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| Henri Fayol was the developer of administrative theory. He was concerned with the efficiency and effectiveness of an ENTIRE organization . He differentiated between supervisory and managing levels. |
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| Henri Fayol sought to apply scientific principles to the management of the total organization, this focus has become known as the Administrative Theory. |
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| Five Functions of Management |
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| Planning, Organizing, Commanding, Coordinating, Controlling |
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| Forecasting future events to determine what the most effective activities would be for the company |
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| How the organization is structured and delegating powers to be most effective |
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| How managers direct employees |
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| How to design the activites so that all people work towards a common goal |
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| Concerns how managers evaluate performance |
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| List and define Foyal's Principles of Management |
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Definition
The Principles of Management were made to deal with problems that might arise in the workplace. These are certain skills that management should have and that can be TAUGHT.
Division of labor, Authority, Discipline, Unity of Command, Unity of direction, Subordination of the Individual (the goal and interest of the company is more important than the individuals goals), Remuneration ( each employee should receive compensation), Centralization, Scalar chain (mangers in a company exist in a hierarchy), Order, Equity (Equality), Stability of personnel, Initiative, Espirit de corps (Management should encourage harmony among employees) |
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| Behavioral Approach/School |
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Definition
| Behavioral Approach emphasizes that effective management will come from focusing and understanding the worker |
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| Mayo was the founder of the human relationship movement. Mayo was a social scientist noticed that there is a connection between how an employee feels and how they work. If employees feel that they are being noticed and taken care of then they will work harder, even if management doesn't really do anything different. He also said that it is important for employees to feel a sense of community/ belonging. After much studies about the different condition of working, Mayo realized that workers will increase productivity just because they FEEL that they are being noticed, not because there is anything actually different. This idea has been coined the Hawthorne effect. |
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Definition
Douglas observed that the way in which workers are viewed is another aspect that affects productivity.
Theory X: The outlook that people dislike work and will avoid it at al cost, they are not creative and hate responsibility and because of this they must be threatened and coerced into doing work.
Theory Y(humanistic approach): People do not inherently dislike work and if they feel like they have a personal investment in a project then they will exercise self motivation, and the idea that people can be creative and imaginative. |
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| Production Operation Management Approach (POM) (Scientific Method) |
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Definition
World War II caused the Production Operation Management approach.
Assumptions assumed: Any problems that arise can be solved by scientific method, and system problems can be solved through math.
They use the Scientific Method to fix problems that arise
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| Scientific Approach for Management |
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Definition
1. Observe problem
2. Mathematical model that describes the system is constructed
3. Mathematical model is used to make conclusions for the actual system
4. Mathematical model is then tested to see if the system does actually follow the equation. |
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| Before Simon people believed that executives had perfect information and made the best decision to maximize results this is known as the economic man model of decision making. Simon found out that executives almost never have perfect information and they would often make decisions that would only reach satisfactory results. This is known at Satisficing. Simon replaced the concept of the economic man model of decision making with this idea called the concept of bounded rationality. |
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| Working with and through other people to accomplish the objective of both the organization and its members |
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| Include planning, organizing, staffing, coordinating, motivating, leading, and controlling; getting results effectively through other people by process of delegation |
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| The specialist functions of an individual or those that derive from his/her vocational field |
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| The power to act for someone else |
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| The obligation to be held responsible for what was expected or what happened that was unexpected |
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| Three Key Differences between the more recent definition and the old definition of Management |
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Definition
The new definition. . .
1. Places a greater emphasis on the human being in the organization
2. Focuses attention on the results to be accomplished, and on objectives rather than just things or activities
3. Adds the concept that goals of the members' personal objectiveness should be integrated with the goals of organization |
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| Management Activities vs. Technical Activities |
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Definition
| As a person advances in a company and gains more managerial roles, their technical activities decrease. |
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| Why might someone who is in a managerial position be heavily involved in technical activities? |
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Definition
Possible reasons might include:
- small size of the unit
- technical nature of the task at hand
- perceived need of the manager to stay current in the technical field
- subordinates not working to capacity
- comfort with the familiar
- expectations of the boss
- resource constraints
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| What are the Steps a Manager should take to deal with a problem |
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Definition
1. Define the problem
2. Set objectives
3. Assign responsibilites
4. Allocate resources
5. Design controls (schedules, work plans etc..)
6. Monitor progress
7. Solve problems along the way
8. Appraise performance |
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| What are the personal competencies for managerial success? |
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Definition
Leadership, Self Objectivity, Analytical thinking, Behavioral flexibility (ability to modify behavior to reach goal), oral communication, written communication, personal impact (good impression), Resistance to stress, Tolerance for uncertainty.
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| Classical Approach vs Behavioral Approach |
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Definition
Classical Approach: the earliest attempt to study management is a scientific manner, emphasizing worker efficiency achieved through the "one right way" to perform a task as a determined by the expert who possesses a scientific understanding of the work achieved by methodic study.
Behavioral Approach: a school of management that emphasizes the improvement of worker efficiency through an understanding of the workers themselves as opposed to an understanding of the work |
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Definition
| Contingency Approach: asserts that the best management style will depend upon or is contingent on the leadership style of the leader in relation to the needs of the specific situation. It stresses that there is NO one universal solution to management problems. |
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| Charles Babbage is one of the first people to write about management theory. He wrote that the emergence of the industrial revolution means that there needs to be a systematic study of task management and standardization of work operations in order to adjust businesses. "Analytical Engine" or the first to conceptually think of a computer. He also said that jobs should be broken down into smaller standardized tasks. |
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| Frederick Taylor is thought to be the "Father of Scientific Management" and rediscovered and made Babbage's theories on management popular. He believed that economic prosperity could only be reached through maximal worker productivity and that one could not trust employees to work in the most efficient manner. He said that workers follow their own inutations or rules of thumb and this led to inefficiency. He would use a stop watch a break jobs up and time them for efficiency using time and motion studies. He would take each basic work unit and try to find the most efficient way of doing it. He believe there was ONE right way. Using the time and motion studies he made up the system known as piece rate where a worker is paid according to the amount produced. (THEORY X) |
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| Towne said that there needed to be a scientific approach to the study of management. He created what we know as the management theory. |
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| Frank and Lillian Gilbreth |
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Definition
| Frank and Lillian had 12 children and were huge supporter of the idea that there is one right way of doing a job efficiently. Th devised a classification scheme of 17 motions used in jobs and used this classification to analyze worker actions. Therbligs was what he called these 17 actions. Tey would try to reduce the number of actions required for a job to simpify the job (job simplification). |
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Gantt made huge contributions to the idea of scheduling and controlling of work as well as the rewarding of workers. He said that inefficiency was a large result of management's inability to formulate realistic standards. He made the Gantt chart which is a chart that blocked out sections to show each task that is assigned and how long workers will take to complete the task. He also said that workers need real incentives to exceed the normal levels of production because of this he pioneered the use of production bonuses. |
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She is known as the Mother of Scientific management. She thought that most mangers use destructive methods to deal with conflict. She said you shouldn't over manage employees or micromanage. She said that it was management's job to formulate tasks in a logical manner but not to give too many orders. |
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| Explain the Contingency Approach's Step by step methodology ( 11 steps) |
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Definition
1. Perform situational analysis consisting of analysis of internal and external conditions of an organization.
2. Based on the situational analysis formulate a statement of the problem.
3. State the performance standards that are observable, measurable, and relevant to the goal and state what needs to be completed to meet the goal.
4. Generate alternative solutions to the problem
5. Evaluate the possible solutions in terms of their consequences to those involved in and with the organization called the organization's stakeholders.
6. Select the best alternative solution that solves the problem and causes the least number of detrimental side effects.
7. Implement a pilot test of proposed solution and revise as indicated from the experience.
8.Implement the solution
9.Evaluate the solution results
10. Revise the process if necessary
11. Begin again with new analysis |
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Definition
| Theory Z is modeled after Japanese management structures. Theory Z stresses that the most effective decision making is that of the group not of the individual otherwise known as Consensual decision making. The group is better because it has access to more data and personal experience, members of the group will buy into the group decision, and the group decision making process screen out extremely good and bad information, resulting in a decision that will be better than the individuals decision. For theory Z to work it involves greater worker involvement in decision making, improved communication between workers and management, and control by workers over aspects of the workplace. |
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| What are the theoretical arguments AGAINST social responsibility for business? |
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Definition
1. The government and non-profits should be responsible not businesses and it would create too strong a link between government and business and compromise governments role.
2. There is often an inherent conflict between how a business works and how a social program works
3. The function of business is profit maximization and to devote money to social actions goes against this goal
4. Business leaders do not have the ability to determine what the best social goal should be. |
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| What are the practical arguments AGAINSTt social responsibility |
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Definition
1. Managers had a responsibilit to stockholders to maximize profits not give away money
2.The cost of social programs would be a burden to the business and would be passed along to consumers in the result of higher prices.
3. Government and the non profit agencies have social programs but there is no reason for a business to have these prorgrams
4. There is no reason to suppose that business leaders have the specialized skills necessary to achieve social interest goals.
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| Theoretical Arguement FOR Social Responsibility |
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Definition
1. It is in the interest of the company to improves its surrounding community
2. Social responsibility programs prevent small problems from becoming bigger.
3. Being socially responsible is ethical
4. Being socially responsible will prevent government intervention
5. The most widely held value system (Judeo-Christian) encourages acts of charity and social concern |
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| Practical Arguments for Social responsibility |
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Definition
1. Actins that demonstrate social responisiblity may be profitable to company.
2. Being socially repsonsible improves the public relations image of the company as a good citizen
3. If we do not do it ourselves, either public opinion or the government will require us to do so.
4. It may be good for the stockholders since such actions will earn public approval, lead to the company being viewed as less open to social criticism, and produce a higher stock price. |
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| The extent to which an organization is responsive to perceived social obligations. Measured by evaluating effectiveness and efficiency of an organization in its efforts to pursue actions that meet social obligations |
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| Social Obligation Approach |
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Definition
| Social Obligation approach assumes that the main goals of a business are economic in nature, primarily the maximizing of profits and stockholders equity. Therefore they should reach the minimal social obligation imposed by current legislation |
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| Sarbanes Oxley Act of 2002 |
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Definition
| The Sarbanes Oxley Act requires that public companies evaluate and disclose the effectiveness of their internal controls related to financial reporting and that such disclosure statements be certified by chief executive officers and chief financial officers who then become responsible for the accuracy of the statements. |
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| Social Responsibility Approach |
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Definition
| Social Responsibility Approach assumes that business not only has economic goals but also social responsibilities. Managers who take this approach will make organizational decisions based not only on projected economic gain and legal compliance but also on criteria of social benefit. Things that directly affect the business |
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| Social Responsiveness Approach |
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Definition
| The Social Responsiveness Approach assumes that business not only has economic and social goals but also must anticipate future social problems and act now to respond to these future problems. This is the most demanding of businesses because businesses are required to anticipate social problems and deal with them before they are evident and in dealing with future social problems, a business may have to make use of organization resource now for future good social good, negatively impacting on profit maximization in the present. |
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| Proactive Adaptation is a result from Social Responsiveness Approach where future problems are anticipated and actions are taken to prevent the problems either form emerging or from becoming as significant as they might become |
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| Social Actions Management Process |
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Definition
ACTION PHASE:
1.Situation analysis and setting of standards--compare what is and what should be.
2.Alternative Generation and Selection--Does this option solve the problem? Can the company afford to do this?
3. Implementation and evaluation
THE EVALUATION PHASE
1. Social audit is the measurement of the social responsiveness actions taken by a business
2. Cost benefit analysis: Seeks to estimate the cost and derived benefits from all social actions projects undertaken in a given time frame. |
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| Areas of Social Concern in current Management Practice |
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Definition
1. Air pollution
2. Water pollution
3.Hazardous and Solid Waste Pollution
4. Noise and Aesthetic Pollution
5. The human areas of social concern: Affirmative action, equal opportunity, diversity management, sexual harrassment |
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