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CHAPTER 2
CHAPTER CONTENTS
Learning Objectives 2
Key Definitions/Terms 2
Chapter Overview 4
Lecture Outline 5
Lecture Enhancers 21
Management in Action 23
Building Management Skills 29
Managing Ethically 31
Small Group Breakout Exercise 32
Exploring the World Wide Web 33
Be the Manager 34
Case in the News 34
In-Class Activity 36
Connect Features 37
Video Cases
Manager’s Hot Seats (Coming soon!)
Case Analyses
Multiple Choice and Click and Drag Interactives
PowerPoint Slides 37
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
LEARNING OBJECTIVES
LO2-1. Describe how the need to increase organizational efficiency and effectiveness has
guided the evolution of management theory.
LO2-2. Explain the principle of job specialization and division of labor, and tell why the study
of person-task relationships is central to the pursuit of increased efficiency.
LO2-3. Identify the principles of administration and organization that underlie effective
organizations.
LO2-4. Trace the changes in theories about how managers should behave to motivate and
control employees.
LO2-5. Explain the contribution of management science to the efficient use of organizational
resources.
LO2-6. Explain why the study of the external environment and its impact on an organization
has become a central issue in management thought.
KEY DEFINITIONS/TERMS
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
CHAPTER 2 The Evolution of Management Thought 3
choose depend on (are contingent on) characteristics of the external environment in which the
organization operates.
Discipline: Obedience, energy, application, and other outward marks of respect for a superior’s
authority.
Entropy: The tendency of a closed system to lose its ability to control itself and thus to dissolve
and disintegrate.
Equity: The justice, impartiality, and fairness to which all organizational members are entitled.
Esprit de corps: Shared feelings of comradeship, enthusiasm, or devotion to a common cause
among members of a group.
Hawthorne effect: The finding that a manager’s behavior or leadership approach can affect
workers’ level of performance.
Human relations movement: A management approach that advocates the idea that supervisors
should receive behavioral training to manage subordinates in ways that elicit their cooperation
and increase their productivity.
Informal organization: The system of behavioral rules and norms that emerge in a group.
Initiative: The ability to act on one’s own without direction from a superior.
Job specialization: The process by which a division of labor occurs as different workers
specialize in different tasks over time.
Line of authority: The chain of command extending from the top to the bottom of an
organization.
Management science theory: An approach to management that uses rigorous quantitative
techniques to help managers make maximum use of organizational resources.
Mechanistic structure: An organizational structure in which authority is centralized, tasks and
rules are clearly specified, and employees are closely supervised.
Norms: Unwritten, informal codes of conduct that prescribe how people should act in particular
situations and are considered important by most members of a group or organization.
Open system: A system that takes in resources from its external environment and converts them
into goods and services that are then sent back to that environment for purchase by customers.
Order: The methodical arrangement of positions to provide the organization with the greatest
benefit and to provide employees with career opportunities.
Organic structure: An organizational structure in which authority is decentralized to middle
and first-line managers and tasks and roles are left ambiguous to encourage employees to
cooperate and respond quickly to the unexpected.
Organizational behavior: The study of the factors that have an impact on how individuals and
groups respond to and act in organizations.
Organizational environment: The set of forces and conditions that operate beyond an
organization’s boundaries but affect a manager’s ability to acquire and utilize resources.
Rules: Formal written instructions that specify actions to be taken under different circumstances
to achieve specific goals.
Scientific management: The systematic study of relationships between people and tasks for the
purpose of redesigning the work process to increase efficiency.
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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BILIBID.
As we are going to press, there comes to hand a little pamphlet
describing the industries and production of Bilibid.
Why not send our wardens who desire to do things to Bilibid?
Perhaps, it would be better to send our legislators, who after
observing the practical achievements of Bilibid may be induced to
authorize our wardens to inaugurate a sound industrial policy.
Where is Bilibid? Take the train for San Francisco, engage passage
on some leviathan of the deep and get off probably at the second
station which is Manila. Thence it is a short excursion to Bilibid, a trip
taken by twenty thousand visitors in a single year, not to mention
those who take involuntary trips thither.
Forty buildings, seventeen acres of ground, plan of main building like
Eastern Penitentiary, one of the best ever constructed if we consider
continual inspection as an essential factor. 2800 prisoners there; as
many others in prisons elsewhere in the islands but all co-ordinated
under a central administration.
The great aim is to prepare the inmates for “honorable position in the
community upon their release.”
The men work and play. We enumerate some of the industries.
PENNSYLVANIA.
William E. Mikell, Member of State Commission to Revise
the Criminal Code.
The work of the commissioners who framed the Code of 1860 shows
an utter lack of any consistent theory not only of grading the crimes
as felonies and misdemeanors, but also in grading the punishment
fixed for the various crimes. It may not be easy to do this in all cases.
Persons may intelligently differ as to whether perjury should be more
seriously punished than assault and battery, and whether larceny or
bigamy be deserving of the greater penalty. But it is difficult to see
why embezzlement by a consignee or factor should be punished with
five years’ imprisonment and embezzlement by a person
transporting the goods to the factor should be punished by one
year’s imprisonment. * * *
Under the Act of 1860, having in possession tools for the
counterfeiting of copper coin is punished by six years’ imprisonment,
while by the next section the punishment for actually making
counterfeit copper coin is only three years, though it cannot be made
without the tools to make it. * * *
The distinction just mentioned is, however, no stranger than that
made by the code between a councilman on the one hand and a
judge on the other, in the provisions against bribery. Section 48 of
the Act of 1860 provides that if any judge * * * shall accept a bribe,
he shall be fined not more than $1000 and be imprisoned for not
more than five years. But by Section 8 of the Act of 1874, a
councilman who accepts a bribe may be fined $10,000, ten times as
much as a judge, and be imprisoned the same number of years—
five years. The statute also provides that the councilman shall be
incapable of holding any place of profit or trust in this
Commonwealth thereafter. But the convicted judge is placed under
no such disability.
In the case of almost every crime denounced by the code fine and
imprisonment are associated. In most cases the penalty provided is
fine and imprisonment, in some it is fine or imprisonment. In a few
cases imprisonment alone without a fine is prescribed, and in a few
others it is a fine alone without imprisonment. We seek in vain for
any principle on which the fine is omitted, where it is omitted; or for a
principle on which it is inflicted in addition to imprisonment in some
cases, and as an alternative to imprisonment in others. Thus the
penalty for exhibiting indecent pictures on a wall in a public place is a
fine of $300, but no imprisonment, while by the same act the drawing
of such pictures on the same wall carries a fine of $500 and one
year’s imprisonment. Manslaughter carries a fine of $1000 as well as
imprisonment for twelve years, but train robbery and murder in the
second degree involve no fine, but fifteen and twenty years in prison
respectively. It cannot be the length of the imprisonment that does
away with the fine in this latter case, for the crime of aiding in
kidnapping may be punished with twenty-five years in prison, but
also has a fine of $5000.
More striking still, perhaps, is the lack of any relation between the
amount of the fine and the length of the imprisonment provided in the
code. In the case of some crimes the fine is small and the
imprisonment short, as in blasphemy, which is punished by a fine of
$100 and three months in prison, extortion and embracery punished
with $500 and one year. In a few the fine is large and the
imprisonment long, as in accepting bribes by councilmen, $10,000
and five years, and malicious injury to railroads, $10,000 and ten
years. But in others the fine is small while the imprisonment is long
and in others the fine large and the imprisonment short.
Incomplete Crimes.
CLINICAL WORK.