Chapter 2: Traditional and Contemporary Management Perspectives
Theory
-A conceptual framework for organizing knowledge and providing a blueprint for action -Are used to build organizations and guide them toward their goals
Theory Y
A positive view of workers; it represents the assumptions that human relations advocates make
Harrington Emerson
An advocate for specialized management roles
Hugo Munsterberg
Applied psychology to the industrial setting, founding the field of industrial psychology
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.
Quantitative management perspective
-Applies quantitative techniques to management. -Focuses on decision-making, economic effectiveness, mathematical models, and the use of computers
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 -Includes Maslow's Hierarchy of Needs -Douglas McGregor's Theory X and Theory Y.
Behavioral Management Limitiations
-Behavior is difficult to predict. -Managers are reluctant to adopt concepts. -Research ineffectively communicated to managers
Classical Management Limitations
-Best used in simple, stable organizations. Universal procedures may not be appropriate in some settings. -Employees not viewed as resources.
Quantitative Management Limitations
-Cannot fully explain or predict behavior. -Mathematical sophistication may come at the expense of other important skills. -Models may require unrealistic assumptions.
Organizational behavior
-Contemporary field focusing on behavioral perspectives on management. -Behavior takes a holistic view of behavior and addresses individual, group, and organization processes.
Fredrick Taylor
-Father of scientific management -He devised this four step method to overcome Soldiering
Hawthorne studies
-Found increased productivity in both control and experimental group. -Later attributed to heightened employee morale due to extra attention. -Later studies identified "rate busters" (overproducers) and "chiselers" (underproducers). -Their conclusion was human behavior was much more important in the workplace than previously believed.
Scientific Management People
-Frank and Lillian Gilbreth -Henry Gantt -Harrington Emerson
Behavioral Management Contributions
-Gave insights into interpersonal processes. -Such as motivation and group dynamics. -Focused managerial attention on these processes. -Viewed employees as resources.
Administrative Management people
-Henri Fayol -Lyndall Urwick -Max Weber -Chester Barnard
Classical Management Contributions
-Laid the foundation for management theory. -Identified key processes, functions, and skills. -Made management a valid subject of study.
Importance of Theory and History
-Management theories are grounded in reality. -Understanding the historical context provides a sense of heritage and helps managers avoid mistakes of others.
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.
Theory X assumptions
-People do not like work and try to avoid it -Managers have to control, direct, coerce, and threaten employees to get them to work toward organizational goals -People prefer to be directed, to avoid responsibility, and to want security, they have little ambition.
Theory Y assumptions
-People do not naturally dislike work -People are internally motivated to reach objectives to which they are committed -People are committed to goals when they receive personal rewards for reaching objectives -People will both seek and accept responsibility under favorable conditions -People have the capacity to be innovative in solving problems -People are bright, but their potential is underutilized
System perspective
-Recognition of internal interdependence -Recognition of environmental influences
Early Management Pioneers
-Robert Owen -Charles Babbage
Quantitative Management Contributions
-Sophisticated techniques assist decision-making. -Particularly useful in planning and controlling. -Increased awareness of complex processes.
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.
Major impacts to Contemporary applied perspectives
-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.
Frank and Lillian Gilbreth
-They developed numerous techniques and strategies for eliminating inefficiency. -Completed a motion study
Universal Perspective
-Tries to identify the "one best way" to do something. -Includes the classical, behavioral, and quantitative approaches.
Theory X
A pessimistic and negative view of workers consistent with the views of scientific management.
Steps in Scientific Management
1. Develop a science for each element of the job to replace old rule-of-thumb methods 2. Scientifically employees and then train them to do the job as described 3. Supervise employees to make sure they follow the prescribed methods for performing their jobs 4. Continue to plan the work but use workers to get the work done
Operations management
Concerned with helping the organization more efficiently produce its products or services
Classical management
Consists of two branches - scientific management and administrative management
Soldiering
Deliberately working below their potential
A closed system
Does not interact with its environment.
Behavioral management perspective
Emphasizes individual attitudes and behaviors and group processes.
Henri Fayol
First to identify the four management functions
Administrative management
Focuses on managing the total organization
Scientific management
Focuses on ways to improve the production of individual workers
Management science
Focuses specifically on the development of mathematical models
Lyndall Urwick
Integrated scientific and administrative management
Henry Gantt
Introduced the Gantt chart for scheduling work
Entropy
Is a normal process leading to system decline.
A subsystem
Is a system within another system
A system
Is an interrelated set of elements functioning as a whole.
An open system
Is one that interacts with its environment.
Synergy
Is two or more subsystems working together to produce more than the total of what they might produce working alone.
Integrating Framework of Management Perspectives
Managers should include portions of each perspective relevant to their situation and apply them using systems and contingency approaches.
Max Weber
Studied efficient organizational structure
Mary Parker Follett
Was an early pioneer of industrial psychology
Chester Barnard
Wrote about acceptance of authority.