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

2. 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.

3. 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.

4. 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.

5. 2.2 Classical Viewpoint: Scientific & Administrative Management
Figure 2.1: The Historical Perspective

6. 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

7. 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.

8. 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.

9. 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

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

11. 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’

12. 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

13. Administrative Management
HENRI FAYOL
MAX WEBER

14. 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

15. 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

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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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.

24. 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.

25. 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.

26. 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.

27. 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

28. 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

29. 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.

30. 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.

31. 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

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

33. Contemporary Perspective
Figure 2.2: The Contemporary Perspective

34. 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

35. 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)

36. 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.

37. 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.

38. 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

39. 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.

40. 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.

41. 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

42. 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.

43. 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

44. 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

45. 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

46. 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 , 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

47. 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

48. 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

49. 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.