Introduction to Management Chapter 2 Study Guide PDF

Dhruv Chaudhari 09/04/2024 Evolution of Management Critics and Four Facets Critics point out studying evolution of management ○ What was done by managers in the past was purely situational Research suggests there are 4 facets of management practices ○ Economic facet, S...

Dhruv Chaudhari 09/04/2024 Evolution of Management Critics and Four Facets Critics point out studying evolution of management ○ What was done by managers in the past was purely situational Research suggests there are 4 facets of management practices ○ Economic facet, Social facet, Political facet, and Technological facet ○ These facets created the “situations” that managers faced at the time Why Study the Evolution of Mangement? “Managment practices” are considered a primary means for an organization to achieve its goals ○ Come goals include increased security, or increased prosperity through efficienct means of trade and production As the Facets changed overtime striving to achieve goals also changed ○ Ended up bringing new and better management practices Ways to view history of management study: ○ “stages” or the periods trying to find prevalent management practices at the times ○ “School of thoughts” by looking at various scientific approach, human behavior approach, decision theory, etc. ○ “Institutions” that are run by managers by looking at different organizations through various life cycles ○ “Biographies” of successful managers and contributions of management theorists Value of studying the Evolution of Management Help answer following questions ○ Have management practice changed significantly over time? Allows managers to realize the importance of recognizing and adapting to change ○ Were all the different organizations across different sectors using simillar practices of management Find if practices can be universal throughout organizations or varied between different organizations or even sectors ○ Do the facets overall determine what management practice are used? The practices that are used can change the facets and in general management practices may influence how facets change and versa ○ Do managers try to get to the “Right Work, Done Well” over time or is it recent?  Overtime views have evolved and there is no norm when it comes to management practice The history of management should be viewed with a “grain of salt” as there are several different ideas and conclusions that historians could have come up to based on previous biases and limitations there were. A History of Categories of Managment Practices Specializaiton of Labor ○ Adam Smith identified the concept of having a person focus on one part of the production process Example, Instead of a farmer doing the whole process of making clothe it could be split amongst several individuals in specialized to do one part of the production process DIfferent parts of an accounting process, instead of one accountant the accounts are split into tax specialists, cost accountants, financials reporting specialists, and etc. Systematic Management ○ In the past ideas on how businesses should be run came from engineers and economists. Systems approach improved the coordination of various activities across business Engineers: focused on how to get the machines running and how to set and run the machines in the factories Economists: focused on financial aspects like keeping track of costs, setting policies, and making proper prices for products ○ Today it is more specialized There are specific engineers working at one part of the overall product Mechanical engineers work on machinery design and industrial engineers focus on plant layouts, etc. Work previously doen by economists is now also split amongst accountants, HR specialists, and etc. ○ Demonstrates the continued use of “Specialization of Labor” Scientific Management ○ Workers used to do their work as told and incentives ○ Frederick Taylor believed in a detailed study of the worker doing their job Sought to find optimal formats,Reduce overall time spent (workers pay should be depended on how much productive he/she was), andSupported union movement to improve working conditions but believed workers should not be paid the same because it would disincentivize the productive workers ○ Frank and Lillian Gilbarth  Frank looked at the motions that the workers did , and Lillian earned a degree in industrial psychology and later became “The first Lady of Managment” ○ In mid 1900s, Henry Gantt introduced graphically illustrating elapsed time in performing various tasks in a process and later it was enhanced with use of computers Allowed for sophisticated scheduling systems such as: Operations research, Critical Path Method, and program evolutions ○ Lean manufacturing comes from Gilbreth’s concept of “removing motion” and Taylor’s concept of removing “Wasted Time” ○ Big Data is used to when describing the collection of large quantities of information to help with decision making Administrative Managment Henri Fayol first suggested practice of management could benefit from developing “management theory” ○ Principles included Division of work, Authority, Discipline, unity of Direction, etc. ○ FIrst to describe the “process of management” Max Weber believed in “bureacracy” as the best form of governance business ○ His model included Division of labor, Managerial hierarchy, Formal selection, Career orientation, Formal rules, and impersonality Weber believed his ideas to be definitive while believed them to be flexible Alhtough Webers ideas are not dogmatic they are used today in terms of monitoring performance and uniform application of rules Human Relations Management Creation of employee welfare departments by major companies in the 1900s like Heinz ○ Organized to combat the power of unions by providing a caring and happy work environment ○ “Welfare Secretaries” with backgrounds in vocational guidance and social work handled employee grievances, operated medical diespensaries, and etc. From Hawthorne studies Managers needed to have ability to understand human behavior, and interpersonal skills in counseling, motivating, leading, and communicating with employees. Mary F. Follett was a prominent figure in organizaiton, responsibility, and power ○ Believed that “moral leadership would enhance the effectiveness of organizations and the well being of society Government initiatives in the 1930s organized labor such as National Labor Relations Act Another change that came forward in the mid 1900s was that there was increased involvement of employees in decision making. 1940s several individuals were influential in putting forth theories regarding human behavior through ideas like managers could not possibly have “perfect ideas” everytimebut analytical tools made the decisions less costly to the organization