Management a practical introduction 3rd kinicky chapter 02

2.1 Evolving Viewpoints: How We Got To Today’s Management Outlook Two perspectives of management are: the historical which includes three views— classical, behavioral, and quantitative

Chapter 2: Management Theory

Essential Background For

2.1 Evolving Viewpoints: How We Got To

Today’s Management Outlook

WHY STUDY MANAGEMENT THEORIES?

Understanding theoretical perspectives of

management:

helps us understand the present

provides a guide to action

provides a source of new ideas

gives clues to the meaning of managers’ ideas

2.1 Evolving Viewpoints: How We Got To

Today’s Management Outlook

Two perspectives of management are:

the historical which includes three views—

classical, behavioral, and quantitative

the contemporary which includes three views— systems, contingency, and quality-management

2.2 Classical Viewpoint: Scientific &

Administrative Management

Figure 2.1: The Historical Perspective

2.1 Evolving Viewpoints: How We Got To

Today’s Management Outlook

IS MANAGEMENT AN ART OR A SCIENCE?

Management is both an art and a science

Evidence based management involves:

observing events and gathering facts

posing solutions or explanations based on those facts

making predictions of future events

testing predictions under systematic conditions

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEM

Which of the following is a contemporary perspective

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEM

Which of the following is a contemporary perspective

2.2 Classical Viewpoint: Scientific &

Administrative Management

WHAT IS THE CLASSICAL VIEWPOINT?

The classical view of management emphasizes

finding ways to manage work more efficiently using two approaches:

scientific - emphasizes the scientific study of work

methods to improve productivity

administrative - concerned with managing the

total organization

2.2 Classical Viewpoint: Scientific &

Frank & Lillian Gilbreth focused on improving

efficiency, and popularized their ideas in the book

(and later, the movie), ‘Cheaper by the Dozen’

2.2 Classical Viewpoint: Scientific &

Administrative Management

Frederick Taylor believed that managers could eliminate underachievement, which he called

soldiering, by

1 evaluating a task scientifically

2 matching worker ability with the task

3 providing training and incentives

4 using scientific principles to plan work methods and make it easier for workers to do their jobs

 HENRI FAYOL

Administrative Management

2.2 Classical Viewpoint: Scientific &

Administrative Management

Administrative management was pioneered by

Henri Fayol and Max Weber, and is concerned with managing the total organization

Fayol identified the major functions of

management: planning, organizing, leading,

controlling, and coordinating

Weber believed that an organization should have:

a well-defined hierarchy of authority, formal rules and procedures, a clear division of labor, impersonality, and careers based on merit

Weber’s Organizational Principles

 Job Descriptions

 Written Rules, decision

guidelines, and policies

 Consistent Procedures,

Regulations, Policies

 Staffing/Promotions based

on Qualifications

2.2 Classical Viewpoint: Scientific &

Administrative Management

THE PROBLEM WITH THE CLASSICAL

VIEWPOINT: TOO MECHANISTIC

The classical theory essentially argued that by

applying the scientific method, time and motion

studies, and job specialization, productivity could be raised

However, this view may be too mechanistic

because it fails to consider human needs

2.3 Behavioral Viewpoint: Behaviorism,

Human Relations, & Behavioral Science

WHAT IS THE BEHAVIORAL VIEWPOINT?

The behavioral viewpoint of management

emphasized the importance of understanding human behavior and of motivating employees toward

achievement

This perspective was developed over three phases:

early behaviorism, the human relations

movement, and behavioral science

Behavioral theory was pioneered by Hugo

Munsterberg, Mary Parker Follett, and Elton Mayo

2.3 Behavioral Viewpoint: Behaviorism,

Human Relations, & Behavioral Science

contribute to industry by:

1 studying jobs and identifying people suited to them

2 identifying the psychological conditions under

which employees do their best work

3 devising management strategies to encourage

employees to follow management’s interests

2.3 Behavioral Viewpoint: Behaviorism,

Human Relations, & Behavioral Science

1 organizations should operate as communities with managers and employees working cooperatively

2 organizations should resolve conflicts through

integration where managers and workers talked over differences

3 managers should be facilitators, and workers

should control the work process

2.3 Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science

 Mayo developed a theory known as the

Hawthorne Effect which suggested that

employees worked harder if they felt that

managers cared about their welfare and paid attention to them

2.3 Behavioral Viewpoint: Behaviorism,

Human Relations, & Behavioral Science

 Abraham Maslow and Douglas McGregor pioneered the

human relations movement which proposed that better

human relations could increase worker productivity

Maslow argued that people are motivated by a hierarchy of human needs: physiological, safety, social, esteem, and self- actualization

McGregor theorized that a manager’s attitudes toward

employees could either be Theory X (pessimistic, negative), or Theory Y (optimistic, positive)

 Understanding the theory can help managers avoid attitudes that become self-fulfilling prophecies

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEM

Understanding human resource behavior and motivating employees toward achievement is part of the

A) classical viewpoint

B) administrative viewpoint

C) management science viewpoint

D) behavioral viewpoint

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEM

Understanding human resource behavior and motivating employees toward achievement is part of the

A) classical viewpoint

B) administrative viewpoint

C) management science viewpoint

D) behavioral viewpoint

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEM

Who argued that people are motivated by a hierarchy

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEM

Who argued that people are motivated by a hierarchy

2.3 Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science

The human relations movement was considered too simplistic for practical use

It was replaced by the behavioral science

approach which relies on scientific research for

developing theories about human behavior that can

be used to provide practical tools for managers

2.4 Quantitative Viewpoints: Management

Science & Operations Research

WHAT IS THE QUANTITATIVE VIEWPOINT?

Quantitative management focuses on the

application to management of quantitative

techniques such as statistics and computer

simulations

Two branches of quantitative management are

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEMOperations management is an example of

A) The classical view

B) Management science

C) The quantitative view

D) The human relations movement

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEMOperations management is an example of

A) The classical view

B) Management science

C) The quantitative view

D) The human relations movement

2.4 Quantitative Viewpoints: Management

Science & Operations Research

MANAGEMENT SCIENCE AND OPERATIONS

RESEARCH

Management science focuses on using

mathematics to aid in problem solving and decision making

Operations management focuses on managing the production and delivery of an organization’s

products or services more effectively

Contemporary Perspective

WHAT IS THE CONTEMPORARY PRESPECTIVE?

There are three contemporary management

perspectives: systems, contingency, and

quality-management

Contemporary Perspective

Figure 2.2: The Contemporary Perspective

2.5 Systems Viewpoint

A system is a set of interrelated parts that operate together to achieve a common purpose

The systems viewpoint sees the organization as

a system of interrelated parts

Thus, an organization is both a collection of

subsystems (parts making up the whole system)

and a part of the larger environment

2.5 Systems Viewpoint

There are four parts in a system:

inputs (the people, money, information, equipment, and materials required to produce an organization’s goods or services)

outputs (the products, services, profits, losses,

employee satisfaction or discontent that are

produced by the organization

transformation processes (the organization’s

capabilities in management and technology that are applied to converting inputs into outputs)

feedback (information about the reaction of the

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEM

All of the following are part of a system except

A) inputs

B) feedback

C) outputs

D) contingency processes

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEM

All of the following are part of a system except

A) inputs

B) feedback

C) outputs

D) contingency processes

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEM

The classical management viewpoint sees the organization as

A) a contingency system

B) a transformation system

C) an open system

D) a closed system

2.6 Contingency Viewpoint

WHAT IS THE CONTINGENCY VIEWPOINT?

According to the contingency viewpoint of

management, a manager’s approach should vary according to the individual situation and the

environmental situation

2.7 Quality-Management Viewpoint

WHAT IS THE QUALITY-MANAGEMENT VIEWPOINT?

 The quality-management viewpoint of the contemporary

perspective includes quality control, quality assurance, and total quality management

Quality is the total ability of a product or service to meet

customer needs, and is one of the best ways to add value to a product and differentiate it from others

Quality control is the strategy for minimizing errors by

managing each stage of production

Quality assurance focuses on the performance of workers,

B2-14 Quality Control Standards

Six Sigma () Quality

 3.6M defects per million events

Statistical Quality Control (SQC)

 Continually monitor all phases of production process for quality

Statistical Process Control (SPC)

 Sample components at each stage and plotting results on a graph; eliminates need for QC inspection at the end - Deming Cycle (PDCA)

Quality Function Deployment (QFD)

 Linking needs of end users to design, development, engineering,

2.7 Quality-Management Viewpoint

 Total quality management (TQM) is a comprehensive

approach dedicated to continuous quality improvement, training, and customer satisfaction

There are four components of TQM:

1 make continuous improvement a priority

2 get every employee involved

3 listen to and learn from employees and customers

4 use accurate standards to identify and eliminate problems

2.8 The Learning Organization In

An Era Of Accelerated Change

WHAT IS A LEARNING ORGANIZATION?

A learning organization is an organization that:

creates and acquires knowledge

transfers knowledge within itself

modifies its behavior to reflect the new knowledge

Organizations need to be learning organizations in order to deal with the many challenges of today’s fast paced world

2.8 The Learning Organization In

An Era Of Accelerated Change

Some of the challenges include:

 the rise of virtual organizations - organizations whose

members are geographically apart, usually working with

e-mail, collaborative computing, and other computer

connections

 the rise of boundaryless organizations - fluid, highly

adaptive organizations whose members, linked by information technology, come together to collaborate on common tasks, where collaborators may include competitors, suppliers, and customers

 the imperative for speed and innovation

2.8 The Learning Organization In

An Era Of Accelerated Change

 the increasing importance of knowledge workers - someone whose occupation is principally concerned with generating or interpreting information

 an appreciation for human capital - the economic or

productive potential of employee knowledge, experience, and actions

 an appreciation for the importance of social capital - the

economic or productive potential of strong, trusting, and

cooperative relationships

 a new emphasis on evidence-based management -

management based on the belief that firms need to face the facts about what actually works and what is total nonsense

2.8 The Learning Organization In

An Era Of Accelerated Change

build a commitment to learning

generate ideas with impact

generalize ideas with impact

B2-16 How to Build a Learning Organization:

Three Roles Managers Play

You can build a commitment to learning.

learning

You can work to generate ideas with impact.

shareholders

You can work to generalize ideas with impact.

within your organization Create climate that reduces conflict, increases communication, promotes teamwork, rewards risk-taking, reduces fear of failure, and increase