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 * Midterm Study Guide:**

Please organize yourselves and collaborate to create a midterm study guide for the following key terms:


 * Chapter 1:**

1. Why study mgt. history? **study the past to illuminate the present “History may not repeat itself, but it rhymes”.-Mark Twain** 2. Cultural framework 3 **facets, social political, technological** 3. Social facet **relationship of people to other people** 4. Political facet **relationship of the individual to the state** 5. Technological facet **related to the art and applied science of making tools and equipment** 6. Brownoski quote **“We are joined in families, the families are joined in kinship groups, the kinship groups in clans, the clans in tribes, and the tribes in nations. This is the most primitive revelation of a hierarchy of organization, layer upon layer that links the present to the past of man’s existence.”** 7. George Washington quote **“Knowledge is in every country the surest basis of public happiness”** 8. Cultural environment Figure 1-11**the state of nature: general scarcity of resources and hostility in nature gives rise to economic, social, and political needs of people. To satisfy need, people form economic, social, and political organizations. State of the art technology influences how organizations engage in Management. The management of organizations facilitates satisfaction of people’s needs.** 9. Social values **cultural standards of conduct** 10. Guilds **trade unions**


 * Chapter 2:**

1. Hammurabi **Code of 282 laws** 2. General Sun Tzu - **marshaling the army into subdivisions, establishing gradations of rank amoung officers, using gongs, flags, and signal fires for communication, and planning.** **“This is the art of offensive strategy: when our forces are ten to the enemy’s one, to surround him; when five to one, to attack him; if double his strength, to divide him, if equally matched, engage him, if weaker numerically, be capable of withdrawing, if quite unequal in every way, be capable of eluding him”.** 3. Confucius **advocated that offices should go to individuals of proven merit and ability – led to performance appraisals ** 4. Chanakya Kautilya – **humans “are naturally fickle-minded, and like horses at work, exhibit constant change in their temper. “It is impossible for a government servant not to eat up, at least, a bit of the King’s revenue.” Desired traits of administrators “of high ancestry…blessed with wisdom…eloquent..intelligent, enthusiastic…sociable”. Job descriptions.** 5. Egyptian examples - **developed extensive irrigation projects, the pyramids ** 6. Hebrew examples **<span style="font-size: 11pt; color: black; line-height: 115%; font-family: 'Arial','sans-serif';">Joseph - viziers (supervisors) ** 7. Greek examples – Aristotle + Plato - **Aristotle - father of scientific method - division of labor, specialization** 8. Will Durant quote – (stoics vs. epicureans) **"a nation is born stoic, and dies epicurean".** 9. Roman examples – Rule of 10 - **established units to perform certain tasks as well as a hierarchy of authority to ensure performance** 10. Plato and Aristotle 11. Feudalism - **ties people to the land, fixed rigid class distinctions, established an age of landed aristocracy that was to endure to the Industrial Revolution, forced education to a standstill, made poverty and ignorance the hallmark of the masses, and completely stifled human progress until the Age of Reformation.** 12. Guilds - One of two from of industrial organization before the revolution, it consisted of either merchants guilds (buy and sell goods) or crafts guilds (create goods) 13. Domestic system - The other industrial organization besides guilds, it used contracts with people who worked in their own homes, making completion unpredictable. 14. Protestant ethic - To always work hard and through that you will be rewarded in the afterlife. 15. The Weberian thesis - That Protestantism created capitalism. 16. Calvinism - The belief that salvation required one to live a life of good work. 17. Liberty ethic - The political system conducive to individual's need for achievement and their rewards for worldly efforts. 18. Market ethic - The idea of removing governments control over how the business should operate and allowed them to engage in competition. 19. Adam Smith - The Wealth of Nations - influential in with letting people own business and allowing the economy to take care of itself, without regulated price. 20. Machiavelli - Wrote a book about how to rule successfully as a a ruler or aspiring ruler. 21. John Locke - Wrote about the idea of how one person should be leader, but a legislative. 22. Thomas Hobbes - Believed in a strong central leadership, that individuals needed to be ruled.


 * Chapter 3:**

1. Steam engine - one of those big noisy thingys...oh wait, I bet you would rather know that the development of the steam engine was the heart of the industrial revolution, providing more efficient and cheaper power fo ships, trains, and factories. 2. Key textile innovations - Kay began mechanization of weaving with flying shuttle Hargraves changed the position of the spinning wheel from vertical to horizontal Arkwright developed a water frame that stretched the fibers into a tighter, harder yarn 3. Industrial revolution 4. Definitions of entrepreneurship - Cantillion's definition - "anyone who bought or made a product at a certain cost to sell at an uncertain price". Say's definition - "a combination of moral qualities that are not often found together. Judgment, perseverance, and a knowledge of the world as well as business, the entrepreneur is called upon to estimate with tolerable accuracy the importance of the specific product, the probable amount of the demand, and the means of its production: at one time he must employ a great number of hands; at another, buy or order the raw material, collect laborers, find consumers, and give at all times a rigid attention to order and economy; in a word, he must possess the art of superintendence and administration:. 5. The 4th factor of production - entrepreneurs 6. Problems with labor - 3 aspects - recruitment, training and motivation 7. Luddites - workers who smashed machines in protest of management, based on fear of unemployment from technological advancement 8. Problems with management talent - no common body of knowledge for managers, no transferability of managerial skills, nepotism, no common code of behavior for managers 9. Early profit sharing - Mill's idea that connecting the interest of the employee with the employer by giving them a percentage of the profits would improve a manager's "zeal". 10. Early functions of management - usually illiterate workers promoted from within based on technical skills and/or the ability to keep order 11. Worker conditions - exploited to some extent, but standards of living were increased, falling death rates and rising birth rates. 12. Marx and Engels - felt workers were exploited by factory masters, advocated use of force 13. Utopians - Robert Owen - communal life 14. Child and female labor - found primarily in textile industry, but also used prior to industrial revolution in the domestic/agricultural system 15. Causes for the industrial revolution - first development of textile innovations, followed by the steam engine, then railroads, telecommunications.


 * Chapter 4:**

1. Robert Owen - 2. Charles Babbage 3. Andrew Ure 4. Charles Dupin 5. See summary


 * Chapter 5:**

1. Antebellum industry - prior to the War of Northern Aggression/Civil War 2. How did industrial revolution arrive in US? Samuel Slater - said he was a farmer on immigration papers and "brought technical knowledge" with him 3. What steps were taken to block by England? prohibiting sale of manufacturing equipment, restricting immigration of skilled laborers 4. Moses Brown - owned small textile mill in Rhode Island, induced Samuel Slater to come to US, became first technicologically advanced textile mill - Rhode Island System - relied on sole proprietorship or partnership form of ownership; spun fine yarn in the mill and put out weaving to be done by families in their homes 5. Samuel Slater 6. Waltham system - Francis Cabot Lowell - Boston Manufacturing Company of Waltham - used joint-stock companies and the corporate form of ownershipl integrated spinning and weaving to manufacture goods in large quantities; hired non family supervisors and managers for their mills,and relied on adult female labor. 7. American System of Manufactures - parts were built to such exacting standards that they were interchangable. Interchangeable parts began with weapony earlier but the US moved it from weaponry to industry. 8. Great Exhibition of Industry of all Nations - the showcase the allowed the world to see interchangeable parts in unpickable locks, sewing machines, repeating Colt revolvers, mechanical reaper 9. Springfield Armory - central workshop to bring weapons makers together, Colonel Lee reorganized; central authority, areas of responsibilities. piece-rate accounting system, specialization of labor increased, tightened discipline, control of time and material costs, what later became known as the American System of Manufactures 10. First big business: Railroads 11. Communication revolution – the telegraph 12. Mono versus chroncentric time - chroncentric - the idea that we are better off than our ancestors 13. Daniel McCallum – railroads, principals of mgt.developed organizational chart 14. Henri Poor – broader mgt. view


 * Chapter 6:**

1. Alfred Chandler - 2. Horizontal and Vertical Growth (Chandler) 3. Dale Carnegie 4. Bessemer process 5. US versus British steel production 6. ASME 7. The Labor Question 8. Adam Smith – breaking with mercantilist position 9. David Schloss – lump of labor 10. Profit sharing 11. Frederick Halsey 12. Gain sharing 13. Robber barons or benefactors 14. Social Darwinism 15. Steinway – Quid Pro Quo 16. Endowment versus “menace to society” 17. Effectiveness of early business regulation


 * Chapter 7:**

1. Frederick Taylor - An engineer during the latter half of the nineteenth century was was vital in revolutionizing management. 2. Scientific management - The use of scientific fact-finding methods to determine empirically instead of traditionally the right ways to perform tasks. 3. Time study - The use of analysis and synthesis to determine and create standards for a work day and performance. 4. 3 premises (pg 5. First class man - Any worker who is not not, mentally suited, physically capable or is unwilling to give their best effort in/on a job. 6. Functional foreman - Someone who was in charge of a specific operation or had a specific responsibility, outside of management. 7. Taylor on cost accounting - Found it as an effective system to increase overall efficiency of the company, which he implemented at Steel Motor Works in 1896 8. Taylor on cooperation - believed a business is a system of cooperation that will be successful only if all concerned work toward a common goal. 9. Pig iron controversy - That Taylor's report of the facts about his experiments at Bethlehem Iron Company had been embellished and were stretched to add extra value to his experiments. 10. Signs of over control (see 136) - 11. Taylor on business education 12. Easter Rate Case 13. Watertown and the congressional investigation 14. Unions versus scientific management 15. Taylor’s mark – see summary - "His emphasis on efficiency remains a prevailing value of contemporary management."


 * Chapter 8:**

1. Carl Barth - Installed the scientific method in multiple organizations along with the creation of the slider ruler. 2. Henry Gantt - Created the Gnatt chart which allowed managers and companies to track progress in relation to time instead of quantity. 3. The Gilbreths - First female manager and creators of process charts which helped reduce steps and imporve speed of productivity. (also invented several things and often used video cameras) 4. Morris Cooke - extended the gospel of efficiency to educational and municipal organizations


 * Chapter 9:**

1. Personnel as “welfare” 2. Social gospel vs. Social Darwinism 3. Scientific mgt. – functional foreman and advent of staff positions 4. Briscoe versus Gantt at Bancroft Mills 5. Henry Ford 6. British examples 7. Plutology 8. Wundt 9. Munsterberg 10. Whiting Williams 11. Earnings as means of social comparison 12. William’s findings 13. Cooley’s Looking Glass self 14. Emile Durkheim – collective consciousness/organic 15. Pareto – social system 16. Goehre – whole versus partial work


 * Chapter 10:**

1. Henri Fayol - background 2. Principals of management 3. Elements of management 4. Max Weber 5. Bureaucracy 6. Kinds of authority 7. Elements of bureaucracy


 * Chapter 11:**

1. First schools involved 2. Early industrial management 3. Alford – mgt. as art and science 4. The French experience 5. The British experience 6. European union resistance 7. Russian experience 8. Hoxie Report 9. Thomson and Nelson studies 10. Data on “deskilling” of workers 11. “Crossover chart” 12. Flexible budget 13. Church’s view re Taylor 14. Sheldon’s thesis – service to community 15. Case method 16. Policy formulation 17. Dupont method 18. General Motors - Sloan


 * Chapter 12:**

1. Taylor as the deus ex machine 2. Farm to factory statistics 3. Rationalization of resource utilization 4. Impact of new technologies 5. Horatio Alger 6. Early scientific mgt. and social values 7. The collision effect 8. See Figure 12-1 9. Social gospel 10. Populists 11. Progressives

1. The Illumination study 2. The Relay Test room study 3. The Interviewing program 4. Bank Wiring Observation Room 5. Speed King and The Slave 6. The “informal organization” and “output restrictions” 7. Findings of study re informal groups 8. Organizations as social systems 9. Mayo/Rothlisberger/Pareto 10. Management and the Worker 11. Hawthorne Effect 12. Were the Hawthorne results biased? 13. Effective collaboration and social solidarity 14. Emile Durkheim’s Anomie and Mayo 15. Mayo’s Human Relations Leader 16. Mayo – Human Relations and Motivation 17. Summary
 * Chapter 13: **

Mary Parker Follett: Sense of her background 301-302 Group principal 303 Interrelating and a-making 303 Impact of Gestalt 304 Conflict resolution 304-306 Integrative unity/commonality of will 306 Functional whole 307 “Power with instead of power over” 308 Control situations not people 310 The “invisible leader” 311 Were her ideas too forward thinking? 312-313
 * Final Preparation Study Guide, Complete - (Note: page numbers may differ from previous edition) **
 * Chapter 14, The Search for Organizational Integration: **

Chester Barnard: Erudite executive 313 Internal equilibrium and external adjustment 314 Effective-efficiency dichotomy 315 Universal system elements 316 Economy of incentives 316 Functions of the informal organization 317 On authority 317-318 3 executive functions 319

Gestaltist notion of people at work 323 Moreno Sociometry 324 Psychodrama, sociodrama 325 Kurt Lewin Field Theory 326 “Laissez-faire” controversy 326 Changes through group participation 326 First sensitivity training 327 Carl Rogers Nondirective counseling techniques 328 Normal Maier group decision-making 328 Maslow Heirarchy of Needs 329 Eupsychian 330 Goldstein – difference re self actualization 329 Human Relations: Scanlon plan 331 Lincoln electric 331-332 Job Enlargement and job rotation 332-333 Job participation Power equalization thesis 333 McCormick (and Given) plan 334 Bottom up management 334 Kurt Lewin – //The Authoritarian Personality// 335 Likert – 2 different leadership orientations 335 Michigan and Ohio State studies 335 Whyte – participatory action research 337 Wight Baake – bonds of an organization 337 Herbert Simon Bounded rationality 338 Satisficing 339 Also add: Escalation of commitment (in class notes)
 * Chapter 15, People and Organizations: **



__James Moony (affable Irishman) 353__ - General Motors executive who observed that enterprises sought "profit through service" and that the goals of industry was "the alleviation of human want and misery" Studied governments, armies and Catholic church __Body-mind analogy 355__ - "Management is the vital spark which actuates, directs, and controls the plans and procedure of organization. With management enters the personal factor, without which no body could be a living being with any directive toward a given purpose. The relation of management to organization is analogous to the relation of the psychic complex to the physical body. Our bodies are simply the means and the instrument through which the psychic force moves toward the attainment of its aims and desires. __Principals of organization 355__ - Mooney developed three principles of organizations: the coordinative principle, the scalar principle and the functional principle __Compulsory staff service 356__ - A principle the Catholic Church worked on. Where a superior had to consult elder monks even on minor matters. __Henry Dennison__ - Implimented the Taylor system in paper-product firm. He believed in team work and also recognized diversity in motivation. __His view of motivation 357__ - He viewed that there were four general tendenices. "regard for his own and his family's welfare and standing, liking for thw work itself, regard for one or more members of the organization and for their good opinion and pleaseure in working with them, and respect and regard for the main purpose of the organization. __Progressive employer__ __358__ - Dennison was a progressive employer because he focused on employee satisfaction. He used an employee profit sharing plan, low-interest loans for employeess to purchase homes, unemployment and several other things. __Gulick POSDCORB 361-362__ - Guilk divided the work of CEOs into seven functional elements, POSDCORB. Planning, Organizating, Staffing, Directing, Coordinating, Reporting, and Budgeting. __Urwick’s 8 principals 362__ - 1"principle of objective" 2 "principle of correspondence" 3 "principle of responsibility" 4 "principle of authority" 5 "principle of the span of control" 6 "principle of specialization" 7 "principle of coordination" 8 "principle of continuity" __Graicunas span of control 352-353__ - Gracicuna wrote a paper stating that a managers span of control was from 3 to 7 subordinates. Any more could lead to confusion by the manager trying to direct too many things. __Top mgt. view:__ - This was a focus on the overall higher management role of an organization. This was brought about over the seperation of ownership and control and the economics of business firms. __Davis__ - Stated that the fundamental functions and principles of factory management were universal in their appliation. He also wrote "The fundamentals of Top Management" __Executive leadership 355__ - Daivs said that they should have a sound philosophy of management with respect to the public interest. That their primary mission "is to supply the public with whatever goods or services it desires at the proper time and place, in the required amounts having the desired qualities, and at a price that it is willing to pay" __The right to decide 355__ - This is that in order to achieve business objectives authority had to have the right to plan, organize, and control the organization's activitives, so they had to have the right to decide. __Timing of control 356__ - Is what deiced what kind of control you would take. It was broken down into three plases. Preliminary, concurrent and corrective. __Harr Hopf optimology 357__ - It was hic concept "that state of development of a business enterprise which tends to prepetuate an equilibrium between the factors of size, cost, and human capacity and this to promote in the highest degree regular realization of the business objectives." __Overall: pervasiveness of control systems 358__ - Overall control practices brought little solace; only half of the companies studies used budgets as a means of planning and, subsequently, for measuring "over-all results of efforts." __Ownership and control issues 359__ - It was found that most top managers of large corporations were losing sight of whose interests they served. It was found that they were becoming "economic autocrats" __Commons – types of transactions 360-361__ - Commons said that transactions were the smallest unit of analysis and that they were the the transfer of future ownership. He identified three types of transfers" bargaining, managerial and rationing. __Coase – cost to market mechanism 361__ - Coast stated that the use of Firms were a way to reduce market costs and that they could be reduced further if a firm could coordinate its market transactions.

<span style="font-size: 12pt; font-family: 'Times New Roman','serif';"> Whiting Williamson human relations 364 he extended the meaning of personnel/employee relations to include human relations and suggested that attention to people should be an organization-wide function rather than the province of personnel managers alone. By improving human relations at every level of an organization, all parties, workers, managers, and the public, would benefit. After Hawthorne, human relations took on interpersonal relations flavor 364 Human relations gained academice credibility and moved on to studies of different business organizations. Wagner Act 366 provided the legislative basis for a spurt in union membership Were Mayoists anti union? 366 No the mayoists were not anti union they suggested that in both union and nonunion employment there was an equal need for human relations-oriented supervisors. Causes of union strife 1920 -1950 366-367 wages and hours or union organizing efforts Hawthorne revisited- Four separate areas of criticism (1) hawthorne researchers' view of society as characterized by anomie, social disorganization, and conflict; (2) their acceptance of management's views of the worker and management 's " willingness to manipulate workers for management's ends"; (3) their failure to recognize other alternatives for accomodating industrial conflict, such as collective bargaining; and (4) their specific failure to take unions into account as a method of building social solidarity. Areas of strive 367 Bell “cow sociology” 368 to think that contented workers were productive workers was to equate human behavior with "cow sociology" that is, the notion that contented cows give more milk. Fox – HR as end rather than a means 369 the regard for human relations as an end rather then a means misled managers to think that a conflict -free state and worker contentment would automatically lead to a company's success, when in fact the company might fail. Knowles evangelism and mysticism 369-370 called for a better mix of managerial skills but one that would avoid the evangelism and mysticism. Summary of Durkheim and Mayo positions 370 technology and specialization of labor destroyed social efforts and group cohesiveness. They wanted to downplay material acquistiveness, rebuild primary groups, and teach people to love other people once more On research methods employed Sykes money 370 sykes contended that human-relations advocates believed that money did not motivate, when in fact the Hawthorne evidence led to just the opposite conclusion Carey cooperative workers, workers removed 371 Carey maintained that the Hawthorne studies were consistent with the view of economice incentives and the use of a firm disciplinary hand to achieve higher output Franke and Kaul passage of time, etc. 371-372 concluded that it was not supervisory style or financial incentives, but the use of discipline, the economic milieu, and relief from fatigue that led to increased productivity. Excellent chapter summary 373
 * Chapter 17, Human Relations in Concept and Practice: **

Intro. To the Great Crash 375-376 Rags to Riches became the midnight pumpkin 376 Work sharing plan 376 Some firsts for the 29 depression 377 FDR and fear 377 Heilbroner and what really pulled us out of the depression 377 Grass roots and Bottom up 378 Organization is the answer 378-379 Schumpeter’s pessimism – was it warranted? 379-381 Shifting social values and a new pessimism 382-383 Eric Fromm and Fascism 383 McClelland and affililation versus achievement 383 Resiman – shift from invisible hand to glad hand 383 Confusion of souls – Carnegie and Peale 384-385 The social ethic – what were the novels like of the time? 386 Mayo and farming… huh? 387 Roosevelt background 387-388 New Deal basics 388 More on Wagner Act 390 Review summary for Part III 391
 * Chapter 18, The Social Person Era in Retrospect: **

Koontz, Management process school 401 Human Behavior school 402 Social system school 402 Decision theory school 402 The Semantics jungle 402 George Odiorne “theory thicket” 403 Mintsberg’s roles 404 Stewart’s demands, constrains and choices 404 Peters and Waterman, In Search of Excellence 407 Peter Drucker, Management by Objectives (MBO) 411 Michael Porter, 5 Forces, 419 SWOT 420 Prahalad and Hamel, SBU 421 KBV 421 Stretego 423
 * Chapter 19: Management Theory and Practice **

= Chapter 20: Organizational Behavior and Theory = Theory X & Y, McGregor, 430-432 Herzberg, 436-438 Expectancy Theory, Vroom, Yetton, Porter, Lawler 439 Equity Theory, Stacey Adams 440 Goal Setting Theory, Edwin Locke 440-441 Leadership styles, Kurt Lewin and Likert, 442-443 Situation theories of leadership, 444 Charisma, 444 James McGregor Burns, transactional/transformational, 445

Impact of WWII 456-457 Operations Research and Management Science 457-458 Henry Gantt CPM and PERT 459-460 After WWII 461 Shewart, Deming, Statistics, TQM 461-463 7 Deadly sins 462-463 Blame 463 Kaizen 463 Pareto Principle 463 Schonberger Chain of customers 465 General Systems Theory 466 Computer Age 468-470
 * Chapter 21: Science and Systems in Management **

Ethics 474 Johnson and Johnson’s credo 475 Decline in ethical values bottom of 475 Summary of business unethical practices 476 5% clause 478 Donna Woods study on meat packing plants 478 Howard Bowens view of social responsibility 479 Arguments for social responsibility 479 Ansoff/Drucker on economic imperative of firm 480 Tire and rubber industry example of multinational enterprise’s evolution 483 Cultural homogeneity 485 Cultural relativism 487 Ethical imperialism 487
 * Chapter 22: Obligations and Opportunities **

Review Figure 23-1 490 Most important reason to study Management History and Theory 491
 * Chapter 23: Epilogue **