Week 2 Online Lecture Notes
Week 2 Online Lecture Notes MGT 300
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This 7 page Class Notes was uploaded by Linsey Moen on Tuesday September 13, 2016. The Class Notes belongs to MGT 300 at Arizona State University taught by Dr. David Kim McKinnon in Fall 2016. Since its upload, it has received 5 views.
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Date Created: 09/13/16
I. Week 2 : Lecture 1 - The Value of Management Theory a. *Image shown of Peter Drucker* i. He is an important figure in management and management thought b. The Living Company i. Written by Arie de Geus from the Netherlands ii. Some companies last hundreds of years, but most do not iii. The ‘life expectancy’ for most commercial corporations is about 40 years 1. Commercial operations = for profit business organizations 2. Not very long 3. University, churches, military groups last longer than these organizations iv. High mortality rate; dramatic failures or at best, underachievers c. Management “Fads” i. Are the new, simple, latest, easy or fast way to do management ii. Giving something a new name to make it seem “better” 1. Ex: MBO – management by objective or Accountability Management or Performance Based Management (all the same thing) 2. Ex: Instead of saying “lay off” a company would use: Restructuring, Rightsizing or Reengineering d. Management “Fad” Detectors i. Management Theory 1. A collection of ideas which set forth general rules on how to manage a business or organization. 2. A theory that predicts or explains good management 3. If you have a great knowledge of management theory you’re able to avoid doing or using a fad just because it’s popular ii. Evidence-based Management 1. Translating principles based on best evidence into organizational practice, bringing rationality to the decision-making process. iii. Theory 1. An idea that predicts or explains e. Examples of Drucker’s Management Principles i. Workers should be treated as assets ii. The corporation could be considered a human community iii. There is ‘no business without a customer’ iv. Institutionalized management practices are preferable to charismatic leaders f. “Management” Defined i. “The pursuit of organizational goals efficiently and effectively by integrating the work of people through planning, organizing, leading, and controlling the organization’s resources.” g. Five Practical Reasons for Learning about Management Theory i. Understanding of the present 1. In order to do so, one must understand the past and the foundations the present is set on ii. Guide to Action 1. It can help us make good decisions because we understand the principles underneath iii. Source of New Ideas 1. Important to test the ideas so you use the “good ones” iv. Clues to meaning of your managers’ decisions 1. v. Clues to meaning of outside events 1. Things going on in the world around us 2. Can be in similar industries or anything in the business industry II. Week 2: Lecture 2 – The Historical Perspective a. Which viewpoint emphasized the scientific study of work methods to improve the productivity of individual workers? i. Scientific management b. Classical Viewpoint i. Scientific Management: emphasized the scientific study of work methods to improve the productivity of individual workers ii. Administrative Management: concerned with managing the total organization c. Scientific Management: Pioneered by Frederick Taylor and the Gilbreths i. Fredrick Taylor 1. Main Contributions: a. Soldiering (AKA, loafing, underachieving) i. Not really working, wasting time at work ii. His solution was the principles of Scientific Management 2. Principles of Scientific Management a. Scientifically study each part of the task b. Carefully select workers with the right abilities c. Give workers the training and incentives to do the task d. Use scientific principles to plan the work methods ii. The Gilbreths 1. Main Contributions: a. Coined the term: Therblig - system for analyzing the motions in performing a task b. Early motion study technique (bricklaying example) first relied on a visual study of the work, laid out in detailed pictures and notes c. Later used photography and motion picture filming to record the entire sequence of a work activity. They are best known for the use of motion picture to study hand and body motions d. The main focus was to dismiss the unnecessary tasks and have workers focus on the necessary ones. i. Which reduced wasted effort and gave us efficiency 1. This is the goal of scientific management d. Administrative Management: Pioneered by Fayol & Weber i. Administrative management 1. concerned with managing the total organization ii. Henri Fayol - French engineer and industrialist 1. Main Contribution: a. Identification of 5 functions of management - (planning, organizing, coordinating, commanding, & controlling…coordinating later dropped and commanding changed to leading). iii. Max Weber - German Sociologist 1. Main Contribution: a. Coined the term “Bureaucracy” 2. Some of Weber’s Ideas: a. Well-defined hierarchy of authority b. Formal rules and procedures i. Not general ways that we do things c. Clear division of labor (job descriptions, etc.) d. Impersonality, without connections to a particular person i. Shouldn’t be based on “who you know” e. Careers based on merit i. Not on relationships or friendships e. The Problem with the Classical Viewpoint i. Mechanistic 1. Too rigid, inflexible ii. Tends to view humans as cogs within a machine, not taking into account the importance of human needs 1. And the fact that people are different f. Why is the Classical Viewpoint Important? i. Work activity was amenable to a rational approach ii. Through the application of scientific methods, time and motion studies, and job specialization it was possible to boost productivity 1. Measured to show that it could be done g. Which viewpoint emphasized the importance of understanding human behavior and of motivating employees toward achievement? i. Behavioral h. Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science i. Behavioral viewpoint 1. emphasized the importance of understanding human behavior and of motivating employees toward achievement ii. Developed over three phases 1. Early behaviorism 2. The human relations movement 3. Behavioral science i. Early Behaviorism: Pioneered by Munsterberg, Follett, & Mayo i. Hugo Munsterberg - father of industrial psychology 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 ii. Mary Parker Follett - social worker and social philosopher 1. Organizations should be operated as “communities” a. Groups of people with a common cause 2. Conflicts should be resolved by having managers and workers talk over differences and find solutions that would satisfy both parties 3. The work process should be under control of workers with relevant knowledge a. Because the workers did the work and had more relevant knowledge than management iii. Elton Mayo – Harvard Researcher 1. Conducted in 1920s - 1930s at the Hawthorne plant of the Western Electric Company 2. Main Contribution was the Hawthorne effect: a. employees worked harder if they received added attention, thought that managers cared about their welfare and that supervisors paid special attention to them b. Although later shown to be faulty, the findings gave rise to the Human Relations Movement j. The Human Relations Movement: Pioneered by Maslow & McGregor i. Human relations movement 1. proposed that better human relations could increase worker productivity ii. Maslow’s Hierarchy of Needs 1. Self-actualization (Top) – become the best us possible 2. Esteem – feeling of confidence about who we are 3. Social – relationships with others , a sense of belonging 4. Safety – being able to feel safe and protected, free from danger 5. Physiological (Bottom) – food and water 6. Order is important. We move up the hierarchy as we achieve each level. Satisfy our most basic needs first iii. Douglas McGregor 1. Theory X versus Theory Y a. Two Different assumptions about people. These are types of managers b. Theory X i. represents a pessimistic, negative view of workers ii. workers are irresponsible, resistant to change, lack ambition, hate work, and want to be led c. Theory Y i. represents an optimistic, positive view of workers ii. workers are considered capable of accepting responsibility, self-direction, self control and being creative k. Why Theory X/Theory Y Is Important i. Helps managers understand how their beliefs affect their behavior ii. Managers can be more effective by considering how their behavior is shaped by their expectations about human nature l. The Behavioral Science Approach i. Behavioral science 1. relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers 2. Ex: psychology, sociology m. Which viewpoint stresses the use of rational, science-based techniques and mathematical models to improve decision making and strategic planning? i. Management science 1. Management science and scientific management are NOT the same thing n. Quantitative Viewpoint: Management Science & Operations Management i. Quantitative viewpoint - application to management of quantitative techniques, such as statistics and computer simulations 1. Management Science 2. Operations Management o. Management Science: Using Mathematics to Solve Management Problems i. Management science 1. stresses the use of rational, science-based techniques and mathematical models to improve decision making and strategic planning p. Operations Management: Helping Organizations Deliver Products or Services More Effectively i. Operations management 1. focuses on managing the production and delivery of an organization’s products or services more effectively 2. work scheduling, production planning, facilities location and design 3. Companies such as FedEx, DhL etc. benefit from smart operations management III. Week 2: Lecture 3 - The Contemporary Perspective a. Systems Viewpoint i. Definition: 1. Considers the organization as a system of interrelated parts 2. Collection of subsystems 3. Part of the larger environment ii. The Organization takes inputs from the environment, puts them through a transformation process which creates outputs. 1. Outputs are placed back in the environment and if feedback is positive, the process continues iii. Open System or Closed System 1. Open System a. continually interacts with its environment b. Most systems are open 2. Closed System a. has little interaction with its environment b. Entropy and Synergy i. Entropy: The tendency for a system to decay if not receiving inputs from environments. ii. Synergy: The whole organization is greater than the sum of its parts. c. Contingency Viewpoint i. Emphasizes that a manager’s approach should vary according to the individual and the environmental situation ii. Most practical because it addresses problems on a case-by-case basis iii. Typical Response to an Issue: “It depends…” 1. Because answers to problems are taken on a case to case basis iv. Contingency viewpoint is popular with manager that want to different things in different situations d. Quality Management Viewpoint i. “Quality” Defined 1. total ability of a product or service to meet customer needs 2. Quality I defined by the customer ii. Quality Control 1. (Minimizing Errors by Managing each Stage of Production-Began 1930s at Bell Telephone labs). 2. Finding and Correcting Defects a. Inspecting product at the end of the process, figure out what’s wrong 3. Production Process Focus (not design) 4. Suppliers treated as adversaries iii. Quality Assurance 1. (Zero Defects-Began 1960s, example: Honda) a. Build in Quality (not only inspecting it in) i. Not waiting until the end of the process b. Responsibility of all employees i. Employees watch throughout the process c. Suppliers are partners e. Total Quality Management (TQM) i. A comprehensive approach-led by top management and supported throughout the organization-dedicated to continuous quality improvement, training, and customer satisfaction. ii. Major contributors: W. Edwards Deming & Joseph Juran f. TQM Principles i. Make continuous improvement a priority 1. Always getting better ii. Get every employee involved iii. Listen to and learn from customers and employees 1. These are the people closest to the product iv. Use accurate standards to identify and eliminate problems g. The Learning Organization: Handling Knowledge & Modifying Behavior i. “Learning Organization” Defined: 1. An organization that actively creates, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge. a. When the organization makes a mistake, it learns and doesn’t make the mistake again 2. Major contributor: Peter Senge h. How to Build a Learning Organization: Three Roles Managers Play i. Build a commitment to learning ii. Work to generate ideas with impact iii. Work to generalize ideas with impact
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