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Chapter 2 Notes

by: Maayan Notetaker

Chapter 2 Notes Business Management 101

Maayan Notetaker

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About this Document

These notes cover all of Chapter 2 from the Exploring Management textbook. They include defined terms examples.
Business Management in a Global Environment
Dr. Judith Ryba
Class Notes
business, Management, intro, chapter 2
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This 5 page Class Notes was uploaded by Maayan Notetaker on Sunday September 18, 2016. The Class Notes belongs to Business Management 101 at Yeshiva University taught by Dr. Judith Ryba in Fall 2016. Since its upload, it has received 13 views. For similar materials see Business Management in a Global Environment in Business at Yeshiva University.


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Date Created: 09/18/16
Management Learning: Great Things Grow from Strong Foundations ● Adam Smith accelerated the industrial revolution with his  idea of efficient production by the division of labor and the  specialization of tasks­ 19th century ● The study of scientific management began in the 20th  3 most  century prominent  ○ Ford and General Motors ­ huge boom of  contributors to  mass production the classical  ● Frederick Taylor contributed to the scientific management  management  thinking­ father of scientific management approach ● Max weber ­ bureaucracy (bureaucratic organization) ● Henri Fayol ­ administrative principles Scientific  ● Classical approach based on the assumption that people are Management ­  rational what is it? ● Taylor­ scientific management­ sought efficiency in job  performance ­ basis for the assembly line 4 core principles ○ Believed jobs should be studied to determine  their basic step and analyzed to find the best way to do  them ○ Once “science” of  the job defined­ workers  taught the steps and supervisors trained to encourage and  support­ differnt workers did different steps ○ Maximize prosperity of employer and  employee 1. Develop a science for each job ­ rules of motion, work tools,  and proper work condition 2. Hire workers w/ right abilities for job 3. Train and motivate workers to do jobs according to science 4. Support workers by planning/ assisting their work ● Motion study­ the science of reducing a job or task to its  Modern  basic physical motions­ relates to first principle takeaway ● Theory is that the saving of seconds on individual stops (say for UPS) adds up to increase in productivity ● GIlbreth, Gant, Follet came after Taylor ○ Gant ­ project management ­ scheduling and  controlling work Bureaucratic  ○ Gilbreth­ broke down job in 17 steps  Organization ○ Follet ­ transition betwen classical and  behavioral school ● Today's managers should: Characteristics  ○ Make results­based compensation of an ideal  ○ Design jobs w/ efficient work methods bureaucracy ○ Select workers with aptitude for jobs ○ Train workers to perform to their best ○ Train supervisors to support workers ● Max Weber ­ Bureaucratic organization Management Learning: Great Things Grow from Strong Foundations ○ Bureaucracy ­ a rational and efficient form of  organizations founded on logic, order, and legitimate  authority ○ Attempt to fix problem of undeserving people  in power ● Characteristics of an ideal bureaucracy ○ Clear division of labor ­ jobs are well defined  and workers become highly skilled at them ○ Clear hierarchy of authority ­ authority and  Administrative  responsibility are well defined and everyone reports to  principles­ Henri someone Fayol ­  ○ Formal rules and procedures ­ written  principles guidelines describe expected behavior and decisions in job ­ records kept ○ Impersonality ­ no preferential treatment ­  Commanding  rules are uniform and  ○ Careers based on merit ­ workers are  coordinating are selected and promoted based on ability and performance­  now known as  managers are career employees leading ● Today bureaucracies don't always follow expectations ● Because org. Must be flexible and quickly adapt to changing times ○ Slow in handling problems and resistant to  change ○ Bureaucracy does not always work Behavioral  ● Administrative principles of management to increase  management  efficiency of org. Follett­  ○ Foresight ­ plan of action for future­ goal communities of  ○ Organization ­ provide and mobilize  cooperative  resources to implement plan ­ structure actions ○ Command­ lead, select, and evaluate  workers ○ Coordination­ fit diverse efforts together,  ensure info sharing and problem solving ○ Control­ make sure things happen according  to plan and take necessary corrective action ­ fix problems ­  results ● Scalar chain principle ­ org. Should operate with clear and  unbroken lines of communication from top to bottom ● Unity of command principle­ worker should receive orders  Mayo from only 1 boss ● People are social and self actualizing ­ seek relationships  and fulfillment Hawthorne  ● Follett­ advocated social responsibility, respect for workers,  effect cooperation throughout an organization ­ against too much  hierarchy ­ efficiency of workers­ makes transition between classical Management Learning: Great Things Grow from Strong Foundations thought process and behavioral one­ still in classical category ○ Employee ownership and systems Barnard theory  ○ Organizations should make profits by serving  of authority public good Maslow ­  ● Characteristics Of successful manager: Hierarchy of  ○ Inspiring leader ­ attracts talented ppl and  Human needs motivates them to do best work ○ Ethical role model­ acting ethically and setting high ethical standards ○ Active doer ­ make things happen, focus  attention to get things done 2 principles  ● Mayo­ founder of human relations movement ­ stresses  don't apply to  human dimension of work to increase efficiency ­ direct attention  self  towards workers feelings ­ introduced bonuses ­ behavioral  actualization organization ● Tendency to live up to expectations ­ hawthorne effect ○ Performance affected by how they are treated by managers ○ Groups can have strong negative and  Mcgregor ­  positive influences on members  theory x vs  ○ Helped turn tide towards human aspect of  theory y management ● Theory of authority: employees determine if a managerial  order is legitimate and acceptable ­ this will make them want to  follow the leadership ­ wrote “Function of the Executive” ● Human need­ psychological or physiological deficiency that  a person feels compelled to satisfy ● Lower level needs: William G.  ○ Physiological: physical well being, food, water Ouchi ­ theory z ○ Safety needs: security, protection, and  stability ○ Social needs: love, affection, belonging in  relationships ● Higher level needs:  ○ Esteem needs: respect, prestige, sense of  competence Argyris ­ adults ○ Self­actualization needs: self fulfillment ­  growth ● Progression principle­ Human needs are satisfied in a step­ by­step progressions­ next level need not activated until prior is  complete ● Deficit principle­ people act to satisfy deprived needs for  Modern  which a deficit exists­ the current need level controls behavior management  ● Believes managerial assumptions created self­fulfilling  thinking prophecies ● Theory x ­ assumes people dislike work, lack ambition, are  Management Learning: Great Things Grow from Strong Foundations irresponsible and prefer to be lead ­>classical school of thought  (pessimistic) “robots” ● Theory y ­ assumes people are willing to work, accept  responsibility, are self directed, and creative ­ optimistic ­ people  must be motivated to work ­ behavioral school of thought ● McGregor believed Theory Y led to better production  (workers who act with initiative) whereas theory X led to passive  ,reluctant workers ● Theory Z: emphasizes consensual decision making (group  has access to more information through better communication and  therefore decide solutions together as opposed to managers  making decision alone) and lifetime employment (making sure the  workforce is committed to the org. And its goals­ led to loyalty ­­ not  practiced in 21st century) ○ Quality circles: different departments work  together to fix problems of all department­ increase overall  quality of org. ● Workers treated as adults will be more productive ○ Treating workers like children leads to stifled,  unhappy workers who perform below potential ○ Simplified jobs lower the ability of self  actualization ○ Psychological success when people define  own goals ● Goes against many common practices ● Share assumption that people and org. Are complex,  growing and changing over time  ○ Use quantitative tools, recognize complexity  of org as systems, reject universal management principles,  quality managing, desire solid evidence ● Quantitative analysis and tools to solve complex problems ○ How to use available to data to make better  management decisions ○ Analytics: use of data to solve problems and  make informed decisions using system analyses ○ Management science/ operations research ­  application of mathematical techniques to solve  management problems ○ Operations managment ­ how org. Produce  goods and services effectively and efficiently ■ Focus on operations­ transformation process through which goods and  services are created ● Herbert Simon: against the econ man. Model of decision  making ­ believed executives never have perfect info and therefore  never make the BEST decision but satisfactory ones ­ production  Management Learning: Great Things Grow from Strong Foundations operations management ­>cognitive science ○ When we look at a problem there is an infinite spectrum of solutions­ it is impossible for us to imagine all of these solutions ­> concept of bounded rationality ● Bounded rationality ­ decision making (use of reason and  logic) limited by realistic managers that are pragmatic ­ our minds  limit our ability to think of solutions ● Organizations are open systems that interact with  environments to transform resource inputs to product outputs ○ Customer driven ○ Subsystems ­ smaller components whose  activities support work of larger systems ● Contingency thinking­ not one best way to manage ● Quality management­ continuous improvement  ● Total quality management: managing with an organization  wide commitment to continuous improvement, product quality, and  customer needs ● Evidence based management seeks hard facts about what  works ○ Looks at high­performance organizations ­  ones that consistently achieve good results and maintaining  high QWL ● Basic scientific method­ problem ­>hypothesis­>testing­ >data analyzing ­> hypothesis accepted or rejected


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