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75 Cards in this Set

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  • Back

Origins of management science: the early strategists

What facts allows us to know that management ideas were present more than 2000 years ago?

– Historical examples like building of pyramids of Egypt, Great Wall of China or wars

– Greek and Roman armies had leaders and subordinates and clear responsibilities and duties which shows presence of management

– Churches had clear hierarchical levels and laws which shows presence of management

Who were the first to analyze strategy and leadership ideas?

Sun Tzu, Machiavelli

What ideas of N. Machiavelli are applicable in management?

– The end but not the means are important

– You need to have good reputation not to be virtuous

– It’s better being feared than loved

– Rulers need to be both like lion and fox

– It is important that subordinates are ready for constant job

What were the workforce problems in the first factories?

– Recruitment

– Training

– Discipline and motivation

– Lack of qualified managers

Whose ideas could be preconditions of Classical socio-psychological theories?

Robert Owen’s

Whose ideas could be preconditions of Scientific management theory?

Charles Babbage’s

Who is called the pioneer of first personal computer?

Charles Babbage

What are the differences in Owen and Babbage ideas?

Owen’s personnel management ideas served as basis for Human Relations and Behaviorism theories and Babbage mathematical management ideas served as basis for scientific management theories

Describe and critically evaluate the ideas of first management thinkers (18 – 19 century). Why the first ideas were refused by majority at that time?

– The ideas of Owen and Babbage were too “radical” for that time

– The ideas on people and organization management were too distant and irrelevant for the owners and managers of those days

– The markets grew fast and competition was too low to make effective management relevant

Classical theories of organization management

What are the classical theories of organization management?

– Scientific management theory

– General administrative

What is the object of investigation in classical theories?

Work organization and performance productivity of individual workers

Who are the representatives of classical theories?

– Frederick W. Taylor

– Henry Gantt

– Gilbreths

– Henry Ford

Classical theories of organization management: Scientific management theory

What are the main ideas of Taylor?

– Development of science in management

– Scientific selection of workmen

– Scientific education and development of workmen

– Paying workers on incentive basis i.e. tie salary to how much worker can produce

– Institute friendly cooperation between management and staff

– There is only “one best way” to accomplish job

Define Systemic scientific time study

It’s study that shows the fastest possible time to make a job, and remove the movements that are unnecessary doing particular work to save time (similar to Gilbreths, but measured with chronometer, not filmed)

Define Differential piece-rate plan

It defines the norm that men can make by specific time period, for which is paid regular base salary and everything what is above the norm is paid as bonus

How many supervisors should employee have according to Taylor?

8 ???

Significance of Taylor‘s ideas

– Introduced individual motivation

– First to analyze job systematically

– The best way to work was determined objectively – scientifically

– Emphasis on planning

– All knowledge on management systemized and techniques for improvement offered

Shortages of Taylor‘s ideas

– Dehumanised dependence of individual worker on measurement

– Oversimplified understanding of motivation

– Lack of integration: job is divided into small fractions

– Individual fantasy or initiative ignored

Who have resisted Taylor‘s ideas? Why?

– Employers, because development of new methods means additional costs

– Managers and foremen, because of the loss of power

– Workers and unions, because workers felt exploited

Where Taylor‘s ideas are still applicable?

Today, firms that produce goods must be as efficient as possible. So, for firms, such as McDonald’s, Samsung and Mercedes-Benz, Taylorism is still relevant. Also, Taylor’s ideas are applicable in sports, such as rugby, basketball, football

The main ideas of Gilbreths

– Motion study and motion optimisation

– Motion measurement techniques

– Workers’ fatigue

Define Motion study by Gilbreths

Method for establishing employee productivity standards in which a complex task is broken into small, simple steps, then the sequence of movements taken by the employee in performing those steps is carefully observed to detect and eliminate redundant or wasteful motion, and precise time taken for each correct movement is measured

Define motions measurement techniques used by Gilbreths

Worker wears the lamp on the wrist, so motions in the air are traced. Both motions and the clock on the wall are filmed

What do Gilbreths say about fatigue?

– Necessary fatigue - when job necessary for the task is performed

– Unnecessary fatigue - when unnecessary job is performed

Define “Task work with the bonus” compensation system introduced by Gantt

Workers completing the standard job within the standard time or a shorter time receive wages for the standard time plus a bonus. The bonus is a percentage, varying from 20 to 50, of the wage for the standard time. When a worker fails to turn out the required quantity of products, he simply gets his time rate without any bonus

What is Gantt chart?

Gantt’s charts are bar charts, that illustrate the start and finish dates of the terminal elements and summary elements of a project

Be able to compare compensation systems offered by Babbage, Taylor and Gantt

Google it :(

Peculiarities of Ford's management

– The only manager in the company is H. Ford

– Supervisor is allowed to dismiss an employee if he thinks that he’s working ineffectively

– Work day decreased from 12 to 8 hours

– Shifts increased from 2 to 3

– In 1913 salary increased from 2.5$ to 5$ a day

– Sociological Department is established to take care of workers’ living conditions improvement

Advantages of Classical management theories

– Hierarchical structure - each management group has its own objectives and responsibilities

– Division of labour - projects are broken down into smaller tasks that are easy to complete. Employee’s responsibilities and expectations are clearly defined. This approach allows workers to narrow their field of expertise and to specialize in one area

– Monetary incentive - workers will work harder and become more productive if they if they have an incentive to look forward to. It gives management easier control over the workforce

– Autocratic leadership - it states than an organisation should have a single leader to make decisions, to organize and direct the employees. All decisions are made at the top level and communicated down

Disadvantages of Classical management theories

– Untested assumptions - many of assumptions made by classical management writers were based not on scientific tests but on value judgements that expressed what they believed to be proper lifestyles, moral codes, and attitudes toward success.

– Human machinery - classical theories leave the impression that the organisation is a machine and the workers are simply parts to be fitted into the machine to make it run effectively. Thus, many of the principles are concerned first with making the organization efficient, with the assumption that workers will conform to the work setting if the financial incentives are agreeable

– Static conditions - organisations are influenced by external conditions that often fluctuate over time, yet classical management, theory presents an image of an organisation that is not shaped by external influences

Classical theories of organization management: General administrative theory

Similarities between Taylor‘s and Fayol‘s ideas

– Both understood that the problem of personnel and its management at all levels is the key to industrial success

– Both applied scientific methods to the problems of management

– Both of them developed their ideas through practical experience

Differences between Taylor‘s and Fayol‘s ideas

– Taylor worked on the operative level, from the bottom of hierarchy upwards while Fayol concentrated on the managing director and worked downwards

– Taylor focused on work effectiveness of individual worker while Fayol emphasized management of complex large organizations (e.g. factories)

– Taylor is known as father of Scientific Management and Fayol as the father of Principles of Management

Be able to understand and describe 14 principles of management by Fayol

Management functions by Fayol

– Planning

– Organizing

– Command

– Coordination

– Control

Definition of bureaucracy

Bureaucracy is management of organization strictly regulated by rules, standards and instructions

What are the forms of power?

– Rewards

– Punishments

– Expertise

– Reference

– Legitimacy

What are the types of authority? Which one is the best according to Weber?

– Traditional

– Legal-Rational

– Charismatic

Weber’s favourite is Legal-Rational.

Characteristics of an Ideal Bureaucracy

– Clear division of labor - jobs are well defined, and workers become highly skilled at performing them

– Clear hierarchy of authority - authority and responsibility are well defined, and each position reports to a higher-level one

– Formal rules and procedures - written guidelines describe expected behavior and decisions in jobs; written files are kept for historical record

– Impersonality - rules and procedures are impartially and uniformly applied; no one gets preferential treatment

– Careers based on merit - workers are selected and promoted on ability and performance; managers are career employees of the organization

Characteristics of bureaucrat

– Candidates are selected on the basis of technical qualifications in the free selection process

– The office is treated as a sole or primary occupation of the incumbent

– The official is subject to strict and systematic discipline and control in the office

– Career depends on seniority or achievement or both. Promotion is dependent on the judgment of superiors

– They are remunerated by fixed salaries, with the right to pensions. Salary primarily depends on the rank in the hierarchy

– Only under exceptional circumstances the appointment of bureaucrat can be terminated, but official is always free to resign

Applicability of bureaucratic system

– Bureaucratic theory is still applicable in today’s organizations

– Hierarchy of command is commonly applicable in army and police whereby the organization is a continuous hierarchy where each level is subject to control by the level above it

Advantages of bureaucracy

– Decisions are made according to clear, known and well-known rules

– All the decisions and operations are fixed

– Behavior of superiors and employees is predictable

– More delegation to subordinates

– Employees are provided by stable and secure workplace

Disadvantages of bureaucracy

– Overspecialization – employees do not know theconsequences of their actions

– Officials can avoid responsibility or seek for anonymity

– Procedures are inflexible in a new situation, they avoid changes

– Corruption and favoritisms are possible

– Employees are treated as impersonal creatures

The main ideas of Graiciunas article “Relationship in Organization”

– The object of the paper – internal relationships in organization

– Theory of span of control – the span of management

– Internal relationships in organizations:

Direct single relationships between supervisor and subordinate; Cross relationships between subordinates; Direct group relationships between supervisor and two or more subordinates

What is the optimal number of subordinates? Why?

– Supervisor can effectively manage 12 direct individual relationships and 28 cross relationships – Optimal number of subordinates is 5-6

Human relationship theories: experiments ofHawthorne

Describe Hawthorne experiments and their importance

Define the Hawthorne effect

The Hawthorne effect is a type of reactivity in which individuals modify or improve an aspect of their behavior in response to their awareness of being observed

Conclusions of Hawthorne experiments

– Human being cannot be treated separately, he/she is a part of a group

– Need to belong to a group is stronger than compensation or physical working conditions

– Informal groups have huge impact on employee behavior at work

– Supervisors have to pay attention to social needs of employees and use them for organizational sake

– Managers need not only technical skills but social as well

What is management according to Follett?

"the art of getting things done through people"

She believed that managers and subordinates should fully collaborate

Describe conflict resolution types according to Follett

– Voluntary submission of one side

– Struggle and the victory of one side over the other

– Compromise – both parties give in and agree

– Integration – both parties are looking for the roots of conflict and ways to resolve it

Describe power and authority according to Follett

– Power is created and organized by organizations, and according to her it is legitimate and inevitable

– Authority flows from an entitlement to exercise power, which is based upon legitimate authority.

School of behaviourism: motivational theories

Define motivation

– Motivation – level, direction and persistence of effort expended at work

– Psychological feature influencing person’s commitment

– Management process making influence on individual behavior

The main principles of Maslow's theory

Maslow’s hierarchy of needs helps us understanding what motivates learners. His hierarchy proposes that people are motivated to fulfill basic needs before moving on to meet higher level growth needs

List the needs defined by Maslow. How can the needs be satisfied at job?

Needs - unfulfilled desires that stimulate people to act.

Needs List:

– Self-actualization

– Esteem

– Social

– Safety

– Physiological

Job satisfaction:

– Creative and challenging work

– Participation in decision making

– Responsibility of an important work

– Friendly co-workers

– Job security

– Physical comfort at work.

What are the acquired needs by McClelland?

– Need for achievement

– Need for power

– Need for Affiliation.

List hygiene and satisfier factors by Herzberg

Factors for Satisfaction:

– Achievement

– Recognition

– The work itself

– Responsibility

– Advancement

– Growth

Factors for Dissatisfaction:

– Company policies

– Supervision

– Relationship with supervisor and peers

– Work conditions

– Salary

– Status

– Security

What do Theories X and Y describe?

Theory X:

– Employees work only to fulfill material needs and earn money

– Employees do not like and avoid job, responsibility and takes the job which is profitable instead of enjoyable

– Employees have to be strictly controlled and punished to work well

Theory Y:

– Employees like working and they need work just as food or leisure

– Employees choose the job they enjoy

– Employees do their best in the job are responsible and loyal

– Employees need possibilities for self-actualization, creativity and productivity

How can human behavior be modified according to Reinforcement theory?

– Operant conditioning influences behavior by controlling its consequences

– Positive reinforcement connects desirable behavior with pleasant consequences

– Punishment connects undesirable behavior with unpleasant consequences

Describe positive reinforcement, negative reinforcement, punishment and extinction

Positive reinforcement:

– Strengthens positive behavior

– Approval

– Recognition

– Rewards

Negative reinforcement:

– Unpleasant consequence is avoided if desirable behavior is exhibited


– Desired consequence is removed if undesirable behavior is exhibited


– Discourages a behavior by making an unpleasant consequence contingent on its occurrence

Participative theory

Main idea of Participative theory

Employee will work better if he/she participated in decision making and task formulating

Leadership styles according to R. Likert

– Exploitive authoritative: hierarchical authority, control, punishments, lack of communication, no teamwork. Low productivity

– Benevolent authoritative: a little bit of delegation, punishments and incentives. Productivity is higher, costs are high

– Consultative: goals and tasks are formulated after consultations with employees, there is teamwork. Productivity is higher, but motivation is insufficient

– Participative group: employees are involved in goal and task formulation. Well organized teamwork, good communication, high motivation. High productivity

The benefit of involving employees in decision making

– Better commitment to achieve organizational goals

– Helps to improve performance

– Facilitates change implementation

– Improves individual and team satisfaction and motivation

– Enables creative decisions

Theory of management science: quantitative managementtechniques

Describe operations research teams

They are teams made of various specialists

Random fact: British formed first teams to solve problems of radar systems, antiaircraft gunnery, civilian defense matters during WWII

What does Management science theory investigates?

It investigates management of production and operations

Description of quantitative techniques

– Decision making techniques

– Inventory management techniques

– Project management techniques

– Other organizational control ratios

Application of quantitative techniques

– How much inventory should be stored

– How to schedule and control production?

– How quality could be controlled?

– How flight schedules can be managed?

– How weather can be forecasted?

Peculiarities of American and Japanese management. Theory „Z“

Comparison of Japanese and Western management functions

Theory “Z”

Organization “Z” is created eliminating disadvantages and using advantages of both Western and Japanese type management

Features of American and Japanese organizations

Organization “Z” features

– Longterm employment with guaranties

– Collective consensus (participative) decision making

– Individual responsibility prevailing

– Consistent career (not necessarily specialized)

– Mixed balanced control

– Holistic approach with the family included

Theory “Z” critics

– G. England: Theory Z cannot be implemented in Western organizations because of cultural differences. Therefore the management philosophy appropriate for US companies should be found. It should be consistent with American societal norms, supported by government and labor unions

– "Sullivan Anti-theory Z“: The factors of productivity defined by Ouchi are only consequences of Japanese social traditions

Article Hirakubo, N. (1999). The End of Lifetime Employment in Japan. Business Horizons, November/ December, 1999

How common is lifetime employment in Japan? Give me numbers.

Only about 1 out of 5 workers in Japan enjoys lifetime employment

What are the differences between lifetime and long-term employment?

Long-term employment only lasts until compulsory retirement

What are the factors that make lifetime employment possible in Japan?

– Culture. Japanese culture is characterized by high uncertainty avoidance and a high need of security

– Japanese companies needed workers with the same standards and modes of thinking to achieve efficient mass production

Think: what are the consequences of lifetime employment?

– For employees?

– For employers?

– For the country?

What can be done?

– Government must stop protecting inefficient uncompetitive business, including its’ own agencies

– Entrepreneurship must be encouraged by deregulation, privatization, modified tax laws and a restored financial infrastructure

– Government must implement more liberalized trade policies to encourage consumption

– The telecommunications, information and entertainment sectors must play major role in creating jobs