A brief History of Management Other Teaching Tools 2 Video Notes 3 Brief Chapter Outline and Learning Goals



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A Brief History

of Management


Other Teaching Tools 2.2

Video Notes 2.3

Brief Chapter Outline and Learning Goals 2.4

Lecture Outline and Lecture Notes 2.6

Notes for End-of-Chapter Material 2.25

review questions 2.25

discussion exercise 2.1 Face Time: The New Assembly Line 2.25

discussion exercise 2.2 3M: A Struggle Between Efficiency and 2.26


2
Creativity

Career Management Notes 2.27

Study Skills Notes 2.29

Lecture Links 2.30

lecture link 2-1 Early Management Development 2.30

lecture link 2-2 Speeding Up the Drive Through 2.30

LectURE LINK 2-3 The Complicated Legacy of Henry Food 2.31

LectURE LINK 2-4 More on Theory Z 2.32

Critical Thinking Exercises 2.34

critical thinking exercise 2-1 Theory X or Theory Y? 2.34

critical thinking exercise 2-2 Management Challenge 2.35

Bonus Cases 2.36

Bonus case 2-1 UPS Uses Scientific Management 2.36

Bonus case 2-2 The Supermarket Manager 2.38

Other Teaching Tools


For a description of each of these valuable teaching tools, please see the Preface in this manual.
Student Learning Tools

Student Online Learning Center (OLC) (www.mhhe.com/ghillyermanagement)

Student Study Guide

Spanish Translation Glossary (OLC)

Spanish Translation Quizzes (OLC)
Instructor Teaching Tools

Instructor Online Learning Center (www.mhhe.com/ghillyermanagement)

Annotated Instructor’s Resource Manual

IRCD (Instructor’s Resource Manual, Test Bank, PowerPoints, EZtest)

Asset Map

PageOut


PowerPoint Presentations (on IRCD and OLC)

Test Bank

Management at the Movies (DVD)

Management Videos on DVD

Enhanced Cartridge option

Spanish Translation Glossary (OLC)

video NOTES
Two video series are available for use with Management: A Real-World Approach.
Management at the Movies

This innovative video collection includes video clips from twenty of the best Hollywood films. The Video Notes section of this Instructor’s Resource Manual (beginning on page V.1) provides Instructor’s Teaching Notes for each of the video segments, along with Student Materials keyed to chapter concepts.


movie 5. “Gung Ho” (“Assan Motors”) (1:13)

This video clip shows the differences in American and Japanese company culture. An American manager faces a Japanese board of directors and encounters many language and cultural barriers.


Movie 13. “Hoosiers” (“And Two More”) (4:10)

This film is loosely based on the 1954 Milan High School basketball team. A veteran coach starts his new assignment by kicking two players off the basketball team. It illustrates effective and ineffective leadership.


Management Videos on DVD

Also included are twenty videos geared to individual chapter topics. The teaching notes for these videos are also included in the Video Notes section of this Instructor’s Resource Manual, beginning on page V.50.


Video 2: Working for the Best: The Container Store (11:03)

By using historical management movements, the video outlines key factors of how the Container Store approaches management.

BRIEF CHAPTER OUTLINE AND LEARNING GOALS
CHAPTER 2

A Brief History of Management

I. the history of management
I

I. U.S. Industrial Revolution



Learning objective 1

Explain the role of the Industrial Revolution in the development of managerial thought and identify the captains of Industry and their role in management’s evolution.


III. CAPTAINS OF INDUSTRY
IV. SCIENTIFIC MANAGEMENT AND FREDERICK WINSLOW


TAYLOR



Learning objective 2

Define scientific management and outline the role Frederick W. Taylor played in its development.



A. Scientific Management

B. Other Scientific Management Pioneers
V

. THE HUMAN RELATIONS MOVEMENT



Learning objective 3

Identify and explain the human relations movement.



A. The Hawthorne Studies

B. Early Champions of Human Relations

C. The Professional Manager
V

I. THE SYSTEMS APPROACH



Learning objective 4

Explain the systems approach.


V

II. THEORY X AND THEORY Y



Learning objective 5

Explain the differences between Theory X, Theory Y, and Theory Z.


V

III. THE CONTINGENCY APPROACH



Learning objective 6

Define the contingency approach to management.


IX. the Japanese management movement and theory z
X

. THE SEARCH FOR EXCELLENCE



Learning objective 7

Explain the concepts of the search for excellence and the emphasis on quality.


XI. the emphasis on quality
X

II. moving from good to great



Learning objective 8

Understand what is required for an organization to move from good to great.


XIII. conclusion

LECTURE OUTLINE AND LECTURE NOTES


The world of work

Tony Considers His Style (Text pages 26-27)
Tony, the newly appointed manager of Taco Barn, is over the rush and excitement of being named the new manager of Taco Barn. He is now reflecting on the management styles he has worked under and is contemplating how he should handle the management duties of his restaurant. One management style was more about numbers and costs; the other was more about employees and customers. Since he is now in charge, Tony has to establish his identity as the manager.
1. Why should Tony be concerned about establishing his own style of management in the Taco Barn?

Tony cannot just stand back and let employees base their work on the former management of the restaurant; because employees, without proper direction, will often do the minimal amount work. Tony has to begin taking on management duties that accomplish the goals of company and, in the process, make it work with his own management style. This will include meeting financial objectives as well as staff training and development. His learning curve will lead to some mistakes and uncertainty about handling all the management functions as the new store manager. But in the process, Tony must be genuine and, at the very least, show his passion and dedication to a job well done. Anything less will make this new task very trying for the new manager.


2. Whose management style do you like better: Jerry’s or Dawn’s? Why?

Management styles are an interesting study in the psychology of inferred focus and drive by those in leadership situations. Dawn appeared to favor numbers and costs as the main objectives of her employees. Jerry appeared to be more focused on working with his employees and caring about their well-being. Did Dawn care about her employees in the process of achieving store goals? Did Jerry want to look good with stores sales and in-line costs while working closely with employees? Both managers probably understand the importance of meeting all expectations, but their own styles ultimately win out. From the perspective of upper level management, the Dawn’s style was probably more favored as she focused so much on the sales and costs of the restaurant. Jerry was also successful because he was able to meet the objectives of the store using a different style. However, from the store employee level, Jerry was more popular because of his interest in people over numbers. This style would be more popular to the average employee, all things considered.


3. Do you think Tony will choose Jerry’s style or Dawn’s? Why?

Tony might move towards the style Dawn used as a signal to upper level management that he has a handle on the important goals of the restaurant. Also, close work with the employees initially might be difficult for Tony, since he has so much to learn about the entire store management process. These weaknesses might be revealed until he becomes more seasoned in his overall management functions and how they can be best carried out through his employees. However, Tony will learn more about management, both on the job and through company development and training. This will help him evolve and learn what style best fits him and how he can become the best manager he can be over time.


4. If you are currently in a management role, how would you describe your style? If you are working toward a management position, do you think you would be more like Dawn or Jerry? Why?

This would be a good time to discuss personality styles and the tendencies they suggest about a person. For example, if you are more detail-orientated in handling your job duties, you might be more likely to use this style in your management operating methods. If you are more of a people person in your managing style, this approach will suit you in your daily duties of handling your job. Therefore, one style may or may not be better than another. Good managers evolve into better managers by recognizing their strengths and weaknesses. They can use management tools to compensate for perceived weaknesses to ensure good balance and effective results for the manager’s career and the benefit of the company as a whole.



Lecture outline lecture notes

I. the history of management

A. Understanding the historical evolution of management problems can help modern managers cope with them.

B. Management in some form has existed since the beginning of time.

C. New approaches became necessary with the emergence of large corporate organizations in the 19th century.



PowerPoint 2-1

Chapter Title

(Refers to text page 26)
PowerPoint 2-2

Learning Objectives

(Refers to text page 27)
PowerPoint 2-3

Learning Objectives

(continued)



(Refers to text page 28)
Lecture link 2-1

Early Management

Development

Management has existed in some form throughout civilization. See complete lecture link on page 2.30 of this manual.


PowerPoint 2-4

The History of

Management (Refers to text page 28)


II. u.s. industrial revolution



Learning objective 1

Explain the role of the Industrial Revolution in the development of managerial thought and identify the captains of Industry and their role in management’s evolution. (Text pages 28-30)

A. The U.S. Industrial Revolution encompasses the period when the United States began to shift from an almost totally farming-based society to an industrialized society, generally thought to begin around 1860.

B. According to Daniel Wren, the Industrial Revolution had three facets: power, transportation, and communication.

1. Inventions, such as the steam engine, freed businesses from dependence on water and horses for power.

2. Canals, railroads, and efficient road systems improved transportation, but brought on new problems.

3. Communication by telegraph, telephone, and radio changed the way U.S. businesses functioned.




PowerPoint 2-5

U.S. Industrial Revolution

(Refers to text page 28)


III. captains of industry

A. At the end of the 19th century, the economy had shifted from agriculture to manufacturing.

B. During this period, American business was dominated by Captains of Industry.

1. John D. Rockefeller (oil)

2. James B. Duke (tobacco)

3. Andrew Carnegie (steel)

4. Cornelius Vanderbilt (steamships and railroads)

C. These captains often pursued profit and self-interest above all else.

1. They formed giant companies and created new forms of organizations.

2. Nationwide distributing and marketing organizations were formed.

D. New management approaches were needed.

1. Government regulation of business began in 1890 with the Sherman Antitrust Act.

2. By this time, corporations had become large in scale, with national markets.

3. The invention of the internal combustion engine and the use of electricity spurred industrial growth.

E. The welfare of workers deteriorated.

1. Wages were low, and production methods were crude.

2. Little attention was given to the psychological and physical aspects of a job, such as boredom, repetitiveness, and fatigue.

F. During this time, engineers who had designed production systems began to study the methods used in these systems.



progress check Questions (Text page 30)

  1. Explain why management did not emerge as a recognized discipline until the twentieth century.

  2. Describe the three key aspects of the U.S. Industrial Revolution.

  3. Who were the four leading captains of industry during this period?

  4. What role did the captains of industry play in the development of modern organizations?

PowerPoint 2-6

Captains of Industry

(Refers to text page 29)



IV. scientific management and Frederick winslow taylor



Learning objective 2

Define scientific management and outline the role Frederick W. Taylor played in its development. (Text pages 31-35)

A. Early Development

1. The increased use of specialization meant workers performed only a few tasks.

a. Engineers began to study workflows and job content.

b. A paper presented in 1886 by Henry Towne to the American Society of Mechanical Engineers sparked engineer interest in general business problems.

2. Frederick Winslow Taylor, a mechanical engineer, began studying problems at Midvale Steel Company.

a. Taylor found a tendency to soldiering, the actions of employees who intentionally restrict output.

b. Taylor discovered that most wage systems were based on attendance and position, not output.

c. He argued for a piece-rate system that was fairly set and administered.

B. scientific management is the philosophy of Frederick W. Taylor that sought to increase productivity and make work easier by scientifically studying work methods and establishing standards.

1. Scientific management was based on four principles:

a. developing a scientific method of designing jobs to replace the old rule-of-thumb methods

b. scientific selection and progressive teaching and development of employees

c. bringing together of scientifically selected employees and scientifically developed methods for designing jobs

d. a division of work resulting in interdependence between management and workers.

2. The new scientific management system emphasized maximum output with minimum effort through the elimination of inefficiency.

a. Standards were set through research and experimentation.

b. The managers planned the work; the employees performed it.

3. The scientific study of work also emphasized specialization and division of labor.

4. Taylor’s ideas were based on a concern not only for the proper design of the job but also for the worker.

5. These scientific management pioneers believed employees could be motivated by economic rewards, provided those rewards were related to individual performance.

C. Other Scientific Management Pioneers

1. Lillian Gilbreth, the First Lady of Management, emphasized concern for the worker.

2. Another pioneer, Henry Lawrence Gantt, is best known for his work in production control and his invention of the Gantt chart.

a. The Gantt chart graphically depicts both expected and completed production.

b. Gantt was also the first to publicly state the social responsibility of management and business.

3. Frank and Lillian Gilbreth were among the first to use motion picture films to study hand and body movements.

a. Frank Gilbreth’s major area of interest was the study of motions and work methods.

b. Lillian Gilbreth’s primary field was psychology, and she emphasized concern for the worker.

c. They combined motion study and psychology to research fatigue, boredom, and morale.

d. In order to find the “one best way” to perform a task, Frederick W. Taylor used a motion study to measure individual tasks within jobs – measuring both the time taken to do the task and observing the motions involved.

e. This research has since been incorporated into ergonomics.

D. Fayol’s Theory of Management

1. Henri Fayol was the first to issue a complete theory of general management.

2. Fayol’s greatest contribution is his theory of management principles and elements.

3. Fayol identified 14 principles of management:

a. division of work

b. authority

c. discipline

d. unity of command

e. unity of direction

f. subordination of individual interests to the general interest

g. remuneration

h. centralization

i. scalar chain (line of authority)

j. order

k. equity

l. stability of tenured personnel

m. initiative

n. espirit de corps

4. He used these principles as general guidelines for effective management, but stressed flexibility.

5. Fayol outlined the functions of management: planning, organizing, commanding, coordinating, and controlling.

E. The works of Taylor and Fayol are complementary – both used a scientific approach to management.





PowerPoint 2-7

Scientific Management and Frederick Winslow Taylor

(Refers to text page 31)


TEXT REFERENCE

Study Skills Box:

Rate Your Study Skills

(Box in text on page 32.) An additional exercise and discussion is available on page 2.29 of this manual.

lecture link 2-2

Speeding Up the Drive-Through

Fast-food restaurants are trying to improve the speed of delivery service to customers pulling up at the take-out window. See complete lecture link on page 2.30 of this manual.



PowerPoint 2-8

Other Scientific Management Pioneers (Refers to text page 33)

TEXT Figure 2.1

Lillian M. Gilbreth: First Lady of Management (Text page 34)

PowerPoint 2-9

Fayol’s Theory of

Management (Refers to text page 33-34)


BONUS Case 2-1

UPS Uses Scientific

Management

Scientific management is alive and well at UPS. See complete case, discussion questions, and suggested answers on page 2.36 of this manual.




CASE INCIDENT 2.1

Granddad’s Company (Text page 35)
A family-run manufacturing industrial tools firm is going to turn management over to the third generation. The grandson has new ideas to change how the company should be run. Before this happens, the current outgoing president (James Vail Jr.) will discuss the matter with his son Richard, who is does not agree with the management operating method of using time and motion studies (scientific management) to manage each job efficiently.
1. Do you agree with Richard? Why or why not?

This argument is whether to go with the current success of the company or to incorporate new management philosophies that might work but have not been incorporated into this company’s way of doing business. A good discussion should take place. It might be a good time to place each of the two names on the board (James Vail Jr. and Richard Vail) and then list reasons why students support one or the other positions.


2. Are the principles of scientific management applicable in today’s organization? Explain your answer.

Like any management philosophy or style, fully supporting the method and incorporating the ideology throughout the company is important to its success. The scientific management method has been successful because of the company’s commitment to support this style of management. Until change is made and new philosophies are integrated throughout the company, there is no reason to believe the current management style cannot continue to be effective. However, there is also no reason not to survey the workers and get their opinions on the current managing style, and see if minor changes would help to make the job and overall output better or if major changes are necessary. If minor tweaks are the consensus, then this management style should continue. If major changes are deemed necessary, then more time must be spent investigating the effects of making the new changes that Richard supports. However, split efforts will not work. If change occurs, it must be embraced by the entire company for it to be effective.


3. What are James Jr.’s reasons for keeping things the way they are?

James Jr. took the reins of the company from his father, the founder, and advanced the company even further. He would not immediately be in favor any changes that would disrupt this success. As a result, a conversation with his son Richard about changing the management style would be very difficult for him at this time.


4. What kind of changes do you think Richard would like to make?

Richard has to respect the work of his father and grandfather. He must think more about his ideas for immediate changes in the management operating style. Richard must be careful to not loose support of his taking over the company without good cause. More discussions must take place so that a difficult, unfriendly transition does not take place. He also needs to consider the reactions of the board of directors, who could vote on such matters.


However, Richard probably is in favor of cross-job training and more employee empowerment. This management approach might initially be exciting for employees but must be carried out properly to be truly effective. This change would be dramatic and somewhat difficult to employ if not fully supported by all workers and management.

Progress Check Questions (Text page 36)

  1. Define scientific management.

  2. What were Taylor’s four main principles of scientific management?

  3. List Fayol’s 14 principles.

  4. Explain Fayol’s five elements of management.





V. the human relations movement



Learning objective 3

Identify and explain the human relations movement. (Text pages 36-39)

A. Background

1. The Great Depression of 1929-1932 saw unemployment rise to more than 25%.

2. After this, legislatures and courts supported organized labor and the worker, a period known as the Golden Age of Unionism.

3. A series of pro-union laws were passed during the 1920s and 1930s.

B. The Hawthorne Studies

1. The Hawthorne Studies began in 1924.

a. The National Research Council of the National Academy of Sciences began a project to define the relationship between working conditions and worker productivity.

b. At the Hawthorne plant of Western Electric in Cicero, researchers began the study by lowering the level of lighting.

c. Instead of productivity decreasing, it increased.

2. In early 1927 the researchers called in a team of psychologists from Harvard University led by Elton Mayo.

a. In hundreds of experiments, the researchers altered variables such as wage payments, rest periods, and length of workday.

b. Production increased with no obvious relationship to the environment.

c. Researchers concluded that employees reacted to the psychological and social conditions at work.

3. The researchers discovered the Hawthorne effect,” that giving special attention to a group of employees (such as involving them in an experiment) changes their behavior.

4. The Hawthorne Studies focused attention on the human factor in the workforce.

C. Early Champions of Human Relations

1. Mary Parker Follett argued that the fundamental problem of any organization is to build and maintain harmonious human relations.

2. Chester Barnard viewed the organization as a social structure and stressed the psychosocial aspects of organizations.



Progress Check Questions (Text page 38)

  1. What were “the Hawthorne Experiments?”

  2. Explain “the Hawthorne Effect.”

  3. Who were Elton Mayo, Mary Parker Follett, and Chester Barnard?

  4. Why was the human relations movement important to the development of management theory?

D. The Professional Manager

1. Until the 1930s, managers were grouped into one of three categories:

a. Owner-managers dominated until after the Civil War.

b. The captains of industry controlled organizations from the 1880s to the turn of the century.

c. Financial managers, who often did not own the companies they controlled, dominated from 1905 to the early 1930s.

2. The professional manager, a career person who does not necessarily have a controlling interest in the enterprise for which he or she works, emerged in the late 1930s.

3. Professional managers realize their responsibility to three groups: employees, stockholders, and the general public.




TEXT Figure 2.2

Significant Pro-Union Legislation During the 1920s and 1930s (Text page 37)


PowerPoint 2-10

The Human Relations Movement and the Hawthorne Studies (Refers to text page 36)

PowerPoint 2-11

The Hawthorne Studies

(Refers to text page 36-37)

lecture link 2-3

The Complicated Legacy of Henry Ford

Henry Ford founded the Ford Motor Company in 1903, producing an inexpensive, all-purpose car, the model T. Throughout its history the company’s dealings with employees were complex and contradictory. See complete lecture link on page 2.30 of this manual.





CASE INCIDENT 2.2

Return To Scientific Management (Text page 38)
Recently, a professor at State University was lecturing in a management development seminar on the topic of motivation. The participants candidly discussed problems that existed in their respective organizations. Problem areas mentioned included absenteeism, turnover, and poor workmanship. The participants managed a variety of workers, such as automobile assembly workers, clerical workers, computer operators, sanitation workers, and even some middle-level managers.

During the discussion, one of the participants made the following statement: “What we need to stop all of these problems is a little scientific management.”
1. What do you think this person meant?

The basic concepts of scientific management involve suiting the best workers for the right jobs and establishing standards for each job. Based on these standards, employees could then earn incentives for outperforming the set standard and in the process benefit the worker and the company. This is known as division of labor. This person’s solution to poor performance and absenteeism is to employ the basic concepts of scientific management.


2. Do you agree? Discuss.

Make sure students understand the history of management and how, in the evolution of production, scientific management was developed. Let students express their opinions of how they view today’s management techniques and compare them to the scientific management style as currently in place at the J.R.V. Company. Through this discussion, students can either support current scientific management concepts or express their views of more modern ways of accomplishing productivity in a broad and diverse workforce.


3. Take one of the jobs in the above case and show how you could apply scientific management.

Scientific management would easily be suited for the assembly worker environment because of its division of labor concept and the motivation to achieve high level results by exceeding the basic standards set for the normal output for each job. In the process, employees are rewarded for exceeding the basic standards of their job. As a result, the worker and the company should enjoy the productivity achieved through this management style.


4. What would be the human relations approach to the same job you selected in question 3?

This style of employee motivation and productivity aims at employee needs in the work environment rather than improving equipment, setting standards, or worker productivity to these variables. The human relations approach found that workers react to psychological and social conditions at work, such as informal group pressures, individual recognition, and participation in decision making. As a result, the auto assembly structure would rely less on worker hourly output and more on group leaders that work more closely with line workers, giving them a say in the process and rewarding them for their contributions to the output.




VI. the systems approach



Learning objective 4

Explain the systems approach. (Text page 39)

A. In the late 1960s, many management theorists tried to integrate all these theories using the systems approach.

B. A system is “an assemblage or combination of things or parts forming a complex or unitary whole.”

1. Under the systems approach to management, the organization is seen as an open system that is influenced by its internal and external environment.

a. The organization then, in turn, influences these same internal and external environmental factors.

b. As a result, a dynamic relationship is created.

2. In a closed system, the organization has no interaction with its external environment.

3. Most organizations are run as open systems.




PowerPoint 2-12

The Systems Approach

(Refers to text page 39)




VII. theory x and theory y



Learning objective 5

Explain the differences between Theory X, Theory Y, and Theory Z. (Text page 39)

A. American social psychologist Douglas McGregor proposed a division of management styles that capture what are fundamentally different ways of managing people.

1. Theory X managers manage in a very controlling and authoritative manner.

2. Theory managers believe that employees:

a. can be trusted to meet production targets without being threatened

b. will often seek additional responsibilities because they enjoy the satisfaction of being creative and increasing their own skills

3. The theory Y manager manages in a democratic and participative manner.

B. In the late 20th century a broader approach to management was proposed.



PowerPoint 2-13

Theory X and Theory Y

(Refers to text page 39)


critical thinking

exercise 2-1

Theory X or Theory Y

Students are asked to analyze the assumptions of a past boss. See complete exercise on page 2.34 of this manual.


critical thinking

exercise 2-2

Management Challenge

How would a Theory X boss handle a crisis situation? How would a Theory Y boss? See complete exercise on page 2.35 of this manual.






VIII. the contingency approach



Learning objective 6

Define the contingency approach to management. (Text pages 40-41)

A. In the contingency approach to management, different situations and conditions require different management approaches.

B. Proponents believe there is no one best way to manage; the best way depends on the specific circumstances.

C. Contingency theories have been developed in many areas.



PowerPoint 2-14

The Contingency Approach

(Refers to text page 40)


Bonus Case 2-2

The Supermarket Manager

A new employee develops some creative suggestions for improving performance, but her boss reacts badly. See complete case, discussion questions, and suggested answers on page 2.38 of this manual.



IX. the japanese management movement and Theory z

A. The economic success of many Japanese companies focused attention on their management practices in the 1980s.

1. Researchers identified characteristics that differed from traditional American approaches.

2. Japanese managers:

a. encouraged employee participation in decision making

b. showed a deeper concern for the personal well-being of employees

c. placed great emphasis on the quality of their products

B. William Ouchi developed Theory Z, which attempts to integrate American and Japanese management practices.

1. Theory Z combines the American emphasis on individual responsibility with the Japanese emphasis on collective decision making.

2. Other factors combine traditional American and Japanese practices.



TEXT REFERENCE

Career Management Box: Developing Skills for a

Successful Career (Box in text on page 40) An additional exercise and discussion is available in this chapter on page 2.27.

TEXT Figure 2.3

Comparison of Japanese, American, and Theory Z Organizations (Text page 41)

lecture link 2-4

More on Theory Z

William Ouchi merged traditional American management and Japanese management practices to develop a hybrid, which he named Theory Z. See complete lecture link on page 2.32 of this manual.





X. the search for excellence



Learning objective 7

Explain the concepts of the search for excellence and the emphasis on quality. (Text pages 41-43)

A. In 1982, Thomas J. Peters and Robert H. Waterman Jr. published In Search of Excellence.

1. Peters and Waterman used a combination of standards and measures of financial success to identify 36 “excellent” American companies.

2. Peters and Waterman identified eight “attributes of excellence,” including:

a. a bias for action

b. autonomy and entrepreneurship

c. simple form, lean staff, and so on.

3. Their work caused many managers to rethink their ways of doing things.

B. The Experience of “Excellent” Companies

1. Two years after In Search of Excellence was published, 12 of these companies were unable to adapt to fundamental changes in their market.

2. Some blamed Peters and Waterman’s characteristic definitions, which did not emphasize reacting to trends.

C. Two lessons can be drawn from these experiences:

1. The excellent companies of today will not necessarily be the excellent companies of tomorrow.

2. Good management requires more than following a set of rules.




PowerPoint 2-15

The Search for Excellence

(Refers to text page 41)

TEXT Figure 2.4

Peters and Waterman’s Eight Characteristics of Excellent Companies (Text page 42)



XI. the emphasis on quality

A. In the early 1990s the emphasis was focused on overall quality of the product or service.

B. The low quality of American products forced managers to look at quality as a way of improving products and services.

1. Attention shifted from finding and correcting mistakes or rejects to


preventing them.

2. This led to the development of total quality management (TQM.)





PowerPoint 2-16

The Emphasis on Quality

(Refers to text page 43)


THE WORLD OF WORK

Tony Selects a Style (Text page 45)
Tony is now the new manger of Taco Barn and has to find a management style to use in his new position. Tony understands one style is more numbers and cost-orientated while the other style is more people and team-orientated.
1. Tony appears to have chosen a management style. How would you categorize that style based on the information in this chapter?

Tony believes that if he can keep store costs and sales at the current level or improve them, it might make him look like the new hot shot manager. This style has been chosen over the team and people style that was previously used at his restaurant.


2. Is Tony right in thinking that better numbers will bring him more attention? Why or why not?

In the short term, Tony might be able to pull this off and think this style is best for his career. However, in a smaller store management environment, looking for “results” without a team effort will probably not work. Tony has to learn how to get results through his people in a positive way rather than focusing on bottom line results that can destroy the team effort in the process.


3. Do you think the Taco Barn employees will like the new Tony? Why or why not?

The employees of Taco Barn are used to a team approach from the previous manager. This new result at all costs, it appears, will not lend itself to long term productivity. The employees need to respect the new manager, and the new manager needs to respect his employees. An exploring and growing process needs to be used, and so far Tony has not taken this approach. Therefore, he is not viewed as the best person to replace the previous manager.


4. How would you advise Tony in this situation? What approach do you think he should follow? Why?

Tony needs to take a step back and review the reasons his restaurant has been successful. While he is new at the manager position, it is often wise to not make dramatic changes until there is a reason to do so. Tony would be best served to meet with his employees and discuss how the restaurant has been previously run. He should also let his employees know that he might have some new and different ways to manage the operation, but intends to include his employees as a key ingredient to the overall success. This approach would be best for the health and future success of Taco Barn.




XII. moving from good to great



Learning objective 8

Understand what is required for an organization to move from good to great. (Text pages 43-44)

A. Stanford University business professors Jim Collins and Jerry Porras published Built to Last: Successful Habits of Visionary Companies.

1. Collins and Porras stressed creating a lasting organization by relying on “homegrown management.”

2. Their lesson was that managers can never rely on their current successes to guarantee future success.

B. In 2000, Collins and his researchers published Good to Great: Why Some Companies Make the Leap… and Others Don’t.

1. Their study identified 11 finalists that met Collins’s standards as “great” companies and that also maintained this status for 15 years.

2. The hedgehog concept states that great companies develop a simple core concept that guides all their future strategies, as opposed to chasing every new management fad or policy implementation.



Progress Check Questions (Text page 44)

  1. Describe the contingency approach to management.

  2. What are the differences between Theory X, Theory Y, and Theory Z?

  3. Summarize the eight characteristics of excellent companies identified by Peters and Waterman in their book In Search of Excellence.

  4. Explain Jim Collins’s hedgehog concept?


XIII. conclusion


PowerPoint 2-17

Moving from Good to Great (Refers to text page 43-44)

TEXT Figure 2.5

Comparison of Built to Last Versus Good to Great

(Text page 44)

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