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Over the course of the 20 century, management developed through a number of successive
waves of thought. The movement progressed as follows :

A. Mechanistic
B. Administrative and Bureaucratic
C. Humanistic
D. Technological
E. Organic and natural

This movement is reflected the dominant schools of thought: A) the Classical Approach which
included Scientific Management and time and motion studies, B) Administrative Management,
and Bureaucratic Management, C) the Human Relations Movement and the definition of
Organization, D) Management Science theories, and E) Organizational Environment theories.

Each school of thought has added to our understanding of management. None has contained all
of the answers. Every school has expanded upon previous thinking or attempted to correct
defects of the past. The current emphasis is more focused on leadership. Leadership will be a
primary focus on this book because it plays a much larger role than scholars have recognized in
the past.

Bottom Line: Leadership and management have always existed. If you have ever influenced
another, you have been leading too. As you read this textbook, consider how you can lead more
effectively.

Key Terms:

Delegation takes place when a manager assigns a task to one of his people.

Division of labor is the division of a project into its most basic component tasks.

Classical Approach to management was the first formal attempt to improve worker productivity.

Scientific management is a system where supervisors scrupulously inspect worker activity to

improve efficiency.

Time studies were designed to reduce inefficiency by determining the optimal steps or sequence
for performing the task.

Piece rate system is a system to establish how much work should be done in a day. If workers
produced more, they received more pay.

Motion studies, as a tool of scientific management, were designed to break down every activity
into elemental steps. They were applying what was then cutting-edge motion pictUre technology
to Taylor's method.

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Therblig was simply a movement in the process (see motion studies).

Management consists of the four functions of planning, leading, organizing and controlling.

Authority is the right to act, command, or hold others accountable.

Chain of command is a clear line of authority that runs through the organization.

Unity of command is the principle that each person should report to one boss.

Line authority is the formal authority to manage those below you in the chain of command.

Line functions are those activities that directly relate to producing or selling a product.

Staff authority is the authority to advise those with line authority.

Stafffunctions are those activities that relate to a specific area of expertise such as the
accounting or legal department.

Charismatic authority is based on the traits of one person, usually the founder (see the
bureaucratic approach).

Traditional authority is based on hereditary rule (see the bureaucratic approach) '

Rational-legal authority (see the bureaucratic approach).

Bureaucratic approach is authority based on rules and procedures.

Integrative Conflict Resolution is a process where parties seek to find a mutually acceptable
solution.

Hawthorne studies (1924-1932) were a research project conducted at the Hawthorne works of
the Western Electric Company (see the Hawthorne effect).

Hawthorne effect found that productivity increases when management pays attention to workers .
•
Organization is "a system of consciously coordinated activities or forces" according to Chester
Barnard.

Operations management was developed from the need to plan for large scale military operation
in the early 1940s.

Total Quality Management (TQM) developed in the effort to rebuild Japan after World War II.

Six Sigma is a quality control management process that employs statistical analysis to reduce
defects in the production process.

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Management Information Systems (MIS) is used to capture, control, retain, and share
information useful to the organization.

Systems theory examines the setting in which the organization exists.

Closed system is an organization in a vacuum (no external interaction).

Open system is an organization concerned with the suppliers, customers, and other key
constituents who interact with the organization.

Contingency theory asserts that there is no one best way to organize or one best way to manage
employees.

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