an empl o ye e re cei ves orders from, and reports t o, onl y on e super ior Uni ty of d irection : The singleness of pu rpose tha t m akes poss ibl e the cre a ti on of one plan of acti on to guide m ana ge rs and worke rs as the y use organiz ati onal resourc es

CHAPTER OVERV I EW In thi s ch apter, how man agement thou ght has evo lved in modern ti mes and the central conce rns that have guided on goin g advanc es in m ana gemen t t heor y are ex plored. Fir st, t he classical mana gement theori es tha t emer ged a round the tur n of the t wenti eth centu r y a re ex ami ned. Nex t, behavioral m an a gement t heories dev eloped befo re and afte r W orld W ar II a re ex ami ned, and then mana gement sci enc e theor y, which d evelope d during the s econd W orld W ar. Finall y, th e theories develop ed to hel p ex plain how the ex ternal environment af fects t h e wa y or ganiz ati ons and mana ge rs oper ate a re ex ami ned.

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LECTURE OUTLINE

NOT E ABO UT INST RUCT OR POWE R POINT S L IDES The Instructor P ow erPoi nt S li des include most S tudent P owerPoi nt S li des, along with addit ional material t hat c an be used to ex pand the lecture. Im a ges of th e Instru ctor P owerPoi nt sl ides can be found at t he end of thi s chapter on P a ge 2-43 . B ASIC POWE R POIN T S L I DE 1 (INS T RUCTO R’S PO WE RPOINT S L IDE 1) Chap ter 2: Th e E volu tion of Man agemen t T h ou gh t Man ager’s Ch all en ge ( Pages . 35 -37 of text) F in din g B ett er Ways to Make Cars C ar producti on has ch an ged d ramatic all y ov er the ye ars as man a ge rs have appli ed differ ent principl es of mana gemen t t o organiz e and control work acti vit ies. Prior to 1900, small groups of skil led workers coop erat ed to hand -buil d ca rs wit h parts that often had to b e alt ered and modi fied to fit together. This s yste m, a t ype o f small -batch producti on , was ex pensive; assembli ng just one car took consi derabl e ti me and ef fort, and ski ll ed workers c ould produ ce onl y a f ew c ars pe r da y.

Henr y Ford r evolut ioni z ed the car indust r y. In 191 3 Ford open ed the Hi ghla nd P ark car pl ant i n Detroit t o produce the M odel T Ford, and his tea m of manufacturin g man agers pione ered the developm ent of mass- pr oducti on manufacturi ng , which made small -bat ch car produ cti on inefficient.

Chapter02–TheEvolutionofManagem eThe n t Tnex h o tu m g hajt or chan ge in mana gement thi nking ab

out car assembl y oc curr e d in J apan

when Ohno Taii chi, a To yota p roducti on en ginee r, pioneered th e developm ent o f lean manufacturi ng in t he 1960s after tourin g the U.S . factories o f GM , Ford, and C hr ysle r. B y 1970 J apanese mana gers h ad appli ed the new lean pro ducti on s yst em so efficientl y that the y w ere p roducin g higher -quali t y ca rs at l o wer pric es than U.S . c ar makers.

Chapter02–TheEvolutionofManagem entThought

In the 19 90s U.S. carm ak ers also i ncr eased the nu mber of robots the y used on the assembl y li ne and their use of IT to bui ld and track the qu ali t y o f cars bein g pr oduced. In the 2000s glob al car companies conti nued to c ompete fier cel y to i mprove and per fe ct wa ys to m ake c ars. To yota remained the le ader in pi oneerin g new wa ys to m a nage it s assembl y li nes to increas e quali t y and efficien c y; but other c ar makers such as Honda, N iss an, and H yundai, as w ell as Ford and GM, also m ade major strides t o close the quali t y gap w it h J apanese c armak ers.

Ever ythi ng chan ged in t he carm aking busi n ess i n 2009 after the econo mi c and financial crisis l ed car sal es to p lum met, and ever y c armak er, includi n g To yota, lost bil li ons of dollars. To st a y afloat, m ost global carma kers had to rel y on bil li ons of dollars in assi stance from t heir gove rnments t o st a y in b usiness because th e y cou ld not pa y their empl o ye e s or finance th eir custom ers. At t he same ti me the crisis s howed that U.S. carmake rs we re ess enti all y bank rupt because outd ated contr ac ts wit h their car de alers, unions , and workers h ad raised their ove rhe ad costs so hi gh the y could not compete globall y. Af ter borrowin g bil li ons fro m t he U.S. gove rnment, GM was for ced int o bankruptc y to r e duce it s costs ; Ford and C hr ysler wer e able to form new cont racts t o re duce their costs . B y 2011 all three U.S. ca rmake rs reported that the y were on ce a gain m akin g good pro fits and had r epa id t he U.S. gove rnment a large pe rcent a ge of the mone y th e y had bor r owed.

To achieve thi s, U.S. c ar makers had b een fo rced t o shut down hundreds of inefficient f actories, la y of f hundre ds of thousands of ca r work ers, and reduce th e ran ge of vehi c les the y p roduced. To survive, the y focus ed the ir resourc es on a n ew ran ge o f vehicles th at m ana gers beli eved would have the gr eatest app eal t o custom ers. Mana gers r aced to dev elop t he ca rs custom ers wanted to bu y and to m ak e them rel iable and cost - eff ecti ve.

Howeve r, another mi lest one in carmakin g hist or y came in 2010 when To yo ta — known as the quali t y lead er—c ame un der intense sc rutin y b eca use of claims that som e o f its cars suff ered from uncontroll ed ac celer ati on due to brake d efe cts and that it had been late in r e spondi ng to owner compl aint s despit e man y accidents. Othe r c armake rs also admi tt ed defe cts, and the iss ue of how to better measur e quali t y and safet y to i mprove p er formanc e is curr entl y a le ading conce rn of carmak ers. All ca rmake r s are tr yin g to find bett er wa ys to u se the hundr eds of comput er senso rs insi de each vehi cle to un derstand how to make a c ar more effici entl y and ef fecti vel y, and b y

Chapter02–TheEvolutionofManagem e2012 n t T global h o u g hctarmak ers h ad once a gain si gni

it y of their vehicles.

ficant l y incr eased th e qua li t y a nd reli abil

Chapter02–TheEvolutionofManagem entThought

I. S cientif ic Man ageme n t Th eory

t he y began to focus on w a ys t o increas e the ef ficienc y of the

In the 19th centur y’s n ew economi c cli mate,

worker–t ask m ix .

mana gers of all t yp es of organiz ati ons —poli ti cal, educati onal, and econom ic —were t r yin g to find bett er wa ys to s ati sf y cus tom ers’ needs .

Man y majo r economi c, t echnical, and cult ural chan ges w ere t aking pl ac e at t his t im e.

The int roducti on of stea m power and the developm ent of sophis ti cated machine r y and equipm ent chan ged ho w goods w ere p roduced.

S mall workshops run b y skil led workers who produced han d -manuf act ured products ( a s ystem call ed craft s production ) were b eing repla ced b y large f actories in whi ch s ophis ti cated machines controll ed b y hund reds o r even thous ands of unski ll ed or semi skil led workers mad e products.

Owners and m ana ge rs o f the new fa ctories found themselves unprepa red f or the chall en ges accompan yin g the chan ge from sm all -scal e cr afts producti on to l ar ge-s cale mechaniz ed manufa cturi ng.

Moreover, ma n y mana ge rs and supervisors in t hes e workshops and fa ctories were en ginee rs w ho had onl y a te chnical ori entation .

The y wer e unprep ar ed fo r the social problems t hat occur wh en people work togethe r in lar ge groups in a factor y or shop s ystem.

Mana gers b e gan to s e arc h for new te chniques to mana ge their o r ganiz ati ons’ resour ces, and so on

A. Job S p ecial ization an d the Divi sion of L ab or In a stud y o f fa ctories tha t produced va rious pins or nail s, famous economi st, Adam S mi th , a famous economi st, identified tw o diffe rent t ypes of manufa cturing : o The first was si mi lar to c rafts -st yl e

Chapter02–TheEvolutionofManagem e n tD T hescribe o u g h thow th e n eed to in crease organ LO2-1:

izat

ion al efficien c y an d effe cti ven ess h as gu ided th e evolu ti on of m an agem en t th eory.

S T UDE NT POWE RPO INT S L IDE 4 (INS T RUCTO R’S PO WE RPOINT S L IDE 4) T h e E volu tion of Man age men t T h eory: Figu re 2.1

LO2-2: Explai n t h e pri ncipl e of job special izat ion an d division of labor, andtellw h y th e stu dy of person -task relat ion sh ips is cen tral to th e pu rsu it of in creased effi ciency

Chapter02–TheEvolutionofManagem entThought

producti on, in which ea c h worker w as

ings, he developed four princi

responsi ble for all the 18 tasks invol ved

ples to i ncrease efficien c y in t

in producin g a pin .

he workpla ce:

o The other had ea ch work er per form in g onl y one or a f ew of th e 18 tas ks .

o P rincipl e 1 : S tud y the wa y wo rkers p erform their tasks, gather all the

S mi th foun d that the performance o f the

informal j ob knowledge

factories in whi ch worke rs specializ ed in onl y

that work ers possess, and

one or a f ew tasks w as much great er than the

ex periment wit h wa ys of

performan ce o f the fa ctor y in which each

im proving ho w tasks are

worke r performed all 18 pin -ma king tasks.

pe rform ed .

S mi th concluded that i ncreasin g the lev el of job s p ecial ization —the proc ess b y whi ch a divi sion of labor oc curs as di f fer e nt workers spe cializ e in tasks—i mproves effici en c y and leads t o hi ghe r organiz ati onal perform an ce .

B . Fr ed erick. W. T aylor and S cientif ic Man age men t Fred erick W . Ta ylor is b est kno wn for de fining the techniques of sci en tif ic man ag e men t , the s ystemati c stud y of r elati onshi ps between people and tasks for the pu rpose of redesi gnin g the work proc ess t o incre ase efficien c y.

Ta ylo r beli eved th at i f the amount of tim e and effort that e ach wo rker e x pends t o produce a unit of output (a finished good or s ervic e) c an be reduced b y in cre asing sp ecializ ati on and the divi sion o f labor, the pro ducti on process wil l become more effi cient.

Based on his ex periments and observati ons as a manufacturin g man a ger i n a variet y of s ett

o P rincipl e 2 : C odif y the n ew methods of

Chapter02–TheEvolutionofManagem entThought

(INS T RUCTO R’S PO WE RPOINT S L IDE 5) Job S p ecial ization and the Divi sion of L ab or

S T UDE NT POWE RPO INT S L IDE 6 (INS T RUCTO R’S PO WE RPOINT S L IDE 7) S cientif ic Man agemen t

Chapter02–TheEvolutionofManagem entThought

performin g tasks int o wri tt en rules

rust of mana gers who did not se

and standard oper ati ng p roc e dures .

em t o care about workers’ well -

o P rincipl e 3 : C arefull y wh o possess skil ls and abil it ies that m atch the needs of th e task, and train t hem t o pe rform the tas k accordin g to t he establis hed rules and procedur es . o P rincipl e 4 : Establish a f air or a ccept able level of per forman ce fo r a task , and

bein g. o These diss ati sfied work er s resis ted att empt s to use the new scientific mana gement techniques and at t im es e ven withheld their job knowledge from m an agers to prote ct their jobs and pa y.

then develop a pa y s ystem t ha t reward

Unable to ins pire work er s to

s performan ce above the a cceptabl e

accept t he n ew scientific

level.

mana gem ent t e chniques for

M ana gers in man y o r gan iz ati ons chose to implement t he new princ ipl es of scientific mana gement sele cti vel y.

This decisi on ult im atel y result ed in pro blems: o For ex ampl e, som e mana ge rs using scientific mana gem ent obt ained incre ases in performan ce, but r ather t han sharin g performan ce gains wi th workers throu gh bonuses as Ta ylor h ad ad vocated, the y sim pl y inc re ased the amo unt of work that each wo rker was ex pecte d to do. o W orkers also l earn ed tha t performan ce increas es often me ant fe wer jobs anda greater threat o f la yoffs b ecause few er workers w ere n eed ed. o The specializ ed, si mpl ified jobs were o ften monot onous and repeti ti ve, and man y workers b ecame diss ati sfied with t heir jobs.

S cientific mana gement b rought m an y worke rs more hardship than gain and a dist

Chapter02–TheEvolutionofManagem entThought

T E XT REFE RENCE E T HICS IN ACTIO N F ordi sm in Practi ce Ford’s d evelopm ent of th e movi ng conve yor belt ch an ged m anufactu ring practi ces forev er. Althou gh t he move to mass producti on was a financial succ ess for Fo rd, there wer e man y human and social consequen ces fo r his workers.

The sim pli ficati ons of the work pro cess were monot onous, r esult ing in l ar ge amount s of empl o ye e tur nover, absenteeism , and gener al d iscontent. To address t hese p roblems, Ford doubled wa ges and reduc ed the le ngth of the workda y b y one hou r. Th is response to empl o ye e discontent was coin ed “Fordism”. (Box in t ex t on P ages 41 42)

Chapter02–TheEvolutionofManagem entThought

performin g tasks, som e o rganiz ati ons i

The y isol at ed fa ctors that

ncreased the mechaniz ati on of the work proc

result in worker fati gu e, such

ess.

as li ghti ng, heati ng, th e color

From a p erform ance p ers pecti ve, the combi

of wall s, and the desi gn of t

nati on of the two mana gement pr acti ces — (1)

ools and machines.

achi eving th e ri ght w orker –task

In workshops and f actori es, the

specializ ati on and (2) linki ng people and tasks b y the sp eed of the p rodu cti on li ne —

wo rk of th e Gilbreths, Ta ylo r,

produces the huge cost s avin gs and dramatic

effe ct on t he pra cti ce of mana

output increas es that occu r in lar ge o r ganiz

gement .

ed work sett ings.

and m an y oth ers had a major

In comparison wi th t he o ld crafts s ystem, j obs i n the new s ystem

C. T h e Gil b reths Frank Gilbreth and Lil li a n Gilbreth refined Ta ylo r’s an al ysis of wor k movem ents and made man y contribut ions to t ime-and-mot ion st ud y.

Their aim s wer e to: o Anal yz e ever y indi vidual acti on nec essar y to perform a p articular t a sk and break it int o each of its compon ent act ions o Find better w a ys to p erfo rm each component acti on o R eorgani z e ea ch of the c omponent acti ons so t hat t he acti on as a wh ole could be performed mo re e fficient l y—at l ess cost i n ti me and effort The Gilbreths bec ame in creasin gl y int er ested in the stud y of fati gu e.

The y studi ed ho w ph ysic al char acte risti cs of the workpl ace contribut e to j ob st ress t hat often leads t o fati gue and thus poor perfo rmanc e .

we re mor e repeti ti ve, borin g, and monot onous as a res ult of the appli cati on of

Chapter02–TheEvolutionofManagem entThought

(INS T RUCTO R’S PO WE RPOINT S L IDE 9) T h e Gil b reths T E XT R E FE RENCE MANA GE R AS A PE R S ON A n drew C arn egie Creates th e New In du str ial C om pan y Andrew Ca rne gie’s fami ly im mi gr ated to t he United St ates from S cotl and in t he mi d 1800’s and since, un li ke man y cit iz ens of the ti me , Andrew Carne gi e was able to r ead and writ e he was identified as a work er wit h potential.

Throughout hi s e arl y c ar eer wit h the rail road, C arn e gie mad e a name fo r him self b y conti nuall y fi nding wa ys to use resour ces more p rod ucti vel y, specificall y to redu ce cos ts and increas e profit abil it y. W hil e le ading a divi sion, the compan y’s stock pri c e shot upward and Andre w becom e a ve r y wealt h y man.

C arne gie subsequ entl y so ld all of his rail road st ock and us ed t he proce eds t o open C arne gie St e el, t he first l ow cost steel m anufa cturer in the United St ates . W hi le in Britain, C arne gie saw a demons trati on of a manu facturin g process t hat allowed l ar ge quanti ti es of high quali t y ste el t o be pr oduced

Chapter02–TheEvolutionofManagem entThought

scientific mana gem ent pr inciples, and worke

Authorit y gives man

rs became in cre asingl y diss ati sfied .

a gers the ri ght t o

Frequ entl y the m ana gem ent of work sett in

direct and control t

gs became a game b etween workers and mana

heir subordi nates ’

gers: Mana gers tri ed to i nit iate work pra cti

behavior to achieve o

ces to increas e per formanc e, an d workers

r ganiz ati onal goals .

tried to hi de the true potenti al ef ficien c y o f

o P rincipl e 2: In a bure aucr

the work s ett ing to protect t heir own w ell -

ac y, people should occup y

being.

posi ti ons because of their performan ce, not be caus e

II. ADMINIS T RAT IVE MANA GE ME NT T HE ORY Administrativeman age men t is t he stud y o f howto createanorganiz ati onal st ructure and controlsystem that leads t o high e fficien c y and ef fe cti ven ess.

Organizat ional str ucture i s the s ystem of task and authorit y r elations hips t hat controls how empl o ye es use resour ces to a chieve t he or ganiz ati on’s go als.

A. T h e T h eory of B u reau cracy Max W eber developed th e principl es of b u reau cracy —a formal s ystem of or ganiz ati on and admi nist rati on designed to ensure effici enc y and eff ecti ven ess. A bure aucrati c s ystem o f admi nist rati on is based on the five principl es summ ariz ed in Figur e 2. 2. o P rincipl e 1: In a bure aucr ac y, a man a ger ’s formal authorit y deriv es from t he posi ti on he or she holds in an or ganiz ati on.

Auth orit y is t he power t o hold people accountabl e for their acti ons and to make decisi ons con cerni ng the us e of organiz ati onal resourc es.

of their social standing or p ersonal cont acts.

Chapter02–TheEvolutionofManagem t T h o y. ught contie nnuousl

His new producti on meth ods reduced the price of U.S. s teel fro m $135 t o $12 per ton. B y 1900 mos t of his competit ors were out o f busi ness and his compan y bec ame the le a ding U.S . steel maker; C arne gi e was on e of the richest men in the nati on.

Although lauded for im plementi ng mana gement tech niques that cre ated the modern indus trial compa n y, C arn e gie’s critics ac cused him of inc reasin g profit abil it y on the ba cks of his empl o ye es.

He p aid t hem t he lowest wa ge possi ble and squ ashed an y att empt the y mad e to uni oniz e (Box in t ex t on P ages 43 -44).

LO2-3: Iden ti fy th e pri n cipl es of adm in ist rati on an d organ izat ion th a t u n derli e effecti v e organ izat ion s .

S T UDE NT POWE RPO INT S L IDE 7 (INS T RUCTO R’S PO WE RPOINT S L IDE 1 0) Admin istrative Man age men t Th eory

Chapter02–TheEvolutionofManagem entThought

o P rincipl e 3: The ex tent of each posi ti

so cumbersome that de cisi on

on’s formal authorit y and task responsi bil

making is s low and ineffici

it ies, and it s relations hip t o other posi ti

ent and or gan iz ati ons

ons i n an organiz ati on, shoul d be clearl

cannot chan ge.

y specifi ed. o P rincipl e 4: Authorit y c a n be ex ercised effe cti vel y in an or ganiz a ti on when posi ti ons are arr an ged hi erar chicall y, so empl o ye es know who m t o report to and who reports to t hem . o P rincipl e 5: Mana gers m ust create a well - defined s ystem of rules, s tandard ope rati n g procedur es, and norms s o the y can effe cti vel y control beh av ior withi n an organiz ati on .

Rul es are fo rmal writt en inst ructi ons that s pecif y a cti ons to be taken under different circumst anc es t o achieve specific goals.

S tand ard op eratin g p roced u res (SOPs) a re spe cific sets of written inst ructi ons about how to perform a certain asp ect of a task.

Nor ms a re unwrit ten, inf ormal codes of conduct t hat pres cribe ho w people shoul d act in parti cular si tuations and are consi d ered im portant b y most members of a group or or ganiz ati on .

W eber beli eved o r ganiz ati ons t hat i mpl ement all five principl es establis h a bureauc rati c s ystem that im proves organiz a ti onal perform ance. Howeve r, if bure aucr acie s are not m ana ged well man y pro blems can r esul t . o S ometim es manage rs all ow rules and S OPs, “bureau cr ati c red tap e,” t o become

o W hen managers r el y too much on rules to solve problems and not e nough on their o wn skil ls and judgment, their behavior be comes

Chapter02–TheEvolutionofManagem entThought

S T UDE NT POWE RPO INT S L IDE 8 (INS T RUCTO R’S PO WE RPOINT S L IDE 12) Web er’s Prin cip les of B u reau cracy: Figu re 2.2

Chapter02–TheEvolutionofManagem entThought

inflex ibl e.

B . Fayol’s Prin cip les of Man age men t Henri F a yol identified 14 principl es (summariz ed in Table 2. 1) that he bel ieved essential to i ncreas e the e fficienc y o f the mana gement pro cess.

Divis ion of L ab or Fa yol advo cated that wo r kers be given more job duti es to p erfor m or be encoura ged to assume m ore responsi bil it y for work outcom es .

Auth ority an d Resp on sib il ity Fa yo l, went b e yond W eber’s fo rmal authorit y, which d erives from a mana ger’s posi ti on in t he hierarch y, to reco gniz e the inf ormal authorit y that d erives from personal ex pertise, techni cal knowled ge, moral worth, and the abil it y to l ead and to gen erat e comm it men t fro m sub ordinates .

Uni ty of Comman d The principl e of u n ity of co mman d s pecifies that an empl o ye e shoul d rec eive orders f rom, and repo rt to, onl y one superior.

L in e of Auth ority

The li ne of au thority is the chain of comm and ex tending fro m t he top t o t he bott om of an organiz ati on .

Fa yol poi nted out that w hen or ganiz ati ons are spl it int o different d e partments or

Chapter02–TheEvolutionofManagem entThought

(INS T RUCTO R’S PO WE RPOINT S L IDE 1 4) Fayol’s Prin cip le s of Man agemen t

(INS T RUCTO R’S PO WE RPOINT S L IDE 1 5) Fayol’s Prin cip les of Man agemen t

Chapter02–TheEvolutionofManagem entThought

functi ons, each with i ts own hi erar ch y, i t is i mportant t o all ow mi ddle and first -li ne mana gers in e ach d epart ment to i nteract with managers at sim il ar levels i n other departments. Thi s int era c ti on helps speed decisi on making.

Cen trali zation Cen trali zation is the co ncentrati on of authorit y at t he top o f the mana gerial hierar ch y.

Uni ty of Direction Un ity of d irection is t he singleness of purpos e that makes poss i ble the cre ati on of one plan of acti on to gui de mana gers and worke rs as the y use organiz ati onal resourc es.

An or ganiz ati on without a single guidi n g plan becomes ine fficient and ineff ecti ve .

E q u ity E q u ity —the just ice, im partiali t y, and fairness t o which all orga niz ati onal members ar e enti tl ed —is receivi n g much att enti on toda y; t he desir e to t reat empl o ye es fairl y is a p rimar y conc ern of mana gers.

Order To Fa yol, ord e r meant t he methodical

organiz ati on with t he gr e

arran gement of posi ti ons t o provide the

atest benefit and to provide

Chapter02–TheEvolutionofManagem e n t T h o u g empl ht o ye es wit h care er opportuni

that satisf y their needs .

ti es

T E XT REFE RENCE MANA GE ME NT INS IGHT Peters an d W aterm an ’s E xcell en t C om pan ies In the ea rl y 1980s, P ete rs and W aterman identified 62 or ganiz ati ons t hat t he y

Chapter02–TheEvolutionofManagem entThought

In itiative

The int erests of the o r gan iz ati on as a whole must

Fa yol believ ed mana gers must also

take pre cede nce over th e

encoura ge empl o ye es to ex ercise in

int erests of an y indi vidua l

itiative, the abil it y to a ct on t heir own

or group i f the organiz ati

without directi on from a superior. Used

on is to survive.

properl y, ini ti ati ve can b e a major sour ce of stren gth for an or ganiz ati on

E sp rit d e Co rp s

because it leads t o cre ati vit y and in novati on .

Discip li n e Discip li n e is t he obedience, en er g y, appli cati on, and other out ward marks o f res pect fo r a supe rior’s a uth orit y.

Re mu n eration of Pe rso n n el Fa yol p roposed rew ard s ys tems i ncludi n g bonuses and profit sharin g plans.

S tabi li ty of T en u re of Person n el W hen empl o ye es sta y wi th an organiz ati on for ex tended periods, the y develop sk il ls t hat i mprove the organiz ati on ’s abil it y to ut il iz e its resourc es .

S u b ord in ation of Ind ivid u al In terest to Gen e ral In teres t

A ke y element i n a su cce ssful

Chapter02–TheEvolutionofManagem e n t Tdered h o u gtoh be t th e best perfor ming organi zati consi

ons in t he U.S. B y investi gati n g wh y these 6 2 companies perform bett e r than their rivals, t he y uncovered thr ee sets of r elated principl es. First, t he y fou nd that top mana gers of su cc essf ul companies create principl es and gui deli nes that emphasize managerial a utonomy and entrepr eneurship, en cour age ini ti ati ve, and st im ulate risk taking. S econd, the y found that managers of e xcell ent organi zati ons create one central plan that puts organi zati onal goals at center stage. Third, exc ell ent co mpanies establ ish a divisi on of w ork and a divisi on of aut hori ty and responsi bil it y that w il l motivate employ ees to subordinate their indi vidual int erests to comm on int erest.

(Box in t ex t on page 5 0 .)

LO2-4 Trace th e ch an ges in th eories abou t h ow m an agers shou ld behave to m otivate an d con trol empl oyees

Chapter02–TheEvolutionofManagem entThought

work in g togethe r in cross-d

organiz ati on is the developm ent of esp

epartm ental teams t o

rit d e corp s , a F rench ex pre ssi on

accompl ish t asks.

that refers to shared fe eli ngs o f com

Foll ett proposed that kno

radeship, enthus iasm, or devoti on to a

wledge and ex pertise, and not

comm on cause amon g memb ers of a

m ana gers ’ forma l authorit

group .

y, shoul d decide who will lead at a n y pa rticular mom

III. B E HAVIORAL MANAGE ME NT T HE ORY

ent . S he took a horiz ont al vi ew of power and authorit y.

B eh avioral Man agemen t is t he stud y of how mana gers should beh ave to m oti vate empl o yees a nd encoura ge them to per for m at high levels, and b e comm it ted to the achieve ment of or ganiz ati on al goals.

A. Th e Work of Mary Park er Foll ett Much of Mar y P a rker Fo l let’s writing about mana gement and about t he wa y man a gers shoul d behave towa rd w orkers w as a r esponse to her conc ern that T a ylo r was igno ring th e human side of the or ganiz ati on. S he point ed out that mana gement often ov erlo oks the mul ti tude of wa ys in which empl o yee s can contribut e to t he organiz ati on .

S he ar gued that be caus e workers know th e most about t heir jobs, t he y sho uld be involved in job anal ysis and mana gers sh ould allow them to participate in t he wo rk de velopm ent process.

Foll et anticipated the cur rent i nterest i n selfmana ged te ams and emp owerment. S he advocated what she c all e d “cross- functi oning”: members of diff erent d ep artments

Chapter02–TheEvolutionofManagem entThought

(INS T RUCTO R’S PO WE RPOINT S L IDE 1 5) B eh avioral Man agemen t T h eory

S T UDE NT POWE RPO INT S L IDE 10 (INS T RUCTO R’S POWE RPOINT S L IDE 16) Mary Park e r Foll ett

Chapter02–TheEvolutionofManagem entThought

B . T h e Haw tho rn e S tudies and Hu man Relation s P robabl y b ecaus e of its r adical natur e, Foll ett ’s work was unapp re ciated b y man a gers and resea rche rs until quit e re centl y. Most conti nued to foll ow in the footst eps of Ta ylor and the Gilbreths .

To increas e ef ficienc y, th e y studi ed wa ys to im prove various cha ra cte risti cs of the work sett ing, such as job spe ci ali z ati on or the kind s of tool s workers used. On e series of studi es was conducted f rom 1924 to 1932 at the Hawthorn e W orks of the W estern Electric C ompan y.

This resear ch, now know n as the Hawt horne studi es , began as an att e mpt to i nvesti gate how chara cterist ics of the wor k set ti ng— specifi call y the level of li ghti n g or ill umi nati on —affect worker fati gu e and p erfo rmance . o The stud y p roduced som e unex pected result s. The res ear chers f ound that re gardl ess of wheth er the y r aised or low ered the level of il lum ination, producti vit y increas ed. o The rese ar chers found th ese result s puz z li ng and invi ted a noted Ha rv ard ps ycholo gist , Elton Ma yo, to help the m. Ma yo propos ed another seri es of ex perim ents t o sol ve the m yster y. o These ex periments, k no wn as the relay assembly test exp eriment s , were d esign ed to investi gate the eff ects of other aspe cts of the work contex t on j ob perf ormance, su ch as

Chapter02–TheEvolutionofManagem e n t T h o uthe g h teff ect of the numbe r and len gth

of rest

periods and hours of wor k on fati gu e and monot on y. Durin g a two - ye a r stud y of a small group of female w orkers, t he resea rche rs a gain obs erv ed that producti vit y increas ed over tim e, but t he incre ases could not be solel y att ributed to the eff ects of chan ges in t he wo rk sett ing.

Chapter02–TheEvolutionofManagem entThought

o The rese ar chers discov er ed that their presenc e was aff ecti n g the result s bec ause the workers enjo yed r ece ivi ng att enti on and being the subje ct of stud y and wer e will ing to cooperate with t he res earch ers to produ ce the result s the y b eli eved t he rese arch ers desired. This particula r e ffect b ecam e known as the Haw thorn e ef f ect . o The signific ant findi n g w as that each mana ger ’s person al beha vior or leade rship approach can aff ect pe rfo rmance .

From thi s view emer ged the h u ma n relation s mov e men t, which advo c ates that supervisors be beh avioral l y trained to mana ge subordinat es in wa ys that eli cit their cooperati on and in cre ase their producti vit y.

The im portance o f behav ioral or human rel ati ons traini ng be came even cle arer to it s supporters after the ban k w iri ng room experim ents .

Mana gers must unde rsta nd the workin gs of the in f ormal organi zation , the s ystem o f behavioral rul es and nor ms that emer ge in a group, when the y tr y to mana ge or chan ge behavior in or ganiz ati ons.

The incre asing int e rest i n the are a of mana gement known as organ ization al b eh avior, the stud y of th e facto rs that have an im pact on how indi vid uals and groups respond to and act i n or ganiz ati ons, dates from these earl y studi es .

C. T h eory X and T h eory Y

Chapter02–TheEvolutionofManagem e n t T hDouglas o u g h t M cGr e gor prop osed two sets

of

assum pti ons about how work att it udes and behaviors not onl y domi nate the wa y m ana ge rs thi nk but also affect how the y b ehave in organiz ati ons. McGre gor named these two contrasti ng s ets of assum pti ons T heory X and Theory Y (Figure 2.3 ) .

Chapter02–TheEvolutionofManagem entThought

give mor e control ove r T h eory X

the job t o workers.

Accordin g to t he assum p ti ons of T h eory X, the aver a ge wo rker is laz y, disl ikes work, and will tr y to do a s li tt le as

IV. MANA GE ME NT S CIENCE T HE ORY

possi ble. To keep work er ’s perfo rmance at a high lev el, t he mana ger must supervise

is a contempo rar y approach to m

workers closel y and cont rol their

an a gement that focuses on t he

behavior b y me ans of “the car rot a nd st

use o f rigorous qu anti tative tech

ick” — rewa rds and punis hments .

niques to help mana gers

Mana gers who ac cept t he assum pti ons of Theor y X desi gn and sha pe the work sett ing to m ax im iz e their control over workers’ b ehaviors and mi nim iz e workers’ control over th e pace of work.

T h eory Y T h eory Y assum es that workers are not inherentl y l az y, do not na turall y disl ike work, and if given the op portunit y, will do what i s good fo r the or ga niz ati on.

The chara cterist ics of the wor k sett ing determi ne wheth er work e rs consi der wo rk to be a sourc e of sati sfa ct ion or punis hment, and m ana ge rs do not need to closel y control worke rs’ behavior to m ake them perform at a high l e vel becaus e workers ex ercise self - con trol when the y are comm it ted to or ganiz ati onal go als.

Mana gers who beli eve w orkers a re mot ivated to help the organiz ati on reach it s goals can d ec entrali z e authorit y and

Man age men t sci en ce th eory

Chapter02–TheEvolutionofManagem n tRUCTO T h o u g h R’S t (INSe T PO WE RPOINT S L IDE 23)

T h eory X

(INS T RUCTO R’S PO WE RPOINT S L IDE 24 T h eory Y

S T UDE NT POWE RPO INT S L IDE 12 (INS T RUCTO R’S POWE RPOINT S L IDE 25) Th eory X vs. Th eory Y: Figu re 2.3

L O2 -5: E xplai n th e con tri bu ti on s of m an agem ent scien ce to t h e efficien t u se of organi zati on al resou rces

Chapter02–TheEvolutionofManagem entThought

make max im um us e of o rganiz ati onal resou

V. ORGANI ZATIO NA L

rces to produce goods and s ervic es .

E NVIRONME NT T HE

There are man y b ran ches of mana gement s cienc

ORY

e; and information t echnolo g y ( IT), which is h aving a significant i mpa ct on all ki nds of mana

The organ ization al envi ron men

gement practi ces, is a ffe cti ng th e tool s manage rs

t is the set of fo r ces and condit ions

use to m ake decisi ons. Each br anch o f mana

that opera te be yond an or ganiz ati

gement s cience de als with a specific set o f con cerns: o Quantit ati ve managemen t uses mathematical techniques—such as li ne ar and nonli nea r programm ing, mod eli ng, sim ulation, queuing theor y, and ch aos t heor y—to help mana gers decide, fo r ex ampl e, how much inventor y to hold at different t im es of the ye ar, wh er e to locate a n ew fa ctor y, and how best t o invest an organiz ati on’s financial c apit al . o Operati ons management gives man a gers a set of techniques the y c an use t o anal yz e an y aspe ctof anorganizati on’s product ion s ystem t o incre ase efficien c y. o T otal qua li ty management (T QM ) focus es on anal yz in g an or ganiz ati on’s input, conversion, and output acti vit i es to i ncreas e product qu ali t y. o Management i nformat ion systems (MISs ) give mana gers info rmati on ab out events occur ring insi de the organiz at ion as well as in it s ex ternal environment —informati on that is vit al for effe cti ve de cisi on making.

on’s boundaries but af fect a ma na ger ’s abil it y to a cquir e and uti li z e resources.

Chapter02–TheEvolutionofManagem entThought

S T UDE NT POWE RPO INT S L IDE 13 (INS T RUCTO R’S POWE RPOINT S L IDE 27) Man age men t Scien c e T h eory

(INS T RUCTO R’S PO WE RPOINT S L IDE 28) Qu an titative an d Op eration s man age men t

(INS T RUCTO R’S PO WE RPOINT S L IDE 29) T otal q u ali ty man age men t &

Chapter02–TheEvolutionofManagem entThought

A. T h e Op en -S ystems V iew Theorists li ke Daniel Kat z , R obert Kahn, and J ames Thompson vi ewed the organiz ati on as an op en system— a s ystem t hat takes in resour ces from i ts ex ternal environment and converts or transforms t hem int o goo ds and services th at are then sent back to t he envi ronment , wher e the y are bou ght b y custom ers (Fi gure 2.4 ). o At the input stage an or ganiz ati on acquires resourc es such as raw ma terials, m one y, and skil led workers to produc e goods and services . o Once the or ganiz ati on has gathe red the necessa r y resou rces, con version be gins. o At the conversi on st age t he or ganiz ati on’s workfor ce, usi n g approp r iate tool s, techniques, and ma chiner y, trans forms t he input s int o output s of finished goods and services. o At the output stage the organiz ati on rele ases finished goods and servic es to i ts ex ternal environment, wher e cust omers purchas e and use them to s ati sf y their needs .

A closed s yste m, in cont rast, i s a self contained s ystem t hat i s not aff ecte d b y ch an ges in i ts ex ternal environment. Or ganiz ati ons t hat oper ate as closed s ystems, t hat i gnore the ex ternal environment, and that f ail to acquire input s are li kel y to ex perienc e en tr op y , which is t he tendenc y of a closed s yst em t o lose it s abil it y to control i tself and thus to di ssol ve and disi ntegrat e.

o S ystems t heorists li ke to ar gue that the whole is gr eate r than the sum o f its parts; the y me an that an or gani z ati on performs at a higher l evel when it s dep artments work togethe r rath er than sep ar atel y. o S yn ergy, the perfo rmanc e gains t hat result

Chapter02–TheEvolutionofManagem e n t Tage h o men u g h tt in f orma ti on systems Man

LO2-6: Explai n w h y th e stu dy of th e external en vironm en t and it s im pact on an organ ization h as becom e a cen tral iss u e in m an agem ent t hou gh t.

S T UDE NT POWE RPO INT S L IDE 14 (INS T RUCTO R’S POWE RPOINT S L IDE 3 2) T h e Organi zation as an Op en S ystem: Figu re 2.4

(INS T RUCT OR’S PO WE RPOINT S L IDE 33) In p u t, Con version & Ou tpu t stages

Chapter02–TheEvolutionofManagem entThought

means used to control su

from t he combined acti o ns of indivi

bordinates’ behavior.

duals and departments, i s poss ibl e onl

This s tructur e provides

y in an organiz ed s ystem.

the most efficient wa y to ope rate in a stable

B . Contin gen cy T h eory The con tin gen cy theory is an idea that organiz ati onal st ructures and control s

environment. o O rgan ic stru cture — aut horit y is decentr ali z ed to m

ystems mana gers choose a re con ti ngent on

iddl e and first -li ne

t he chara cterist ics of the ex ternal

mana gers to en coura

environment in which the or ganiz ati on

ge t hem t o take

operates ( Fi gur e 2.5) .

An important char acterist ic of the ex ternal environment t hat aff ects an or ganiz ati on’s abil it y to obt ain resour ce s is the degree to whi ch the environment i s chan ging. o C hanges in t he o r ganiz ati onal environment include chan ges in t echn olog y, which can lead to t he cr eati on of ne w products and result in t he obsol escenc e of ex ist ing products ; t he entr y of n e w competit ors ; and unst able economi c condit ions .

Mech an istic and Organi c S tru ctures Burns and S talke r propos ed two basic wa ys in whi ch mana gers can or ganiz e and control an or ganiz ati on’s acti vit ies to respond t o cha racte risti cs of its ex ternal environment : o Mech an istic stru c ture —authorit yis centrali z ed at t he top of t he mana gerial hie rar ch y, an d the vertical hierar ch y of authorit y is t he main

Chapter02–TheEvolutionofManagem entThought

S T UDE NT POWE RPO INT S L IDE 15 (INS T RUCTO R’S POWE RPOINT S L IDE 3 7) Contin gen cy T h eory: Fi gu re 2.5

Chapter02–TheEvolutionofManagem entThought

responsi bil it y and a ct qui c kl y to pursue sca rce resour ces. This structure provides the mo st efficient wa y to operat e in a r apidl y ch an gin g environment.

LECTURE ENHAN CERS Lectu re E n h an cer 2.1 MA NAGEME NT IN EAR LY C IVILIZA TIONS Although tex t di scussi on concentr ates on the evolu ti on of management si nc e the nineteenth centur y, man y man a gem ent practi c es wer e dev eloped much ea rlier. The gr eat civil iz ati ons of S umeria, Bab ylon, E g ypt , Ass yri a, and P ersia h ad ex pert managers, as s een b y a chievem ents such as the Gr eat P yrami ds of Eg ypt and the Han ging Ga rdens of Bab ylon. S umerian builders reli ed on the use of m erit wa ges to b uil d the wall e d cit ies and can als of S umer. The hi ghwa y and li brar y s yst ems of Ass yri a and the gr eat citi es of P ersia requi red or ganiz ati on and man a ge rial genius t o a chieve. Th e C ode of Hamm ur abi i ncluded incenti ve and mi nim um wages as e arl y as 1800 B.C .

Greek achiev ements i n ar chit ecture, li ter ature, and civi l governm ent requir e d the appli cati on of compl ex managem ent knowledge. The cit iz ens of Gree k cit y stat es worked under the piec ework s ystem on gove rnment c ontracts.

R ome once controll ed th e world from En gland to Asia and is sti ll known for its s ystems of ro ads, const ructi on of publi c bu il dings, and civi l gov ern ment. These we re dev elo ped and main tained b y a mi li tar y s ystem t hat i s st il l a model for modern a rmies. These a ccompl ishm ents required the appli cati on of highl y d ev eloped mana gement kno wledge. As e arl y as 300 B.C ., R ome used m ini mum wage laws to t r y to compens ate for a sh ortage of labo r.

C hina’s Great W all , com plex road s ystem, and si l k trade r equired ex tensive mana gem ent ex pertise. The principl e o f specializ ati on was used as earl y as 1650 B.C ., an d labor turnover was understood as e arl y as 40 0 B.C .

Chapter02–TheEvolutionofManagem entThought

More than 400 ye ars a go, a dipl omat and civi l serv ant i n the cit y-st ate of Florence n amed Niccolo Machiav ell i wro te a book call ed T he Prin ce. Machi avell i was an e x perienced observ er of the int rigu es of state. His book was a how -to-do-it manual for a ruler. T he Prince fo cused on how to rule: not how to be good o r wise, but how t o rule succ essfull y. M ach iavell i’s beli efs

Chapter02–TheEvolutionofManagem entThought

about t he nature o f peopl e wer e il lust rated b y his f amous statement, “W hoe ver desires to found a state and give it l aws, mu st s tart wit h the assum ption that all men are b ad a nd e ver r ead y to displ a y their vicious natu re when ever th e y ma y fin d occasion for it .” He bel ieved that a lead er is just ified in us ing an y lea dership st yle o r tacti c to cope with t hese t ypes of people. That i s, the end just ifies the means. If a l eader h ad to c hoose b etw een bein g f ear ed and lov ed, she or he shoul d choose fe ar, sinc e he c an control fea r but not l ove.

The R oman Cathol ic Church has contribut ed gre a tl y to t he evolut ion of ma nagement thou ght. As C hristi anit y spr ead and d ifferent s ects eme r ged, th e c hurch n eed ed to defin e more cle arl y it s mi ssi on, purpose, objecti ves, pol icies, rules, and o rganiz ati onal hi erar ch y. It developed a stron g centrali z ed authorit y-r es ponsi bil it y r elations hip. Thi s centrali z ati on and the Church’s ex tensive enforc ement o f doct rines and rules was on e of the major factors l eadin g to t he R eformation.

Lectu re E n h an cer 2.2 GILBR E TH’S M OTION S T UDIE S Frank Gilbreth be gan his care er as an app renti ce b r ickla ye r. H e watch ed oth er brickla ye rs and saw that som e we re slow and ineffici ent while some were v er y pro ducti ve. He discover ed that each used a diff erent set of moti ons t o la y bricks. From his obs ervati ons, h e isol ated the basic movements necessa r y to do the job and eli mi nated wasted ones. His r evised method reduced unnecessa r y mot ion s b y 70 percent and tri pled bri ckla yers’ p roducti vit y.

This was the first “moti on st ud y,” d esign ed to i solate the best pos sibl e met hod of perfo rming a given job. Lat er Gil breth and his wife, Lil li an, st udied job mot ions u sing a mot ion pi cture camer a and s pli t -second clock. T he isol ated indivi dual m oti ons t he y call ed “therbli gs,” which is “Gilbreth” spell ed b ackw ards wit h the “th” r eve rse d.

One of Gil breth ’s cli ents i n the 1920s was J ames E. Case y, the founde r of UPS . Mr. Case y turned to Gil breth t o dev elo p techniques to m easu re the tim e consum ed eac h da y b y ea ch UPS driver. Late r, UP S en gineers cut awa y the sides o f a UPS deli ver y truck an d used Gilbreth’s techniques to st ud y a dri ver at work. T he r esult ing ch an ges in p a cka ge lo a ding incr eased efficien c y b y 30 per cent.

Lectu re E n h an cer 2.3 A TTRIB UTE S OF E X CE LL E NT C OMPANIE S

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In thei r book In Sear ch o f Excell enc e, Thomas J . P eters and R obert W ater man identi fied the chara cterist ics that di sti nguish t he ex cell ent and in novati ve companies in A merica. Th ese a re: A bias f or acti on : These companies “ got on wit h it .” The y didn’t l et bure au crac y k eep them from m aking d ecisi ons.

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 C loseness t o the custome r : The y l ist ened to their c ustom ers and learn ed fro m t he people the y se rved.

Autonomy and entrepren eurshi p : The y h ad “prod uct champi ons” who gen erated n ew products or servi ces. The y en coura ged these p eopl e to m ake sure th e y gene rated “ a reasonabl e number of mi stakes.”

Producti vit y throu gh people : The y t reated th e ran k and file as the sour ce o f quali t y and producti vit y gain s . The y valued their people and r espected the indi vidual.

Hands-on, value-driv en : C ompan y values and phil osoph y w ere mor e im por tant than organiz ati onal st ructure. “ Sti ck to t he knit ti ng” : The y n ever acquir ed a busi ness t he y didn ’t know ho w to run.

L ea n st aff , simpl e form : The y h ad si mpl e or ganiz ati onal st ructures and l ea n to plevel st affs.

Simult aneous l oose-ti ght pr operti es : The y wer e bo th centrali z ed (about t he few co re values) and d ecentr ali z ed (product dev elopm ent a nd “product ch ampi ons ”) .

MANAGEMENT IN ACTI ON Notes f or T op ics f or Discu ssi on and Action DISCUSS ION 1. C hoose a fas t -f ood restaur ant, a department st ore, or some other organiz ati on w it h w hich you are famil iar , and describe the divisi on of l abor and job special izat ion i t uses to p roduce goods and services. How might thi s di visi on of l abor be improved?

S tudents shoul d cit e inst ances in whi ch empl o ye es specializ e in onl y one o r a few tasks o f a process, r ather than on e in which empl o ye es pe rfo rm all tasks. McDonald’s mana gers d ecided on a basic divi sion o f labor among chefs and food se rvers. Man a gers all ocate d all the tasks i nvolved in actuall y cookin g the fo od to t he job of the chef, and all ocated all of tasks related to givi ng food to custom ers to foo d servers. In addit ion, t he compan y cr eated othe r k inds of specializ ed jobs, such as deali n g with drive -throu gh custom er s and keepin g the r estaur ant clean. This ki nd of job sp ecializ ati on increas es effici enc y and worke r producti vit y.

Chapter02–TheEvolutionofManagem eMana n t T hgers o u gmust h t conti nual l y an al yz e the ran

ge o f ta sks t o be perform ed and t h en cre ate

jobs t hat all ow the or ganiz ati on to give custom ers the quali t y of goods and level of s ervice that the y want. In doin g so, how ever, th e y must ce rtain not to ove rsimpl if y tasks, si nce too much specializ ati on can lead to wo rker bo red om and monoton y. This can hav e an adv erse im p act on producti vit y and efficien c y.

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2. Apply T aylor’s pri ncipl es of scientif ic managem ent t o improve the perfor mance of t he organi zati on you chose in topi c 1.

McDonald’s has in p la ce an effi cient s yst em for fil li ng orde rs, though som e benefit m a y be gain ed from gath erin g more information on t ask p erforman ce and ex perime nti ng with wa ys of im proving the wa y t asks are pe rform ed to i ncre ase efficien c y (T a ylo r’s P rin cipl e #1.)

A reco rd of pro cedur es is kept t hat codifies metho ds of perfo rming tasks in to writ ten work rules and st andard op erati n g pr ocedures. New empl o ye e s are given this re cord w hen the y be gin traini ng, and th ese rules are used to fu rther stand a rdiz e and si mpl if y jobs ( Ta ylo r’s P rincipl e #2.)

Empl o yees are ca reful l y selected so that the y poss ess t he ski ll s and abil it ies that m atch the needs of the task and a re tr aine d to perform t he task acc ording to t he rul es and pr ocedures establis hed in P rincipl e 2 (Ta ylo r’s P rincipl e #3.) Empl o ye es r eceive a traini n g manual and be gin wit h sim pli fied jobs , earning a dvancement to m ore com plex posi tions as the y inc rease th eir performan ce.

Empl o yees are giv en an acc eptable level o f per for mance that the y must me et, t hough their p a y s ystem does not se em t o provide high er r ewa rds f or perfo rmanc e above th e ac ceptable lev el (Ta ylor’s P rincipl e #4.) A pa y s yst em t hat t ies pe rformanc e to bonus es or t im e off mi ght provide workers wit h inc enti ve to sell more food and im pr ove their custom er s ervic e.

3. In what w ays are Web er’s and Fayol’s id eas ab out bur eaucracy and ad minis trat ion si milar? How do they dif fer?

W eber developed a s yste m of bureau cra c y—a fo r mal s ystem of or ganiz ati on and admi nist rati on designed to ensure effici enc y and eff ecti veness. It is a s ystem bas ed on five principl es. Fa yo l identified 14 principles that he beli eved to b e esse nti al t o increasin g the ef f icienc y of the mana gement pro cess.

Both m ana gem ent t heori sts emphasiz ed the foll owing prin cipl es for suc ce ssful m ana gement:

Chapter02–TheEvolutionofManagem e n t T Authori h o u g h tty: Thi s is the power to hold people a ccou

n table for their acti ons an d to m ake

decisi ons conce rning th e use of or ganiz ati onal res ources. A ccordin g to W e ber, formal authorit y de rives from t h e posi ti on a mana ger hol ds i n the organiz ati on. Fa yo l went b e yond formal authorit y to i nclude the informal aut horit y derived from p ersonal ex pertise, technical knowled ge, mo ral worth, and abil it y to l ead and to gen erat e com mi tm ent from subordinates.

L ine and unity of command : W eber ar gued th at t he ex tent of each posi ti on’ s formal

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authorit y and t ask respon sibi li t ies, and it s relationship t o other posi ti ons i n an organiz ati on, shoul d be clearl y spe cifie d. Fa yol e choes thi s idea when he spe aks of unit y of comm and — an empl o ye e shoul d r ecei ve orders from onl y one superior.

Both i de as emp hasiz e specificati on of responsi bil it y and seek to avoid c onfusion and overlap o f a uthorit y that ma y d ecr ease effi cienc y and/or eff ecti ven ess.

Authori ty organizat ion : Both W eber and Fa yol su ggest a chain of m ana ge r s in an organiz ati on be arr an ged from t op to bot tom . W hile W eber was mor e adh er ent t o a hierar chical st rate g y, F a yol emphasiz ed also t he im portance of cross -d epar tm ental int egr ati on and teams, an d comm unicati on at t he lower levels of mana gem ent i n an organiz ati on. Fa yol also stressed the im portanc e o f lim it ing the number of l eve ls i n the hierar ch y to reduc e com muni cati on problems.  C entral izat ion : W eber an d Fa yol a r gue fo r a stron g con centr ati on of author it y at t he top of the organiz ati onal hi erar c h y. Fa yol was mor e flex ibl e, though, in allowin g f or init iative and innovation at l ower level s in an organiz ati on.

Establ ished rules: W eber ar gued fo r a w ell -define d s ystem of rul es, st andar d operati n g procedur es, and norms s o that behavior wit hin an organiz ati on could be eff ecti vel y controll ed. These stand ar ds provide guid eli nes tha t i n crease p erfo rmanc e b ecause th e y specif y the best w a ys to accompl ish or ganiz ati onal t asks. Fa yol also st ress ed order and discipl ine, which echo th e tenets of W eber ’s princ ipl e, but Fa yol also st ress ed equit y and esprit de corps, p rincipl e s that emphasiz e th e need to t reat emplo ye es f airl y and to cre ate a posi ti ve work environme nt.

4. Which of Weber ’s and Fayol’s pri ncipl es seem most relevant t o the creat ion of an ethi cal organi zati on?

Ethi cal behavior in or gan iz ati ons i s crucial for or ganiz ati onal success and e mpl o yee well bein g. W eber’s focus on p erfo r mance and abil it y r ather t han social st atus or we alt h as determi nants of authorit y, a re r elevant t o ethi cal consider ati ons. W eber also emphasiz es specificit y in autho rit y hierar ch y, task requir eme nts, and cha ins of comm a nd. B y comm unicati n g to empl o ye es the organiz ati on’s ex pectations for responsi ble beh avi or, mana gement acts ethi call y and fai rl y. Th e fairness and equit y o f the selecti on and promot ion s ystems t hat W eber advo cates en coura ges organiz ati onal m emb ers to act ethicall y and furthe r promot e the interests of the organiz ati on as well .

Chapter02–TheEvolutionofManagem eFa n tyol’s T h o prin u g h cipl t es also e x empl if y ethi c al consider ati

ons. B y re co gniz ing the downside

of specializ ati on and focusi ng upon ex panded empl oye e duti es and r esponsi bil it ies, Fa yol avoids unethi cal t reatm ent of e mpl o yees. Th e ne ed to t reat emplo yees in a just a nd respectful m ann er is central t o F a yol’s princip le of equit y. Also empha siz ed is t he respect for e mpl o yees ’ sense o f int egrit y, which is c rucial for cr eati n g an ethi c al o r ganiz ati on.

A fai r and w e ll -designed p a y

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s ystem i s also nec essar y, as di scussed in the princi ple of “R emuner ati on of P ersonnel.”

Good performan ce shoul d be re warded, and the s ystem n eeds t o be uniforml y appl ied to empl o ye es to ensure equit abl e and ethi c al t reatm ent.

5. Wh y w as t he w ork of Mary Parker Foll ett ahe ad of i ts t ime? T o w hat degree do you thi nk it is appropri ate today?

Mar y P arke r Foll ett wrot e mainl y in r esponse to the lack of conce rn for th e human side of the organiz ati on b y other m a nagemen t t heorists and p racti ti oners. She pointed out t hat m anagement often overlooks the man y contribut ions t hat employe e s can m ake to or ganiz ati ons when mana gers all ow them t o participate and ex ercise i nit iative. Her work w as im portant becaus e she call ed for empl o ye e invo lvement i n anal yz in g thei r jobs and participatin g i n the work developm ent proc ess. Fo ll ett was ahead o f her tim e bec ause she anti cipated the curr ent i nterest i n self-mana ged teams and empowerment, i n which workers man a ge man y o f their own acti v it ies. Her fo cus on “c ross -func ti oning,” in which diff ere nt departments work to ge ther in cross - departmental te ams t o ac compl ish projects, was a n approach th at was ah ea d of its t im e, but i s increasin gl y uti li z ed today. Foll ett advocat ed a hor iz ontal view of power an d authorit y. S he suggested th at t hose with t he knowled ge to help th e or ganiz ati on achiev e it s goals s hould hav e more authorit y, and auth orit y shoul d be flex ibl e to m eet t he needs o f or ga niz ati on at di fferent ti mes. This approach w as ver y radi cal f or its t im e, and directl y contr asted th e work of Fa yol and W eber.

Foll ett ’s approa ch is appr opriate in toda y’s ev er - c hangin g busi ness environ ment. New issues const antl y a rise, and o r ga niz ati ons need to be able to adapt and ch an ge in or der to survive. An organiz ati on that has an a rchaic man a gement st ru c ture that im pedes comm u nicati on and thwarts efforts to respond t o chan gin g ne eds wil l not survive glob al and domesti c c ompetit ion. Or ganiz ati ons also need t o respond t o the advan ce s of technolo g y that ma y mak e som e organiz ati ons obsol ete. Fol lett’s emphasis on flex ibil it y and the human si de of or ganiz ati ons make her approa ch ver y r elevant for o r ganiz ati ons st ruggli n g to su rvive an e ver -ch an gin g busi ness environment.

6. What i s conti ngen cy th eory? What kinds o f orga nizat ions f amili ar to you have be en succ essf ul or unsuccessf ul i n deali ng w it h conti ngencies from the external en vironme nt?

Chapter02–TheEvolutionofManagem eThe n t Tim h oportant u g h t messa ge o f conti ngenc y theo

r y is t hat t here is no one b est wa y to m ana ge.

If an organiz ati on is to succee d, man a gers must look t o the environment i n whic h the organiz ati on operates to det ermine the kind of strate g y, structur e, and control s ystems t o im plement. S ince t he abil it y of an o r ganiz ati on to obt ain resources d epe nds on t he nature and cha racte risti cs of the environment , m ana ge rs c annot afford to adher e to an inflex ibl e managemen t st rateg y.

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The strate g y will need to adapt t o chan gin g ch ara c terist ics of the environme nt. Mana gers must reco gniz e the opportuni ti es and li mi tations som etimes im posed b y the environ ment , and then. organiz e and control a cti vit ies accordin gl y. The ul ti mate goal i s to b e abl e to respond t o a chan gin g environment qu ickl y and eff ecti vel y.

Ex ampl es of organiz ati o ns t hat were un able to de al wit h conti ngen cies fro m t he environment include those that have b ecome obsolete du e to ch anges in t echnolo g y, the entr y o f new competit ors in the enviro nment, and chan ges in ec onomi c condit ions. Intel is s uccessful be cause it developed new comput er technolo g y that surp as sed ex ist ing technolog y. McDonald ’s has ex panded their custom er base b y developi n g ne w products t o appeal t o he a lt h conscious adult s, an incre asingl y popula r trend in t he fast - food indus tr y. Donn a Ka ran, a hi gh -end clot hing manufactur er, has b een u nsuccessful i n controll in g costs that it s sales c ann ot sup port. P eople are now spending l ess m one y on clot hin g than durin g previous dec ades and D onna Kar an was sl ow to respond t o thi s environmental shi ft. America On li ne was unprep ared for t he shi ft to broadband int ernet ac cess and h as b een slow t o formul ate a n ew strate g y fo r suc cess i n a n environment i n which functi oning sol el y as an int ernet port al no l onge r provides a competit ive advanta ge .

7. Wh y are m echanis ti c a nd organi c str uctures sui ted to dif ferent org aniza tional environment s ?

There are two b asic wa ys that mana gers can or gan iz e and control an or gani z ati on’s acti vit ies to respond t o the nature o f i ts environment. A mecha nist ic structure is chosen when the environment surroundin g an or ganiz ati on is stable. This would be the case f or an or ganiz ati on that has st ead y suppl y an d demand and is somewh at i mm une to t he fluctuations of the econom y.

A mechanist ic structur e i s chara cteriz ed b y a “top - down” hiera rch y and th at vertical hi er arch y o f authorit y is t he main mea ns used to control subord inat es’ behavior. M ana ge ment closel y supervises subordinates a nd the emphasis i s on st rict di scipl ine and order. A mechanist ic structure all ows input s to b e obtained at t he low est cost, givi n g an or ganiz ati on the most control over its conversion pro ce sses and enabli n g the mo st efficient produ cti on of goods and s ervic es. In a stable environm ent l ower level empl o ye es do not need to m ake man a ge ment decisi ons in response to ch an ging env ironment char acterist ics.

An or ganic stru cture is c hosen when the environ ment s urrounding an or ganiz ati on is changin g rapi dl y, makin g it is m or e difficult t o obtain acc es s to resources. In thi s ki nd of

Chapter02–TheEvolutionofManagem eenvironment, n t T h o u g h tmana gers n eed to be able to respond

qui ckl y to sei z e resources, so i t m ust be

fre e from t he difficulti es associated wit h a vertical hi e rar ch y that ex ist s in a mechanist ic structure. Inst ead of vertical authorit y, authori t y is m ore de centr ali z ed to people lower in the o r ganiz ati on. Departments a re en cour a ged to t ak e a cross -dep art mental or functi onal pe rs pecti ve, which mak es authorit y mor e horiz ontal than vertical. An o r ganic structure all ows man a ge rs to react m or e quickl y to a chan gin g en vironment than a mech an ist ic structure.

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There is l ooser control t han in a mech anist ic structure, and the reli anc e is on shared norms, r at her than rules and S OP’s, to guide or ganiz ati onal acti vit ies. An advanta ge is t h at authorit y rests with the people who a re in t he best pos it ions t o control and address t h e cur rent p roblems t he organiz ati on is facing.

ACT ION 8. Questi on a manager a bout hi s or her views of the relat ive import ance of Fayol’s 14 principl es of management.

The following is a b rief o verview of Fa yol ’s 14 pri ncipl es of mana gement.

Divisi on of L abor : W orkers should be speci ali z ed, but s hould also be given more job dut ies to perform or shoul d assu me more responsi bil it y f or work outcomes.

Authori ty and Responsi bil it y : Be yond formal authorit y, thi s includes infor mal authorit y derived from p ersonal ex pertise, knowled ge, and morals.  Unity of C ommand : A n e mpl o yee shoul d r ec eive orders f rom onl y on e superior, rath er than from t wo or more, whi ch safe gua rds a gainst inef ficienc y and ov erlap.

L ine of Authori ty: T he li ne of authorit y is t he chain of mana ge rs in an or gani z ati on from the top to t he bott om. The number of lev els s hould be lim it ed to help ensure ti mel y and flex ibl e reacti ons t o prob lems, and to facil it ate co mm unicati on.

C entral izat ion : T his is the de gre e to which autho rit y is l ocated at t he top of the organiz ati onal hi erar ch y.

Unity of dir ecti on : M ana gem ent sho uld have one plan of acti on to guide m ana gers and workers as the y use or ga niz ati onal resources — a s ingle ove rall guidi ng pla n and organiz ati onal st rate g y.

Equit y: E quit y is a combi nati on of just ice and resp ect t oward empl o ye es. T his i s a primar y concern for man y man a gers who wo rk with di vers e workfo rces.

Order : M ana ge rs achi eve order b y ensu ring th at e ver y empl o yee finds a po sit ion i n the organiz ati on that provides the organiz ati on with t he great est benefit whil e p roviding empl o ye es with t he gre at est car eer oppo rtunit ies to sati sf y their o wn needs. Order also addresses the n eed for or ganiz ati onal cha rts to cla rif y empl o ye e posi ti on a nd promot ion opportuni ti es, and car eer planning Initia ti ve: T his principle involves encoura gin g empl o ye es to b e cr eati ve an d innovative in their work, which le ads t o progress and innovati o n.

Chapter02–TheEvolutionofManagem e n t T Discipl h o u g h tine: T his i s the need for obedi ence,

ener g y, appli cati on, and outward marks of

respect fo r a supe rior’s a uthorit y from emplo ye es. Discipl ine result s in resp ectful rel ati ons between or ganiz ati onal m embers and r efle cts t he quali t y of an o r ganiz ati on’s leadership.

Remunerati on of Person nel : T his refers to the re ward s ystems, which sho uld be equit able for empl o yees and the or ganiz ati on. The s ystem s hould encoura ge producti vit yby

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rewa rding well -dire cted effort, and it shoul d be r e sis tant to abuse. It shou ld be uniforml y appli ed to all emplo ye es.

Stabi li ty of tenure of personnel : T his i s the concep t of long-te rm, but not necessaril y li feti me, empl o yment.

Subordi nati on of i ndividual i nterest t o general i nterest : T he int erests of the organiz ati on as a whole must take pr eced ence ov er the int er ests of an y on e indi vidual or gr oup.

Espri t de corps : A shared feeli n g of comr adeship, enthus iasm, or devoti on to a comm on cause, such as the or ganiz ati on, is im portant for a su ccessful m an a gement e ffort.

9. Visi t at l east t w o organizat ions i n your communit y , and identif y those that seem to operate w it h a T heory X or a T heory Y approach to management.

(Note to th e in stru cto r: S tudent answers wil l var y. The following is a b rie f overview o f the Theor y X and Theor y Y approach to m an a gement .)

T heory X approach to m anagement : Ac cordin g to t his t heor y, man a gers b e li eve the ave ra ge worker is laz y, disl ikes work, and will tr y to do as li tt le as poss ibl e. These mana gers b eli eve that it is t heir job t o counteract t he natural t end encies of worke rs to avoid work b y closel y supervising and controll ing them. C ontrol i s ex erc ised through a s yst em of rewa rds and punis hments. This theor y asserts t hat m ana gers ne ed to m ax im iz e control and mi nim i z e empl o ye e autonom y over their work and wo rk pa c e. C ooperati on is neit her ex pected nor desired b y the wo rkfor ce. Man a gers see thei r role as to closel y moni tor work ers to e nsure the y contribut e to t he producti on process and foll ow the rules and standard op er ati ng p roc e dures of the organiz ati on, and do not t hreaten produ ct qualit y.

T ypic al ex ampl es of The or y X or ganiz ati ons i nclude fast food r estaur ants a nd retail st ores. Empl o yee tu rnover tends to be ver y hi gh and empl o ye es ar e mot ivated mos tl y b y the mone y and man y will quit as soon as a short term finan cial ob jecti ve is achiev ed (pa y o ff a tra ffic tick et, bu y books for the semeste r, b u y c ar insuran ce ). R ules, procedur es and st rict m a nagerial ove rsight are often eff ecti ve in t hese or ganiz ati ons.

Chapter02–TheEvolutionofManagem eTnheory t T h oYu Approach ght to Management : Ac cordin

g to Theor y Y, wo rkers do n ot naturall y disl

ike work; t he work sett in g it self determi nes wh ether o r not work is seen as a so urce of s ati sfacti on or punis hment. Given the c hance or oppo rtunit y, wo rkers wil l do what i s goo d fo r the or ga niz ati on. It i s the man a ger ’s task t o creat e a wo rk sett ing th at encour a ges comm it me nt t o organiz ati onal objecti ves. If man a gers b eli eve that work ers a re m oti vated, the y can d ecent rali z e authorit y an d give mor e control ove r the job t o workers. A m ana ge r’s role is no t t o contro l emplo ye es, but to provide support and advi ce.

Chapter02–TheEvolutionofManagem entThought

T ypic al ex ampl es of The or y Y or ganiz ati ons i nclude law offi ces, hospi tals, and schools .

These are or ganiz ati ons t hat emplo ye e highl y ski ll ed, hi ghl y edu cated empl o ye es who ar e o ften ex perts at what t he y do. The y are mot ivated b y their enjo yment of their work, ambi ti on, and the desire to be perc eived as ex cell ent at what t he y do. Mana ge rs most l y just need to poi nt t he wa y and the empl o ye es will take c are of the rest.

AAC S B sta ndards: An alyt ic, Refl ecti ve Thinki n g

BUI LDI NG MANAGEMENT SKI LLS Man agin g Your Own Bu sin ess 1. Use the principl es of We ber and Fa yol t o deci de on the system of or ga nizat ion and management t hat you thi nk w il l be most eff ecti ve f or your grow ing or ganizati on. How many levels w il l t he hierarchy of your organizat ion have? How much author it y w il l you decentral ize to your subor dinat es? How w il l you establ ish t he division o f l abor betw een subordi nates? Wil l your subordi nates wor k alone and report to you or w ork in t eams?

(Note to th e in stru cto r: Due to t he nature o f the q uesti on, indi vidual answers wil l var y. The following point s sho uld be address ed in ea ch ans wer ) W eber developed his fiv e principl es of bur eau cra c y th at ut il iz e a formal s ystem of or ganiz ati on and admi nist rati on to en sure ef ficienc y and e ffe cti veness. The cl ear sp ecifi cati on of posi ti ons withi n the organiz ati on’s hierar ch y and the use o f rules and st anda rd oper ati ng proc edur es (SOP’s) to re gulate how t asks are p erfo rmed make it easier for m ana ge rs to organiz e and contr ol the work of subordinat es. Bure aucr acies t end to ha ve more levels of hi era rc h y than do othe r s ystems. Authorit y deriv es from pos it ion i n the hierar ch y and d ecisi ons are made at t he top and “trickle down” to l ow er l evels i n the or ganiz ati on.

S ubordinates tend to work independentl y and are t ypicall y not given m uch authorit y. Labor tend s to b e ver y spe cializ ed and divi ded among man y subordin ates. Problems can a rise withi n a bu reauc rati c s ystem wh en the number of rules and S OP’s make decisi o n making

Chapter02–TheEvolutionofManagem eslow n t Tand h o uine g h ffi t cient, and restri ct t he flex ibi li

ntl y and e ffe cti vel y.

t y of the m ana ge rs to sol ve problems efficie

Chapter02–TheEvolutionofManagem entThought

Fa yol i denti fied fou rteen principl es of mana gemen t t hat he beli eved to be es senti al t o increasin g the effici enc y of the m an agement proc ess. S ever a l of these ar e r elevant wh en decidi n g which s ystem of or ganiz ati on and mana gement shoul d b e im plemented. Divi sion o f labor was suggested, but Fa yol also advocated th at worke rs should be given mor e r esponsi bil it y and authorit y. Fa yol went b e yo nd fo rmal aut horit y to i nclude informal authorit y, such as ex pertise or knowledge, as w ell . He a lso s tressed the im portan ce of lim it ing the number of levels of mana gement, su ggesti n g that subordinates report t o one mana ge r onl y.

This reduces comm unicati on problems so t hat an or ganiz ati on c an act qui ckl y and flex ibly. Fa yol also advocated t eams and c ro ss -departmental int e gr ati on, as opposed to indi viduals working alone. Decentr ali z ati on of authorit y is also part of Fa yol ’ s principl es, all owing authorit y to be diffus ed throughout an o r ganiz ati on, rather than centr ali z ed at t he top of the hier arc h y.

2. Which managem ent ap proach (for exampl e, T he ory X or Y ) do you propo se to use to run your organi zati on? In 50 or fewer w ords w rit e a st atement describi ng the manag ement appr o ach you beli eve w il l motivate and coordi nate your subor dinat es, and t ell w hy you thi nk thi s st yle w il l be best.

(Note to th e in stru cto r: S tudent answers wil l var y. The following is an ov erview of Th eor y X and Y.) Mana gement app roa ches are t ypicall y dev el oped f rom eit her Theo r y X or Y. Theor y X man a ge rs closel y sup ervise and co ntrol workers’ b ehavior b y a s ystem o f rew ards an d punis hments. The y max im iz e management c ontrol and mi nim iz e control workers h ave ove r the pace of work. Mana gement se es it s task as counter acti n g worke r’ s natural t enden cies to av oid work. Theor y Y mana gers do not ne ed to closel y control worke rs’ behaviors be cause the y b eli eve that work ers, when given the ch anc e, will do what i s good for t he or ganiz ati on. Mana ge ment views it s task as creati n g a work sett in g that encour a ges comm it me nt t o organiz ati onal goals , with t he assum pti on that workers wil l ex ercis e self -cont rol when the y are comm it ted to these goals. C omm it ment also provides opportunit ies for worke rs to be im a ginative, and to ex er cise ini ti ati ve and self -dir ecti on.

W hil e som e students m ay a r gue pe rsuasivel y fo r a Theor y X t yp e of app ro ach, the natur e of the compan y su ggests a The or y Y appro ach. C omput er gami n g is a hi ghl y co mpetit ive indust r y and the successful games ar e creati ve, compl ex , int ricate and im merse

Chapter02–TheEvolutionofManagem ethe n t pla T h ye o u rg in h t the im agina r y world. This s uggests

that empl o ye es, particul arl y the softwar

e develop ers, graphic a rtist s and comput er technici ans wil l be highl y edu cated, hi ghl y cr eati ve and lar gel y s elf -mot ivated. Hi gh levels of bure aucr ac y wil l seriousl y im pede the ch aoti c process o f game cre ati on.

Chapter02–TheEvolutionofManagem entThought

This i s som ethi ng that the founder should und erst and well , so i t i s li kel y that the founder will be looki ng for good p eople who identi f y with hi s/her visi on and then he or she will let them go to develop t he best game th e y can. Th ere will be nat ural t endenc y for coo rdin ati on, so t he owner’s best s trate g y is t o prevent the cre ati on of bar riers t o coll aborati on.

AAC S B standards: An alyt ic, Refl ecti ve Thinki n g

MANAGI NG ETHICALLY Notes f or T op i cs f or Discu ssi on and Action 1. Use the theories dis cu ssed in the chapter to de bate the ethi cal i ssues involved in t he w ay the We stl and/ Hall mark Mea t C o. busi ness operated.

(Note to th e in stru cto r: S tudent answers wil l var y. ) W estl and/ Hall mark Mea t C o . flagr antl y disr e gard ed establis hed he alt h procedures and also treated anim als i nhuman el y. B y slau ghterin g sick cows and all owin g them to enter the food chain, dra ggin g sick cow s usi ng metal ch ains and forkli fts, shocking them with electric prods , and sho oti ng w ater in t he ir noses and fa ces, the co mpan y h as resort ed to unacc eptable and unethi cal pra cti ces.

Accordin g to t he S cientif ic Mana gement Th eor y, W estl and/Hall mark shoul d have codified the method for per formi ng t a sks i nvolved in meatpack ing int o wri tt en rules and standard oper ati ng procedur es. Mana gement then should have closely watched how empl o ye es were car r yin g out their jobs and if non-com pli ance was obs erved, th ose empl o ye es shoul d ha ve been r eprimand ed and corr ected. This woul d have eli mi nated una cce ptable empl o ye e pr acti c e s , thereb y avoidi n g the untoward situation the developed. Si mi larl y, the fifth principl e of M ax W eber’s Theor y o f Bure aucr ac y stat es that m ana gers must cr eate a well -defined s ystem of r ules, stands, operati n g s ystems, and norms s o th at t he y can eff ecti vel y co ntrol behavior wit hin t he organiz ati on.

2. Also us e the theories to di scuss t he ethi cal i ssues involved in t he w ay th e meat pac king busi ness i s being conducted today.

Chapter02–TheEvolutionofManagem entThought

(Note to th e in stru cto r: S tudent answers wil l var y. ) Factors su ch as prop er h ygien e b y empl o yees, the torture of anim als t o get the work done quickl y, and all owing sic k cows t o enter the food chain persis t i n the meatp ackin g indus tr y toda y. Be cause m ana ge rs must rel y upon their p ersonal and or gani z ati onal ethi cs t o guide th eir decisi on making re ga rding e ach of th ese iss ues , et hics traini ng and reinfo rc ement of high ethi cal standards in t his i ndust r y is crit ical .

Accordin g to t he H awtho rne studi es, mana ge rs ca n be trained to beh ave in wa ys that wi ll eli cit cooperati ve b ehavior fro m t heir subordinates, so t hat producti vit y is po sit ivel y im pa cted. If this is t he case, man a gers wh ose behavior r efle ct hi gh levels of int e grit y and ma ke highl y ethi c al decisi ons can influen ce t heir empl o ye es to d o the sa me. Also, ac cordin g to Theor y Y, empl o ye es will make decisi ons t hat are in t he best i nter est of the organiz ati on, provide d that mana gement creat es a hi ghl y ethi cal c orporate cult ure and wo r kers ar e all owed to ex er c ise self -ini ti ati ve and self-dire cti on . The y must also be provided with ad equate r esourc es to achie ve or ganiz ati onal goals.

3. Search the web for cha nges occurri ng in t he me atpacking bus iness.

(Note to th e in stru cto r: S tudent answers wil l var y. ) Meat -pa cking busi ness es toda y are la r gel y autom a t ed. E x ampl es include hog jaw and snout pull ers, boning tables, cu tt ing floor and h arvest flo or equipm ent and conv e yors, and pack -off conve yors. Th ese machin es provide “sta rt to finis h� pro cessi n g, r educ e inci dences of dise ase transmi ssi on, torture of a nim a ls, and wasta ge, whi le at t he same tim e incr ea ses effici enc y and th e quali t y of the p roducts.

AAC S B standards: An alyt ic, Refl ecti ve Thinki n g

SMALL GROUP BREAKOUT EXERCI SE Mod eli n g an Op en S yste m T hink of an organi zati on w it h w hich you are all famili ar , such as a l ocal restaur ant , stor e, or bank. After choosi ng an organ izat ion, model i t f rom an open -s yste ms pers pecti ve. Id enti fy its input , conversi on, and output processes; and ident if y forces in t he external

Chapter02–TheEvolutionofManagem eenvironment n t T h o u g htt hat help or hurt the organizat ion’s abi

goods and services.

li ty to obtai n resources and di spose of it s

Chapter02–TheEvolutionofManagem entThought

An open s yst em i s one that takes in resour ces f ro m t he environment, chan ges o r transfo rms them int o goods and se rvices, and sends t hem back int o the environment whe re t he y are bou ght b y custom ers. St udents s h ould i denti f y all thre e parts of the open s ystem proc e ss.

The term “open s ystem” is us ed b ecaus e the or ganiz ati on mus t draw from and int er act wit h the environment t o survive; t herefo re, it must be open to i ts environment.

Input s ta ge: An or ganiz at ion acqu ires r esourc es fr om t he environment t hat i t needs t o produce goods and s ervic es. T ypicall y thi s includes capit al , empl o ye es, ra w materia ls, and suppli es (such as paper o r comput ers ).

C onversion st age: An or ganiz ati on’s work forc e, using approp riate tools , techniques, and machiner y, tr ansforms t h e input s int o output s of finished goods and s ervic e s. In the case of a restaurant, t he conve rsion st age t akes food and turns it int o a meal, a bank takes in m one y and earns more mon e y, and a retail st ore displ a ys goo ds i n an att racti ve, invi ti ng w a y so t hat custom ers want t o bu y the goods.

Output s tage: An o r ganiz ati on releas es it s out put of fini shed goods and serv ices to i ts environment wher e the y are pur chased and used b y the or ganiz ati on’s custom ers to sati sf y the i r needs. In a restaur ant, t he output is t he deli ver y of the meal t o the custom er (and the subsequ ent cleanin g of the us ed dish es), in a bank the output i s mon e y loan ed or inter e st paid t o custom ers, and in a retail envi ronme nt t he output stage is whe n the custom er walks ou t the door with t heir purchase in a ba g.

Forc es in t he ex ternal en vironment that can a ffe ct t he abil it y of an o r ganiz ati on to obt ain resourc es or dispose of it s goods and s ervices m a y include such fa ctors as n atural di sasters, la ck of avail able labo r, instabili t y o f the e conom y, fluct uati ons i n consum er dem and, and adv ances in technolog y.

AAC S B standards: An alyt ic, Refl ecti ve Thinki n g

E XPLORI NG THE WORLD WIDE WEB S ignificant Mi lestones

Chapter02–TheEvolutionofManagem eFord n t TMotor h o u g hCt ompan y en tered the business wo

rld on J une 16, 1903, when Henr y F ord and

eleven busi nes s associates si gne d the compan y’ s a rticles of incorporati on and fun ded the start -up with $28,000 in cash. The e arl iest record o f a shi pment is J ul y 20, 1903, approx im atel y on e mont h after inco rporati on, to a Detroit p h ysici an. P erhap s Ford Motor C ompan y’s single gr eatest contribut ion t o autom oti ve manufa cturin g was the movi ng assembl y li ne.

Chapter02–TheEvolutionofManagem entThought

First i mpl emented at t he Highland Pa rk plant i n 1913, the new techniqu e a ll owed indi vidual workers to st a y in one pl ace and per form t he sam e task rep eatedl y on mul ti ple vehicles that passed b y them. The li ne proved tremendousl y e ffi cient, helpi ng th e compa n y f ar surp ass t he producti on levels of their competit ors and makin g the vehicles more affo rda ble. In th e 1950’s, the compan y went publ ic for the secon d ti me, and the compan y be gan it s gl obal ex pansion of in the 1960’s.

P ast C hall enges Henr y Ford’s ins ist ence t hat t he compan y’ s futu re la y in t he produ cti on of a ffordable ca rs for a mass market caus ed incr easing friction betw een h im and the other in vestor s. As som e left, Ford acquired enou gh st ock to increas e his o wn holdings t o 58.5 percent and repl ace J ohn S . Gra y, a Detroit b anker, as the co mpan y's pr esident. In 19 19 , a conflict wit h st ockh olders over the mi ll ions t o be spent bui lding the giant R o u ge man ufacturin g compl ex in Dearborn, Mi chi gan led to t he compan y becomi n g wholl y owned b y Henr y F ord and his son, Edsel , who then succ eeded his father as p resident. A fter Edsel Ford pass ed a wa y in 1943, a sadd ened Henr y Ford r esumed the presidenc y. In th e 19 30’s came the rise of or ganiz ed labor. The r elations hip between mana gement and th e unions got off to a rock y sta rt, since Henr y Ford b eli eved that his compan y alread y h ad it s workers ’ best i nterests in m ind.

C urrent C hall en ges In the 20 00s, Ford, lik e o ther glob al ca r companie s, is hust li ng to catch up to the manufactu ring efficien cies of To yota an d Nissan. Alt hough Ford made signifi cant adv ance s in t he 1990s, GM and C hr ysl er r ecentl y sur passed it.

AAC S B standards: An alyt ic

BE THE MANAGER 1. How do t he variou s management theories di scu ssed in thi s chapter off er clues for organi zing and contro ll ing hot el employees?

Mar y P arke r Foll ett ’s the ories giv e much insi ght c oncernin g the empow erm ent of empl o ye es. In thi s eli te hotel, emplo yee s mus t be all owed to s erv ice custom er n eeds wit ho ut alwa ys ch e cking with a supervisor first.

Chapter02–TheEvolutionofManagem e2.n Which t T h o upart g h ts w ould be the most i mportant for

contro l employe es?

a n eff ecti ve syste m to organi ze and

Chapter02–TheEvolutionofManagem entThought

Mar y P arke r Foll ett point ed out t hat m ana gement often overlooks the man y contribut ion s that empl o ye es can m ake to o rganiz ati ons when mana gers all ow them t o particip ate and ex ercis e ini ti ati ve. S he call s for e mpl o yee invol vem ent i n anal yz in g their r esponsi bil it ies and participating in t he work developm ent process. S he also advo cat es self -man a ged te ams a nd empowerment, i n which worke rs mana ge man y of th eir own a cti vit ies. Her ide as conc ernin g “cross - functi oning, ” in which differ ent depa rtments work together in c ross -depa rtmental teams to ensure that a go al, such as ex empl ar y custo mer servic e, i s achiev ed seems relev ant her e.

AAC S B standards: An alyt ic

CASE IN THE NEWS Case S yn op sis : Mr. E den s Profits from Watching Hi s Wor kers’ Every M ove Electronic Bankin g S yst e ms Inc. (E BS ) is a white coll ar finan cial servic es c ompan y. It p rocess es lockbox transacti ons, which means t hat l ar ge numbers of empl o ye es, in a w arehouse -li ke sett ing, open envelopes, reco rd the value of the enclosed check or cash, and verif y the accu rac y o f the financial trans acti on. The founder of th e compan y, Mr. Ron Edens runs an e fficient, l o w-cost operati on. C osts are kept low b y pa yin g low w a ges (mini mum wage o r bar ely abov e mi nim um wa ge) to non-unioni z ed e mpl o yees. Th e compan y is aggr essi ve in i ts efforts to ensure that it s workfor ce r emains non -u nioni z ed. Further, the wo rkplace s ett ing has b een designed to p revent dist racti ons, t he windows are cov er ed so empl o ye e s cannot l ook outs ide, work surfa ces a re posi ti oned so t hat employe e s fa ce the s ame dire cti on which supports t he final rule ; talking is prohibit ed.

In addit ion t o these meas ures, t he compan y’ s focu s on l ow -cost i s supported b y a v ariet y of mana gement pr acti ces. A ll tasks have been brok en down into t he small est uni t so t hat t he same bit of work is repe ated b y a sin gle worke r. This increas es ef ficienc y but also i ncreas es boredom. Empl o yee d ecisi on maki ng is elim inated via the u se of softwa re that dete ct s poss ibl e data entr y errors. Finall y, all empl o ye e a cti vit y is closel y su pervised b y supervisors, camer a surveil lanc e, ti me tracking acti vit ies a nd software th at reco rds the ti me taken to re cord e ach entr y. Th e work is monot onous, boring and sociall y isol ati n g. The e mpl o yees remain with t h e compan

Chapter02–TheEvolutionofManagem ey nbe t Tcause h o u githis t one of the f ew empl o yers left i

n a town that has lo st m ost of it s indu strial

base in t he last three decad es. The comp an y sta ys b ecaus e it has a r ead y suppl y of blue coll ar w orkers wil li ng to do the work for low wa ges.

Chapter02–TheEvolutionofManagem entThought

Qu estion s : 1. Which of t he managem ent t heories described in the chapter does Ron Ed ens make the most use of?

Mr. Edens uses the Th eo r y X mana gem ent appro a ch. T his t heor y rests on t he assum pti ons t hat the aver a ge wo rker is laz y, disl ikes work, and will tr y to do as li tt le work as possi ble. Mr. Edens beli eves that work ers c an not be trusted to do t heir work wit hout constant surveil lance b y comput ers or human sup erv isors. Quotas a re im p osed to ensure hi gh prod ucti vit y levels. The central prin cipal of Theo r y X is t hat m ana gers sho uld closel y supe rvise and control worke rs, and thi s is precisel y the atm osphere at El e ctronic Ban king S yst em, Inc. The w ork sett ing has b een designed to m ini mi z e the control t hat emplo ye es h ave over th eir own beh av ior and the pac e of work. W orkers do not ha ve to t hink or make decis ions. Their work is ver y s pecializ ed and alm ost robotic. There ar e man y r ules and st andard op erati ng pro cedur es in Mr. Ede ns’ or ganiz ati on, and cooperati on is neit her ex pected nor d esired b y the workfor ce. S upervisors watch closel y to se e that empl o ye es do not make mi s takes or slow the work proc ess.

Ta ylo r’s S cientific Man a gem ent P rincipl es also ar e clea rl y b ein g app li ed h ere. W ork has be en decompos ed to i ts s mallest unit to i mprove efficie nc y. Th er e is a cle ar and unambi guous ch ain of comm and and the of fice has removed an y acti vit y that is not s trictl y wo rk r elated. Fu rther, some of Fa yol’s id eas a re also being appli ed, including discipl ine, order, unit y o f directi on, divi sion o f labor and c entrali z ati on. Of cours e, other ide as, such as ini ti ati ve, remuner a ti on of personnel and stabili t y o f tenure o f pers onnel, are not i n eviden c e at EBS .

2. What do you thi nk are the eff ects of thi s approach on (a ) w orkers and (b ) sup ervisor s?

Bec ause of th e monot on y of the work, man y wo rk ers fe el l onel y and trapp e d. The diss ati sfacti on has been ex pressed th rou gh their effo rts to circum vent one of Eden ’s rule s b y talkin g out of the s ides of their mout hs. S tudi es of workpla ce moni toring su ggests that it cr eat es a host il e workplace environment i n which worke rs fe el pre ssured, par anoid, and a re prone to st ress -r elated il lness, all of which impacts s upervisors as w ell as workers.

Chapter02–TheEvolutionofManagem e3.n Do t T hyou o u regard ght Ron Ed en’s approach to manage ment

as ethi cal and acc e ptabl e or

unethi cal and unacceptabl e in t he 2000s? Wh y?

C ompanies have an obli gati on to t reat emplo ye es with di gnit y, r espe ct, and consi derati on.Eden makeslittleattempttodoso,which in t he opini on of man y, m akes hi s appr oach to m ana gement ethi call y un acc eptable.

Chapter02–TheEvolutionofManagem entThought

AAC S B standards: An alyt ic, Refl ecti ve Thinki n g Sourc e: T . Hor wi t z, “M r. Edens Profi t s f rom Wat chi ng Hi s Work er s’ Every M ove,” T he W al l Str eet J our nal , Dece mber 1, 1994 , r eproduced wit h per mi ss i on of Dow J ones & Company Inc.

SUPPLEMENTAL FEATURES Pleas e see the f oll owin g coll ection s on the Asset Gall ery loca ted on the Ins tru ctor OL C at ww w .mh h e.com/jon esg eorge8 e .

VI DEO CASE T h e Assemb ly L in e In 1907, Henr y Ford a nnounce d a specif i c and l oft y go al for hi s company, t o “build a mot or car for t he mul t i t udes .” Hi s engi neer s des i gned t he Model T , which was si mpl e, st ur dy, al ways bl ac k, and les s expe nsi ve t han other car s, but it was sti ll not af f or dabl e t o aver age people. T o pr oduce the Model T as che apl y as he want ed, Ford knew he had t o change t he way ca r s were bui lt .

Studyi ng ot her i ndust ri es f or i dea s, For d obser ved a gr ai n mi l l conveyor and movi ng l i nes at Chi ca go mea t pac ki ng pl ant s a nd saw di vi si on o f l abor as e ach wor ker cut one cut of mea t . Ford a nd his tea m r eal i zed t hat car product i on coul d be r evol uti oni zed by f our pri nci ples : i nt er cha ngea ble par ts, conti nuous fl ow, di vi si on of l abor , and r educi ng was ted ef fort .

Ford hir ed Fr ederick T ayl or as a c onsul t ant t o i ntr oduce sci ent if ic mana ge ment i nt o the Ford Mot or Company.

T ayl or per f or med t i me a nd mot i on st udi es by obser vi ng ever y mo ve ment wor ker s made and t i mi ng t hem wi t h a st opwat ch. He di vi ded t he as se mbl y of the Model T int o 84 si mpl e, r epeti ti ve st eps, wit h ea ch wor ker tr ained t o do onl y one of t hese st eps. T he cutt i ng t ool s and mac hi ner y wer e i mpr oved s o t hat i ndi vi dual pi eces of t he ca r wer e made t he same w ay ea ch ti me. Int er changeabl e part s mea nt , f or i nst ance, t hat any val ve would fi t any engi ne. Once t he mac hi nes wer e a dj ust ed, a l abor er wi th l ow ski l l s coul d oper at e t hem. Ther e woul d be no mor e need f or ski ll ed cr af t smen wit h yea r s of appr enti ceshi p. Men coul d lea r n t o do any j ob

Chapter02–TheEvolutionofManagem e n qui t T hckl o uy.g Whe h t el maki ng, f or exa mpl e, no l onger r equir ed a t rai ned wheel wri ght ; i nst ead, t he

proce ss was br oken down i nt o nearl y 100 stages , done by di f ferent men a t di ff er ent mac hi nes.

Ma ki ng a c ar became much f ast er , but wor ker s sti ll c oul d onl y compl et e 20 i n a day.

T he most dr amat ic c hange c ame when Ford dec ided t o t r y an idea: Inst ea d of movi ng t he men pa st t he ca r s, why not move t he c ars pas t t he men? A si mpl e e xper i ment , i n whi ch a str ong young wor ker

Chapter02–TheEvolutionofManagem entThought

pul led a ca r t hr ough t he f act or y as ot her s f ast ened on par ts, led to t he i nstall at i on in 1913 of conveyor belt s to del i ver part s t o worker s. It was t he f ir st movi n g as se mbl y l i ne used i n l ar ge -sc al e manuf ac t ur i ng and all owed Ford t o produce car s at a rec or d -br ea ki ng r at e. T he time i t t ook t o bui ld a Model T dropped t o 93 mi nut es . Ma nagement se t t he spee d of t he a s se mbl y l i ne and wor ker s wer e unable t o stop or sl ow i t. Few coul d st and the relentl ess pac e and noi se f or mor e t han a few wee ks bef or e t hey quit . In 1914 Ford s hort ene d t he work day f r om ni ne hour s t o ei ght i n or der t o r un t hr ee shi ft s and doubled wages to $5 a da y t o kee p men on t he l ine. Whil e ot her manuf act ur er s consi der ed t his wage e xtr avagant , For d beli eved t hat wel l -pai d wor ker s would not onl y endure t he dull wor k but al so buy hi s car s.

Mor e t han 15 mi l li on Ameri ca ns bought a Model T duri ng t he 19 y ear s i t was produce d. T he pri ce went down f r om $980 when i t was intr oduced in 1908 t o as l ow as $280. Ford’ s mas s pr oduct i on t ec hni ques event ual l y all owed f or t he manuf act ure of a Model T ever y 24 seconds.

Ques ti ons 1. What downsi de do you t hi nk workers exp eri ence d aft er Tayl or hel ped Ford i ntroduce job spe ci ali zat ion in his f act ory? Think of an ex ampl e f rom t he vi deo.

2. How does a movi ng assembly li ne fi t i nto t he bel ief s of a Theory X manager, a designati on gi ve n t o Henry Ford?

3. How di d Tayl or re commend t h at worker s shoul d benefi t f rom t hei r i ncreas ed performance?

Di d Henr y Ford f ol low t hat recommendati on?

Sourc es: John Cr andall , “Henr y Ford’s Assembl y Line ,” htt p :/ /automot i ve - hi st or y.suit e101.com/ art icle.cf m/ henr y_f or ds_as sembl y_l i ne , acce sse d August 4, 2008; “For d Inst al l s Fir st Movi ng Ass embl y Line , 1913,” htt p: // www.pbs.or g/ wgbh/ as o/ datab ank/ ent ries / dt 13as.ht ml , ac cess ed August 4, 2008; and Mar y Bel li s, “ Henr y Ford,” ht t p: //i nvent ors.a bout .com/ li br ar y/ i nvent or s/ bl f or d.ht m?p=1 , acc ess ed August 4, 2008.

Vide o Case Teaching Notes: Ford’ s Asse mbl y Line Teac hing O bj ect i ve: T o expl ai n how t he f ir st asse mbl y l i ne use d i n aut o pr oducti on changed t he wor kpl ac e and t he i ndust r y.

Sum m ary: Af ter Henr y Ford de vel oped t he Model T , he s ought a way t o pr oduce t he car f ast er an d mor e che apl y. Fre der ick T ayl or hel ped Ford speed up pr oduct i on t hr ough j ob spe ci al i zati

Chapter02–TheEvolutionofManagem e n tTT hen h o uFord g h ti ntr oduced an asse mbl y l i ne t hat br ought car s t o wor ker s and set t he pac e of t hei on.

r wor k, wi t h the res ul t t hat a car could be made i n 93 mi nut es . T o kee p men on t he str essf ul , repet it i ve, fast -pac ed j ob, Ford doubl ed t heir pay t o $5 a day.

Chapter02–TheEvolutionofManagem entThought

Q uest ions: 1. What downsi de do you t hi nk workers experi ence d aft er Tayl or hel ped Ford i ntroduce job spe ci ali zat ion in his f act ory? Think of an ex ampl e f rom t he vi deo.

Sinc e speci al i zat i on di vi des j obs i nt o mi ni scul e steps per f or med by di f f er ent wor ker s, t hey ca n ea sil y bec ome bor ed by t he r outi ne, r epeti ti ve t asks t hat r esult . Job s ati sfac ti on ca n pl unge a s i ndi vi duals f eel l ess si gni fica nt , li ke a part of t he mac hi ne r y. In Ford’ s f act or y, f or exa mpl e, a ski l l ed wheel wri ght no longer made ent ir e wheel s but onl y a s mal l par t of ea ch one. He woul d not f eel t he s at isfac ti on of cr af ti ng a c ompl et e pr oduct or the pri de i n doi ng i t well . In f act , ski ll ed cr af t smen were not n eeded as anyone coul d be t r ai ned t o do t he si mpl e tas ks.

2. How does a movi ng assembly li ne fi t i nto t he bel ief s of a Theory X manager, a designati on gi ve n to Henr y Ford?

A mo vi ng as se mbl y l i ne brings t he work t o t he wor ker s and det er mi nes t he pace of wor k. T hey must kee p up or the enti r e syst em get s ba cked up; it i s obvi ous if a wor ker is t oo sl ow or sl acki ng of f . For T heor y X mana gers, who bel ieve most wor ker s will do as l it tl e as possi ble, r el yi ng on mac hi nes to kee p wor ker s per f or mi ng at a hi gh l evel is an e ff ect i ve way t o contr ol empl oyee s.

3. How di d Tayl or re commend t hat worker s shoul d benefi t f rom t hei r i ncreas ed performance? Di d Henr y Ford f ol low t hat recommendati on?

T ayl or sai d wor ker s s houl d be r ewar ded wi th bonuse s for gai ns i n t hei r perf or mance.

W or ker s bene fi ted when Ford r educed t he work day f r om ni ne hour s t o ei ght hour s i n or der t o have t hr ee shi ft s and when he doubled t hei r pay t o $5 a day, alt hough he ma y have be en mor e mot i vat ed to kee p wor ker s in his f act or y and e nable t hem t o buy a Model T r at her t han to shar e hi s pr ofi ts wit h t hem.

MANAGER’S HOT SEAT (MHS) Cul tural Diff eren ces: L et’s B reak a D eal (Note: A lso r ecom m en ded w it h ch apter 6 )

Chapter02–TheEvolutionofManagem entThought

SELF- ASSESSMENT(S) Corp orate Cul ture Pr ef eren c e S cale (#3 on li n e)

Chapter02–TheEvolutionofManagem entThought

TEST YOUR KNOWLEDGE Hi storical Persp ec tive t o S trategic Man age men t Fu n ction (#18 on l in e)

I NSTRUCTOR’S POWERPOI NT SLIDES These Instructo r’s P ower P oint sli des can be used to s upplement t he lecture material.

INST RUCTO R’S POWE R POINT S L IDE 1 Chap ter T itle

INST RUCTO R’S POWE R POINT S L IDE 2 L earn in g Ob jectives

INST RUCTO R’S POWE R POINT S L IDE 3 L earn in g Ob jecti ves co n t.

Chapter02–TheEvolutionofManagem entThought

INST RUCTO R’S POWE R POINT S L IDE 4 T h e E volu tion of Man age men t T h eory : Figu re 2.1

INST RUCTO R’S POWE R POINT S L IDE 7 S cientif ic Man agement

INST RUCTO R’S POWE R POINT S L IDE 5 Adam S mith

INST RUCTO R’S POWE R POINT S L IDE 6 Job S p ecial ization

INST RUCTO R’S POWE R POINT S L IDE 8 Prob le ms w ith S cientific Man age men t

INST RUCTO R’S POWE R POINT S L IDE 9 T h e Gil b reths

Chapter02–TheEvolutionofManagem entThought

INST RUCTO R’S POWE R POINT S L IDE 10 Admin istrative Man age men t T h eory

INST RUCTO R’S POWE R POINT S L IDE 11 Max Web er

INST RUCTO R ’S POWE R POINT S L IDE 12 Web er’s Prin cip les of B u reau cracy: Figu re 2. 2

INST RUCTO R’S POWE R POINT S L IDE 13 Rul es, S OPs an d Nor ms

INST RUCTO R’S POWE R POINT S L IDE 14 Fayol’s Prin cip les of Man age men t: Divis ion of L ab or etc.

INST RUCTO R’S POWE R POINT S L ID E 15 Fayol’s Prin cip les of Man age men t: In itiative etc.

Chapter02–TheEvolutionofManagem entThought

INST RUCTO R’S POWE R POINT S L IDE 16 B eh avioral Man agemen t

INST RUCTO R’S POWE R POINT S L IDE 17 Mary Park e r Foll ett

INST RUCTO R’S POWE R POINT S L IDE 18 T h e Haw thorn e S tud ies an d Hu man Relation s

INST RUCTO R’S POWE R POINT S L IDE 19 Haw thorn e eff ect

INST RUCTO R’S POWE R POINT S L IDE 20 Hu man relation s move men t: d ef in ition

INST RUCTO R’S POWE R POINT S L IDE 21 B eh avior of man agers

Chapter02–TheEvolutionofManagem entThought

INST RUCTO R’S POWE R POINT S L IDE 22 In f ormal organi zation an d Organ ization al b eh avior

INST RUCTO R’S POWE R POINT S L IDE 23 T h eory X

INST RUCTO R’S POWE R POINT S L IDE 24 T h eory Y

INST RUCTO R’S POWE R POINT S L IDE 25 T h eory X vs. Th eory Y : Figu re 2.3

INST RUCTO R’S POWE R POINT S L IDE 26 E xamp le—Dave Pack a rd

INST RUCTO R’S POWE R POINT S L IDE 27 Man age men t Scien c e T h eory

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INST RUCTO R’S POWE R POINT S L IDE 28 Qu an titative an d Op eration s man age men t

INST RUCTO R’S POWE R POINT S L IDE 31 Op en S ystem: def in ition

INST RUCTO R’S POWE R POINT S L IDE 29 T otal q u ali ty man age men t an d Man agemen t in f orma tion syste ms

INST RUCTO R’S POWE R POINT S L IDE 30 Organi zation al E n vironmen t

INST RUCTO R’S POWE R POINT S L IDE 32 T h e Organi zation as an Op en S yste m: Figu re 2.4

INST RUCTO R’S POWE R POINT S L IDE 33 In p u t, Con version & Ou tpu t stages

Chapter02–TheEvolutionofManagem entThought

INST RUCTO R’S POWE R POINT S L IDE 34 Closed syste m: def in ition

INST RUCTO R’S POWE R POINT S L IDE 35 S yn ergy

INST RUCTO R’S POWE R POINT S L IDE 36 Contin gen cy T h eory

INST RUCTO R’S POWE R POINT S L IDE 37 Contin gen cy T h eory: Fi gu re 2.5

INST RUCTO R’S POWE R PO INT S L IDE 38 Mech an istic Stru ctur e

INST RUCTO R’S POWE R POINT S L IDE 39 Organi c S tru cture

Chapter02–TheEvolutionofManagem entThought

INST RUCTO R’S POWE R POINT S L IDE 40 Vid eo Case: A FL AC an d Dan A mos

Chapter02–TheEvolutionofManagem e n t T h o u g hManagement t Contemporary 8th Edition Jones

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