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IE 4302 - Ch 02
Dr. Loomis' Mgmt for IE
49
Engineering
Undergraduate 3
02/07/2011

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Term
major objective of business (Drucker, def.)
Definition
To create a customer
Term
14 Points of TQM (Deming, list 1-7)
Definition
1) Create constancy of purpose for improvement of product and service. 2) Adopt the new philosophy. 3) Cease dependence on mass inspection. 4) End the practice of awarding business on price tag alone. 5) Improve constantly the system of production and service. 6) Institute training. 7) Institute leadership
Term
14 Points of TQM (Deming, list 8-14)
Definition
8) Drive out fear. 9) Break down barriers between staff areas. 10) Eliminate slogans, exhortations, and targets for the workforce. 11) Eliminate numerical quotas. 12) Remove barriers to pride of workmanship. 13) Institute a vigorous program of education and retraining. 14) Take action to accomplish the transformation.
Term
scientific management (def.)
Definition
practices introduced by Taylor to accomplish the management job to use labor more efficiently.
Term
classical organization theory
Definition
1) to develop basic principles that could guide the design, creation, and maintenance of large organization
2) to identify the basic functions of managing organizations
Term
organization activities (Fayol, list categories)
Definition
1) technical (production/manufacturing), 2) commercial (buying/selling), 3) financial, 4) security (protection property/persons), 5) accounting, 6) managerial (planning, organizing, commanding, coordinating, and controlling)
Term
14 principles of management (Fayol, list 1-7)
Definition
1) division of work, 2) authority, 3) discipline, 4) unity of command, 5) unity of direction, 6) subordination of individual interests to the general interest, 7) remuneration
Term
14 principles of management (Fayol, list 8-14)
Definition
8) centralization, 9) scalar chain, 10) order, 11) equity, 12) stability and tenure of personnel, 13) initiative, 14) esprit de corps
Term
division of work (def.)
Definition
specialization of labor is necessary for organization success
Term
authority (def.)
Definition
the right to give orders must accompany responsibility
Term
discipline (def.)
Definition
obedience and respect help an organization run smoothly
Term
unity of command (def.)
Definition
each employee should receive orders from only one superior
Term
unity of direction (def.)
Definition
the efforts of everyone in the organization should be coordinated and focused in the same direction
Term
subordination of individual interests to the general interest
Definition
resolving the tug of war between personal/organizational interests in favor of the organization is management's greatest difficulties
Term
remuneration (def.)
Definition
employees should be pair fairly in accordance with their contribution
Term
centralization (def.)
Definition
the relationship between centralization and decentralization is a matter of proportion; the optimum balance must be found for each organization
Term
scalar chain (def.)
Definition
subordinates should observe the formal chain of command unless expressly authorized by their respective superiors to communicate with each other
Term
order (def.)
Definition
both material things and people should be in their proper places
Term
equity (def.)
Definition
fairness that results from a combination of kindliness and justice will lead to devoted and loyal service
Term
stability and tenure of personnel (def.)
Definition
people need time to learn their jobs
Term
initiative (def.)
Definition
one of the greatest satisfactions if formulating and carrying out a plan
Term
esprit de corps (def.)
Definition
harmonious effort among individuals is the key to organization success
Term
functions of management (Fayol, list)
Definition
1) planning, 2) organizing, 3) commanding, 4) controlling
Term
planning (Fayol, def.)
Definition
a) make best possible forecast of events that could affect organization
b) draw up operating plan to guide future decisions
Term
organizing (Fayol, def.)
Definition
managers must determine appropriate combination of machines, material, and humans necessary to accomplish task
Term
commanding (Fayol, def.)
Definition
involves directing subordinates' activities
Term
controlling (Fayol, def.)
Definition
ensures that actual activities are consistent with planned activities, i.e., everything should be "subject to control".
Term
bureaucracy
Definition
an organizational design that relies on specialization of labor, a specific authority hierarchy, a formal set of rules and procedures, and rigid promotion and selection criteria.
Term
human relations approach
Definition
an approach describing how managers interact with subordinates. Attention is focused on the individual worker's needs, goals, and expectations.
Term
behavioral science approach
Definition
Using the techniques, attitudes, and opinions of psychologists, sociologists, and anthropologists to study and understand individuals in the workplace
Term
Hawthorne studies
Definition
the most famous studies ever conducted in the field of management. Done at Western Electric's Hawthorne plant in a suburb of Chicago.
Term
Hawthorne Effect
Definition
the tendency of people being observed in a research effort to react more to the observer than to the actual working condition.
Term
decision and information sciences (DISC) approach (def.)
Definition
in working with people, this approach uses mathematics, statistics, decision-making principles, and information systems to resolve problems.
Term
3 stages of decision making (Simon, list)
Definition
1) finding occasions requiring a decision (intelligence)
2) inventing, developing, and analyzing possible courses of action (design)
3) selecting a course of action (choice)
Term
operations management (def.)
Definition
similar to prod. mgmt., except focuses on wide class of problems and other organizations
Term
information systems (def.)
Definition
use of computers in helping managers make better decisions and increase organization's efficiency
Term
system (def.)
Definition
a collection of parts that operate interdependently to achieve common goals
Term
open system (def.)
Definition
an organization that interacts with its environment and uses the feedback received to make changes and modifications
Term
4 parts of an open system organization (list)
Definition
Inputs, Transformation, Outputs, Environmental feedback
Term
contingency management approach (def.)
Definition
an approach that considers an organization's objectives, organizational and job design, human resources, envirionment, and managerial skills as interacting and affecting management decisions about planning, organizing, commanding, and controlling
Term
universal [view of management] (def.)
Definition
one best way to perform different mgmt functions.
Term
situational [view of mgmt] (def.)
Definition
no one best approach to mgmt exists because each situation is different
Term
universalist vs situationalist
Definition
"one best method" vs "not one best method"
Term
contingency approach
Definition
between universalist and situationalist: identify and evaluate contingency variables
Term
9 aspects of excellently run companies (Peters, list)
Definition
1) managing ambiguity and paradox. 2) a bias for action. 3) close to the customer. 4) autonomy and entrepreneurship. 5) productivity through people. 6) hands-on, value-driven. 7) stick to the knitting. 8) simple form, lean staff. 9) Loose-tight properties.
Term
theory Z (def. and author)
Definition
American+Japanese mgmt principles (individual responsibility + collective decision making), Ouchi
Term
competitive advantage (def., author)
Definition
1) cost leadership, 2) differentiation, 3) cost focus, 4) focused differenetiation
Porter
Term
pioneers of management (list, 1-3)
Definition
1) Taylor - father of scientific management
2) Weber - power, authority, and bureaucracy
3) Fayol - proposed theoretical analysis of mgmt; presented mgmt as process w/ specific functions
Term
pioneers of management (list, 4-6)
Definition
4) Mayo - founded hr and industrial sociology approaches to mgmt
5) Woodward - determined that technology plays significant role in how an organization is structure
6) Drucker - suggestions on how to best manage in a rapidly changing world.
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