Chapter Two

Knowledge of the history of management is helpful and important to mangers because...

Knowledge of the history of management is helpful and important to mangers because...

Subsytems

Systems with a broader system. Ex: Marketing and finance divisions are subsystems

Contingency Perspective

Suggests that appropriate managerial behavior in a given situation depends on, or is contingent on, a wide variety of elements. Universal theories cannot be applied because each organization is unique

Challenges facing managers today

-An unpredictable economy that limits growth --Ex: Making business decisions based on experts' best guesses about whether a pandemic will affect a certain market -Management of diversity --Ex: Giving employees more flexibility with when to take paid holidays, based on their religion -Employee privacy -Social unrest -Globalization -Ethics and social responsibility and their relationship to corporate governance -Quality -Service economy -Role of social media

If you decide to give a presentation on quality, which topics might you include?

-The competitive advantage offered by quality products and services -The tendency for quality improvements to lower costs -The positive relationship between quality and productivity

Entropy

A normal process leading to system decline. Happens when an organization does not monitor feedback from its environment Goal: Avoid entropy by consistently re-energizing organization

Hawthorne Studies

A series of studies during the 1920s and 1930s that provided new insights into individual and group behavior. Followed how productivity changes based on working conditions. Also tested piecework pay and found that most workers stayed at acceptable level of output in order to not be outcast by other members

What focuses on the management of the entire firm rather than focusing on individual jobs of the workers?

Administrative management

How can managers use knowledge of theory and history in contemporary organizations?

As the basis for new, personal theories

Theory X

Assumes that workers are basically lazy, error-prone, and extrinsically motivated by money and, thus, should be directed from above. -People are naturally lazy.

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

Assumptions may not be realistic.

What management strategy/theory is at play? You design a new sweater folding pad that cuts sweater folding time in half and train all your employees how to use it. This gives them more time to help customers, which leads to better sales.

Classical Management Theory

Organizational Behavior

Contemporary field focusing on behavioral perspectives of management Acknowledges that human behavior in organizations is much more complex than human relations theorists realized. Holistic view.

What management strategy/theory is at play? You notice that Roberto and Rachel make more sales when they offer suggestions to customers, while Rebecca and Rafael make more sales when they allow the customers to browse on their own. As a result, you encourage Roberto and Rachel to offer suggestions, and you encourage Rebecca and Rafael to let customers browse.

Contingency Theory

Zereth recently made a lateral move in the company and now oversees a new department. She 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 which view of management?

Contingency perspective

Before the twentieth century, there was no significant practice of management.

False. People just didn't study it until the 20th century

Administrative Management

Focuses on managing the total organization Henri Foyal focused on planning, organizing, leading, and controlling -Identifying the essential functions of managers -Identifying the importance of how an organization is structured

Management Science

Focuses specifically on development of mathematical models, or simplified representations of systems, processes, and relationships Focuses on models, equations, and similar representations of reality

The Systems Perspective

Four basic elements: inputs, transformation processes, outputs, and feedback

What management strategy/theory is at play? Employees do a better job of selling when they are happy at work. You make sure that you check in with employees frequently, addressing any of their concerns as soon as they arise.

Humanistic Management Theory

Scientific management

Improving the performance of individual workers Frederick Taylor observed soldiering -- employees deliberately working at a slow pace

What management strategy/theory is at play? You carefully analyze the sales figures of each employee and compare the employee's salary with the amount of merchandise sold. You find that Rachel and Rebecca sell 80% of your merchandise, but Rafael is being paid almost twice the amount they receive. You decide to fire Rafael.

Management Science

Which of the following is a downside of the widespread use of the quantitative management perspective?

Managers may perceive numbers as objective facts, but the results of quantitative analysis are only as good as the underlying assumptions.

Organizations are _________ systems.

Open

Behavioral Management Perspective

emphasizes individual attitudes and behaviors and group processes. Stimulated by industrial psychology

Purpose of management theories

Used to build organizations and guide them towards their goals

Steps/System of Scientific Management

1. Develop a science for each element of job to replace old methods 2. Scientifically select employees and then train them for the job 3. Supervise employees 4. Continue to plan the work while workers get the work done

If a manager measures which location has the most traffic and includes that information in a model to predict store profits by location, which management perspective is she using?

Quantitative

Toyota likes to study each task that employees and machines do to promote maximum productivity.

Scientific management

Classical perspective consists of what two branches?

Scientific management and administrative management

Logan Chemicals has a long history of dumping waste in a local stream. Recently, it 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

Whenever Jena's Juice introduces a new flavor, the company donates five cents for each unit sold to fund breast cancer research. Jena's Juice is responding to what contemporary management challenge?

Social responsibility

What was the final conclusion of the Hawthorne studies?

The human element is very important in the workplace

Universal perspective

Tries to identify one "best-way" to manage an organization

Synergy

Two or more subsystems working together to produce more than the total of what they might produce working alone Example is Disney - movies, themeparks, merchandise

Operations Management

Operations management is concerned with helping the organization more efficiently produce its products or services. Less mathematical and statistically sophisticated than management science and can be applied more directly to managerial situations. Inventory, linear programming, queuing theory, break-even analysis, and simulation Operations management uses mathematics to produce goods and services more efficiently.

Theory Y

The assumption that employees like work, are creative, seek responsibility, and can exercise self-direction. the idea that people in an organization will be productive if they work under favorable conditions and are rewarded for reaching objectives? -People are often underutilized at work. -People seek responsibility when conditions are favorable.

Anke assumed that, like her, all of her students would want to earn the highest grades possible and that would motivate them to do their best work. She was surprised to discover that many students were happy to just "get by" with an average grade. However, when Anke demonstrated how extra effort on certain coursework could translate into experience that could lead to a better job after graduation, a number of "average" students began to work harder. Anke's experience is consistent with which view of management?

The contingency perspective

Classical Management Perspective

The ideas that emerged in the early twentieth century to help improve the performance of individual workers and whole organizations Classical management largely viewed people as machines providing necessary labor. Thus, classical management principles are associated with efficiency, job specialization, bureaucracies, manufacturing jobs, and organizations functioning in highly stable environments.

Hua believes that people view work as a natural part of their lives. As a manager, he feels that he can get the best out of his staff by creating an environment in which they will seek and accept responsibility and where they will receive personal rewards when they reach certain goals. Hua's management style is informed by which view within the behavioral management perspective?

Theory Y

Quantitative Perspective

Uses mathematics, statistical techniques, and computer technology to facilitate management decision making Hosts management science and operations management

Research findings that led to the rise of the human relations movement?

Workers become more productive if they receive special attention and sympathetic supervision from managers. Workers create group norms that dictate acceptable workplace behavior, including acceptable levels of productivity.

What was the theme of the Human relations movement?

Workers respond primarily to the social context of the workplace. The human relations movement, which grew from the Hawthorne studies, proposed that workers respond primarily to the social context of the workplace, including social conditioning, group norms, and interpersonal dynamics.

The Human Relations Movement

Workers respond primarily to the social context of the workplace. Humans have a hierarchy of needs, including monetary incentives and social acceptance

Your friend who is a human resources manager suggests that you give a presentation on changing employment practices. Some organizations examine job applicants' social media accounts before hiring them, and many have a policy that management can access all communications that flow across the organization's technology infrastructure. As a result, employees are increasingly concerned about

Workplace privacy