Chapter 2 MGMT

Management science

Focuses specifically on the development of mathematical models. •Mathematical model: A simplified representation of a system, process, or relationship

Hawthorne Studies

Found increased productivity in both the control and experimental group Later attributed to heightened employee morale due to extra attention Later studies identified "rate busters" (overproducers) and "chiselers" (underproducers) Conclusion: Human behavior was more important in the workplace than previously believed.

What was Henri Fayol's contribution to the field of management?

He was the first to identify the specific managerial functions of planning, organizing, leading, and controlling.

Which of these management pioneers developed a process for scheduling complex projects over a span of time?

Henry Gantt

Lyndall Urwick

Integrated scientific and administrative management

Henry Gantt

Introduced the Gantt chart for scheduling work Means for scheduling work for each worker or for an entire complex project Refined Taylor's ideas about piecework pay systems

Teresita is using break-even analysis to help the organization produce products most efficiently. What is Teresita using in this process?

operations management

The contemporary field that focuses on behavioral perspectives on management is known as ____.

organizational behavior

Industrial psychology is the practice of applying ____.

psychology to worker motivation and selection

Management science and operations management are the two branches of what management theory?

quantitative

Which of the following management techniques fails to account for individual behaviors and attitudes?

quantitative

Which school of management perspectives would be most useful to a restaurant with pizza delivery that wanted to determine the most efficient routes for each of its drivers to follow?

quantitative management

The use of a Gantt chart to schedule workers' duties, breaks, and lunches at a day-care center is an application of one of the principles associated with _____.

scientific management

Elton Mayo conducted experiments at Western Electric's Hawthorne plant from 1927-1932. He discovered that ____.

social pressure was more important than financial incentive

Jena's Juice donates five cents for each bottle of juice sold to fund breast cancer research. Jena's Juice is responding to what contemporary management challenge?

social responsibility

Logan Chemicals has made major efforts to reduce pollution in order to help clean up the environment. Logan Chemicals is responding to what contemporary management challenge?

social responsibility

inhua discovered that many of his employees were deliberately working at a pace lower than their capabilities in order to get more hours. Learning from the work Frederick W. Taylor, Jinhua implemented a piecework pay system based on output in order to eliminate ____.

soldiering

Max Weber

studied efficient organizational structure

A new animated children's show does not even get presented to executives unless the merchandising is lined up. The executives are looking for a(n) ____.

synergy

Which type of system interact with their environment?

open

Limitations

Best used in simple, stable organizations Universal procedures not always appropriate in some settings Employees not viewed as resources

Classical management perspective

Consists of two distinct branches—scientific management and administrative management.

Theory X Assumptions

1. People do not like work and try to avoid it. 2. People do not like work, so managers have to control, direct, coerce, and threaten employees to get them to work toward organizational goals. 3. People prefer to be directed, to avoid responsibility, and to want security; they have little ambition.

Theory

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

Entropy

A normal process leading to system decline.

Theory X

A pessimistic and negative view of workers consistent with the views of scientific management People do not like work and try to avoid it.

Theory Y

A positive view of workers; it represents the assumptions that human relations advocates make. People are internally motivated to reach objectives to which they are committed.

Closed systems

A system that does not interact with its environment.

Open systems

A system that interacts with its environment. •Organizations are open

Subsystems

A system within another system.

Who or what could a manager study to see an early example of staff organization used to coordinate activities during military campaigns?

Alexander the great

Harrington Emerson

An advocate for specialized management roles

Universal perspectives

An attempt to identify the one best way to do something. •Includes the classical, behavioral, and quantitative approaches

System

An interrelated set of elements functioning as a whole. •Four basic elements of a system: inputs, transformation processes, outputs, and feedback

Organizational behavior

Contemporary field focusing on behavioral perspectives on management. Takes a holistic view of behavior and addresses individual, group, and organizational processes Draws from a broad interdisciplinary base, including psychology, sociology, anthropology, economics, and medicine

Administrative management

Focuses on managing the total organization.

Quantitative management perspective

Applies quantitative techniques to management .•Two branches are management science and operations management

Human relations movement

Argued that workers respond primarily to the social context of the workplace.

Which of the following is a potential drawback to the quantitative management perspective?

Assumptions may not be realistic.

Operations management

Concerned with helping the organization more efficiently produce its products or services.

Scientific management

Concerned with improving the performance of individual workers.

Frederick Taylor saw workers soldiering, or deliberately working below their potential. He devised this four-step method to overcome the problem.

Develop a science for each element of the job to replace old rule of thumb methods Scientifically select employees and then train them to do the job as described in step one Supervise employees to make sure they follow the prescribed methods for performing their jobs Continue to plan the work but use workers to get the work done

Frank and Lillian Gilbreth

Developed numerous techniques and strategies for eliminating inefficiency Lillian shaped the field of industrial psychology; made contributions to the field of personnel management

Which pioneer in management focused his attention on efficiencies of production?

Douglas McGregor

Behavioral management perspective

Emphasizes individual attitudes and behaviors and group processes.

Soldiering

Employees deliberately working at a slow pace. Practice was identified by Frederick Taylor, one of the best-known contributors to the field

Contributions

Laid the foundation for management theory Identified key processes, functions, and skills Made management a valid subject of study

An Integrative Framework of Management Perspectives

Managers should include a portion of each perspective relevant to their situation and apply them using systems and contingency approaches.

What is a Theory X assumption?

People prefer to be directed and to avoid responsibility.

Who was one of the first to describe job specialization practices?

Plato

Whose works should you study if you want to understand the origins of the recognition of the importance of human resources and the personal welfare of workers?

Robert Owen

Early Management Pioneers

Robert Owen •One of the first managers to recognize the importance of human resources •Raised working age for children, reduced hours, and supplied meals Charles Babbage •Mathematically focused on efficiency of production •Believed in division of labor •Forerunner of both classical and quantitative management perspectives

According to the systems perspective, the marketing, production, or finance functions of a company would all be considered ____.

Subsystems

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 and each situation is unique

Which field would use quantitative management skills today?

Supply chain •The quantitative management perspective has made important contributions and has certain limitations. It has provided managers with an abundance of decision-making tools and techniques and has increased understanding of overall organizational processes. It has been particularly useful in the areas of planning and controlling. Relatively new management concepts such as supply chain management and new techniques such as enterprise resource planning evolved from the quantitative management perspective.

Given our experience with COVID-19, changes in technology, and other elements of a rapidly evolving workplace, which management perspective do you feel is most effective in our current work environments? A.Classical B.Behavioral C.Quantitative

The classical perspective is best used in simple, stable organizations. Universal procedures not always appropriate in some settings. In the classical perspective, employees are not viewed as resources. The behavioral perspective takes a holistic view of behavior and addresses individual, group, and organizational processes. It draws from a broad interdisciplinary base, including psychology, sociology, anthropology, economics, and medicine. Quantitative management perspective applies quantitative techniques to management. Two branches are management science and operations management

Is the classical management perspective still relevant today, given our digital environment? How can contemporary companies apply the theories of classical managements?

The classical perspective is the framework from which later theories evolved, and many of its insights still hold true today. Many of the job specialization techniques and scientific methods espoused by Taylor and his contemporaries are still reflected in the way that many manufacturing jobs are designed today. Moreover, many contemporary organizations still use some of the bureaucratic procedures suggested by Weber. Also, these early theorists were the first to focus attention on management as a meaningful field of study. And recent advances in areas such as business-to-business (B2B) digital commerce and the business models used by Amazon, UPS, and FedEx also have efficiency as their primary goal and directly reflect the premises of the classical perspective.

Which of the following statements relative to the theory and practice of management is TRUE?

The value of theory is that it provides a conceptual framework for management activities.

What are your beliefs? Do you think Theory X or Theory Y applies to most workers? Which applies to you? How can you use these theories to manage those who might work for you?

Theory X assumes: 1. People do not like work and try to avoid it. 2. People do not like work, so managers have to control, direct, coerce, and threaten employees to get them to work toward organizational goals. 3. People prefer to be directed, to avoid responsibility, and to want security; they have little ambition. Theory Y assumes: 1. People will both seek and accept responsibility under favorable conditions. 2. People have the capacity to be innovative in solving organizational problems. 3. People are bright, but under most organizational conditions their potential is underutilized. While students cannot change the work habits of their coworkers or class teammates, they can change how they respond to those workers. An interesting extension to this discussion would be to talk about responses to these work behaviors, and how those responses can be applied to the workplace.

What is generally true about management theories that are used to build organizations and guide them to their goals?

They are grounded in reality.

Which of the following best defines subsystems?

They are systems within another system.

Henri Fayol

Tried to systematize the practice of management to provide guidance and direction to other managers First to identify managerial functions of planning, organizing, leading, and controlling, a framework that is still in use today

Synergy

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

Awareness and understanding of history and historical developments are important to contemporary managers. What is the advantage to those managers who understand the historical context of their industry? Can you identify a contemporary company or industries that promote themselves based on their history?

Understanding the historical context of management provides a sense of heritage and can help managers avoid the mistakes of others. Wells Fargo, Shell Oil, Levi Strauss, Hershey, Lloyd's of London, Disney, Honda, and Unilever all maintain significant archives about their past and often evoke images from earlier times in their orientation and training programs, advertising campaigns, and other public relations activities. History goes beyond archives. Consider advertising for institutions such as banks and brokerage firms, which play on the strong history of the organization. Additionally, consider ads for items such as cars (the Mustang or a pickup truck for instance) that play on the proud history of the product. History is an important part of organizations.

Contemporary organization theory has its roots in ____.

Weber's work on bureaucracy

Scientific management evolved at the dawn of the twentieth century because ____.

Workers needed to be used more efficiently

In an experiment on piecework, what did Mayo, and his associates, conclude?

Workers would rather be accepted by the group than make more money.

Chester Barnard

Wrote about acceptance of authority

What is a simplified representation of a system, process, or relationship?

mathematical model

What area of classical management should you study to learn more about managing the total organization?

administrative

Managers at Ruth & Fishers Corp. recognize the value of history. The company maintains an extensive archival library of its old documents and records and has also employed a full-time corporate historian. This helps the managers ____.

avoid the mistakes of others

In some countries, it is expected that people shake hands when they are introduced. In other cultures, the appropriate action is to bow slightly or to exchange business cards. These are examples of which type of process that vary in a global economy?

behavioral

Nipurna is well liked by the staff she supervises. She recognizes that they have excellent problem-solving skills and are committed to excellence. She lets the people she supervises assume as much responsibility as they are capable of handling. It would appear that she ____.

believes in McGregor's approach to managing people

Which perspective consists of two distinct branches, scientific management and administrative management?

classical management perspective

The impact of social media on large businesses is often ____.

negative

The appropriate management behavior that depends on the unique situation is a ____ perspective.

contingency

What is often at the center of debates on ethics and social responsibility?

corporate governance

The United States Postal Service has been losing money for years. Social media has created many alternatives for communication. The Postal Service's decline is an example of ____.

entropy

Which of the following refers to a normal process leading to system decline?

entropy

The availability of natural resources and the variation in government regulation are just two of the challenges posed by ____.

globalization

The ____ businesses has presented challenges for mangers in behavioral processes that affect the work force.

globalization of

Operations management is concerned with ____.

helping the organization produce in the most efficient way possible, as applied to a wide range of issues

Robert Owen, a British industrialist and reformer, recognized the importance of an organization's ____.

human resources

Which of the following is a contribution of the quantitative management perspective?

improved awareness and understanding of complex processes and situations

Geert runs a mid-sized agricultural company operating and is facing conditions of rapid growth and labor supply shortages. If Geert adopts the principles of behavioral management theory, he is most likely to address his immediate concerns using ____.

industrial psychology

Systems perspective of organizations

inputs from the environment: material inputs, human inputs, financial inputs, and information inputs transformation process: technology, operating systems, administrative systems, and control systems outputs into the environment: products/services, profits/loses, employee behaviors, and information outputs feedback

Because operations management is less mathematical and statistically less sophisticated than management science, ____.

it can be applied more directly to managerial situations

Theory X managers believe workers are ____.

lazy

Aviva has mathematical models that she relies on at the start of each new project to determine how to allocate the resources within her department. Aviva is making use of ____.

management science

The Blue Rooster sells 12 varieties of bread, made fresh daily. Some types of dough require time to rise. If they are handled too soon or too late the texture and flavor is ruined. The importance of scheduling indicates that The Blue Rooster should adopt the ____ perspective.

management science

what are the two branches of quantitative management?

management science and operations management

TransAmerica has financial auditors, tax experts, management consultants, computer experts, and legal staffers who can work together to develop a deeper understand of client issues, and helps them provide innovative solutions. This team approach to problem solving is an example of ____ at work.

synergy

When one firm buys another because it is thought that the two firms will complement each other in such a way that the output of the combined firms will be greater than the sum of the current individual outputs of the two companies, the managers are counting on ____.

synergy

Which of the following can help managers integrate and enlarge their understanding of the three principal schools of management thought?

systems theory and contingency theory

A manager who subscribes to Theory X believes ____.

that people prefer to be directed

Zereth recently made a lateral move in the company, and now oversees a new department. She was mentioned to a friend that the management style she used in her former department is falling flat with her new staff. They do not seem to respond to the same sorts of incentives, and she is looking for new ways to motivate and encourage them. Zereth's experience is consistent with what view of management?

the contingency perspective

Paramita believes that people naturally do not like work, and as a manager, she must control, direct, coerce, and even threaten her employees to get them to work towards the organization's goals. Paramita's management style is informed by what view within the behavioral management perspective?

theory X

Contemporary Management Challenges

•An unpredictable economy, limiting growth •Many challenges presented by globalization •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

Theory Y Assumptions

•People do not naturally dislike work; work is a natural part of their lives. • •People are internally motivated to reach objectives to which they are committed. • •People are committed to goals to the degree that they receive personal rewards when they reach their objectives.•People will both seek and accept responsibility under favorable conditions. •People have the capacity to be innovative in solving organizational problems. • •People are bright, but under most organizational conditions their potential is underutilized.

Major publications have had a major impact on the field of organizational behavior and the practice of management 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 •Impact of Dilbert cartoons