Chapter 2 - The Evolution of
Management
Adam Smith - correct answer-Father of management, during the 19th century he believed
the management of these firms was chaotic, and their ideas helped to systematize it.
Administrative management - correct answer-A classical management approach that
attempted to identify major principles and functions that managers could use to achieve
superior organizational performance.
Bureaucracy - correct answer-A classical management approach emphasizing a structured,
formal network of relationships among specialized positions in the organization.
Chester Barnard - correct answer-Former president of New Jersey Bell Telephone company
published "The functions of the Executive" in 1938. He outlined the role of the senior
executive: formulating the purpose of the organization, hiring key individuals, and
maintaining organizational communications.
Christopher A. Bartlett - correct answer-Harvard university, focused on the "strategic and
organizational challenges confronting mangers in multinational corporations. Wrote "
Managing across borders: the transnational solution" with Sumatra Ghoshal.
Contingencies - correct answer-Factors that determine the appropriateness of managerial
actions. Which include:
- Circumstances in the organization's external environment.
- The internal strengths and weaknesses of the organization.
- The value, goals, skills, and attitudes of managers and workers in the organization.
- The type of task, resources, and technologies the organization uses.
Contingency perspective - correct answer-An approach to the study of management
proposing the the managerial strategies, structures, and processes that result in high
performance depend on the characteristics, or important contingencies, or the situation in
which they are applied.
Describe the origins of management practice - correct answer-- 5000 BC, the Sumerians
practiced management function of controlling by keeping records of tax receipts, real estate
holdings, and lists of farm animals.
- Around 4000 BC, the Egyptians used planning, organizing, leading, and controlling to build
their great pyramids; one pyramid took more than 100,00 laborers 20 years to complete.
, - As early as 1100 BC, the Chinese applied the managerial concepts of delegation,
cooperation, efficiency, organization, and control.
- In 500BC, Sun Tzu discussed the importance of planning and leading in his book "The Art
of War".
- Around 400-350 BC, the Greeks recognized management as a separate art and advocated
a scientific approach to work.
- Around 1436, the Venetians standardized production through the use of an assembly line,
building warehouses and using an inventory system to monitor the contents.
- In 1776, Adam Smith discussed control and the principle of specialization with regard to
manufacturing workers.
Douglas McGregor - correct answer-Created Theory X and Theory Y that marked transition
form human relations.
Economies of scale - correct answer-Reductions in the average cost of a unit of production
as the total volume produced increases.
Fayol's 14 principles of management. - correct answer-- Division of work: divide work into
specialized tasks and assign responsibilities to specific individuals.
- Authority: delegate authority along with responsibility.
- Discipline: make expectations clear and punish violations.
- Unity of command: each employees' efforts should be focused on achieving organizational
objectives.
- Subordination of individual interest to the general interest: the general interest must
predominate.
- Remuneration: systematically reward efforts that support the organization's direction.
- Scalar chain: keep communications within the chain of command.
- Centralization: determine the relative importance of superior and subordinate roles.
- Order: order jobs and material so they support the organization's direction.
- Equity: fair discipline and order enhance employee commitment.
- Stability and tenure of personnel: promote employee loyalty and longevity.
- Initiative: encourage employees to act on their own in support of the organization's
direction.
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