History and Theories of Management

Question 1

Individualism

Answer 1

• individual employee, his unique characteristics, needs and motivations are important
• individual is the primary unit of analysis
• god calls individuals to specific work

Key Concepts:
- employee autonomy
- recognition of diversity
- employee empowerment

Question 2

Materialism

Answer 2

• focus on the tangible & material aspects of an organization
• pragmatic, results oriented approach

Key Concepts:
- profit maximization
- resource efficiency
- short-term focus

Question 3

Productivity vs. Efficiency

Answer 3

Productivity - producing maximum effort under a certain amount of time

Efficiency - how resources are used in production (time, resources, etc.)

Question 4

Scientific Management Theory

Answer 4

• Organizing “Classical” Era (1910-1930)
• Micro Approach
• Fredrick W. Taylor
• defining and maximizing productivity of individual jobs

Proponents:
- systematic work (Fredrick W. Taylor)
- Henry Gantt (Gantt Chart)
- Frank B. Gilbreth (time and motion studies)

Question 5

Bureaucracy Theory

Answer 5

• Organizing “Classical” Era (1910-1930)
• Macro Approach
• emphasis on structure and functions of management to optimize productivity of the organization
• Max Weber’s view of maturing organizations and its factors: employee competence, positional authority in formal structure, rules and procedures for efficiency of the structure

Question 6

Henri Fayol

Answer 6

• Organizing “Classical” Era (1910-1930)
• created the 4 functions of management and other principles:
• unity of command: each employee reports to only one superior
• unity of direction: every manager & employee is guided by a single plan of action
• scalar chain: chain of authority dictating hierarchy of every employee

Question 7

Mary Parker Follett

Answer 7

• Leading “Human” Era (1930-1950)
• “mother” of the leading era
• emphasized human/behavioral side of management:
• authority is in the workers whose knowledge and expertise makes them best serve the company
• managers facilitate instead of control
• psychology and sociology help managers see people as a collection of beliefs and emotions

Question 8

Lilian Gilbreth

Answer 8

• Leading “Human” Era (1930-1950)
• focused on human resource mgm’t
• studied ways to reduce job stress
• advocated for standard work days, child-labor laws, protection of workers from unsafe working conditions

Question 9

Chester Barnard

Answer 9

• Leading “Human” Era (1930-1950)
• leadership and the informal organization
• social groups form within the org.
• organizations should not be managed impersonally
• “zone of indifference” activities employees will not rebel against doing

Question 10

Hawthorne Effect

Answer 10

• Leading “Human” Era (1930-1950)
• respect for workers leads to increased productivity
• relationships help understand behavior in organizations
• turning point in the evolution of management

Question 11

Human Relations Movement

Answer 11

• Leading “Human” Era (1930-1950)
• actions to increase employee satisfaction to increase productivity
• Theory X & Y (Douglas McGregor 1906-1964)
• Theory X: people are lazy and prefer to be directed, design systems to ensure people will work hard
• Theory Y: people want to work and prefer control over their work, management should support people to excel at their own work

Question 12

Management Science

Answer 12

• Planning “Calculating” Era (1950-1970)
• Operations research and management
• Systems Theory: considers the complexity of managing organizations between a closed and open system

Question 13

Contingency View

Answer 13

• Planning “Controlling” Era (1950-1970)
• course of action is contingent upon the situation at hand
• Bounded Rationality (Herbert Simon): limited information limits management decision making
• Burns & Stalker: mechanistic structures in stable environments, organic structures in dynamic environments
• Strategic Choice Theory (John Child): key decisions of the leaders of the mgmt.

Question 14

Institutionalization

Answer 14

• Controlling “Values & Beliefs” Era (1970-1990)
• “valued” rules established as norms or culture in an organization as a result of:
• dysfunctional social-cultural “scripts
• irrational social norms
• peer pressure
• simple inertia

Question 15

Social Construction of Reality

Answer 15

• reality is a result of social interaction
• management roles create meaning for others through the way they interact with these roles