Management Theories Ch. 2 Management A Practical Introduction Angelo Kinicki & Brian K. Williams

Learning objectives 1 Explain briefly the history of management Define the Classical Viewpoint Describe the contributions of Taylor and Gilbreths Explain the importance of scientific management Describe the contributions of Fayol and Weber Define the Behavioral Viewpoint Recognize the contribution of Munsterberg and Follett The Manager’s Toolbox: Mindfulness over Mindlessness: Being a Learner in a Learning Organization Mindlessness is characterized by: Entrapment in old categories. Automatic behavior Acting 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.

Learning objectives 2 Describe the works of Mayo and explain the implication of Hawthorne Studies Define the Quantitative Viewpoint Explain the importance of management science and operation research Define the Systems Viewpoint Describe the 4 parts of a system Define the Contingency Viewpoint

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 Lecture 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.

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 Lecture 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.

2.2 Classical Viewpoint: Scientific & Administrative Management Figure 2.1: The Historical Perspective

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 science Evidence based management involves: observing events and gathering facts posing solutions or explanations based on those facts making predictions of future events testing predictions under systematic conditions

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

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’

2.2 Classical Viewpoint: Scientific & Administrative Management Frederick Taylor believed that managers could eliminate underachievement, which he called soldiering, by 1. evaluating a task scientifically 2. matching worker ability with the task 3. providing training and incentives 4. using scientific principles to plan work methods and make it easier for workers to do their jobs

2.2 Classical Viewpoint: Scientific & Administrative Management Administrative management was pioneered by Henri Fayol and Max Weber, and is concerned with managing the total organization Fayol identified the major functions of management: planning, organizing, leading, controlling, and coordinating Weber 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

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

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 Behavioral theory was pioneered by Hugo Munsterberg, Mary Parker Follett, and Elton Mayo

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 them 2. identifying the psychological conditions under which employees do their best work 3. devising management strategies to encourage employees to follow management’s interests

2.3 Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science Follett believed that: 1. organizations should operate as communities with managers and employees working cooperatively 2. organizations should resolve conflicts through integration where managers and workers talked over differences 3. managers should be facilitators, and workers should control the work process Mayo 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

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 productivity Maslow argued that people are motivated by a hierarchy of human needs: physiological, safety, social, esteem, and self-actualization McGregor 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

2.3 Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science The human relations movement was considered too simplistic for practical use It 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

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 and operations management

2.4 Quantitative Viewpoints: Management Science & Operations Research MANAGEMENT SCIENCE AND OPERATIONS RESEARCH Management science focuses on using mathematics to aid in problem solving and decision making Operations management focuses on managing the production and delivery of an organization’s products or services more effectively

2.5 Systems Viewpoint WHAT IS THE SYSTEMS VIEWPOINT? There are three contemporary management perspectives: systems, contingency, and quality-management

Figure 2.2: The Contemporary Perspective 2.5 Systems Viewpoint Figure 2.2: The Contemporary Perspective

2.5 Systems Viewpoint 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

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 organization transformation 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)

2.5 Systems Viewpoint An open system continually interacts with its environment A closed system has little interaction with its environment Organizations that ignore feedback from the environment are vulnerable to failure

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 Practical Action: Toward a More Open Workplace: Treating Employees Right Summary: 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.

Key terms Inputs Management science Open system Operations management Administrative management Behavioral science/ viewpoint Classical viewpoint Closed system Contemporary perspective Contingency viewpoint Evidence-based management Feedback Historical perspective Human relations movement Inputs Management science Open system Operations management Outputs Quantitative management Scientific management Subsystems System Systems viewpoint Transformation process