Evolving Viewpoints: How we got to today's Management Outlook

Six Sigma

a rigorous statistical analysis process that measures and reduces defects in and improves manufacturing and service-related processes to have no more than 3.4 defects per million products or procedures. relies on two processes. the first is DMAIC, or the series of steps called Define, Measure, Analyze, Improve, and Control, which is intended to improve existing processes the second is DFSS (design for six sigma), which managers can employ to create new products or processes. one successful adapter of lean six sigma is the Akron-Canton Regional foodbank in ohio, where donated food is now sorted, inspected, packed, and delivered to those in need within 39 days instead of the 92 days it used to take.

Learning Organization:

an organization that actively creates, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge three parts: 1. creating and acquiring knowledge. 2. Transferring knowledge 3. Modifying behavior TO CREATE a learning organization, managers must perform three key functions or roles: 1. build a commitment to learning 2. Work to generate ideas with impact 3. work to generalize ideas with impact.

Scientific management:

applied the scientific study of work methods to improving the productivity of individual workers. concerned with the jobs of individuals.

Historical Perspective (1911-1950s)

includes three viewpoints-classical, behavioral, and quantitative. Classical (1911-1947): emphasis on ways to manage work more efficiently. Behavioral(1913-1950): Emphasis on importance of understanding human behavior and motivating and encouraging toward achievement Quantitative (1940-1950): applies quantitative techniques to management

Richard H. Thaler

is a professor at the university of chicago who has long championed the field of behavioral economics. Recently won the Noble Prize got Economics for his many years of work on the effects of human bias and irrationality. his work built "a bridge between the economic and psychological analyses of individual decision making,".

ISO 9000

is a series of quality control standards set by the international organization for standardization (ISO) to reduce manufacturing flaws and improve productivity. more than 1 million companies in 170 countries around the world have adopted ISO standards.

Quality Control

is defined as the strategy for minimizing errors by managing each stage of production. techniques were developed in the 1930s at bell telephone labs by Walter Shewart.

Synergy:

is the idea that two or more forces combined create an effect that is greater than the sum of their individual effects, as when a guitarist, drummer, and bassist combine to play a better version of a song than any of them would play alone. or a copywriter, are director, and photographer combine to create a magazine ad, each representing various influences from the environment.

Peter Senge

learning organizations, who coined the term, are places "where people continuously expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together.

Evidence-based management:

means translating principles based on best evidence into organizational practice, bringing rationality to the decision-making process Standford business scholars Jeffrey Pfeffer and Robert Sutton, evidence-based management is based on the belief that "facing the hard fact about what works and what doesn't, understanding the dangerous half truths that constitute so much conventional Wisdom about management, and rejecting the total nonsense that too often passes for sound advice will help organizations perform better.

Henri Fayol

not the first to investigate management behavior, but he was the first to systematize it. french engineer and industrialist, became known to american business when his most important work, general and industrial management, was translated into English in 1930. Why he's important: was the first to identify the major functions of management-planning, organizing, leading. and controlling, as well as coordinating.

Early Behaviorism:

pioneered by Hugo Munsterberg, Mary Parker Follet, and Elton Mayo.

Quality

refers to the total ability of a product or service to meet customer needs. seen as one of the most important ways of adding value to products and services, thereby distinguishing them from those of competitors. Two traditional strategies for ensuring quality are quality control and quality assurance.

behavioral Science Approach

relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers. the disciplines of behavioral science include psychology, sociology, anthropology, and economics.

Spaulding

son of a farmer and had 13 siblings. proposed eight "necessities" of management based on his experiences working at his father's fields as a boy and later leading the North Carolina Mutual Life Insurance Company. Recognized as the "father of African American Management" published article in the pittsburgh Courier in 1927. Why he's 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. 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. 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.

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.

Abraham Maslow and the Hierarchy of Needs:

the chairman of the psychology department at Brandeis University and one of the earliest researchers to study motivation, in 1943 Maslow proposed his famous Hierarchy of human needs: physiological, safety, love, esteem, and self-actualization.

Complexity Theory:

the study of how order and pattern arise from very complicated, apparently chaotic systems. it recognizes that all complex systems are networks of many interdependent parts that interact with each other according to certain simple rules. Used in strategic management and organizational studies, the discipline seeks to understand how organizations, considered as relatively simple and partly connected structures, adapt to their environments. why the open systems is important: open systems stress multiple feedback from both inside and outside the organization, resulting in a continuous learning process to try to correct old mistakes and avoid new ones.

The Four parts of a system:

1. Inputs: are the people, money, information, equipment, and materials required to produce an organization's goods or services. Whatever goes into a system is an input. 2. Transformational processes: Are the organization's capabilities in management, internal processes, and technology that are applied to converting inputs into outputs. the main activity of the organization is to transform inputs into outputs. 3. Outputs: are the products, services, profits, losses, employee satisfaction or discontent, and the like that are produced by the organization. whatever comes out of the system is an output. 4. Feedback:is information about the reaction of the environment to the outputs that affects the inputs. Are the customers buying or not buying the product? that information is feedback.

six good reasons for studying theoretical perspectives

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.

Seven things to learn when showing up to a job interview:

1. the company's mission and vision statements. 2. the company's core values and culture. 3. the history of the company.. try to find out how the company evolved, grew, or changed ove the years. 4. Key organizational players. 5. the company's products, services, and clients. 6. Current events and accomplishments. 7. Comments from current or previous employers. glassdoor to find inside information such as salary ranges and company reviews.

Mary Parker Follet

A massachusetts social worker and social philosopher lauded on her death in 1933 as "one of the most important women america has yet produced in the fields of civics and sociology." thought organizations should become more democratic, with managers and employees working cooperatively. the following ideas were among her most important: 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 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. Why She's important: anticipated some of today's concepts of self-managed teams," "worker empowerment," and "interdepartmental teams"-that is, members of different department working together on joint projects.

Joseph M. Juran

A pioneer in teaching the Japanese how to improve quality, Juran believed strongly in top-management commitment, support, and involvement in the quality effort. He was also a believer in teams that continually seek to raise quality standards. Juran varies from Deming somewhat in focusing on the customer and defining quality as "fitness for use," not necessarily the written specifications. "fitness by use" By this he meant that a product or service should satisfy a customer's real needs. suggested the best way to focus a company's efforts, was to concentrate on the real needs of customers.

Hugo Munsterberg

Called "the father of industrial psychology," German born, PhD in psychology and a medical degree and joined the faculty at Harvard University in 1892. suggested the psychologists could contribute to industry in three ways. They could: 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. why He's Important: his ideas led to the field of industrial psychology, the study of human behavior in workplaces, which is still taught in colleges today.

Contingency Viewpoint:

Emphasizes that a manager's approach should vary according to- that is, be contingent on- the individual and the environmental situation. Advanced by Taylor, Spaulding, and Fayol assumed that their approaches had universal applications-that they were "the one best way" to manage organizations. began to develop when managers discovered that under some circumstances better results could be achieved by breaking the one-best-way rule. Gary Hamel

Management Science

Focuses on using mathematics to aid in problem solving and decision making. Sometimes called operations research. Why it's important: Management science stresses the use of rational, science-based techniques and mathematical models to improve decision making and strategic planning. Management science is a forerunner to analytics and big Data.

Max Weber

German A better-performing organization, he felt, should have five positive bureaucratic features: 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, w/o reference of connection to a particular person. 5. Careers based on merit. Why he's important: work was not translated into English until 1947, but it came to have an important influence on the structure of large corporations, such as the coca-cola company.

Elton Mayo

Hawthorne Studies began with an investigation into whether workplace lighting level affected worker productivity. Hawthorne effect: namely, that employees worked harder if they received added attention, if they thought that managers cared about their welfare and that supervisors paid special attention to them. Why they're 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. thus led to the so called human relations movement in the 1950s and 1960s.

Bureaucracy:

Impersonality, inflexibility, red tape, a molasses-like response to problems. But to German sociologist Max Weber, a Bureaucracy was a rational, efficient, ideal organization based on principles of logic.

Contemporary Perspective (1960s-Present)

Includes three viewpoints: systems , contingency, and quality-management. Systems: regards the organization as systems of interrelated parts that operate together to achieve a common purpose. Contingency: emphasizes that a manager's approach should vary according to-i.e., be contingent on-the individual and environmental situation. quality management: three approaches

Federick Taylor

Known as "the father of scientific management." engineer from Philadelphia who believed managers could improve workers' productivity by applying four principles of science: 1. Evaluatea task by scientifically studying each part of it. (not by using old rule of thumb methods). Leads to 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. based his system on motion studies. Differential rate system: in which more efficient workers earned higher rates of pay.

Therblig

Made up word coined by Frank Gilbreth. refers to 1 of 17 basic motions workers can perform. The gilbreths were industrial engineers and pioneers in one of the classical approaches to management. part of the historical perspective.

Systems Viewpoint:

Regards the organization as a system of interrelated parts. can look at your organization both as 1. a collection of subsystems- parts making up the whole system 2. a part of the larger environment. A System is a set of interrelated parts that operate together to achieve a common purpose. Even though a system may not work very well-as in the inefficient way the Italian gov.t collects taxes, it is nevertheless still a system.

W. Edwards Deming

The most influential individual within the specialty of quality; After World War II, he went to Japan to help rebuild their economy, and he was heralded for his influence. He went on to lecture in the United States in the 1980s; he developed his 14 Points for the Transformation of Management. believed that quality stemmed from "constancy of purpose"- Steady focus on an organization's mission-along with statistical measurement and reduction of variations in production processes. Also thought that managers should stress teamwork, be helpful rather than simply give orders, and make employees feel comfortable about asking questions.

Douglas McGregor

Theory X and Theory Y college president for a time (at Antioch College in Ohio), Douglas came to realize that it was not enough for managers to try to be liked; they also needed to be aware of their attitudes toward employees. 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. Theory Y: represents a human relations outlook- an optimistic, positive view of workers as capable of accepting responsibility, having self-direction and self-control, and being imaginative and creative. why they're important: it helps managers understand how their beliefs affect their behavior.

Walter Shewart:

Used statistical sampling to locate errors by testing just some (rather than all) of the items in a particular production run (quality control) Developed PDCA (plan, do, check, act)

Closed System

has little interaction with its environment; that is, it receives very little feedback from the outside. the classical management viewpoint often considered an organization a closed system. so does the management science perspective, which simplifies organizations for purposes of analysis. However, any organization that ignores feedback from the environment opens itself up to possibly spectacular failures.

Gary Hamel

co-founder of the management innovation lab and ranked by the wall street journal in 2008 as the most influential business thinker. "over time," he says,"every great invention, management included, travels a road that leads from birth to maturity, and occasionally to senescence." holds that much of management theory is dated and doesnt fit the current realities of organizational life and that management innovation is essential to future organizational success. he suggests, what we need to do is look at management as a process, and then make improvements and innovation ongoing and systematic. After all, if managers now innovate by creating new products or new business strategies, why can't they be equally innovative in how they manage their companies? hamel believes that the answer can be found by identifying core beliefs that people have about the organization, especially those that detract from the pursuit of management innovation. suggests that these beliefs can be rooted out by repeatedly asking the right questions-namely, the following: 1: Is this a belief worth challenging? is it debilitating? does it get in the way of an important organizational attribute that we'd like to strengthen? 2. is this belief universally valid? are there counterexamples? if so, what do we learn from those cases? 3. How does this belief serve the interest of its adherents? Are there people who draw reassurance or comfort from this belief? 4. Have our choices and assumptions conspired to make this belief self-fulfilling? is this belief true simply because we have made it true- and if so can we imagine alternatives? why the contingency viewpoint is important: the contingency viewpoint would seem to be the most practical of the viewpoints discussed so far because it addresses problems on a case by case basis and varies the solution accordingly. Pg.62

Administrative management:

concerned with managing the total organization

Quality Management Viewpoint:

consists of Quality control, quality assurance, and especially the movement of total quality management (TQM), dedicated to continuous quality improvement, training, and customer satisfaction.

Open System:`

continually interacts with its environment. open systems have the potential of producing synergy.

Peter Drucker

creator and inventor of modern management. An Austrian trained in economics and international law, came to U.S in 1937. Worked as a correspondent for British newspapers and later became a college professor. 1954, published "The Practice of Management" he proposed the important idea that management was one of the major social innovations of the 20th century and should be treated as a profession, like medicine or Law. ideas that now underlie the organization and practice of management: 1. workers should be treated as assets. 2. The corporation could be considered a human community. 3.that there is no business w/o a customer. 4. institutionalized management practices are preferable to charismatic cult leaders.

Quality Assurance:

developed in the 1960s, focuses on the performance of workers, urging employees to strive for "zero defects." Quality assurance has been less successful because often employees have no control over the design of the work process.

Classical Viewpoint:

emphasized finding ways to manage work more efficiently, assumed that people are rational. two branches-Scientific and administrative. Flaws: it is mechanistic: it tends to view humans as cogs within a machine, not taking into account the importance of human needs. why its Important: the essence of the classical viewpoint was that work activity was amenable to a rational approach, that through the application of scientific methods, time and motion studies, and job specialization it was possible to boost productivity.

Behavioral Viewpoint:

emphasized the importance of understanding human behavior and of motivating employees toward achievement: Developed three phases: 1.Early behaviorism 2.Human relations movement 3. Behavioral science approach: relied on scientific research for developing theories about behavior useful to managers.

Scientific management

emphasized the scientific study of work methods to improve the productivity of individual workers

Operations Management:

focuses on managing the production and delivery of an organization's products or services more effectively. in the day to day running of the company, it consists of all the job functions and activities in which managers schedule and delegate work and job training, plan production to meet customer needs, design services customers want and how to deliver them, locate and design company facilities, and choose optimal levels of product inventory to keep costs down and reduce backorders. It governs managers' decisions about how to increase productivity and efficiency, as well as how to achieve the highest possible quality of both goods and services. Another major function of operations management is managing the supply chain, which is the process of creating the product, starting with designing and obtaining raw material for physical goods or technology for services and going all the way through delivery to customers' hands, and sometimes even beyond to responsible disposal or recycling. Why it's important: through the rational management of resources and distribution of goods and services, operations management helps ensure that business operations are efficient and effective.

Systems Viewpoint

three contemporary management perspectives are: 1. the systems 2.the contingency 3. the quality-management viewpoints. the systems viewpoint sees organizations as a system, either open or closed, with inputs, outputs, transformation processes, and feedback. has led to the development of complexity theory, the study of how order and pattern arise from very complicated, apparently chaotic systems. the contingency viewpoint:emphasizes that a manager's approach should vary according to the individual and environmental situation. it is a forerunner to evidence-based management. the Quality-management viewpoint has two traditional approaches: Quality control, the strategy for minimizing errors by managing each stage of production, and quality assurance, which focuses on the performance of workers, urging employees to strive for zero defects. A third quality approach is the movement of total quality management (TQM), a comprehensive approach dedicated to continuous quality improvement, training, and customer satisfaction.

TQM

total quality management, is comprehensive approach-led by top management and supported throughout the organization-dedicated to continuous quality improvement training and customer satisfaction. the Four components of TQM are as follows: 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. why it's important: the total quality management viewpoint emphasizes infusing concepts of quality throughout the total organization in a way that will deliver quality products and services to customers.

Human relations movement

two theorists who contributed most; which proposed that better human relations could increase worker productivity- were Abraham Maslow and Douglas McGregor.