Chapter 2 - Management Theory

Historical Management perspective(1911-1950's)

Includes three viewpoints -classical, behavioral, and quantitative.

Contemporary Management perspective (1960's-Present)

Includes three viewpoints -systems, contingency and quality-management.

Four parts of a System

Inputs, Transformational processes, outputs, feedback

System

Is a set of interrelated parts that operate together to achieve a common purpose.

Problem with Classical Viewpoint

It's Mechanistic- It views humans like cogs in a machine, not taking into the account human needs.

Quantitative Viewpoint

Applies quantitative techniques to management.

Complexity Theory

Study of how order and pattern arise from very complicated apparently chaotic systems.

Administrative Management

(Branch of Classic Viewpoint) Concerned with managing the total organization.

Max Weber's bureaucratic features of an organization(Classic Viewpoint)

1. A well-defined hierarchy of authority. 2. Formal rules and procedures. 3. A clear division of labor, with parts of a complex job being handled by specialists. 4. Impersonality, without reference or connection to a particular person. 5. Careers based on merit.

Frederick W. Taylor's four principles of science to eliminate soldering.

1. Evaluate a task by scientifically studying each part of the task( disregard old rule-of-thumb methods. 2.Carefully select workers with the right abilities for the task. 3.Give workers the training and incentives to do the task with the proper work methods 4. Use scientific principles to plan the work methods and ease the way for workers to do their jobs. `

4 components of TQM

1. Make continuous improvement a priority 2. Get every employee involved 3. Listen to and learn from customers and employees. 4.Use accurate standards to identify and eliminate problems.

Mary Parker Follet's Power sharing ideas

1. Organizations should be operated as "communities," with managers and subordinates working together in harmony. 2. Conflicts should be resolved by having managers and workers talk over differences and find solutions that would satisfy both parties- a process she called integration. 3.The work process should be under the control of workers with the relevant knowledge, rather than of managers, who should act as facilitators.

Maslow's Hierarchy of human needs.(HR)

1. Physiological 2. Safety 3. Love 4. Esteem 5. Self Actualization

Munsterberg's 3 ways psychologists could contribute to industry.

1. Study jobs and determine which people are best suited to specific jobs. 2. Identify the psychological conditions under which employees do their best work. 3.Devise management strategies to influence employees to follow management's interests.

Three Truths of Evidence-based management

1. There are few really new ideas: Most supposedly new ideas are old, wrong, or both. 2.True is better than new: Effective Organizations and managers are more interested in what is true than in what is new. 3. Doing well usually dominates: Organizations that do simple, obvious, and even seemingly trivial things well will dominate competitors who search for "Silver Bullets"

Federick W. Taylor, Frank & Lillian Gilbreth

Chief proponents of Scientific Management, and coined the term "therblig" - referring to one of 17 basic motions.

Total Quality management

Comprehensive approach- led by top management and supported through-out the organization- dedicated to continuous quality improvement, training, and customer satisfaction.

Open System

Continually interacts with its environment.

Soldiering

Deliberately working at less than full capacity

Behavioral Viewpoint (1913-1950's)

Emphasis on importance of understanding human behavior and motivating and encouraging employees toward achievement.

Classical Viewpoint (1911-1947)

Emphasis on ways to manage work more efficiently. Two branches-scientific, and administrative

Behavioral Viewpoint

Emphasized the importance of understanding human behavior and of motivating employees toward achievement. Three phases; 1. Early behaviorism 2.The human relations movement 3. Behavioral Science

Scientific Management

Emphasized the scientific study of work methods to improve the productivity of individual workers.

The Contingency Viewpoint

Emphasizes that a manager's approach should vary according to-i.e., be contingent on-the individual and environmental situation.

Operations Management

Focuses on managing the production and delivery of an organization's products or services more effectively.

Quality Assurance

Focuses on the performance of workers, urging employees to strive for "Zero defects"

Management Science(operations research)

Focuses on using mathematics to aid in problem solving and decision making.

Closed system

Little interaction with its environment

Learning Organization

Organization that actively creates, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge.

Subsystems

Parts making up the whole system.

Human Relations Movement

Pineered by Maslow & McGregor- which proposed that better human relations could increase worker productivity.

The Quality-Management Viewpoint

Quality control, Quality assurance and Total Quality management.

Quality-Management view point

Quality control, quality assurance, and total quality management.

Quality

Refers to the total ability of a product or service to meet customer needs.

Systems viewpoint

Regards the organization as a system of interrelated parts.

The Systems Viewpoint

Regards the organization as systems of interrelated parts that operate together to achieve a common purpose.

Behavioral Science

Relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers. Includes: 1. Psychology 2. Sociology 3. Anthropology 4. Economics

Douglas McGregor Theory X

Represents a pessimistic, negative view of workers. In this view, workers are considered to be irresponsible, to be resistant to change, to lack ambition, to hate work, and to want to be led rather than to lead.

Douglas McGregor Theory Y

Represents the outlook of human relations proponents- an optimistic, positive point view of workers. In this view, workers are considered to be capable of accepting responsibility, self- direction, and self-control and of being imaginative and creative.

quantitative management

The application to management of quantitative techniques, such as statistics and computer simulations. 1. Management Science 2. Operations Management

Feedback

The information about the reaction of the environment to the outputs that affects the inputs.

Transformational processes

The organization's capabilities in management, internal processes, and technology that are applied to converting inputs into out-puts.

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, and the like that are produced by the organization.

Quality control

The strategy for minimizing errors by managing each stage of production.

Evidence Based Management

Translating principles based on best evidence into organizational practice, bringing rationality to the decision-making process.

Contingency Viewpoint

emphasizes that a manger's approach should vary according to- that is, be contingent on - the individual and the environmental situation.