Chapter 2 MGT 250
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This 8 page Class Notes was uploaded by Stephanie De Angelis on Friday January 29, 2016. The Class Notes belongs to MGT 250 at Pace University - New York taught by Professor Bhandari in Winter 2016. Since its upload, it has received 45 views. For similar materials see Managerial and Organizational Concepts in Business, management at Pace University - New York.
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Date Created: 01/29/16
Chapter 2 – Management Theory Essential Background for the Successful Manager Vocabulary Administrative Management managing the total organization Behavioral Science scientific research for developing theories about human behavior that can be used to provide practical tools for managers Behavioral Viewpoint the importance of understanding human behavior and of motivating employees toward achievement Classical Viewpoint the ways to manage work more efficiently, and has two branches; scientific and administrative Closed System has little interaction with its environment Complexity Theory the study of how order and pattern arise from very complicated, apparently chaotic system Contemporary Perspective the business approach that includes the systems, contingency and qualitymanagement viewpoints Contingency Viewpoint emphasizes that a manager’s approach should vary according to the individual and the environmental situation Evidencebased Management translating principals based on best evidence into organizational practice, bringing rationality to the decisionmaking process Feedback information about the reaction of the environment to the outputs that affects the inputs Historical Perspective the view of management that includes the classical, behavioral, and quantitative viewpoints Human Relations Movement better human relations could increase worker productivity Inputs the people, money, information, equipment, and materials required to produce an organization’s goods or services Learning Organization an organization that actively creates, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge Management Science using mathematics to aid in problem solving and decision making Open System continually interacts with its environment Operations Management managing the production and delivery of an organization’s products or services more effectively Outputs products, services, profits, losses, employee satisfaction or discontent, and the like that are produced by the organization Quality total ability of a product or service to meet customer needs Quality Assurance focuses on the performance of workers, urging employees to strive for “zero defects” Quality Control the strategy for minimizing errors by managing each stage of production Qualitymanagement Viewpoint includes quality control, quality assurance, and total quality management and has a bug impact on contemporary management perspectives Quantitative Management the application to management of quantitative techniques, such as statistics and computer simulations; including management science and operations management Scientific Management the scientific study of work methods to improve the productivity of individual workers Subsystems parts making up the whole system Chapter 2 – Management Theory Essential Background for the Successful Manager System a set of interrelated parts that operate together to achieve a common purpose Systems Viewpoint the organization as a system of interrelated parts Total Quality Management a comprehensive approachled by top management and supported throughout the organizationdedicated to continuous quality improvement, training, and customer satisfaction Transformation Process the organization’s capabilities in management, internal processes, and technology that are applied to converting inputs into outputs Chapter 2 – Management Theory Essential Background for the Successful Manager 2.1 Evolving Viewpoints: How We Got to Today’s Management Outlook Creating Modern Management: The Handbook of Peter Drucker o Peter Drucker was the creator and inventor of modern management Six Practical Reasons For Studying This Chapter o Understanding of the present o Guide to action o Source of new ideas o Clues to meaning of outside events o Producing positive results Two Overarching Perspectives about Management: Historical & Contemporary o Historical (19111950s) o Classical viewpoint (19111947) Scientific management (Frederick W. Taylor and Frank and Lillian Gilbreth) Administrative management (Henri Fayol) o Behavioral viewpoint (19131950s) Early behaviorists (Hugo Musterberg, Mary Parker Follett and Elton Mayo) Human relations movement (Abraham Maslow and Douglas McGregor Behavioral science approach o Quantitative viewpoint (1940s1950s) Management science Operations management o Contemporary (1960spresent) o The systems viewpoint o The contingency viewpoint o The qualitymanagement viewpoint Quality control (Walter Shewart) Quality assurance Total quality management (W. Edwards Deming and Joseph M. Juran) 2.2 Classical Viewpoint: Scientific & Administrative o Therblig is used to describe some physical motions performed from time to time. It was created by Frank Gilbreth. It refers to 1 of 17 basic motions. Scientific Management: Pioneered by Taylor & the Gilbreths Chapter 2 – Management Theory Essential Background for the Successful Manager th o In the early 20 century, labor was in a short supply and managers were trying to raise the productivity of workers. This is where scientific management evolved thanks to Frederic W. Taylor and Frank and Lillian Gilbreth Frederick Taylor & the Four Principles of Scientific Management o 4 Principles Evaluate a task by scientifically studying each part of the task Carefully select workers with the right abilities for the task Give workers the training and incentives to do the task with the proper work methods Use scientific principles to plan the work methods and ease the way for workers to do their job o Taylor based this system on motion studies; meaning he broke down each worker’s job into basic physical motions and then trained them to perform the best they could based on that Frank & Lillian Gilbreth & Industrial Engineering o Some of their 12 children used their ideas to improve efficiency such as printing o She was the first woman to be a major contributor to management science and had a PhD in psychology Administrative Management: Pioneered by Fayol & Weber Henri Fayol & the Functions of Management o First to systematize management behavior o He was the first to identify the major functions of management; planning, organizing, leading, and controlling as well as coordinating Max Weber & the Rationality of Bureaucracy o Called a bureaucracy a rational, efficient, ideal organization base on principles of logic o Five positive bureaucratic features: A welldefined hierarchy of authority Formal rules and procedures A clear division of labor, with parts of a complex job being handled by specialists Impersonality, without reference or connection to a particular person Careers based on merit The Problem with the Classical Viewpoint: Too Mechanistic o Classical viewpoints tend to view humans as cogs within a machine, not as actual humans with needs o It is important because work activity was open to a rational approach 2.3 Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science o Behavioral viewpoint was developed over three phases Chapter 2 – Management Theory Essential Background for the Successful Manager o Early behaviorism o The human relations movement o Behavioral science Early Behaviorism: Pioneered by Munsterberg, Follett, & Mayo Hugo Munterberg & the First Application of Psychology to Industry o Psychologists could contribute to industry by Studying jobs and determining which people are best suited to specific jobs Identifying the psychological conditions under which employees do their best to work Devise management strategies to influence employees to follow management’s interests o His ideas led to industrial psychology, which is the study of human behavior in workplaces Mary Parker Follett & Power Sharing among Employees & Managers o Social worker and social philosopher o Thought organizations should become more democratic with managers and employees working cooperatively o Most important ideas: Organizations should be operated as communities, with managers and subordinates working together in harmony Conflicts should be resolved by having managers and workers talk over differences and find solutions that would satisfy both parties – a process she called integration The work process should be under control of workers with the relevant knowledge, rather than of managers, who should act as facilitators o With her ideas as wells as others, she helped anticipate selfmanaged teams, work empowerment, and interdepartmental teams Elton Mayo & the Supposed “Hawthorne Effect” o Invested whether workplace lighting level affected the worker productivity o Other variables were altered too like wages, rest periods, and workday hours o Worker performance varied but increased over time, which became known as the Hawthorne effect o Studies were poorly designed and didn’t have enough evidence to support the conclusions but led to the importance of how managers should use human relations to increase performance by workers The Human Relations Movement: Pioneered by Maslow & McGregor Abraham Maslow & the Hierarchy of Needs o Created the hierarchy of human needs: physiological, safety, love, esteem, and selfactualization Chapter 2 – Management Theory Essential Background for the Successful Manager Douglas McGregor & Theory X versus Theory Y o Theory X Pessimistic Workers considered irresponsible Workers resistant to change Workers lack ambition Workers hate to work o Theory Y Optimistic Workers are considered capable of accepting responsibility Workers have selfdirections Workers have selfcontrol Workers are imaginative and creative o Both help mangers understand how their beliefs affect their behavior 2.4 Quantitative Viewpoints: Management Science & Operations Management Management Science: Using Mathematics to Solve Management Problems o Management science can be called operations research o It stressed the use of rational, sciencebased techniques and mathematical models to improve decision making and strategic planning Operations Management: Being More Effective o Concerned with work scheduling, production planning, facilities location and design, and optimum inventory levels o It is important because it helps ensure that business operations are efficient and effective through the resources and distribution of goods and services 2.5 Systems Viewpoint The Systems Viewpoint o Even if a system doesn’t work well, it is still a system o By using the systems viewpoint, you can look at an organization as o A collection of subsystems o A part of the larger environment The Four Parts of a System o Inputs o Ie: for a jewelry designer; the design, money, artistic talent, gold and silver, tools, and marketing expertise o Transformational processes o Ie: designer’s management skills (planning, organizing, leading, and controlling), gold and silver smiting tools and expertise, website for marketing o Outputs Chapter 2 – Management Theory Essential Background for the Successful Manager o Ie: gold and silver rings, earrings, bracelets, etc o Feedback o Ie: web customers like Africanstyle designs, dislike imitation Old English designs Open & Closed System o Nearly all organization are open systems rather than closed o Closed systems get little feedback from the outside o Classical management is often considered a closed system Complexity Theory: The Ultimate Open System o Complexity theory recognized that all complex systems are networks of many interdependent parts that interact with each other according to certain simple rules 2.6 Contingency Viewpoint Gary Hamel: Management Ideas Are Not Fixed, They’re a Process o Believes management theory is dated and doesn’t fit the current realities of organizational life o Believes that identifying the core beliefs that people have about the organization, especially those that detract from the pursuit of management innovation by asking the right questions o Is this a belief worth challenging? o Is this belief universally valid? o How does this belief serve the interest of its adherents? o Have our choices and assumptions conspired to make this belief self fulfilling? EvidenceBased Management: Facing Hard Facts, Rejecting Nonsense o Jeffrey Pfeffer and Robert Sutton said evidencebased management is based o the belief that facing the hard facts about what works and what doesn’t, understand that dangerous halftruths 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” 2.7 QualityManagement Viewpoint Quality Control & Quality Assurance o Quality is seen as one of the most important ways of adding value to products and services, distinguishing them from competitors Quality Control o Walter Shewart Quality Assurance o Been less successful because employees often have no control over the design of the work process Chapter 2 – Management Theory Essential Background for the Successful Manager Total Quality Management: Creating an Organization Dedicated to Continuous Improvement W. Edwards Deming o Lectured on good management o Quality stemmed from constancy of purpose o Mangers should stress teamwork Joseph M. Juran o Defined quality as fitness for use o The best way to focus a company’s efforts was to concentrate on the real needs of customers TQM: What It Is o The four components Make continuous improvement a priority Get every employee involved Listen to and learn from customers and employees Use accurate standards to identify and eliminate problems 2.8 The Learning Organization in an Era of Accelerated Change The Learning Organization: Handling Knowledge & Modifying Behavior o The tree parts of a learning organization o Creating and acquiring knowledge o Transferring knowledge o Modifying behavior How to Build a Learning Organization: Three Roles Mangers Play o To create a learning organization managers must o Build a commitment to learning o Work to generate ideas with impact o Work to generalize ideas with impact
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