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Chapter 2 Management Yesterday and Today

Chapter 2 Management Yesterday and Today - Chapter 2...

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Chapter 2 Management Yesterday and Today ANNOTATED OUTLINE 1. HISTORICAL BACKGROUND OF MANAGEMENT Many fascinating examples from history illustrate how management has been practiced for thousands of years. A.Organizations and managers have existed for thousands of years. The Egyptian pyramids and the Great Wall of China were projects of tremendous scope and magnitude, requiring the efforts of tens of thousands of people. How was it possible for these projects to be completed successfully? The answer is management. Regardless of the titles given to managers throughout history, someone has always had to plan what needs to be accomplished, organize people and materials, lead and direct workers, and impose controls to ensure that goals were attained as planned. B. Examples of early management practices can also be seen by studying the Arsenal of Venice. Assembly lines, accounting systems, and personnel functions are only a few of the processes and activities used in business in the fifteenth century that are common to today’s organizations as well. C. Adam Smith, author of the classical economics doctrine The Wealth of Nations , argued brilliantly for the economic advantages that he believed division of labor (the breakdown of jobs into narrow, repetitive tasks) would bring to organizations and society. D.The Industrial Revolution is possibly the most important pre-twentieth-century influence on management. The introduction of machine powers combined with the division of labor made large, efficient factories possible. Planning, organizing, leading, and controlling became necessary activities. E. Exhibit 2-1 and PowerPoint slide 2-7 illustrate the development of management theories. 2. SCIENTIFIC MANAGEMENT Scientific management is defined as the use of the scientific method to determine the “one best way” for a job to be done. A.Important Contributions 1. Frederick W. Taylor is known as the “father” of scientific management. Taylor’s work at the Midvale and Bethlehem Steel companies stimulated his interest in improving efficiency. a. Taylor sought to create a mental revolution among both workers
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and managers by defining clear guidelines for improving production efficiency. He defined four principles of management ( Exhibit 2-2 ). b. His “pig iron” experiment is probably the most widely cited example of his scientific management efforts. c. Using his principles of scientific management, Taylor was able to define the “one best way” for doing each job. d. Frederick W. Taylor achieved consistent improvements in productivity in the range of 200 percent. He affirmed the role of managers to plan and control and the role of workers to perform as they were instructed. 2.
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