MGMT 2130 Chapter Notes - Chapter 2: Midvale Steel, Lillian Moller Gilbreth, Henri Fayol

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Father of scientific management (use systematic study to find the optimal means of doing
each task)
Began as a worker at the Midvale Steel Company
Frederick Taylor
Thoroughly studying and testing different work methods to identify the best, most
efficient way to complete a job
When workers deliberately slow their pace to restric their work outputs
1. "Develop a science" - study, analyze
Hire based on skills; also 2. train and develop workers
3. Cooperate with employees
4. Divide the work and responsibility equally between management and workers
Piece-rate incentives; work pay directly tied to producers work
Timing how long it takes good workers to complete each part of their job
Frank invented the microchronometer, a large clock that could record time to 1/200th o a
Lillian - contributor to industrial psychology; established ways to improve office
communication, incentive programs, job satisfaction, and management training
Convinced government to enact laws regarding workplace safety, ergonomics, and child labor
Frank and Lillian Gilbreth
Breaking each task or job into its separate motions and then eliminating those that are
unnecessary or repetitive
Associate of Taylor
1. Scientific investigation in detail of each piece of work, and the determination of the
best method and the shortest time in which the work can be done
2. a teacher capable of teaching the best method and the shortest time
3. reward for both teacher and pupil when the latter is successful
Advocate of TRAINING first
Henry Gant
BUREAUCRACY (The Theory of Economic and Social Organization)
Exercise of control based on knowledge, experience, or expertise
Elements of Bureaucracy
Max Weber
1. Qualification - based hiring
2. Merit-based promotion
3. Chain of command
4. Division of labor
Chapter 2: History of Management
July 8, 2016
10:40 AM
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4. Division of labor
5. Impartial application of rules and procedures
6. Recorded in writing
7. Managers separate from owners
5 functions of managers
1. Planning
2. Organizing
3. Coordinating
4. Commanding
5. Controlling
Henri Fayol
14 principles of management
Increase production by dividing work so that each worker completes smaller tasks or job
1. Division of Work
Manager's authority should be commensurate with the manager's responsibility.
2. Authority and responsibility
Clearly defined rules and procedures are needed at all organizational levels to ensure
order and proper behavior
3. Discipline
To avoid confusion and conflict, each employee should report to and receive orders
from just one boss
4. Unity of command
One person and one plan should be used in deciding the activities to be used to
accomplish each organizational objective
5. Unity of direction
Employees must put organization's interest and goals before their own
6. Subordination of individual interests to the general interest
Compensation should be fair and satisfactory to both the employees and the
organization ; don't overpay or underpay employees
7. Remuneration
Avoid too much centralization or decentralization.
8. Centralization
Communication outside normal work groups or departments should follow the vertical
chain of authority
9. Scalar chain
Have a place for everyone and have everyone in his or her place; there should be no
overlapping responsibilities
10. Order
Kind, fair and just treatment for all
11. Equity
12. Stability of tenure of personnel
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Stable workforce with high tenure, benefits an organization by improving performance,
lowering costs
12. Stability of tenure of personnel
Initiative must be encourage; ability to develop and implement a plan
13. Initiative
Strong sense of morale and unity among workers that encourages coordination of
14. Esprit de corps
Focuses on people
People's needs are important and understand that their efforts, motivation, and performance
are affected by the work they do and by their relationships with bosses, coworkers, and work
Conflict is good; it is merely differences in opinion
Approach to dealing with conflict; both parties indicate preferences and then work
together to find an alternative that meets the needs of both
Mary Parker Follett
Hawthorne Studies in the Western Electric Company
The Human Problems of an Industrial Civilization
Hawthorne Studies: production levels increased whether lighting was increased or decreased,
whether pay was varied, or breaks varied. Because group was consulted before changes were
made! Group felt valued; like a social unit; no above or below units, just them
Significance of study: HUMAN FACTORS MORE IMPORTANT than physical conditions or design
of work; financial incentives not the most important.
Elton Mayo
cooperation and acceptance of authority
The Functions of the Executive
believe that workers grant management the authority
system of consciously coordinated activities of forced created by two or more people
extent of cooperation depends on acceptance of authority
people will be indifferent to orders if they are:
1. understood
2. consistent with the purpose of the organization
3. compatible with the people's personal interests
4. can be carried out by those people
Chester Barnard
Involves managing the daily production of goods and services
Uses a quantitative or mathematical approach to find ways to increase productivity, improve
quality, and manage or reduce costly inventories
Quality control, forecasting techniques, capacity planning, productivity measurement
and improvement, scheduling systems, linear programming, and inventory systems,
work measurement techniques, project management, and cost-benefit analysis
Most common methods and tools:
Inventory - amount and number of raw materials, parts and finished products that a company
Operations management
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