M1 Chapter 2: Management History

Question 1

Economic forces

Answer 1

the availability of capital (money) and labor of a region or country.
It includes such things as interest rates, exchange rates, unemployment rates, purchasing power, GDP per capita, and infrastructure (roads, railroads, water systems, power generation).

Question 2

Legal/Political forces

Answer 2

laws and regulations directed at commerce

Question 3

International forces

Answer 3

those activities that start in foreign countries but affect an organization’s ability to conduct business

Question 4

Technological forces

Answer 4

advances in science and technology that provide industry with new products, services, or ways of producing things.

Question 5

Cultural forces

(Social Forces):

Answer 5

deals with the customs, norms, and values of society. Some of the cultural dimensions include race, religion, gender, age, wealth, rural, urban, educational levels, and military services.

Question 6

What forces act on the way that we do management?

Answer 6

economic forces, 
legal/political forces, 
international forces, 
technological forces and 
cultural forces

Question 7

What was the catalyst to the industrial evolution?

Answer 7

The steam engine! It created factories and plants, which created large teams of people, which created the need for management.

Question 8

Classical Management contains…

Answer 8

Scientific management, and Administrative Management

Question 9

Scientific management

Answer 9

The accurate analysis of proper methods combined with selection, training, and incentivizing of employees

Question 10

Who is the father of scientific management?

Answer 10

Frederick Winslow Taylor, an American engineer

Question 11

Administrative Management

Answer 11

simple rules developed by Max Weber, a German sociologist who observed the inefficiencies of many European firms. These principles, such as promoting the best person for the job instead of friends, increased company’s productivity.

Question 12

Max Weber’s main management principles

Answer 12

1. Management isn’t ownership.
2. There exists a Hierarchy of positions
3. Hired and promoted for merit, not relationship
4. Formal rules and procedures control management
5. Management acts are written and distributed.
6. Division of labor (technical jobs performed by skilled people)

Question 13

Henri Fayol’s principles

Answer 13

1. Division of work
2. Unity of direction (teams with common goals)
3. Unity of command
4. Scalar Chain

Question 14

What is Theory X?

Answer 14

people in general don’t like to work, must be forced, want to be led, and are irresponsible and must be controlled

Question 15

What is theory Y?

Answer 15

work is an extension of play and therefore is natural for people; they need some instruction but are capable of self-governance, and that people are creative

Question 16

Hawthorne Effect:

Answer 16

When subjects know they are part of a study, and because of that perform differently.

Question 17

What is management science?

Answer 17

Uses mathematics and statistical models to aid managers in decision making.

Question 18

What is operations management?

Answer 18

focuses on the efficient procurement, manufacturing, and delivery of goods.

Question 19

Recent trends in management include:

Answer 19

Systems Analysis, Contingency Management, Quality Management, Lean Manufacturing, and the Learning Organization.

Question 20

Systems Analysis

Answer 20

breaks down the organization into a series of interrelated sub-systems

Question 21

Contingency Management

Answer 21

a viewpoint that says there is no one best way to manage; that our management style should depend on the situation at hand

Question 22

Quality Management

Answer 22

focuses on delivering the best quality goods and services to the consumer

Question 23

Total Quality Management (TQM)

Answer 23

1. Customer Focus
2. Employee Involvement
3. Philosophy incorporated throughout the organization, not just the factory floor
4. Use of measurable standards built into every process
5. Benchmarking (the process of identifying the best in industry and striving to meet or exceed their standards)
6. Continuous Improvement

Question 24

Lean Manufacturing

Answer 24

uses many of the tenets of quality management but hyper focuses on inventory control and value chain mapping. Under lean manufacturing, inventory is viewed as “muda,” the Japanese word for waste.

Question 25

Learning Organizations

Answer 25

companies that are dedicated to the acquisition or development of knowledge and disseminating knowledge throughout the organization with the intent of continually transforming themselves to better meet the demands of customers.