1. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. PowerPoint Presentation by Charlie Cook The University of West Alabama Management: Principles and Practices 11e Ricky W. Griffin CHAPTER 2 Traditional and Contemporary Issues and Challenges PART 1 An Introduction to Management

2. Learning Objectives 1.Justify the importance of history and theory to management, and discuss precursors to modern management theory. 2.Summarize and evaluate the classical perspective on management, including scientific and administrative management, and note its relevance to contemporary managers. 3.Summarize and evaluate the behavioral perspective on management, including the Hawthorne studies, the human relations movement, and organizational behavior, and note its relevance to contemporary managers. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–2

3. Learning Objectives (cont’d) 4.Summarize and evaluate the quantitative perspective on management, including management science and operations management, and note its relevance to contemporary managers. 5.Discuss the systems and contingency approaches to management, and explain their potential for integrating the other areas of management. 6.Identify and describe contemporary management issues and challenges. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–3

4. The Importance of Theory and History Why Use Theories?Why Use Theories?  Theories provide conceptual frameworks for organizing knowledge and blueprints for actions.  Management theories are grounded in reality.  Managers develop their own theories about how they should run their organizations. Why Study History?Why Study History?  Understanding history aids managers in the development of management practices and in avoiding the past mistakes of others. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–4

5. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–5 2.1 Management in Antiquity

6. Early Management Pioneers Robert Owen (1771–1858)Robert Owen (1771–1858)  British industrialist who recognized the importance of human resources and implemented better working conditions through reduced child labor, meals, and shorter hours. Charles Babbage (1792–1871)Charles Babbage (1792–1871)  English mathematician who focused on creating efficiencies of production through the division of labor, management and labor cooperation, and application of mathematics to management problems. - harmonious relationship between management and labor, profit sharing plan  Wrote “On the Economy of Machinery and Manufactures.” © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–6

7. Classical Management Perspective Consists of Two Different Viewpoints:Consists of Two Different Viewpoints:  Scientific Management  Concerned with improving the performance of individual workers (i.e., efficiency).  Grew out of the industrial revolution’s labor shortage at the beginning of the twentieth century.  Administrative Management  A theory that focuses on managing the total organization. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–7

8. The development of a body of knowledge of management theory has gone through centuries of research and practice.The development of a body of knowledge of management theory has gone through centuries of research and practice. The study of how the knowledge of management has evolved help us have a good understanding of how to manage in reality.The study of how the knowledge of management has evolved help us have a good understanding of how to manage in reality. THE DEVELOPMENT OF MANAGEMENT THEORY

9. Focused on increasing productivity of labour through increasing their efficiency.Focused on increasing productivity of labour through increasing their efficiency. Prominent among the proponents of scientific management areProminent among the proponents of scientific management are  Frederic Winslow Taylor  Henry Lawrence Gantt  Frank and Lillian Gilbreth THE SCIENTIFIC MANAGEMENT SCHOOL

10. Scientific Management Frederick Taylor (1856–1915)Frederick Taylor (1856–1915)  Replaced rule-of-thumb methods with scientifically- based work methods to eliminate “soldiering.”  Believed in selecting, training, teaching, and developing workers.  Used time studies, standards planning, exception rule, slide-rules, instruction cards, and incentive piece-work pay systems to control and motivate employees. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–10

11. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–11 2.2 Steps in Scientific Management

12. His primary goal was to increase worker efficiency by scientifically designing jobs.His primary goal was to increase worker efficiency by scientifically designing jobs. His basic premise was that there was one best way to do a job and that this way should be discovered and put into operation.His basic premise was that there was one best way to do a job and that this way should be discovered and put into operation. Work at Bethlehem Steel Co.Work at Bethlehem Steel Co. He made the assumption that any worker’s job could be reduced a science.He made the assumption that any worker’s job could be reduced a science. F.W.TAYLOR (1856-1915), the father of scientific management THE SCIENTIFIC MANAGEMENT SCHOOL

13. Proposed his philosophy based on four principles:Proposed his philosophy based on four principles:  The development of a true science of management to determine the ‘one best way’ of performing each task of a job.  The scientific selection of workers to ensure that the worker best suited to do a task gets it.  The scientific education and development of the worker.  Intimate, friendly cooperation between management and labour. F.W.TAYLOR (1856-1915),

14. Taylor advocated “a complete mental revolution” on the part of management and labour for the success of these principles.Taylor advocated “a complete mental revolution” on the part of management and labour for the success of these principles.  Enough profits would be generated that could be shared by labour and management so they would not have to fight over it.  i.e., it is in the common interest of both management and workforce to increase productivity. F.W.TAYLOR (1856-1915), the father of scientific management THE SCIENTIFIC MANAGEMENT SCHOOL

15. Production-line time study:Production-line time study:  Breaking down each job into its components and designing the quickest and best methods of performing each component. Differential rate system:Differential rate system:  Higher pay for higher performance encouraging employees to surpass their previous standards to earn more. F.W.TAYLOR (1856-1915), the father of scientific management THE SCIENTIFIC MANAGEMENT SCHOOL

16. ContributionsContributions  Productivity increased manifold.  Still used in many tasks in the non-industrial organizations. CriticismsCriticisms  Undue pressure on employees.  Exploitation of labor by management for more productivity and profits. F.W.TAYLOR (1856-1915), the father of scientific management THE SCIENTIFIC MANAGEMENT SCHOOL

17. Other Scientific Management Pioneers Frank and Lillian GilbrethFrank and Lillian Gilbreth  Reduced the number of movements in bricklaying, resulting in increased output of 200%. Henry GanttHenry Gantt  Was an early associate of Fredrick Taylor.  Developed the Gantt chart to improve working efficiency through planning and scheduling. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–17

18. Reconsidered Taylor’s differential pay system and introduced the ‘Bonus System.’Reconsidered Taylor’s differential pay system and introduced the ‘Bonus System.’ Developed the modern production and operations scheduling technique called the the Gantt chart.Developed the modern production and operations scheduling technique called the the Gantt chart. Other scheduling techniques like, PERT and CPM, and the Lotus 1-2-3 are creative application of the Gantt chart.Other scheduling techniques like, PERT and CPM, and the Lotus 1-2-3 are creative application of the Gantt chart. Henry L. Gantt (1861-1919), THE SCIENTIFIC MANAGEMENT SCHOOL

20. He wrote thatHe wrote that ‘The taskmaker (manager) of the past was practically a slavedriver, whose principal function was to force workmen to do that which they had no desire to do, or interest in doing. The task setter of today under any reputable system of management is not a driver. When he asks the workmen to perform tasks, he makes it to their interest to accomplish them, and is careful not to ask what is impossible or unreasonable.’ Henry L. Gantt (1861-1919),

21. Conducted motion and fatigue studyConducted motion and fatigue study Focused on ways of promoting welfare of workers as the ultimate aim of scientific management.Focused on ways of promoting welfare of workers as the ultimate aim of scientific management. A motion study finds the best way to accomplish a task by analyzing the movements to perform that task.A motion study finds the best way to accomplish a task by analyzing the movements to perform that task. In their conception motion and fatigue were intertwined --- every motion that was eliminated reduced fatigue.In their conception motion and fatigue were intertwined --- every motion that was eliminated reduced fatigue. Frank (1868-1924) & Lillian (1878-1972) Gilbreth THE SCIENTIFIC MANAGEMENT SCHOOL

22. Concerned with developing guidelines for managing complex organisations like factories.Concerned with developing guidelines for managing complex organisations like factories. Prominent among the scholarsProminent among the scholars  Henry Fayol  Max Weber  Mary Parker Follet  Chester I. Barnard THE CLASSICAL ORGANIZATION THEORY SCHOOL

23. Classical Management Perspective (cont’d) Administrative Management TheoryAdministrative Management Theory  Focuses on managing the total organization rather than individuals. Henri FayolHenri Fayol  Wrote “General and Industrial Management.”  Helped to systematize the practice of management.  Was first to identify the specific management functions of planning, organizing, leading, and controlling. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–23

24. First systematised managerial behaviour.First systematised managerial behaviour. Believed that sound management practice falls into certain patterns that can be identified and analysed.Believed that sound management practice falls into certain patterns that can be identified and analysed. Drew up a blue print for a cohesive doctrine of management which retains much of its force to this day.Drew up a blue print for a cohesive doctrine of management which retains much of its force to this day. His book on management ‘General and Industrial Management’ was much acclaimed when its English translation was published in 1930.His book on management ‘General and Industrial Management’ was much acclaimed when its English translation was published in 1930. THE CLASSICAL ORGANISATION THEORY SCHOOL HENRY FAYOL (1841-1925)

25. 1.Division of Labour  The more people specialise the more efficient their performance. 2.Authority  The entitlement for managers to order subordinates.  Formal authority gives right to command.  Managers should have personal authority (expertise). 3.Discipline  Respect for rules and agreement governing the organisation.  Results from good leadership,fair reward system, judicious punishments for infringements. 4.Unity of Command  Each employee must must receive instructions from only one superior to avoid conflicts in instructions and confusion of authority. HENRY FAYOL 14 Principles of Management THE CLASSICAL ORGANISATION THEORY SCHOOL

26. 5.Unity of Direction ◦ Operations having the same objective should be directed by only one manager using one plan. 6.Subordination of Individual Interest to the Common good ◦ Individual interest of employees should not take precedence over the goals of the organisation. 7.Remuneration ◦ Fair compensation for both employees and employers. (Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a worker’s rate of pay) HENRY FAYOL 14 Principles of Management THE CLASSICAL ORGANISATION THEORY SCHOOL

27. 8.Centralisation  Managers should retain final responsibility, though subordinates should have enough authority to do their jobs properly. 9.The Hierarchy  The line of authority should run in order of rank from top management to the lowest level. 10.Order  Materials and people should be in the right place at the right time. People should be in the jobs or positions they are most suited to. 11.Equity  Friendliness and fairness to the employees. HENRY FAYOL 14 Principles of Management THE CLASSICAL ORGANISATION THEORY SCHOOL

28. 12.Stability of staff  High employee turnover adversely affects efficient functioning. (Retaining productive employees should always be a high priority of management) 13.Initiative  Subordinates should be given the freedom to conceive and carry out their plans despite the possibility of some mistakes. 14.Esprit de corps  Promotion of team spirit to give the organisation a sense of unity. E.g., use of verbal communication instead of formal, written communication whenever possible. (Management should encourage harmony and general good feelings among employees) HENRY FAYOL 14 Principles of Management THE CLASSICAL ORGANISATION THEORY SCHOOL

29. Developed the theory of bureaucratic management.Developed the theory of bureaucratic management. Stressed the need forStressed the need for  Impersonality  strictly defined hierarchy.  clearly defined regulations and line authority.  emphasis on Technical competence.  performance evaluations based entirely on merit. THE CLASSICAL ORGANISATION THEORY SCHOOL MAX WEBER (1864-1920) Bureaucracy

30. Classical Management Perspective (cont’d) Administrative Management TheoryAdministrative Management Theory  Focuses on managing the total organization rather than individuals. Henri FayolHenri Fayol  Wrote “General and Industrial Management.”  Helped to systematize the practice of management.  Was first to identify the specific management functions of planning, organizing, leading, and controlling. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–30

31. Classical Management Proponents Max WeberMax Weber  His theory of bureaucracy posits a rational set of guidelines for structuring organizations. Chester BarnardChester Barnard  Wrote “The Functions of the Executive.”  Proposed a theory of the acceptance of authority (by subordinates) as the source of power and influence for managers. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–31

32. BnR-Peng.Manajemen-Chap-02 32 Cooperation and Acceptance of Authority: Chester Barnard People will be indifferent to managerial directives if they… are understoodare understood are consistent with the purpose of the organizationare consistent with the purpose of the organization are compatible with the people’s personal interestsare compatible with the people’s personal interests can actually be carried out by those peoplecan actually be carried out by those people

33. Classical Management Today ContributionsContributions  Laid foundation for later theoretical developments.  Identified management processes, functions, and skills.  Focused attention on management as a valid subject of scientific inquiry. LimitationsLimitations  More appropriate approach for use in traditional, stable, simple organizations.  Prescribed universal procedures that are not appropriate in some settings.  Employees viewed as tools rather than as resources. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–33

34. General Summary The classical management perspective had two primary thrusts. Scientific management focused on employees within organizations and on ways to improve their productivity. Noted pioneers of scientific management were Frederick Taylor, Frank and Lillian Gilbreth, Henry Gantt, and Harrington Emerson. Administrative management focused on the total organization and on ways to make it more efficient and effective. Prominent administrative management theorists were Henri Fayol, Lyndall Urwick, Max Weber, and Chester Barnard. Contributions Laid the foundation for later developments in management theory. Identified important management processes, functions, and skills that are still recognized today. Focused attention on management as a valid subject of scientific inquiry. Limitations More appropriate for stable and simple organizations than for today’s dynamic and complex organizations. Often prescribed universal procedures that are not appropriate in some settings. Even though some writers (such as Lillian Gilbreth and Chester Barnard) were concerned with the human element, many viewed employees as tools rather than resources. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–34 2.1 The Classical Management Perspective

35. Behavioral Management Perspective Behavioral ManagementBehavioral Management  Emphasized individual attitudes and behaviors, and group processes.  Recognized the importance of behavioral processes in the workplace. Hugo Münsterberg (1863–1916)Hugo Münsterberg (1863–1916)  Is considered the father of industrial psychology.  Wrote “ Psychology and Industrial Efficiency.” © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–35

36. Management Challenge Question How are Münsterberg’s decisional roles for managers—How are Münsterberg’s decisional roles for managers—  entrepreneur  disturbance handler  negotiator —interrelated?  Working with opposing parties to develop new approaches that allow them to reach an agreement. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–36

37. The Hawthorne Studies Conducted by Elton Mayo and associates at Western Electric (1927–1935)Conducted by Elton Mayo and associates at Western Electric (1927–1935)  Intended as a group study of the effects of a piecework incentive plan on production workers.  Workplace lighting changes unexpectedly affected both control and experimental groups.  Workers established informal levels of acceptable individual output; over-producing workers (“rate busters”) and under- producing workers (“chiselers”). To be accepted by the group, workers produced at the accepted level.  Interview program  Confirmed importance of human behavior in the workplace. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–37

38. Behavioral Management Evolves The Human Relations MovementThe Human Relations Movement  Grew out of the Hawthorne studies.  Proposed that workers respond primarily to the social context of work, including social conditioning, group norms, and interpersonal dynamics.  Assumed that the manager’s concern for workers would lead to increased worker satisfaction and improved worker performance. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–38

39. Human Relations Proponents Abraham MaslowAbraham Maslow  Advanced a theory that employees are motivated by a hierarchy of needs that they seek to satisfy. Douglas McGregorDouglas McGregor  Proposed Theory X and Theory Y concepts of managerial beliefs about people and work. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–39

40. Theory X Assumptions 1.People do not like work and try to avoid it. 2.People do not like work, so managers have to control, direct, coerce, and threaten employees to get them to work toward organizational goals. 3.People prefer to be directed, to avoid responsibility, and to want security; they have little ambition. Theory Y Assumptions 1.People do not naturally dislike work; work is a natural part of their lives. 2.People are internally motivated to reach objectives to which they are committed. 3.People are committed to goals to the degree that they receive personal rewards when they reach their objectives. 4.People will both seek and accept responsibility under favorable conditions. 5.People have the capacity to be innovative in solving organizational problems. 6.People are bright, but under most organizational conditions their potential is underutilized. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–40 2.2 Theory X and Theory Y

41. Emergence of Organizational Behavior Focuses on behavioral perspectives of management.Focuses on behavioral perspectives of management.  Draws on psychology, sociology, anthropology, economics, and medicine. Important organizational behavior topics:Important organizational behavior topics:  Job satisfaction and job stress  Motivation and leadership  Group dynamics and organizational politics  Interpersonal conflict  The structure and the design of organizations © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–41

42. Behavioral Management Today ContributionsContributions  Provided insights into motivation, group dynamics, and other interpersonal processes.  Focused managerial attention on these critical processes.  Challenged the view that employees are tools and furthered belief that employees are valuable resources. LimitationsLimitations  Complexity of individuals makes behavior difficult to predict.  Concepts are not used because managers are reluctant to adopt them.  Research findings are not often communicated to practicing managers in an understandable form. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–42

43. General Summary Focuses on employee behavior in an organizational context. Stimulated by the birth of industrial psychology, the human relations movement supplanted scientific management as the dominant approach to management in the 1930s and 1940s. Prominent contributors to this movement were Elton Mayo, Abraham Maslow, and Douglas McGregor. Organizational behavior, the contemporary outgrowth of the behavioral management perspective, draws from an interdisciplinary base and recognizes the complexities of human behavior in organizational settings. ContributionsProvided important insights into motivation, group dynamics, and other interpersonal processes in organizations. Focused managerial attention on these same processes. Challenged the view that employees are tools and furthered the belief that employees are valuable resources. LimitationsThe complexity of individual behavior makes prediction of that behavior difficult. Many behavioral concepts have not yet been put to use because some managers are reluctant to adopt them. Contemporary research findings by behavioral scientists are often not communicated to practicing managers in an understandable form. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–43 2.3 The Behavioral Management Perspective

44. The Quantitative Management Perspective Quantitative Management UsesQuantitative Management Uses  Helped World War II Allied forces manage logistical problems.  Focuses on decision making, economic effectiveness, mathematical models, and the use of computers to solve quantitative problems. Management ScienceManagement Science  Focuses on the development of representative mathematical models to assist with decisions. Operations ManagementOperations Management  The practical application of management science to efficiently manage the production and distribution of products and services.  Inventory management, linear programming, queuingtheory, break-even analysis and simulation. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–44

45. Quantitative Management Today ContributionsContributions  Sophisticated quantitative techniques can assist managers in decision making.  Application of its models has increased awareness and understanding of complex processes and situations.  It is useful in planning and controlling processes. LimitationsLimitations  It cannot fully explain or predict behavior of people in organizations.  Mathematical sophistication may come at the expense of other managerial skills.  Its models may require unrealistic or unfounded assumptions, limiting their general applicability. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–45

46. General Summary Focuses on applying mathematical models and processes to management situations. Management science deals specifically with the development of mathematical models to aid in decision making and problem solving. Operations management focuses more directly on the application of management science to organizations. Management information systems are developed to provide information to managers. Contributions Developed sophisticated quantitative techniques to assist in decision making. Application of models has increased our awareness and understanding of complex organizational processes and situations. Has been very useful in the planning and controlling processes. Limitations Cannot fully explain or predict the behavior of people in organizations. Mathematical sophistication may come at the expense of other important skills. Models may require unrealistic or unfounded assumptions. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–46 2.4 The Quantitative Management Perspective

47. Integrating Perspectives for Managers Systems PerspectiveSystems Perspective  A system is an interrelated set of elements functioning as a whole. Open systemOpen system  An organization that interacts with its external environment. Closed systemClosed system  An organization that does not interact with its environment. SubsystemsSubsystems  The importance of subsystems is due to their interdependence on each other within the organization. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–47

48. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–48 2.3 The Systems Perspective of Organizations

49. Systems Perspective Concepts Concept of SynergyConcept of Synergy  Subsystems are more successful working together in a cooperative and coordinated fashion than working alone.  The whole system (subsystems working together as one system) is more productive and efficient than the sum of its parts. Concept of EntropyConcept of Entropy  A normal process in which an organizational system declines due to its failing to adjust to change in its environment  Entropy can be avoided and the organization re-energized through organizational change and renewal. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–49

50. Management Perspectives Compared Universal PerspectiveUniversal Perspective  Includes the classical, behavioral, and quantitative approaches.  Attempted to identify the “one best way” to manage organizations. Contingency PerspectiveContingency Perspective  Suggests that each organization is unique.  Appropriate managerial behavior for managing an organization depends (is contingent) on the current situation in the organization. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–50

51. Modern Management Today An Integrating FrameworkAn Integrating Framework  Is a complementary way of thinking about theories of management.  Involves recognition of current system and subsystem interdependencies, environmental influences, and the situational nature of management. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–51

52. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–52 2.4 An Integrative Framework of Management Perspectives

53. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–53 2.5 The Emergence of Modern Management Perspectives

54. Contemporary Applied Perspectives Authors William Ouchi’s “Theory Z”William Ouchi’s “Theory Z” Peters and Waterman’s “In Search of Excellence”Peters and Waterman’s “In Search of Excellence” Biographies—Warren Buffet, Jack WelchBiographies—Warren Buffet, Jack Welch Authors: Senge, Covey, Peters, Collins, Porter, Kotter, and HamelAuthors: Senge, Covey, Peters, Collins, Porter, Kotter, and Hamel Malcolm Gladwell’s series: The Tipping Point, Blink, OutliersMalcolm Gladwell’s series: The Tipping Point, Blink, Outliers Scott Adams’ DilbertScott Adams’ Dilbert © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–54

55. Contemporary Issues and Challenges An erratic economy that limits growthAn erratic economy that limits growth Management of an increasingly diverse workforceManagement of an increasingly diverse workforce Employee privacyEmployee privacy Technology that promotes telecommutingTechnology that promotes telecommuting The role of the Internet in business strategyThe role of the Internet in business strategy Operating and competing in diverse global marketsOperating and competing in diverse global markets Ethics in corporate governance and social responsibilityEthics in corporate governance and social responsibility Quality as the basis for competition, increased productivity, and lower costsQuality as the basis for competition, increased productivity, and lower costs The shift toward a service economyThe shift toward a service economy © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–55

56. KEY TERMS theorytheory classical management perspectiveclassical management perspective scientific managementscientific management soldieringsoldiering administrative managementadministrative management behavioral management perspectivebehavioral management perspective Theory X and Theory YTheory X and Theory Y human relations movementhuman relations movement organizational behaviororganizational behavior quantitative management perspectivequantitative management perspective management sciencemanagement science operations managementoperations management systemsystem closed systemclosed system subsystemsubsystem synergysynergy entropyentropy contingency perspectivecontingency perspective 2–56 © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.