1. Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Management A Practical Introduction Third Edition Angelo Kinicki & Brian K. Williams

2. Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 2 Chapter 2: Management Theory Essential Background For Managers  How We Got To Where We Are Today  Classical Viewpoint  Behavioral Viewpoint  Quantitative Viewpoint  Systems Viewpoint  Contingency Viewpoint  The Learning Organization

3. Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 3 2.1 Evolving Viewpoints: How We Got To Today’s Management Outlook WHY STUDY MANAGEMENT THEORIES? Understanding theoretical perspectives of management:  helps us understand the present  provides a guide to action  provides a source of new ideas  gives clues to the meaning of managers’ ideas  gives clues to the meaning of outside events

4. Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 4 2.1 Evolving Viewpoints: How We Got To Today’s Management Outlook Two perspectives of management are:  the historical which includes three views— classical, behavioral, and quantitative  the contemporary which includes three views— systems, contingency, and quality-management

5. Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 5 2.2 Classical Viewpoint: Scientific & Administrative Management Figure 2.1: The Historical Perspective

6. Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 6 2.2 Classical Viewpoint: Scientific & Administrative Management WHAT IS THE CLASSICAL VIEWPOINT? The classical view of management emphasizes finding ways to manage work more efficiently using two approaches:  scientific - emphasizes the scientific study of work methods to improve productivity  administrative - concerned with managing the total organization

7. Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 7 2.2 Classical Viewpoint: Scientific & Administrative Management  Frank and Lillian Gilbreth, and Frederick W. Taylor pioneered scientific management (emphasized the study or work methods to improve the productivity of individual workers)  Administrative management was pioneered by Henri Fayol and Max Weber, and is concerned with managing the total organization

8. Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 8 2.2 Classical Viewpoint: Scientific & Administrative Management THE PROBLEM WITH THE CLASSICAL VIEWPOINT: TOO MECHANISTIC  The classical theory essentially argued that by applying the scientific method, time and motion studies, and job specialization, productivity could be raised  However, this view may be too mechanistic because it fails to consider human needs

9. Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 9 2.3 Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science WHAT IS THE BEHAVIORAL VIEWPOINT?  The behavioral viewpoint of management emphasized the importance of understanding human behavior and of motivating employees toward achievement  This perspective was developed over three phases: early behaviorism, the human relations movement, and behavioral science

10. Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 10 2.3 Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science  Behavioral theory was pioneered by Hugo Munsterberg who promoted the idea of studying human behavior in the workplace, Mary Parker Follett who focused on managers and employees working cooperatively, and Elton Mayo who argued that employees worked harder if they think managers care about them  Abraham Maslow and Douglas McGregor pioneered the human relations movement which proposed that better human relations could increase worker productivity  The human relations movement was replaced by the behavioral science approach which relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers

11. Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 11 2.4 Quantitative Viewpoints: Management Science & Operations Research WHAT IS THE QUANTITATIVE VIEWPOINT?  Quantitative management focuses on the application to management of quantitative techniques such as statistics and computer simulations  Two branches of quantitative management are management science which focuses on using mathematics to aid in problem solving and decision making, and operations management which focuses on managing the production and delivery of an organization’s products or services more effectively

12. Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 12 2.5 Systems Viewpoint WHAT IS THE SYSTEMS VIEWPOINT?  There are three contemporary management perspectives: systems, contingency, and quality-management  A system is a set of interrelated parts that operate together to achieve a common purpose  The systems viewpoint sees the organization as a system of interrelated parts  Thus, an organization is both a collection of subsystems (parts making up the whole system) and a part of the larger environment

13. Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 13 2.5 Systems Viewpoint Figure 2.2: The Contemporary Perspective

14. Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 14 2.6 Contingency Viewpoint WHAT IS THE CONTINGENCY VIEWPOINT?  According to the contingency viewpoint of management, a manager’s approach should vary according to the individual situation and the environmental situation

15. Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 15 2.7 Quality-Management Viewpoint WHAT IS THE QUALITY-MANAGEMENT VIEWPOINT?  The quality-management viewpoint of the contemporary perspective includes quality control, quality assurance, and total quality management  Quality is the total ability of a product or service to meet customer needs, and is one of the best ways to add value to a product and differentiate it from others  Quality control is the strategy for minimizing errors by managing each stage of production  Quality assurance focuses on the performance of workers, and emphasizes a goal of zero defects

16. Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 16 2.8 The Learning Organization In An Era Of Accelerated Change WHAT IS A LEARNING ORGANIZATION? A learning organization is an organization that:  creates and acquires knowledge  transfers knowledge within itself  modifies its behavior to reflect the new knowledge  Organizations need to be learning organizations in order to deal with the many challenges of today’s fast paced world  In addition, organizations need to build a commitment to learning, generate ideas with impact, and generalize ideas with impact

17. Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 17 2.8 The Learning Organization In An Era Of Accelerated Change Some of the challenges include:  the rise of virtual organizations - organizations whose members are geographically apart, usually working with e- mail, collaborative computing, and other computer connections  the rise of boundaryless organizations - fluid, highly adaptive organizations whose members, linked by information technology, come together to collaborate on common tasks, where collaborators may include competitors, suppliers, and customers  the imperative for speed and innovation

18. Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 18 2.8 The Learning Organization In An Era Of Accelerated Change  the increasing importance of knowledge workers - someone whose occupation is principally concerned with generating or interpreting information  an appreciation for human capital - the economic or productive potential of employee knowledge, experience, and actions  an appreciation for the importance of social capital - the economic or productive potential of strong, trusting, and cooperative relationships  a new emphasis on evidence-based management - management based on the belief that firms need to face the facts about what actually works and what is total nonsense