Chapter 2: Management Theory: Essential Background for the Successful Manager

What percentage of businesses had implemented strategies for sustainable development in 2017?

60%

System

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

Closed system

A system that has little interaction with its environment

Learning organization

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

Transformation processes

An organization's capabilities in management, internal processes, and technology that are applied to converting inputs into outputs

Which approach to management relies upon research in psychology, sociology, anthropology, and economics in order to develop theories about human behavior that can be used to provide practical tools for managers?

Behavioral science

What is the focus of PRME?

Business education

_____ approaches to management include learning organizations, high-performance work practices, and sustainable development.

Contemporary

Which management viewpoint asks the question, "What method is the best to use under these particular circumstances?"

Contingency

Classical viewpoint

Emphasized finding ways to manage work more efficiently, assumed that people are rational. It had two branches-scientific and administrative

Behavioral viewpoint

Emphasizes the importance of understanding human behavior and of motivating employees toward achievement

What are two types of outputs according to the systems viewpoint?

Employee satisfaction Finished products

Which of these statements represent ideas that Peter Drucker introduced in his book The Practice of Management? (Choose every correct answer.)

Employees should be treated as assets A corporation can be thought of as a human community Without customers, businesses wouldn't exist

Hawthorne effect

Employees work harder if they receive added attention, if they think managers care about their welfare and if supervisors pay special attention to them

What are primary concerns of shared value and sustainable development? (Choose every correct answer.)

Environmental effects Social impacts Global equilibrium

Renata is using the systems perspective to analyze her company. Which of the following should be included in her input analysis?

Equipment

What are Taylor's principles of scientific management? (Choose every correct answer.)

Evaluate a task by scientifically studying each part of it. Carefully select workers with the right abilities for the task.

____ management encourages managers to make facts and logic the foundation of their approach to decision-making.

Evidence-based

What are the branches of quantitative management? (Choose every correct answer.)

Evidence-based management Operations management

Why Fayol is important

Fayol was the first to identify the major functions of management - planning, organizing, leading, and controlling, as well as coordinating - the first four of which you'll recognize as the functions providing the framework for this and most other management books.

Within the systems viewpoint, what four things are considered parts of a system? (Choose every correct answer.)

Feedback Inputs Outputs Transformational processes

Select all of the positive features of bureaucracy according to Max Weber. (Choose every correct answer.)

Formal rules and procedures Impersonality Merit-based careers Clear hierarchy Specialists for complex tasks

Operations management does which of the following? (Choose every correct answer.)

Governs managers' decisions about how to increase productivity and efficiency Assists managers with decisions regarding how to achieve the highest quality goods and services Plays an important role in managing the supply chain

High-performance work practices (HPWPs)

Improve an organization's ability to effectively attract, select, hire, develop and retain high-performing personnel

Feedback

Information about the reaction of the environment to the outputs that affect the inputs

Which of the following statements are true about the classical perspective of management? (Choose every correct answer.)

It had two branches - scientific and administrative. It assumed that people were rational. It emphasized finding ways to manage work more efficiently.

Which statement regarding a closed system is accurate?

It has little interaction with its environment.

What are issues with the classical viewpoint? (Choose every correct answer.)

It is overly mechanistic. It fails to account for the importance of human needs. It views humans as cogs in a machine.

Which of the following are true about complexity theory? (Choose every correct answer.)

It is the study of how order and pattern arise from complicated, chaotic systems. It seeks to understand how organizations adapt to their environments. It recognizes that all complex systems are networks of many interdependent parts that interact according to certain simple rules. It is used in strategic management and organizational studies.

What are the contemporary approaches to management? (Choose every correct answer.)

Learning organizations Shared value and sustainable development High-performance practices

Maslow's hierarchy of human needs proposes that people are motivated by which needs? (Choose every correct answer.)

Love Esteem Physiological Self-actualization Safety

Scientific management

Management approach that emphasizes the scientific study of work methods to improve the productivity of individual workers

Administrative management

Management concerned with managing the total organization

Which management perspectives typically consider an organization to be a closed system? (Choose every correct answer.)

Management science perspective Classical management viewpoint

What is the major contribution of McGregor's Theory X and Theory Y to management?

Managers should understand how their beliefs affect their behavior.

Which individuals helped pioneer administrative management theory? (Choose every correct answer.)

Max Weber Charles Clinton Spaulding Henri Fayol

Identify the two theorists who contributed the most to the human relations movement.

McGregor Maslow

According to the systems viewpoint, what are three types of inputs?

Money Equipment People

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

Operations

Systems viewpoint

Perspective that regards the organization as a system of interrelated parts

In which ways did Munsterberg suggest that psychologists could contribute to industry? (Choose every correct answer.)

Recognize the psychological conditions necessary for employees to do their best work. Identify ways managers can encourage employees to take desired actions. Identify the people who are best suited for a job.

Behavioral science approach

Relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers

Synergy

Situation in which the economic value of separate, related businesses under one ownership and management is greater together than the businesses are worth separately

What four disciplines are included in the behavioral science approach to management?

Sociology Psychology Economics Anthropology

The management approach of _____ was one of the first to recognize that enriching the lives of organizational and community family was just as important as a company making a profit?

Spaulding

Why Spaulding is important

Spaulding's "necessities" went beyond the task orientation of scientific management, thereby broadening the view of what it takes to effectively manage people and organizations. He suggested that considerations such as the need for authority, division of labor, adequate capital, proper budgeting, and cooperation and teamwork were essential for smooth organizational operations. He also was one of the first management practitioners to highlight the need to enrich "the lives of his organizational and community family" while simultaneously focusing on making a profit.

Open system

System that continually interacts with its environment

Why Taylor is important

Taylor based his system on motion studies. He suggested employers institute a differential rate system. He also was a proponent of setting performance goals for employees.

Quantitative management

The application to management of quantitative techniques, such as statistics and computer simulations. Two branches of quantitative management are management science and operations management

Contingency viewpoint

The belief that a manager's approach should vary according to-that is, be contingent on-the individual and the environmental situation

Subsystems

The collection of parts making up the whole system

Human relations movement

The movement that proposed that better human relations could increase worker productivity

True or false: Frederick Taylor is associated with the scientific management approach to management.

True

Why the Hawthorne Studies are Important

Ultimately, the Hawthorne studies were faulted for being poorly designed and not having enough empirical data to support the conclusions. Nevertheless, they succeeded in drawing attention to the importance of "social man" (social beings) and how managers using good human relations could improve worker productivity. This in turn led to the so-called human relations movement in the 1950s and 1960s.

What organization launched the PRME?

United Nations

Why Weber is important

Weber's work was not translated into English until 1947, but it came to have an important influence on the structure of large corporations, such as Coca-Cola.

A supervisor who considers employees to be irresponsible and resistant to change would be characterized as a Theory _______ manager.

X

If you believe your employees are capable of taking on responsibility with sufficient self-direction and self-control, you are a Theory ___ manager.

Y

What are the two branches of the classical viewpoint of management?

administrative scientific

Theory X and Theory Y underscore the idea that manager behaviors are impacted by their _____.

beliefs

According to the ____ viewpoint, a management problem should be handled according to the individual and the environmental situation.

contingency

Frederick Taylor believed that more efficient workers should be paid higher wages than their lower-performing coworkers, a system referred to as the _______ system.

differential rate

The original focus of the Hawthorne studies was the ______.The original focus of the Hawthorne studies was the ______.

effects of lighting levels on worker productivity

Mary Parker Follett felt that managers should act as ______ rather than dictators.

facilitators

Cheyenne has a small bakery specializing in gourmet cupcakes. In response to customer demand, she has added gluten-free cupcakes to her menu. This customer demand would be characterized as _____.

feedback

In terms of the systems viewpoint, _______ is information about the reaction of the environment to the outputs that affects the inputs.

feedback

In order to follow Mary Parker Follett's concept of integration, a company should ______.

hold meetings between managers and workers to solve problems in a mutually beneficial way

Maslow and McGregor focused on the study of ______ as it relates to increasing worker productivity.

human relations

Scientific management is the study of work methods to improve the productivity of _____.

individual workers

According to the systems perspective, transformational processes are responsible for turning

inputs into outputs.

A system is a set of _____ parts that operate together to achieve a common purpose.

interrelated

A learning organization: (Choose every correct answer.)

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

Theory X managers view workers as

lacking ambition

A _______ organization actively creates, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge.

learning

In order to build a _____ organization, managers must build a commitment to acquiring knowledge, transferring knowledge, and modifying behavior.

learning

When Mary Parker Follett referred to the use of "communities" within an organization, she meant that ______.

managers and subordinates should work together to solve issues

Operations management focuses on _____.

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

differential rate system

more efficient workers earned higher wages

Systems that have continual interaction with their environment are known as _____ systems.

open

According to Henri Fayol, what are the major functions of management? (Choose every correct answer.)

organizing controlling planning leading

In terms of the systems viewpoint, profits and losses are types of _______.

outputs

The application of quantitative techniques, such as statistics and computer simulations, to management is called _____ management.

quantitative

Frank and Lillian Gilbreth's personal life helped them develop ideas about improving efficiency because they

raised 12 children.

As a pioneer of administrative management, Max Weber contended that bureaucracies were

rational.

Theory Y managers view workers as which of the following? (Choose every correct answer.)

self-directed imaginative and creative accepting of responsibility

Mary Parker Follett would agree with today's concept of _____.

self-managed teams

The Hawthorne studies are credited with drawing attention to the importance of people as _____.

social beings

Organizations that prioritize creating shared value are not only concerned with their shareholders but also with their _____.

stakeholders

Based on a systems viewpoint, the health science, finance, and journalism departments of a university are examples of ______.

subsystems

Shared value and _______ development consider environmental and social effects of business as well as profit.

sustainable

An open system fosters the idea that two or more forces combined create an effect that is greater than the sum of their individual effects. This is known as _____.

synergy

Complexity theory is an offshoot of the _____ viewpoint because it is the study of how multiple chaotic processes arise into pattern and order.

systems

The ______ viewpoint regards the organization as arrangements of interrelated parts that operate together to achieve a common purpose.

systems

The behavioral management viewpoint emphasized

the importance of understanding human behavior and motivating employees to achieve

Administrative management is concerned with managing ________.

the total organization

According to the systems viewpoint, the part of a system that involves turning raw materials and knowledge into a new and different product or service is called _____.

transformational processes

Maslow's hierarchy of needs resulted from the study of ______.

what motivates people to perform

Weber's Five Positive Bureaucratic Features

1. A well-defined hierarchy of authority 2. Formal rules and procedures 3. A clear division of labor 4. Impersonality 5. Careers based on merit

Fredrick Taylor's 4 Principles of Science

1. Evaluate a task by scientifically studying each part of it (not by using old rule-of-thumb methods). This leads to the establishment of realistic performance goals for a job. 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.

Six Practical Reasons for Studying This Chapter

1. Understanding of the present 2. Guide to action 3. Source of new ideas 4. Clues to meaning of your managers' decisions 5. Clues to meaning of outside events 6. Producing positive results

Operations management

A branch of quantitative management; focuses on managing the production and delivery of an organization's products or services more effectively

By adopting the systems viewpoint, you can visualize your organization as which of the following? (Choose every correct answer.)

A collection of subsystems A part of the larger environment

The _____ studies are credited with drawing attention to the importance of the social nature of workers and the need for good human relations in fostering employee productivity.

Hawthorne

Why Theory X/Theory Y Is Important

Helps managers understand how their beliefs affect their behavior. Managers can be more effective by considering how their behavior is shaped by their expectations about human nature

Why Munsterberg Is Important

His ideas led to the field of industrial psychology, the study of human behavior in workplaces, which is still taught in colleges today.

Who is known as the "father of industrial psychology" because of his revolutionary ideas on studying human behavior in workplaces?

Hugo Munsterberg

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

Complexity theory

The study of how order and pattern arise from very complicated, apparently chaotic systems

According to the Hawthorne effect hypothesized by Mayo and colleagues, when did employees work harder? (Choose every correct answer.)

They believed supervisors paid special attention to them. They thought managers cared about their welfare. They received added attention.

What technique did Frank and Lillian Gilbreth use to expand on Taylor's motion studies?

They filmed workers to isolate parts of a job.

Why the Gilbreth's are important

They reinforced the link between studying the physical movements in a job and workers' efficiency. Therblig - 1 of 17 basic motions workers can perform. Used movie cameras to film workers in order to isolate specific parts of a job.

Evidence-based management

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

why Follett is important

With these and other ideas, Follett anticipated some of today's concepts of "self-managed teams," "worker empowerment," and "interdepartmental teams"—that is, members of different departments working together on joint projects.

Theory X and Theory Y focus on managers'

attitudes

McGregor developed Theory X and Theory Y based on the realization that managers should _____.

be aware of their attitudes toward employees

The _____ viewpoint places emphasis on the importance of understanding the actions of humans and the motivation and encouragement of employees toward achievement?

behavioral

Motion studies

breaking each task or job into its separate motions and then eliminating those that are unnecessary or repetitive

Max Weber said that a better-performing organization should have five positive _____ features including a clear hierarchy, formal procedures, clear division of labor, impersonality, and merit-based careers.

bureaucratic

The scientific approach to management emerged in the early 20th century when companies wished to increase worker productivity to counteract _____.

labor shortages

Today, the word bureaucracy is associated with inflexibility. But to Max Weber, a bureaucracy was an efficient and ideal organization based on principles of _____.

logic

The classical viewpoint of management emphasizes ways to ______.

manage work more efficiently

Peter Drucker is credited with providing the first modern handbook on the subject of ______.

management

One issue with the classical viewpoint is that it tends to view humans as cogs in a machine, thereby rendering it overly _____.

mechanistic

Charles Clinton Spaulding, one of the pioneering theorists of administrative management, proposed eight _____ of management based in part on his childhood experiences working at his father's fields.

necessities

The four parts of a system include all of the following EXCEPT ______.

quality

Evidence-based management focuses on bringing _____ to the decision process.

rationality

The third and fourth principles of _____ suggest that organizations should give workers the training and incentives to do their tasks properly, and should use scientific principles to plan work methods and ease the way for workers to do their jobs.

scientific management

The various parts that make up a complete system are commonly known as

subsystems

A set of interrelated parts that operate together to achieve a common purpose is called a(n) _____.

system

Henri Fayol is credited with being the first person to ______ management behavior.

systematize