Contemporary Management Principles
Contemporary Management Principles MGT 320
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This 25 page Class Notes was uploaded by Jordy Will on Tuesday September 22, 2015. The Class Notes belongs to MGT 320 at Colorado State University taught by Kenneth Boulter in Fall. Since its upload, it has received 83 views. For similar materials see /class/210364/mgt-320-colorado-state-university in Business, management at Colorado State University.
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Date Created: 09/22/15
Management tenth edition Stephen P Robbins Mary Coulter Chant Management 1 History Copyright 2010 Pearson Education Inc Publishing as Prentice Hall Learning Outcomes Follow this Learning Outline as you read and study this chapter 21 Historical Background Of Management Explain why studying management history is important Describe some early evidences of management practice Describe two important historical events that are significant to the study of management 22 Classical Approach Describe the important contributions made by Frederick W Taylor and Frank and Lillian Gilbreth Discuss Fayol s and Weber s contributions to management theory Explain how today s managers use scientific management and general administrative theory Copyright 2010 Pearson Education Inc Publishing as Prentice Hall 22 Learning Outcomes 23 Quantitative Approach Explain what the quantitative approach has contributed to the field of management Describe total quality management Discuss how today s managers use the quantitative approach 24 Behavioral approach Dgscribe the contributions of the early advocates of B Explain the contributions of the Hawthorne Studies to the field of management Discuss how today s managers use the behavioral approach Copyright 2010 Pearson Education Inc Publishing as Prentice Hall Learning Outcomes 25 Contemporary Approach Describe an organization using the systems approach Discuss how the systems approach helps us understand management Explain how the contingency approach is appropriate for studying management Copyright 2010 Pearson Education Inc Publishing as Prentice Hall Historical Background of Management Ancient Management gt Egypt pyramids and China Great Wall gt Venetians floating warship assembly lines Adam Smith gt Published The Wealth of Nations in 1776 z Advocated the division of labor job specialization to increase the productivity of workers Industrial Revolution gt Substituted machine power for human labor gt Created large organizations in need of management Copyright 2010 Pearson Education Inc Publishing as Prentice Hall 25 Exhibit 2 1 Major Approaches to Management Classical l Quantitative Behavioral l Contemporary Approaches r Approach Approach 39 Approaches Ear ly Examples Scientific Early of Managemenl Management Amalgam Adam Smith 7 Contingency Approach G Administrative Copyright 2010 Pearson Education Inc Publishing as Prentice Hall Major Approaches to Management Classical Quantitative Behavioral Contemporary Copyright 2010 Pearson Education Inc Publishing as Prentice Hall Scientific Management Fredrick Winslow Taylor gt The father of scientific management gt Published Principles of Scienti c Management 1911 The theory of scientific management Using scienti c methods to define the one best way for a job to be done Putting the right person on the job with the correct tools and equipment Having a standardized method of doing thejob Providing an economic incentive to the worker Copyright 2010 Pearson Education Inc Publishing as Prentice Hall Exhibit 2 2 Taylor s Scientific Management Principles Develop a science for each element of an individual s work which will replace the old ruleof thumb method Scienti cally select and then train teach and develop the worker Heartin cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed Divide work and responsibility almost equally between management and workers Management takes over all work for which it is better fitted than the workers Copyright 2010 Pearson Education Inc Publishing as Prentice Hall General Administrative Theory Henri Fayol gt Believed that the practice of management was distinct from other organizational functions gt Developed principles of management that applied to all organizational situations Max Weber gt Developed a theory of authority based on an ideal type of organization bureaucracy 4o Emphasized rationality predictability impersonality technical competence and authoritarianism Copyright 2010 Pearson Education Inc Publishing as Prentice Hall Scientific Management cont d Frank and Lillian Gilbreth gt Focused on increasing worker productivity through the reduction of wasted motion gt Developed the microchronometer to time worker motions and optimize work performance How Do Today s Managers Use Scientific Management gt Use time and motion studies to increase productivity gt Hire the best qualified employees gt Design incentive systems based on output Copyright 2010 Pearson Education Inc Publishing as Prentice Hall Exhibit 2 3 Fayol s 14 Principles of Management 1 Division of work 7 Remuneration 2 Authority 8 Centralization 3 Discipline 9 Scalar chain 4 Unity of command 10 Order 5 Unity of direction 11 Equity 6 Subordination of 12 Stability of tenure individual interests of personnel t the genera 13 initiative interest 14 Esprit de corps Copyright 2010 Pearson Education Inc Publishing as Prentice Hall Exhibit 2 4 Weber s Bureaucracy Jobs broken down into simple routine and walldc nad tasks Managers are career professionals no Positions organized in a hierarchy with a a Bar chain ol camman of units gorse Orientation A bureaucracy should have Impersonale Sgggn Form ulea and Regulations Uniform application of rules and controls not according to personalities People saluted for and on technical qualifications System of written as and standard operating procedures Copyright 2010 Pearson Education Inc Publishing as Prentice Hall Quantitative Approach to Management Quantitative Approach gt Also called operations research or management science gt Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems gt Focuses on improving managerial decision making by applying z Statistics optimization models information models and computer simulations Copyright 2010 Pearson Education Inc Publishing as Prentice Hall Exhibit 2 5 What Is Quality Management Intense focus on the customer Concern for continual improvement Processfocused Improvement in the quality of everything Accurate measurement Empowerment of employees Copyright 2010 Pearson Education Inc Publishing as Prentice Hall 245 Understanding Organizational Behavior Organizational Behavior OB gt The study of the actions of people at work people are the most important asset of an organization Early OB Advocates Iquot J 7 A s gt Robert Owen a gt Hugo Munsterberg gt Mary Parker Follett gt Chester Barnard Copyright 2010 Pearson Education Inc Publishing as Prentice Hall 246 Early Advocates of CB I Concerned about deplorable working conditions r I Actual manager who thought Eig gsd ga g gz gggmlacg organizations were social improving labor was smart systems that required inwm gm cooperation t I Believed manager s job was to 39i 39 communicate and stimulate Itquot employees high levels of effort I First to argue that organizations Robert Owen were open systems J L313 17009 t Exhibit 2 6 Chester Barnard 19305 Marv Parker Foiiett Early 99005 1 i39 l A v One of the rst to recognize that organizations could be viewed from perspective of individual and group behavior Proposed more peopleoriented ideas than scientific manage ment followers Thought organizations should be based on group ethic Copyright 2010 Pearson Education Inc Publishing as Prentice Hall employee motivation I Pioneer infield ofindustrial chology soienti c study of people at work I Suggested using psychological tests for employee selection learning theory concepts for employee training and study of human behavior for 2 1 7 The Hawthorne Studies A series of productivity experiments conducted at Western Electric from 1924 to 1932 Experimental findings gtProductivity unexpectedly increased under imposed adverse working conditions gtThe effect of incentive plans was less than expected Research conclusion gtSocial norms group standards and attitudes more strongly influence individual output and work behavior than do monetary incentives Copyright 2010 Pearson Education Inc Publishing as Prentice Hall The Systems Approach System Defined gt A set of interrelated and interdependent parts arranged in a manner that produces a unified whole Basic Types of Systems gt Closed systems z Are not influenced by and do not interact with their environment all system input and output is internal gt Open systems Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments Copyright 2010 Pearson Education Inc Publishing as Prentice Hall Exhibit 2 7 The Organization as an Open System Environment Transformation Inputs Process Outputs Products and Services Financial Results Employees Work Activities Raw Materials Human Resources Capital Management Activities Information TGCI39IHOIOQY Technology and Human RESUltS Information Operations Methods men39t Copyright 2010 Pearson Education Inc Publishing as Prentice Hall 220 Implications of the Systems Approach Coordination of the organization s parts is essential for proper functioning of the entire organization Decisions and actions taken in one area of the organization will have an effect in other areas of the organization Organizations are not selfcontained and therefore must adapt to changes in their external environment Copyright 2010 Pearson Education Inc Publishing as Prentice Hall 221 The Contingency Approach Contingency Approach Defined gt Also sometimes called the situational approach gt There is no one universally applicable set of management principles rules by which to manage organizations gt Organizations are individually different face different situations contingency variables and require different ways of managing Copyright 2010 Pearson Education Inc Publishing as Prentice Hall Exhibit 2 8 Popular Contingency Variables Organization size As size increases so do the problems of coordination Routineness of task technology Routine technologies require organizational structures leadership styles and control systems that differ from those required by customized or nonroutine technologies Environmental uncertainty What works best in a stable and predictable environment may be totally inappropriate in a rapidly changing and unpredictable environment Individual differences Individuals differ in terms of their desire for growth autonomy tolerance of ambiguity and expectations Copyright 2010 Pearson Education Inc Publishing as Prentice Hall Terms to Know division of labor orjob specialization Industrial Revolution scientific management or therbligs a general administrative theory a principles of management bureaucracy quantitative approach organizational behavior OB Hawthorne Studies O system closed systems open systems contingency approach Copyright 2010 Pearson Education Inc Publishing as Prentice Hall This work is pmtec ted by United States copyright laws and is prauided solely for the use of instruct are in teaching their courses and assessing student learning Bisseminatinn or sale of any part at this work including on the World Wide Web will destroy the integrity of the work and is not permit tedlhe work and materials from it should never he made available to students except by instructor s using time accompanying text in their classes All recipients of this work are expected to abide by these restrictions andl to haunt the intended pedagogical purposes and the needs at other instructors who rely an these materials All rights reserved No part of this publication may be reproduced stored in a retrieval system or transmitted in any form or by any means electronic mechanical photocopying recording or otherwise without the prior written permission of the publisher Printed in the United States of America Copyright 2010 Pearson Education Inc Publishing as Prentice Hall 2 25