Management Ch. 2

Peter Drucker:
-Creator and inventor of modern management.

1. Workers should be treated as assets
2. The corporation could be considered a human community
3. There is “no business without a customer”
4. Institutionalized management practices were preferable to charismatic, cult leaders.

*Decentralization, management by objectives, and knowledge workers.

Evidence-based management:
1. translating principles based on best evidence into organizational practice, bringing rationality to the decision-making process.

2. based on belief that facing hard facts about what works and what doesn’t, understanding the dangerous half-truths that constitute so much conventional wisdom about management, and rejecting the total nonsense that to often passes for sound advice will help organizations perform better.

2 individuals that were proponents of evidence-based management:
1. Jeffrey Pfeffer
2. Robert Sutton
Two overarching perspectives of management:
1. Historical
2. Contemporary
3 viewpoints of historical perspective:
1. Classical
2. Behavioral
3. Quantitative
3 viewpoints of contemporary perspective:
1. Systems
2. Contingency
3. Quality-management
1. 1 of 17 basic motions.

2. By identifying the therbligs, you can eliminate motions while simultaneously reducing fatigue.

3. Frank and Llian Gilbreth

The Gilbreths were apart of which perspective viewpoint:
Historical perspective
Classical viewpoint (historical management viewpoint):
1. Emphasized finding ways to manage work more efficiently

2. Two branches: scientific and administrative.

3.Assumes people are rational

Scientific management:
1. Emphasized scientific study of work methods to improve the productivity of individual workers.

2. Proponents—Frederick Taylor and the Frank & Lillian Gilbreth.

3. Frederick Taylor = “father of Scientific Management”

4 Principles of Scientific Management (to eliminate soldiering):
1. Evaluate a task by scientifically studying each part of the task

2. Carefully select workers with the right abilities for the task

3. Give workers the training & incentives to do the task with the proper work methods

4. Use scientific principles to plan the work methods and ease the way for workers to do their jobs.

1. Deliberately working at less than full capacity.

2. Frederick Taylor

Motion studies:
1. What Frederick Taylor’s system is based on.

2. He broke down each worker’s job into basic physical motions & then trained workers to use the methods of their best-performing coworkers.

Differential rate systems:
1. Suggested by Frederick Taylor.

2. Which more efficient workers earned higher wages

Scientific management can enhance:
Productivity and such innovations as motion studies and differential pay.
Frederick Taylor believed by raising production what two things could increase profit:
1. Labor
2. Management
First woman to be major contributor to management science:
Lillian Gilbreth
Administrative management:
1. Concerned with managing the total organization

2. Henri Fayol and Max Weber

Henri Fayol:
1. First to systemize management behavior

2. Fayol was the first to identify the major functions of management: planning, leading, organizing, and controlling, as well as coordinating

Max Weber:
1. Believed bureaucracy was a rational, efficient, ideal organization based on principles of logic.
Max Weber (5 positive bureaucratic features to be a better-performing organization):
1. A well defined hierarchy of authority

2. Formal rules and procedures

3. Clear division of labor, with parts of a complex job being handled by specialists

4. Impersonality, without reference or connection to a particular person

5. Careers based on merits

Problem with classical viewpoint:
1. Too mechanistic

2. Tends to view humans as cogs within a machine, not taking in account the importance of human needs.

Behavioral viewpoint:
Emphasized the importance of understanding human behavior and of motivating employees toward achievement.
3 phases of behavioral viewpoint:
1. Early behaviorism
2. The human relations movement
3. Behavioral science
3 pioneers of behavioral theory:
1. Hugo Munsterberg
2. Mary Parker Follett
3. Elton Mayo
Hugo Munsterberg was called:
the father of industrial psychology
3 ways psychologists could contribute to industry (Hugo Munsterberg):
1. Study jobs & determine which people are best suited to specific jobs
2. Identify the psychological conditions under which employees do their best work
3. Devise management strategies to influence employees to follow management’s interests.
Industrial psychology:
the study of human behavior in the workplaces.
Mary Parker Follett:
Most important women America produced in civics and sociology.
Mary Parker Follett believed:
1. Organizations should become more democratic instead of hierarchical arrangement.

2. Managers and employees work cooperatively.

3 of Mary Parker Follett’s ideas:
1. Organizations should be operated as “communities” with managers and subordinates working together in harmony
2. Conflicts should be resolved by having managers & workers talk over differences & find solutions that would satisfy both parties (a process she called integration)
3. The work process should be under the control of workers with the relevant knowledge, rather than of managers, who should act as facilitators.
Mary Parker Follett and today’s concepts:
1. Self-managed teams
2. Worker empowerment
3. Interdepartmental teams
Hawthorne studies began with:
An investigation into whether workplace lighting level affected worker productivity.
Elton Mayo is known for:
the Hawthorne Effect
Hawthorne Effect:
1. Workers were more productive if they thought they thought managers cared about their welfare, and if supervisors paid special attention.

2. They were faulted for being poorly designed & not having enough empirical data to support the conclusions.

2 Contributors to the Human Relations Movement:
1. Abraham Maslow
2. Douglas McGregor
Human Relations Movement:
Proposed that better human relations could increase worker productivity.
Maslow’s Hierarchy of needs:
1. Physiological
2. Safety
3. Love
4. Esteem
5. Self-actualization

*Some needs must be satisfied before others.

Douglas McGregor:
1. Managers also needed to be aware of their attitudes toward employees.

2. Theory X and Theory Y

Theory X
1.Pessimistic, negative view or workers.

2. Workers considered to be irresponsible, resistant to change, lack ambition, and hate work.

3.More likely to micromanage, which leads to dissatisfaction.

Theory Y
1. Optimistic, positive view of workers.

2.Capable of accepting responsibility, self-direction, and self-control and of being imaginative creative.

The human relations view has been superseded by the:
behavioral science approach to management.
Behavioral science:
Relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers.
Operations Research techniques have evolved into:
Quantitative Management
Quantitative Management:
Application to management of quantitative techniques, such as stats or computer simulations.
2 branches of quantitative management:
1. Management science
2. Operations management
Management Science:
1. Focuses on using mathematics to aid in problem solving & decision- making.

2. Sometimes called operations research.

3. Stresses used of rational, science-based techniques & mathematical models to improve decision- making & strategic planning.

Operations Management:
1. Focuses on managing the production & delivery of an organization’s products/services more effectively.

2. Concerned with work scheduling, production planning, facilities location and design, and optimum inventory levels.

3.Helps ensure that business operations are efficient & effective.

Set of interrelated parts that operate together to achieve a common purpose.
Systems Viewpoint:
Regards the organization as a system of interrelated parts.
Parts making up the whole system
4 parts of a system:
1. Inputs
2. Transformation Processes
3. Outputs
4. Feedback
1. People, money, information, equipment, and materials required to produce an organization’s goods or services.

2. Whatever goes into a system is an input.

Transformation Processes:
Organization’s capabilities in management, internal processes, and technology that are applied to converting inputs into outputs.
Products, services, profits, losses, employee satisfaction or discontent, and the like that are produced by the organization.
Information about the reaction of the environment to the outputs that affects the inputs.
Open systems:
continually interacts with its environment.
Closed systems:
1. little interaction with its environment.

2. classical viewpoint and management science views organization as this.

Complexity Theory:
1. Study of how order & pattern arise from very complicated, apparently chaotic systems.

2. Recognizes that all complex systems are networks of many interdependent parts that interact with each other according to simple rules.

Contingency Viewpoint:
emphasizes that a manager’s approach should vary according to the individual & the environmental situation.
Gary Hamel:
1. Believes much of management theory is dated and doesn’t fit current realities.

2. Instead, look at management as a process, and then make improvements and innovation is essential to future organizational success.

3. Thinks core beliefs can be rooted out by asking the right questions

Gary Hamel’s questions that can root out core beliefs:
1. Belief worth challenging? Debilitating? Does it get in the way of an important organizational attribute that we’d like to strengthen?

2. Belief universally valid? Are there counterexamples? If so, what do we learn from those cases?

3. How does this belief serve the interests of its adherents? Are there people who draw reassurance or comfort from this belief?

4. Have our choices & assumptions conspired to make this belief self-fulfilling? Is this belief true simply because we have made it true and if so can we imagine alternatives?

Which viewpoint is seen as most practical of the viewpoints:
1. Contingency Viewpoint

2. It addresses problems on a case-by-case basis and varies the solution accordingly.

Quality-Management Viewpoint:
Includes quality control, quality assurance, and total quality management
1. Refers to the total ability of a product or service to meet customer needs.

2. One of most important ways of adding value to products/services.

Quality control:
1. Strategy for minimizing errors by managing each stage of production.

2. Walter Shewart, who used statistical sampling to locate errors by testing just some of the items in a particular production run.

Quality assurance:
1. Focuses on the performance of workers, urging employees to strive for “zero defects.”

2. Has been less successful because often employees have no control over the design of the work process.

W. Edwards Deming:
Believed quality stemmed form constancy of purpose along with statistical measurement & reduction of variations in production processes.
Joseph M. Juran:
1. Defined quality as “fitness for use.”

2. A product/service should satisfy a customer’s real needs.

3.Best way to focus was to concentrate on the real needs of customers.

Total Quality Management:
Comprehensive approach led by top management & supported throughout the organization dedicated to continuous quality improvement, training, and customer satisfaction.
4 components of total quality management:
1. Make continuous improvement a priority.

2. Get every employee involved.

3. Listen to and learn from customers and employees.

4. Use accurate standards to identify and eliminate problems.

Total quality management viewpoint emphasizes:
infusing concepts of quality throughout the total organization in a way that will deliver quality products & services to customers.
Peter Senge:
Coined the term about learning organizations, “where people continually expand their capacity to create the results they truly desire, where new & expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together.”
3 parts of a learning organization:
1. Creating and acquiring knowledge (new ideas and info)

2. Transferring knowledge (reduce barriers to sharing info and ideas among employees)

3. Modifying behavior (use knowledge to change behavior to help further the organizations goals)

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