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.