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History and Theories of Management - Coggle Diagram

- - - - Unskillled laborers now ran machines that replaced highly artisans through the development of new inventions, processes, steam engines, and electricity
        
        New production system was created based on division of labor and mass production was formed. Managers were needed to coordinate different parts of the production system and optimize performance
      - Jobs now occurred in large, formal organizations where thousands of people worked together under one roof
        
        Companies needed disciplinary rules and to impose order and structure. They needed managers who knew how to organize large groups, work with employees, and make decisions
- - - - Qualification-based Hiring
        
        Instead of hiring people because of their family or connections, they should be hired because of their technical training or education
      - Merit-based promotion
        
        Promotion is based on experience or achievement. Managers not organizational owners, decide who is promoted.
      - Chain of command
        
        Each job occurs within a hierarchy, the chain of command, in which each position reports and is accountable to a higher position. A grievance procedure and a right to appeal protect people in lower positions
      - Division of labor
        
        Tasks, responsibilities, and authority are clearly divided and defined
      - Impartial application of rules and procedures
        
        Rules and procedures apply to all members of the organization and will be applied in an impartial manner, regardless of one's position or status
      - Recorded in writing
        
        All administrative decisions, acts, rules, and procedures will be recorded in writing
      - Managers separate from owners
        
        The owners of an organization should not mange or supervise the organization
- - - - Planning
        
        determining organizational goals and a means for achieving them
      - Organizing
        
        deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom
      - Coordinating (later dropped from the five)
      - Commanding (later changed to Leading)
        
        inspiring and motivating workers to work hand to achieve organizational goals
      - Controlling
        
        monitoring progress toward goal achievement and taking corrective action when needed
    - - Division of work
        
        Increase production by dividing work so that each worker completes smaller tasks or job elements
      - Authority and responsibility
        
        A manager's authority, which is the "right to give orders," should be commensurate with the manager's responsibility. However, organizations should enact controls to prevent managers from abusing their authority
      - Discipline
        
        Clearly defined rules and procedures are needed at all organizational levels to ensure order and proper behavior.
      - Unity of command
        
        To avoid confusion and conflict, each employee should report to and receive orders from just one boss
      - Unity of direction
        
        One person and one plan should be used in deciding the activities to be carried out to accomplish each organizational objective
      - Subordination of individual interests to the general interests
        
        Employees must put the organization's interests and goals before their own
      - Remuneration
        
        Compensation should be fair and satisfactory to both the employees and the organization; that is, don't overpay or underpay the employees
      - Centralization
        
        Avoid too much centralization or decentralization. Strike a balance, depending on the circumstances and employees involved
      - Scalar chain
        
        From the top to the bottom of an organization, each position is part of a vertical chain of authority in which each worker reports to just one boss. For the sake of simplicity, communication outside normal work groups or departments should follow the vertical chain of authority
      - Order
        
        To avoid confusion and conflict, order can be obtained by having a place for everyone and having everyone in his or her place; in other words, there should be no overlapping responsibilities
      - Equity
        
        Kind, fair, and just treatment for all will develop devotion and loyalty. This does not exclude discipline, if warranted, and consideration for the broader general interest of the organization
      - Stability of tenure of personnel
        
        Low turnover, meaning a stable workforce with high tenure, benefits an organization by improving performance, lowering costs, and giving employees, especially managers, time to learn their jobs
      - Initiative
        
        Because it is a "great source of strength for business," managers should encourage the development of initiative, or the ability to develop and implement a plan, in others
      - Esprit de corps
        
        Develop a strong sense of morale and unity among workers that encourages coordination of efforts
- - - - Integrative conflict resolution is an approach to dealing with conflict in which both parties indicate their preferences and then work together to find an alternative that meets the needs of both
  - - - Concluded that substantially more attention was paid to these workers than to workers in the rest of the plant and their comments were listened to and discussed
        
        this caused the "Hawthorne effect" to be incorrectly defined for years as increasing productivity by paying more attention to workers
    - - The differences in performance were due to group dynamics
- - - - Through this Taylor developed the Four Principles of Scientific Management
        
        First: Develop a science for each element of a man's work, which replaces the old rule-of-thumb method
        
        This resulted in frequent rest breaks which greatly increased daily output
        
        Second: Scientifically select and then train, teach, and develop the workman, whereas in the past, he chose his own work and trained himself as best he could
        
        Workers were hired based on aptitude and then trained in-house - a rare practice at the time
        
        Third: Heartily cooperate with the men so as to endure all of the work being done is in accordance with the principles of the science that has been developed
        
        This was contrary to the common practices of the day - workers and management often viewed each other as enemies
        
        Fourth: There is an almost equal division of the work and the responsibility between the management and the workmen. The management take over all the work for which they are better fitted than the workmen, while in the past, almost all the work and the greater part of the responsibility were thrown upon the men.
  - - - Typically increases production yield by 25 to 300 percent
    - - Her work pushed the government to enact laws involving workplace safety, ergonomics, and child labor
  - - - Rewarded supervisors with bonuses for properly training their workers
      - Training approach: (1) a 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. (#) Reward for both teacher and pupil when the latter is successful
- - - - a subsystem is a smaller system within a larger system
      - Synergy occurs when two or more systems working together can produce more than they can working apart
      - Closed systems can function without interacting with their environment while open systems (which almost all organizations are) interact with their environments and depend on them for survival
    - - it forces managers to view their organizations as part of and subject to the competitive, economic, social, technological, and legal/regulatory forces in their environments
      - it forces managers to be aware of how the environment affects specific parts of the organization
      - because of the complexity and difficulty of trying to achieve synergies among the different parts of the organization, the systems view encourages managers to focus on better communication and cooperation within the organization
      - it makes managers acutely aware that good internal management of the organization may not be enough to ensure survival. Survival also depends on making sure that the organization continues to satisfy critical environmental stakeholders