2: Traditional and Contemporary Management Perspectives

systems perspective

-A system is an interrelated set of elements functioning as a whole. -An open system is one that interacts with its environment. -A closed system does not interact with its environment. -A subsystem is a system within another system

human relations movement: theory x

A pessimistic and negative view of workers consistent with the views of scientific management.

human relations movement: theory y

A positive view of workers; it represents the assumptions that human relations advocates mak

contemporary management challenges

An unpredictable economy, limiting growth. Globalization presents many challenges. Ethics and social responsibility in relation to corporate governance. Quality as the basis for competition, increased productivity, and lower costs. The shift toward a service economy. The role and impact of social media.

human relations movement

Argued that workers respond primarily to the social context of the workplace. Stemmed from the Hawthorne studies. A basic assumption is that a manager's concern for workers will lead to increased satisfaction and improved performance.

organizational behaviour takes a

holistic view of behavior and addresses individual, group, and organization processes.

conclusion of behavioral management perspective

human behavior much more important in workplace than previously believed

universal perspective

identify the one best way to do something using classical, behavioral, and quantitative approaches

synergy

is two or more subsystems working together to produce more than the total of what they might produce working alone.

two fields of quantitative management

management science- focuses specifically on the development of mathematical models operations management-Concerned with helping the organization more efficiently produce its products or services.

major contributors to behavioral management perspective

mayo, maslow, and mcgregor

theory x assumptions

people don't like to work and try to avoid it manager's have to control, direct, coerce, and threaten employees to get them to work toward organization's goals

theory y assumptions

people don't naturally dislike work people are internally motivated to reach goals people will seek and accept responsibility under favorable conditions people have the capacity to be innovative when solving problems people are bright but their potential is underutilized

entropy

process leading to the decline of systems

contingency perspective

suggests that appropriate managerial behavior in a given situation depends on, or is contingent on, a wide variety of elements. -Believes each organization is unique.

approaches that integrate the three traditional perspectives

systems and contingency

behavioral management perspective's later studies identified

•"rate busters" (overproducers) and "chiselers" (underproducers).

Hawthorne Studies

-Found increased productivity in both control and experimental group. •Later attributed to heightened employee morale due to extra attention.

Charles Babbage

-Mathematically focused on efficiency of production. -Believed in division of labor.

Robert Owen

-One of the first managers to recognize the importance of human resources. -He raised working age for children, reduced hours, and supplied meals.

steps of systems perspective

1) inputs from the environment -financial, material inputs, human, and informational 2)transformation process: tech, operating systems, administrative systems, and control systems 3)outputs into the environment: products/services, profits/loses, employee behaviors, and information outputs (feedback for inputs)

Steps in Taylor's scientific management process

1. develop scientific method for each area of job and replace old rule of thumb methods 2. scientifically select employees and train them to implement scientific methods 3. Supervise to make sure employees follow prescribed methods 4. managers completely plan work but use workers to get the job done

theory

A conceptual framework for organizing knowledge and providing a blueprint for action.

classical management perspectives

Consists of two branches - scientific management and administrative management.

behavioral management today: contributions and limitations

Contributions-Gave insights into interpersonal processes. •Such as motivation and group dynamics. -Focused managerial attention on these processes. -Viewed employees as resources. Limitations -Behavior is difficult to predict. -Managers are reluctant to adopt concepts. -Research ineffectively communicated to managers.

Influence of classical management on management today

Contributions-Laid the foundation for management theory. -Identified key processes, functions, and skills. -Made management a valid subject of study. Limitations-Best used in simple, stable organizations. -Universal procedures may not be appropriate in some settings. -Employees not viewed as resources.

quantitative management today: contributions and limitations

Contributions-Sophisticated techniques assist decision-making. •Particularly useful in planning and controlling. -Increased awareness of complex processes. Limitations-Cannot fully explain or predict behavior. -Mathematical sophistication may come at the expense of other important skills. -Models may require unrealistic assumptions.

Behavioral Management Perspective

Emphasizes individual attitudes and behaviors and group processes.

administrative management

Focuses on managing the total organization.

scientific management

Focuses on ways to improve the production of individual workers.

Other scientific management theorists

Frank and Lillian Gilbreth-They developed numerous techniques and strategies for eliminating inefficiency .Henry Gantt-Introduced the Gantt chart for scheduling work. Harrington Emerson-An advocate for specialized management roles.

two theorists that saw employees as more than tools

Gilbreth and Barnard

theorists of administrative management

Henri Fayol-First to identify the four management functions. Lyndall Urwick-Integrated scientific and administrative management. Max Weber-Studied efficient organizational structure. Chester Barnard-Wrote about acceptance of authority.

contemporary applied perspectives

Major impacts include: -Theory Z -In Search of Excellence-Biographies of successful business leaders. -Authors such as Peter Senge, Stephen Covey, Tom Peters, Michael Porter, John Kotter, and Gary Hamel. -Malcolm Gladwell's books. -Even Dilbert cartoons had an impact.

importance of theory and history to management

Management theories are grounded in reality. -Theories are used to build organizations and guide them toward their goals. Understanding the historical context provides a sense of heritage and helps managers avoid mistakes of others.

human relations movement also includes

Maslow's hierarchy of needs

management in antiquity

Sumerians (3000-2400 bc)- use written rules and regulations for governance Egyptians(3000-1000 bc)- used management practices to construct pyramids Babylonians (2500-500 bc)- used extensive set of laws for governance Greeks (1000-350bc)- used different governing systems for cities and states Romans (800bc-500ad)-used organized structure for communication and control Chinese (1500bc-1250ad)- used extensive organizational structure for governance and art Venetians (500-1500ad)- used organization design and planning concepts to control the seas

Hugo Munsterburg

applied psychology to the industrial setting, founding the field of industrial psychology.

quantitative management perspective

applies quantitative techniques such as focuses on decision-making, economic effectiveness, mathematical models, and the use of computers.

organizational behavior is the outgrowth of

behavioral management perspective

behavioral management perspective stimulated by

birth of industrial psychology and human resources management supplanting scientific management in the 1930s and 1940s

Mary Parker Follet

early pioneer of this theory

what are the three traditional perspectives of management?

classical, behavioral, and quantitative

organizational behaviour

contemporary field focusing on the behavioral perspectives of management

Frederick Taylor

created scientific management process as a result of workers "soldiering"-deliberately working below their potential