2 the Evolution of Management

7/30/2019 2 the Evolution of Management

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Principles of Management

The Evolution of Management


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Case study: Handling

competitors at Burger King


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Burger King is a fast food hamburger restaurant

Recent reports indicate that the company owns or franchises a total of 11,129restaurants in 65 different countries

Feature flame broiled hamburgers, chicken and other specialty sandwiches

Overall menu: hamburgers, cheeseburgers, chicken and fish sandwiches, frenchfries, onion rings, salads and desserts. Also breakfast items

New competitions from quick casual restaurants including Subway, Chipotle MexicanGrill, Cosi and Panera Bread are offering healthier food at higher prices

This combination has helped restaurants in this category to steal away traditional fastfood customers

Recent research reveals that the quick casual concept appeals to individuals between18 and 34 years old, a key demographic for the fast food industry

Burger King is trying to operate the company in a way that is consistent with concernsof customers in a modern economy. Eg: adding its own healthier food offerings

Also offering other more socially conscious choices to customers. Eg. Buying eggsand pork from suppliers that do not confine their animals in cages and crates

John Chidsey recently named CEO. He understands that Burger King needs tocompete ferociously to survive

Some of his future challenges: building and maintaining store efficiency, managingthe caloric content of the menu, dealing with illegal immigrants

Chidsey has to apply his comprehensive management skill


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Mr. Chidsey, in meeting yourchallenges, you should


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Keep in mind that there is probably one

best way to do restaurant jobs

1 2

0%0%

1. True

2. False

0 of

35 Countdown

20


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Divide work among Burger King workers so

that they can focus on special portions of

tasks

1 2

0%0%

0 of

35

1. True

2. False

Countdown

20


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Not apply insights of the classical approach

to management in concert with insights from

the behavioral approach

1 2

0%0%

0 of

35

1. True

2. False

Countdown

20


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Focus on understanding how to increase

production at Burger King through an

understanding of people

1 2

0%0%

0 of

35

1. True

2. False

Countdown

20


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Not worry about some Burger King workers

influencing other workers to disregard

monetary incentives you offer

1 2

0%0%

0 of

35

1. True

2. False

Countdown

20


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Continually focus on building experience in

determining what action to take at Burger

King, depending on what events occur

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35

1. True

2. False

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20


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See Burger King as a series of

interdependent parts functioning as a whole

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35

1. True

2. False

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Build an understanding of Burger King as a

closed system

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35

1. True

2. False

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20


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Visualize Burger King system inputs as

directly leading to system outputs

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0%0%

0 of

35

1. True

2. False

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20


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Feel free to change Burger King system

inputs after considering system outputs but

not system process

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35

1. True

2. False

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20


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Continually monitor customers to determine

ways to make the Burger King system more

responsive to customer needs

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0%0%

0 of

35

1. True

2. False

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20


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Analyze Burger King as a group of

interrelated parts that may or may not

function as a whole

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35

1. True

2. False

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20


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Use systems thinking at Burger King as a

foundation for building the company as a

learning organization

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1. True

2. False

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20


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Scientific Management

Background Labor short supply at start of 20th c Need to increase productivity of workers


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Scientific management

Frederick W. Taylor Develop a science for each element of the job Scientifically select employees

Give a task for which best suited

Scientific education and development of the worker Supervise employees to ensure prescribed methods

are followed Intimate friendly cooperation between management

and worker Differential rate system: higher rate for higher

productivity Limitation: exploitation of workers


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Bethlehem Steel Co

Questions

Will a first class worker do more work per day witha shovelful of 5, 10, 15, 20, 30 or 40 pounds?

What kinds of shovels work best with whichmaterials?

How quickly can a shovel be pushed into a pile ofmaterials and pulled out properly loaded?

How much time is required to swing a shovelbackward and throw the load a given horizontaldistance at a given height?


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Some of Taylors modifications

Matching shovel size with factors like

Size of the worker

Weight of the materials

Height and distance the materials were to bethrown


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Results at the end of the 3rd year

Total number of shovelers needed wasreduced from 600 to 140

Average number of tons shoveled per worker

per day rose from 16 to 59

Average earnings per worker per dayincreased from $1.15 to $1.88

Average cost of handling a long ton (2240pounds) dropped from $0.072 to $0.033


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Henry L. Gantt

Abandoned differential rate system

Bonus for a worker finishing a days assigned

work load Bonus for supervisor

for each worker who reached the daily standard

Extra bonus if all the workers reached it

Gantt chart: for scheduling work


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The Gilbreths

Frank and Lillian collaborated on fatigue andmotion studies

Techniques and strategies for eliminatingefficiency

Focused on ways to promote worker welfare

Every motion that was eliminated reduced fatigue

Raise worker morale


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Classical Organization Theory

Henri Fayol

Organizational functions

Planning

Organizing Leading

controlling

Principles of management

Systematized the practice of management


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Max Weber

Theory of bureaucratic management

Organization is a bureaucracy

Activities and objectives rationally thought out Divisions of labor explicitly spelled out

Technical competence emphasized

Performance evaluations on the basis of merit


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Mary Parker Follett

Become a whole person as member of a group

Human beings grow through relationships with

others in organizations Holistic model of control

Effects of environmental factors


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Chester Barnard

As individuals pursue organization goals, theymust also satisfy individual needs

Balance Zone of indifference

What the employee will do without questioning themanagers authority


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Behavioral Management

Emphasis on individual attitudes andbehaviors and group processes

Importance of behavioral processes in the

workplace Applying psychological concepts to industrial

settings


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The Hawthorne Studies

Western Electrics Hawthorne plant near

Chicago

Experiment 1

Manipulating lighting for a control group and a testgroup

Lighting for test group increased higher productivity,but increase was erratic

Lighting conditions made worse, productivity stillincreased

Control groups productivity also rose despite no

change in illumination


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Conclusion

Attitudinal responses

Groups singled out for attention group pride

Motivated them to improve performance Sympathetic supervision reinforced motivation

Employees work harder if they believe that managementis concerned about their welfare and supervisors paid

special attention to them


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Experiment 2

Piecework incentive pay plan for assembling terminalbanks for telephone exchanges

Scientific management: each man tries to maximizepay by producing as many units as possible

Instead, the group informally established anacceptable level of output for members

Overproducers rate busters Under producers chiselers

Acceptability by the group: produce at accepted levels


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Quantitative Management

Management science: applying quantitativemodels to management

Operations management


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The systems approach

Organization is viewed as a system

Inputs

Transformation processes

Outputs Feedback


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Systems and wholeness

The whole should be the main focus of analysis, with the

parts receiving secondary attention Integration is the key variable: interrelatedness of the

many parts within the whole

Possible modifications in each part should be weighed in

relation to possible effects on every other part

Each part has some role to perform so that the wholecan accomplish its purpose

The nature of the part and its function is determined by

its position in the whole

The parts and their interrelationships evolve to best suitthe purpose of the whole


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The contingency approach

Situational approach

In a particular situation, under particularcircumstances, at a particular time


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Case study: Handling

competitors at Burger King


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Burger King is a fast food hamburger restaurant

Recent reports indicate that the company owns or franchises a total of 11,129restaurants in 65 different countries

Feature flame broiled hamburgers, chicken and other specialty sandwiches

Overall menu: hamburgers, cheeseburgers, chicken and fish sandwiches, frenchfries, onion rings, salads and desserts. Also breakfast items

New competitions from quick casual restaurants including Subway, Chipotle MexicanGrill, Cosi and Panera Bread are offering healthier food at higher prices

This combination has helped restaurants in this category to steal away traditional fastfood customers

Recent research reveals that the quick casual concept appeals to individuals between18 and 34 years old, a key demographic for the fast food industry

Burger King is trying to operate the company in a way that is consistent with concernsof customers in a modern economy. Eg: adding its own healthier food offerings

Also offering other more socially conscious choices to customers. Eg. Buying eggsand pork from suppliers that do not confine their animals in cages and crates

John Chidsey recently named CEO. He understands that Burger King needs tocompete ferociously to survive

Some of his future challenges: building and maintaining store efficiency, managingthe caloric content of the menu, dealing with illegal immigrants

Chidsey has to apply his comprehensive management skill


41/54

Mr. Chidsey, in meeting yourchallenges, you should


42/54

Keep in mind that there is probably one

best way to do restaurant jobs

1 2

0%0%

0 of

35

1. True2. False

Countdown

20


43/54

Divide work among Burger King workers so

that they can focus on special portions of

tasks

1 2

0%0%

1. True2. False

0 of

35Countdown

20


44/54

Not apply insights of the classical approach

to management in concert with insights from

the behavioral approach

1 2

0%0%

0 of

35

1. True2. False

Countdown

20


45/54

Focus on understanding how to increase

production at Burger King through an

understanding of people

1 2

0%0%

0 of

35

1. True2. False

Countdown

20


46/54

Not worry about some Burger King workers

influencing other workers to disregard

monetary incentives you offer

1 2

0%0%

0 of

35

1. True2. False

Countdown

20


47/54

Continually focus on building experience in

determining what action to take at Burger

King, depending on what events occur

1 2

0%0%

0 of

35

1. True2. False

Countdown

20


48/54

See Burger King as a series of

interdependent parts functioning as a whole

1 2

0%0%

0 of

35

1. True2. False

Countdown

20


49/54

Build an understanding of Burger King as a

closed system

1 2

0%0%

0 of

35

1. True2. False

Countdown

20


50/54

Visualize Burger King system inputs as

directly leading to system outputs

1 2

0%0%

0 of

35

1. True2. False

Countdown

20


51/54

Feel free to change Burger King system

inputs after considering system outputs but

not system process

1 2

0%0%

0 of

35

1. True2. False

Countdown

20


52/54

Continually monitor customers to determine

ways to make the Burger King system more

responsive to customer needs

1 2

0%0%

0 of

35

1. True2. False

Countdown

20


53/54

Analyze Burger King as a group of

interrelated parts that may or may not

function as a whole

1 2

0%0%

0 of

35

1. True2. False

Countdown

20


54/54

Use systems thinking at Burger King as a

foundation for building the company as a

learning organization

0%0%

0 of

35

1. True2. False

20

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2 the Evolution of Management