Management A Practical Introduction Third Edition Angelo Kinicki & Brian K. Williams

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 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.

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

Chapter 2: Management Theory CLASSROOM PERFORMANCE SYSTEM Which of the following is a contemporary perspective of management? A) behavioral B) classical C) contingency D) quantitative The answer is C.

Chapter 2: Management Theory CLASSROOM PERFORMANCE SYSTEM Which of the following is a contemporary perspective of management? A) behavioral B) classical C) contingency D) quantitative The answer is C.

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

Scientific Management Frederick Taylor Time-Motion Gantt Charts Gilbreths Principle of Motion Economy

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

Administrative Management HENRI FAYOL MAX WEBER

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

Fayol’s Principles of Organization Unity of Command Hierarchy of Authority Division of Labor Subordination of Individual Interest Authority Degree of Centralization Communication Channels Order Equity Esprit de Corps

Weber’s Organizational Principles Job Descriptions Written Rules, decision guidelines, and policies Consistent Procedures, Regulations, Policies Staffing/Promotions based on Qualifications

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

2.3 Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science 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

Chapter 2: Management Theory CLASSROOM PERFORMANCE SYSTEM Understanding human resource behavior and motivating employees toward achievement is part of the A) classical viewpoint B) administrative viewpoint C) management science viewpoint D) behavioral viewpoint The answer is D.

Chapter 2: Management Theory CLASSROOM PERFORMANCE SYSTEM Understanding human resource behavior and motivating employees toward achievement is part of the A) classical viewpoint B) administrative viewpoint C) management science viewpoint D) behavioral viewpoint The answer is D.

Chapter 2: Management Theory CLASSROOM PERFORMANCE SYSTEM Who argued that people are motivated by a hierarchy of human needs? A) Fayol B) Maslow C) Gilbreth D) Mayo The answer is B.

Chapter 2: Management Theory CLASSROOM PERFORMANCE SYSTEM Who argued that people are motivated by a hierarchy of human needs? A) Fayol B) Maslow C) Gilbreth D) Mayo The answer is B.

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

Chapter 2: Management Theory CLASSROOM PERFORMANCE SYSTEM Operations management is an example of A) The classical view B) Management science C) The quantitative view D) The human relations movement The answer is C.

Chapter 2: Management Theory CLASSROOM PERFORMANCE SYSTEM Operations management is an example of A) The classical view B) Management science C) The quantitative view D) The human relations movement The answer is C.

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

Contemporary Perspective WHAT IS THE CONTEMPORARY PRESPECTIVE? There are three contemporary management perspectives: systems, contingency, and quality-management

Contemporary Perspective 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)

Chapter 2: Management Theory CLASSROOM PERFORMANCE SYSTEM All of the following are part of a system except A) inputs B) feedback C) outputs D) contingency processes The answer is D.

Chapter 2: Management Theory CLASSROOM PERFORMANCE SYSTEM All of the following are part of a system except A) inputs B) feedback C) outputs D) contingency processes The answer is D.

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

Chapter 2: Management Theory CLASSROOM PERFORMANCE SYSTEM The classical management viewpoint sees the organization as A) a contingency system B) a transformation system C) an open system D) a closed system The answer is D.

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.

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

Quality Control Standards B2-14 Quality Control Standards Six Sigma () Quality 3.6M defects per million events Statistical Quality Control (SQC) Continually monitor all phases of production process for quality Statistical Process Control (SPC) Sample components at each stage and plotting results on a graph; eliminates need for QC inspection at the end - Deming Cycle (PDCA). Quality Function Deployment (QFD) Linking needs of end users to design, development, engineering, manufacturing, and service functions McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

2.7 Quality-Management Viewpoint W. Edwards Deming and Joseph M. Juran led the push to total quality management Deming was instrumental in helping Japan develop its focus on quality in manufacturing Deming believed that managers often mistakenly blamed people for mistakes that were actually system failures Juran was also a pioneer in bringing the notion of quality to Japan Juran believed that a product or service should satisfy a customer’s real needs

2.7 Quality-Management Viewpoint Total quality management (TQM) is a comprehensive approach dedicated to continuous quality improvement, training, and customer satisfaction There are four components of TQM: make continuous improvement a priority get every employee involved listen to and learn from employees and customers use accurate standards to identify and eliminate problems

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

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

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

2.8 The Learning Organization In An Era Of Accelerated Change To build a learning organization, managers must: build a commitment to learning generate ideas with impact generalize ideas with impact

How to Build a Learning Organization: Three Roles Managers Play You can build a commitment to learning. Instill an intellectual and emotional commitment to learning You can work to generate ideas with impact. Ideas that add value for customers , employees, and shareholders You can work to generalize ideas with impact. Reduce barriers to learning among employees and within your organization. Create climate that reduces conflict, increases communication, promotes teamwork, rewards risk-taking, reduces fear of failure, and increase communication. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.