Management Theories Ch. 2 Management A Practical Introduction
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1 Management Theories Ch. 2 Management A Practical Introduction Angelo Kinicki &Brian K. Williams
2 Learning objectives 1 Explain briefly the history of management Define the Classical ViewpointDescribe the contributions of Taylor and GilbrethsExplain the importance of scientific managementDescribe the contributions of Fayol and WeberDefine the Behavioral ViewpointRecognize the contribution of Munsterberg and FollettThe Manager’s Toolbox: Mindfulness over Mindlessness: Being a Learner in a Learning OrganizationMindlessness is characterized by:Entrapment in old categories.Automatic behaviorActing from a single perspective.For Discussion: To develop mindfulness, you have to constantly adapt, be open to novelty, be alert to distinctions, be sensitive to different contexts, be aware of multiple perspectives, be oriented in the present. Describe situations where you have been open-minded.
3 Learning objectives 2Describe the works of Mayo and explain the implication of Hawthorne StudiesDefine the Quantitative ViewpointExplain the importance of management science and operation researchDefine the Systems ViewpointDescribe the 4 parts of a systemDefine the Contingency Viewpoint
4 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 presentprovides a guide to actionprovides a source of new ideasgives clues to the meaning of managers’ ideasgives clues to the meaning of outside eventsLecture Note: Many students are probably already familiar with some of the pioneers of management theory (although they may not realize it!). Ask students to identify some of the pioneers of management theory.
5 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 quantitativethe contemporary which includes three views—systems, contingency, and quality-managementLecture Note: Challenge students to think about why studying theories of management can help them be better managers. Ask them if there are ways that management theory affects them at their jobs, or in other parts of their lives.
7 2.1 Evolving Viewpoints: How We Got To Today’s Management Outlook IS MANAGEMENT AN ART OR A SCIENCE?Management is both an art and a scienceEvidence based management involves:observing events and gathering factsposing solutions or explanations based on those factsmaking predictions of future eventstesting predictions under systematic conditions
8 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 productivityadministrative - concerned with managing the total organization
9 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)Frank & Lillian Gilbreth focused on improving efficiency, and popularized their ideas in the book (and later, the movie), ‘Cheaper by the Dozen’
10 2.2 Classical Viewpoint: Scientific & Administrative Management Frederick Taylor believed that managers could eliminate underachievement, which he called soldiering, by1. evaluating a task scientifically2. matching worker ability with the task3. providing training and incentives4. using scientific principles to plan work methods and make it easier for workers to do their jobs
11 2.2 Classical Viewpoint: Scientific & Administrative Management Administrative management was pioneered by Henri Fayol and Max Weber, and is concerned with managing the total organizationFayol identified the major functions of management: planning, organizing, leading, controlling, and coordinatingWeber believed that an organization should have:a well-defined hierarchy of authority, formal rules and procedures, a clear division of labor, impersonality, and careers based on merit
12 2.2 Classical Viewpoint: Scientific & Administrative Management THE PROBLEM WITH THE CLASSICAL VIEWPOINT: TOO MECHANISTICThe classical theory essentially argued that by applying the scientific method, time and motion studies, and job specialization, productivity could be raisedHowever, this view may be too mechanistic because it fails to consider human needs
13 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 achievementThis perspective was developed over three phases: early behaviorism, the human relations movement, and behavioral scienceBehavioral theory was pioneered by Hugo Munsterberg, Mary Parker Follett, and Elton Mayo
14 2.3 Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science Munsterberg believed that psychologists could contribute to industry by:1. studying jobs and identifying people suited to them2. identifying the psychological conditions under which employees do their best work3. devising management strategies to encourage employees to follow management’s interests
15 2.3 Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science Follett believed that:1. organizations should operate as communities with managers and employees working cooperatively2. organizations should resolve conflicts through integration where managers and workers talked over differences3. managers should be facilitators, and workers should control the work processMayo developed a theory known as the Hawthorne Effect which suggested that employees worked harder if they felt that managers cared about their welfare and paid attention to them
16 2.3 Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science Abraham Maslow and Douglas McGregor pioneered the human relations movement which proposed that better human relations could increase worker productivityMaslow argued that people are motivated by a hierarchy of human needs: physiological, safety, social, esteem, and self-actualizationMcGregor theorized that a manager’s attitudes toward employees could either be Theory X (pessimistic, negative), or Theory Y (optimistic, positive)Understanding the theory can help managers avoid attitudes that become self-fulfilling prophecies
17 2.3 Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science The human relations movement was considered too simplistic for practical useIt 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
18 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 simulationsTwo branches of quantitative management are management science and operations management
19 2.4 Quantitative Viewpoints: Management Science & Operations Research MANAGEMENT SCIENCE AND OPERATIONS RESEARCHManagement science focuses on using mathematics to aid in problem solving and decision makingOperations management focuses on managing the production and delivery of an organization’s products or services more effectively
20 2.5 Systems Viewpoint WHAT IS THE SYSTEMS VIEWPOINT? There are three contemporary management perspectives: systems, contingency, and quality-management
21 Figure 2.2: The Contemporary Perspective 2.5 Systems ViewpointFigure 2.2: The Contemporary Perspective
22 2.5 Systems ViewpointA system is a set of interrelated parts that operate together to achieve a common purposeThe systems viewpoint sees the organization as a system of interrelated partsThus, an organization is both a collection of subsystems (parts making up the whole system) and a part of the larger environment
23 2.5 Systems Viewpoint There are four parts in a system: inputs (the people, money, information, equipment, and materials required to produce an organization’s goods or services)outputs (the products, services, profits, losses, employee satisfaction or discontent that are produced by the organizationtransformation processes (the organization’s capabilities in management and technology that are applied to converting inputs into outputs)feedback (information about the reaction of the environment to the outputs that affect the inputs)
24 2.5 Systems ViewpointAn open system continually interacts with its environmentA closed system has little interaction with its environmentOrganizations that ignore feedback from the environment are vulnerable to failure
25 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 situationPractical Action: Toward a More Open Workplace: Treating Employees RightSummary:This Practical Action examines how treating employees well affects the organization. Companies that do a good job of managing human resources outperform companies that don’t.
26 Key terms Inputs Management science Open system Operations management Administrative managementBehavioral science/ viewpointClassical viewpointClosed systemContemporary perspectiveContingency viewpointEvidence-based managementFeedbackHistorical perspectiveHuman relations movementInputsManagement scienceOpen systemOperations managementOutputsQuantitative managementScientific managementSubsystemsSystemSystems viewpointTransformation process