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MGT 243 (7)

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Lehigh University
MGT 243
Douglas Mahony

the rise of the managerial profession management 143 • rise of professional manager o resolving the principal-agent problem o Chandler's 'visible hand' • move away from the 'drive system' of manufacturing • leading approaches to the role of management o "scientific" approaches o administrative approaches o behavioral approaches o contemporary • principle-agent problem arises when? o division between owner & person performing task o misalignment between interests of owner & employees • align interests by incentivizing • monitor, supervise --> expensive, not always easy • evaluate performance • thus 'management' is seen largely as a coordination and control program o what does view imply about employment policies & practices? o gives rise to Agency Theory • lazy people are actually most efficient o find easiest way to accomplish task • Fredrick Winslow Taylor o first machinist, then engineer o obsessed with productivity & efficiency o best known for inventing work system he called scientific management • the genesis of scientific management o after carefully studying human behavior & actions in the workplace, Taylor noticed 2 main challenges: 1. that there is a tendency for individuals & groups to be underproductive 2. traditional, unscientific rule-of-thumb work methods were inefficient o "Hardly a competent workman can be found who does not devote a considerable amount of time to studying just how slowly he can work and still convince his employer that he is going at a good pace" o 'gentleman's C' • what is scientific management? o sees management as largely an engineering problem o Taylor argued that coordination & control of production needed to be taken away from workers and placed under control of management • a direct criticism of the old craft model of work o productivity improvements could be realized if employers: • analyzed jobs • reduced specific jobs to several smaller tasks • pay workers incentives to meet production goals • why care about Taylor? o his methods revolutionized the assembly line, enable organizations to (at times) exponentially increase productivity o key limitations • high #s of grievances • begins to break down outside the assembly line  hard to apply in service sector/knowledge work • tendency to increase worker alienation & dissatisfaction • centralizes control and knowledge over production process •Frank & Lillian Gilbreth o early admirers of Taylor o obsessed with efficiency, fatigue & worker satisfaction o used time & motion studies (micromotion studies) of worker behavior & activities • developed the Therblig as a unit of activity o later became interested in what we now call ergonomics the rise of the human relations movement management as a behavioral/psychological problem •the human relations movement o a psychological approach to management o born out of the Hawthorne experiments in the 1920s & 1930s • initially a study in scientific management • goal: find optimal working conditions (lighting)  results were confusing: each subsequent change in lighting conditions increased productivity • Elton Mayo & others brought in to understand the problem  believed there must be some underlying cause to observed behavior based on individual attitudes/values/etc…  conducted 'other studies' out of which came authoritative set of papers & books on management  faked data but was mostly right  observation changes behavior •overall Hawthorne con
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