Full file at -Solutions-Manual CHAPTER 2 The Evolution of Management Thought 1. There is also new in-text discus- ninth edition of Contemporary Management to address sion of recent trends in job satisfaction in the United States. these. Firstly, let's consider the term Contemporary Management. http://www. (Accessed: 17 October ).

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Trove: Find and get Australian resources. Books, images, historic newspapers, maps, archives and more. Contemporary Management - Ebook download as PDF File .pdf), Text File .txt) or read book online. Book about Management. Contemporary Management - Download as PDF File .pdf), Text File .txt) or read online. Conflict & Accommodation.

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Asking a study question in a snap - just take a pic. Managers at each level of an organization are responsible for using resources effectively. Building skills in making decisions, monitoring information and supervising personnel are essential to achieving success. Challenges include managing a diverse workforce, maintaining a competitive edge, behaving ethically and using emerging technologies.

Function Building contemporary management skills involves studying worker performance and making operational improvements. Training allows managers to develop expertise in documenting policies and procedures. Training and experience prepare managers to select and reward proficient employees. In addition, developing contemporary management skills involves learning how to interview and hire the best employees.

Benefits Management training ensures company leaders develop a range of expertise in dealing with people, processes and technologies. A reporting relationship in which an employee receives orders from, and reports to, only one superior. Unity of direction: The singleness of purpose that makes possible the creation of one plan of action to guide managers and workers as they use organizational resources.

First, the classical management theories that emerged around the turn of the twentieth century are examined. Next, behavioral management theories developed before and after World War II are examined, and then management science theory, which developed during the second World War.

Finally, the theories developed to help explain how the external environment affects the way organizations and managers operate are examined. Specific slides have been pointed out in the outline, and a list of all the slides can be found at the end of this chapter. General Electric is one example. It is a highly diversified global company that makes everything from lightbulbs and refrigerators to locomotives and aircraft engines.

It also has finance businesses, and it runs power plants. The company was created in from the merger of two companies: Thomas Edison and Charles Coffin pioneered the development of the incandescent lightbulb, which heats a filament wire, using electricity, until it emits light. The filament is protected from oxidation by a glass bulb that contained inert gas or a vacuum. General Electric was not the first company to produce and sell such bulbs and related electrical equipment.

However, Edison and Coffin used their combined expertise and patents to produce practical, affordable lightbulbs relatively easily, which gave them a competitive advantage.

Originally General Electric produced lightbulbs and related electrical equipment at its headquarters in Schenectady, New York. Over the years it has expanded to serve customers in more than nations with a lineup of multiple businesses and several hundred products. To do this, General Electric draws on the talents of more than , employees.

Since then General Electric has diversified into aircraft engines, computers, medical technology, entertainment, wind power, appliances, and even petroleum extraction products. It also maintains financial stakes in banking and finance. As businesses like General Electric grow in size and scope, they often become cumbersome to manage. To be consistent across its operations, these businesses can become highly formalized and bureaucratic.

This management style enables the company to maintain control over its operations. Because General Electric competes in multiple industries, it must work hard to stay flexible in the face of multiple competitors.

MBA 101 contemporary management

Large companies also struggle to maintain a competitive edge with innovation because new products or offerings must be approved by layers of formal bureaucracy, which slows down the process. Since companies often compete to bring products to market first, the size and formal bureaucracy of an organization can be a stumbling block.

GE Capital is the financial arm of the corporation, and it took on risky bets that hurt its parent company during the recent economic downturn. For example, GE Capital recently sold a Swiss subsidiary that had a successful initial public offering. Normally, companies like General Electric would be pursuing these start-up firms, but managers like Immelt realize that such acquisitions can distract the company from its core businesses.

General Electric has also divested other businesses, including insurance and media. Scientific Management Theory LO Figure 2. Explain the of manufacturing: Taylor is best known for defining the techniques of scientific management, the systematic study of relationships between people and tasks for the purpose of SLIDE 6 Job redesigning the work process to increase efficiency. Taylor more efficient. Rights o Principle 2: Carefully select workers who possess skills increased scrutiny and abilities that match the needs of the task, and train about the way its them to perform the task according to the established employees are treated.

In rules and procedures. This decision responsibility of its ultimately resulted in problems: Rockefeller C. The Gilbreths John D. He took a job and-motion study.

Managers tried to initiate He soon bought out his work practices to increase performance, and workers tried to partners and hired his hide the true potential efficiency of the work setting to brother William to help protect their own well-being.

He set up his business so that II. Standard Oil Company of Ohio.

Table of Contents

That same year, Rockefeller began A. A bureaucratic system of By , just eight years administration is based on the five principles summarized in after its creation, Standard Figure 2.

Oil had grown to managing o Principle 1: The organization. In a bureaucracy, people should occupy LO Identify the positions because of their performance, not because of principles of their social standing or personal contacts. Management Theory o Principle 5: Managers must create a well-defined system of rules, standard operating procedures, and norms so they can effectively control behavior within an organization.

However, if bureaucracies are not managed well many problems can result. This interaction helps speed decision making. Used properly, initiative can be a major source of strength for an organization because it leads to creativity and innovation.

She pointed out that management Jim Collings, noted often overlooks the multitude of ways in which employees consultant and business can contribute to the organization.

She took a horizontal view of power Hedgehog Principle: Most continued to follow in the footsteps of Taylor technology that and the Gilbreths. The researchers found that regardless of whether they raised or lowered the level of illumination, productivity increased. Mayo proposed another series of experiments to solve the mystery.

During a two-year study of a small group of female workers, the researchers again observed that productivity increased over time, but the increases could not be solely attributed to the effects of changes in the work setting.

This particular effect became known as the Hawthorne effect. From this view emerged the human relations movement, which advocates that supervisors be behaviorally trained to manage subordinates in ways that elicit their cooperation and increase their productivity. Each branch of management Theory science deals with a specific set of concerns: The Open-Systems View management thought. Output stages o Once the organization has gathered the necessary resources, conversion begins.

Organizations that operate as closed systems, that ignore the external environment, and that fail to acquire inputs are likely to experience entropy, which is the tendency of a closed system to lose its ability to control itself and thus to dissolve and disintegrate.

This Mechanistic and Organic structure provides the most efficient way to structure operate in a stable environment. This structure provides the most efficient way to operate in a rapidly changing environment. Sumerian builders relied on the use of merit wages to build the walled cities and canals of Sumer.

The highway and library systems of Assyria and the great cities of Persia required organization and managerial genius to achieve. The Code of Hammurabi included incentive and minimum wages as early as B. Greek achievements in architecture, literature, and civil government required the application of complex management knowledge. The citizens of Greek city states worked under the piecework system on government contracts.

Rome once controlled the world from England to Asia and is still known for its systems of roads, construction of public buildings, and civil government.

These were developed and maintained by a military system that is still a model for modern armies. These accomplishments required the application of highly developed management knowledge. As early as B. The principle of specialization was used as early as B. More than years ago, a diplomat and civil servant in the city-state of Florence named Niccolo Machiavelli wrote a book called The Prince.

Machiavelli was an experienced observer of the intrigues of state. His book was a how-to-do-it manual for a ruler.

The Prince focused on how to rule: That is, the end justifies the means. If a leader had to choose between being feared and loved, she or he should choose fear, since he can control fear but not love. As Christianity spread and different sects emerged, the church needed to define more clearly its mission, purpose, objectives, policies, rules, and organizational hierarchy.

It developed a strong centralized authority-responsibility relationship. Lecture Enhancer 2. He watched other bricklayers and saw that some were slow and inefficient while some were very productive. He discovered that each used a different set of motions to lay bricks. From his observations, he isolated the basic movements necessary to do the job and eliminated wasted ones.

Later Gilbreth and his wife, Lillian, studied job motions using a motion picture camera and split-second clock. Casey, the founder of UPS. Casey turned to Gilbreth to develop techniques to measure the time consumed each day by each UPS driver.

The resulting changes in package loading increased efficiency by 30 percent. Peters and Robert Waterman identified the characteristics that distinguish the excellent and innovative companies in America. These are: They listened to their customers and learned from the people they served. They treated the rank and file as the source of quality and productivity gains.

They valued their people and respected the individual. They had simple organizational structures and lean top-level staffs. Choose a fast-food restaurant, a department store, or some other organization with which you are familiar, and describe the division of labor and job specialization it uses to produce goods and services.

How might this division of labor be improved?

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Students should cite instances in which employees specialize in only one or a few tasks of a process, rather than one in which employees perform all tasks. Managers allocated all the tasks involved in actually cooking the food to the job of the chef, and allocated all of tasks related to giving food to customers to food servers.

In addition, the company created other kinds of specialized jobs, such as dealing with drive-through customers and keeping the restaurant clean. This kind of job specialization increases efficiency and worker productivity. Managers must continually analyze the range of tasks to be performed and then create jobs that allow the organization to give customers the quality of goods and level of service that they want.

In doing so, however, they must certain not to oversimplify tasks, since too much specialization can lead to worker boredom and monotony.

This can have an adverse impact on productivity and efficiency. A record of procedures is kept that codifies methods of performing tasks into written work rules and standard operating procedures. Employees receive a training manual and begin with simplified jobs, earning advancement to more complex positions as they increase their performance.

A pay system that ties performance to bonuses or time off might provide workers with incentive to sell more food and improve their customer service.

How do they differ? Weber developed a system of bureaucracy—a formal system of organization and administration designed to ensure efficiency and effectiveness. It is a system based on five principles. Fayol identified 14 principles that he believed to be essential to increasing the efficiency of the management process. Both management theorists emphasized the following principles for successful management: This is the power to hold people accountable for their actions and to make decisions concerning the use of organizational resources.

According to Weber, formal authority derives from the position a manager holds in the organization. Fayol went beyond formal authority to include the informal authority derived from personal expertise, technical knowledge, moral worth, and ability to lead and to generate commitment from subordinates.

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Fayol echoes this idea when he speaks of unity of command— an employee should receive orders from only one superior. Both Weber and Fayol suggest a chain of managers in an organization be arranged from top to bottom. While Weber was more adherent to a hierarchical strategy, Fayol emphasized also the importance of cross-departmental integration and teams, and communication at the lower levels of management in an organization.

Fayol also stressed the importance of limiting the number of levels in the hierarchy to reduce communication problems. Weber and Fayol argue for a strong concentration of authority at the top of the organizational hierarchy. Fayol was more flexible, though, in allowing for initiative and innovation at lower levels in an organization.

Weber argued for a well-defined system of rules, standard operating procedures, and norms so that behavior within an organization could be effectively controlled. These standards provide guidelines that increase performance because they specify the best ways to accomplish organizational tasks. Ethical behavior in organizations is crucial for organizational success and employee well-being.

Weber also emphasizes specificity in authority hierarchy, task requirements, and chains of command. The fairness and equity of the selection and promotion systems that Weber advocates encourages organizational members to act ethically and further promote the interests of the organization as well.

By recognizing the downside of specialization and focusing upon expanded employee duties and responsibilities, Fayol avoids unethical treatment of employees. How are companies using management science theory to improve their processes?At the outset, it should be cautioned that this chapter is concerned primarily with describing and assessing contemporary managerial policies and practices, not with addressing why they vary.

Managers, it is argued, often adhere to outmoded or traditional values and beliefs, values and beliefs that are more associated with the other two approaches considered in this chapter and hence are contrary to those needed for the full and effective adoption of the high performance paradigm.

Whether you are a seasoned faculty member or a newly minted instructor. Fur- thermore. McGraw-Hill Connect platform. How might this division of labor be improved? The Executive Effect: But the evidence to date does not support the assumption that they represent some sort of "magic bullet" that can yield dramatic performance gains for all or even many employers.

They proliferated rapidly with the emergence of the personnel function in the s, and although they were largely abandoned during the Great Depression of the s, they began to grow again in the post-war period.

Contemporary management also features strong ties to the community and ensuring a sustainable environment, therefore building collaborative skills are included.

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