Chapter 1 Managing People

Question 1

Sun Tzu on Management:

Answer 1

o „if the troops do not understand the orders they are given, it is their general’s fault“

o “if soldiers understand but do not obey, it is their officer’s fault”

o “Generals should fulfil the orders they have been assigned completely – even if their sovereign ruler changes his mind halfway

Question 2

Jeremy Bantham’s management creed – From The Wealth of Nations

all people

Answer 2

“all people are self-interested and are motivated by the desire to avoid pain and find pleasure. Any worker will work only if the reward is big enough, or the punishment sufficiently unpleasant.

Question 3

Francis Raleigh Batt (1929): The Law of Master and Servant

Answer 3

“the servant must be under the duty of offering personal services to the master or to others on behalf of the master”

Question 4

Frederick Taylor, Henry Ford:

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Answer 4

o Reorganisation of work via “scientific management”, stopwatch in hand

o Separation of production planning from actual work. Management as a profession.

o Industrial labour replacing craftsmanship

Question 5

“Scientific management” has led to

mvp

Answer 5

o “manufacturing the employee”

o Vast productivity increases in industry, and somewhat later also in services

o Productivity movement converted workers into consumers

Question 6

Taylorism and Fordism on their way out, but hardly dead…

Pmks

Answer 6

o Process automatisation increasingly frees workers from repetitive tasks

o Mass production progressively replaced by mass customisation. E.g. Dell

o Knowledge as a tool for the worker

o Separation between “work” and “management” mostly still in place

Question 7

Fayol’s core functions of management:

foc cdc

Answer 7

o Forecasting & planning
o Organising
o Commanding -> nowadays referred to as “leading”
o Coordinating
o Developing output
o Controlling

Question 8

Henri Fayol’s 14 principles

Daho feud uis sed

Answer 8

• Division of work
• Hierarchy
• Authority
• Order (right place, right time)
• Discipline
• Fair remuneration
• Unity of command
• Equity, kindness
• Unity of direction
• Initiative
• Subordination of individual interests to the general interests
• Stability of tenure of personnel
• Degree of Centralisation
• Esprit de corps

Question 9

Taylorism vs Fayolism

Answer 9

Fredrick W. Taylor

Shop-floor level optimization.
- Centers on improving operational efficiency.

Henri Fayol
Holistic view of management.
- Aims to professionalize Industrial Revolution II era companies.

Question 10

Max Weber’s “ideal-type” bureaucracy:

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Answer 10

o Hierarchy of authority
o Impersonality
o Written rules of conduct
o Promotion based on achievement
o Specialised division of labour
o Efficiency

Question 11

Management by Objectives (MBO) –

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Answer 11

o Supervisors and subordinates set objectives jointly, define standards, plan actions
o Control and review results jointly
o Responsibility of supervisor is providing support, and for subordinate it’s fulfilling tasks

Question 12

Managing by SMART objectives:

Answer 12

• Specific:
• Measurable:,
• Attainable:
• Relevant:
• Time-bound:

Question 13

Management vs Leadership

Answer 13

• Management primarily about continuity -> sensible business practices – Efficiency!
• Leadership (mainly) about change, i.e. the long-term direction of the firm – Effectiveness!

Question 14

Managing and Leading, two sides of the same coin

MECD and MICT

Answer 14

Managing:
 Executing Strategy
 Defined Processes
Management by Exception
 Controlling

Leading:
Motivation
Inspiration
Challenges
Tough Love