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Chapter Objectives Identify and understand the FIVE different approaches to management Describe the general aim of the human relations movement and explain the circumstances in which it arose. Explain the practical significance of adopting a contingency perspective. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2

The Practice and Study of Management The systematic study of management did not begin in earnest until after The Egyptian pyramids required managed effort 100k people over 20 years to construct! Study of management includes: Psychology Sociology Cultural anthropology Philosophy Stats Political science Economics Logistics History Computer science © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3

No Universally Accepted Theory of Management There are several approaches to the theory and practice of management. We will look at FIVE: The universal process approach The operational approach The behavioral approach The systems approach The contingency approach © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4

1. The Universal Process Approach Universal Process Approach Assumes all organizations require the same rational management process Core management process remains the same regardless of the purpose of the organization. The management process can be reduced to a set of separate functions and related principles. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5

2. The Operational Approach The operational approach is a production-oriented field of management dedicated to improving efficiency and cutting waste. Finding the best way to do every job to get it done faster and more efficiently. Criticisms: Treat people like mindless machines Interested only in $$$ © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6

3. The Behavioral Approach The Human Relations Movement An effort to make managers more sensitive to their employees’ needs People need to be the central focus of an organization Human Relations Movement: Fear of unions forming Success depends on motivated and committed employees © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7

Organizational Behavior Organizational Behavior (part of behavioral approach) A modern research-oriented approach seeking to discover the causes of work behavior and to develop better management techniques Lessons from the Behavioral Approach People are the key to productivity. Success depends on motivated and skilled individuals committed to organizational objectives. Managerial sensitivity to employees is necessary to foster the cooperation needed for high productivity. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8

4. The Systems Approach A system is a collection of parts operating interdependently to achieve a common purpose In the systems approach: The whole is greater than the sum of its parts Seeks to identify all parts of an organized activity and how they interact. Greater appreciation for the whole picture Manager can’t become preoccupied w one area of organization while ignoring others © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9

5. The Contingency Approach A research effort to determine which managerial practices and techniques are appropriate in specific situations. (The term contingency refers to the choice of an alternative course of action.) Contingency management has become synonymous with situational management. Application of management tools and techniques must be appropriate for the particular situation. Lessons from the Contingency Approach Approach emphasizes situational appropriateness rather than rigid adherence to universal principles © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10