Chapter Two

Management Theory Essential Background

for the Successful Manager

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Two Overreaching Perspectives about Management

Historical Perspective:Historical Perspective: includes includes three viewpoints—cthree viewpoints—classicalassical, l, bbehaviorehavioral, and al, and quantitativquantitative.e.

Contemporary:Contemporary: includes three includes three viewpoints—viewpoints—systemssystems, , contingenccontingency, y, and and quality-managemequality-management.nt.

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Panel 2.1

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The Historical Perspective

Behavioral science approach

Behavioral Viewpoint

Early Behaviorists

Human Relations Movement

Quantitative Viewpoint

Operations Management

Management Science

Classical Viewpoint

Scientific Management

Administrative Management

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The Classical Viewpoint:

Scientific and Administrative Management

Classical Viewpoint:Classical Viewpoint: emphasized finding ways to manage work emphasized finding ways to manage work

more efficiently, had two branches—more efficiently, had two branches—scientificscientific and and administrativeadministrative..

i)i) Scientific Management:Scientific Management:

- Pioneered by - Pioneered by TaylorTaylor

- emphasized the - emphasized the scientific study of work methods to improve scientific study of work methods to improve

the productivitythe productivity of individual workers. of individual workers.

ii)ii) Administrative Management:Administrative Management:

- - approach of approach of Fayol and WeberFayol and Weber

- is concerned with - is concerned with managing with the total organizationmanaging with the total organization..

- - includes the includes the ideas of the four managementideas of the four management functions functions

and the and the concept of bureaucracyconcept of bureaucracy

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Scientific Management:

Pioneered by Taylor & the Gilbreths

Taylor believedTaylor believed:: managers could eliminate managers could eliminate

“soldiering” by applying four principles of science:“soldiering” by applying four principles of science:

Evaluate a task by scientifically studying each part Evaluate a task by scientifically studying each part

of the taskof the task

Carefully select workers with the right abilities for Carefully select workers with the right abilities for

the taskthe task

Give workers the training and incentives to do the Give workers the training and incentives to do the

task with the proper work methodstask with the proper work methods

Use scientific principles to plan the work methods Use scientific principles to plan the work methods

and ease the way for workers do their jobs.and ease the way for workers do their jobs.

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The Rationality of Bureaucracy

WeberWeber:: a better-performing organization should a better-performing organization should

have have five bureaucraticfive bureaucratic features: features:

A well-defined hierarchy of authorityA well-defined hierarchy of authority

Formal rules and proceduresFormal rules and procedures

A clear division of laborA clear division of labor

ImpersonalityImpersonality

Careers based on meritCareers based on merit

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The Behavioral Viewpoint

emphasized the importance of emphasized the importance of understanding human behavior understanding human behavior

and of motivating employees and of motivating employees toward achievement.toward achievement.

Three Branches:Three Branches:

Early BehaviorismEarly Behaviorism:: Approach ofApproach of Munsterberg, Follet, Munsterberg, Follet, MayoMayo

- - MunsterbergMunsterberg felt science could contribute to industry in felt science could contribute to industry in three waysthree ways::* * Study jobsStudy jobs and determine which and determine which people are best suitedpeople are best suited to specific jobsto specific jobs* Identify the * Identify the psychological conditionspsychological conditions under which under which employees do their best workemployees do their best work* Create * Create management strategies to influence employees management strategies to influence employees to followto follow the management’s interests the management’s interests

- - FollettFollett thought organizations should become more thought organizations should become more democratic, with managers and employees working democratic, with managers and employees working cooperativelycooperatively* * Organizations should be Organizations should be operated as “communitiesoperated as “communities” ” * * Conflicts should be resolvedConflicts should be resolved and and find solutionsfind solutions that that would satisfy both partieswould satisfy both parties* The * The work processwork process should be should be under the control of under the control of workersworkers with the relevant with the relevant knowledgeknowledge

…………The Behavioral ViewpointThe Behavioral Viewpoint

1

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Human Relations Movement:Human Relations Movement: - Approach of Abraham Maslow, Douglas McGregor- Approach of Abraham Maslow, Douglas McGregor- Concern about - Concern about better better human relationshuman relations movement movement could could improve productivityimprove productivity

- Abraham Maslow Proposed the Hierarchy of - Abraham Maslow Proposed the Hierarchy of NeedsNeeds

Hierarchy:Hierarchy: physiological, safety, social, esteem, and physiological, safety, social, esteem, and self-actualization.self-actualization.

- Douglas McGregor proposed Theory X and Y- Douglas McGregor proposed Theory X and Y* * Theory XTheory X: pessimistic; : pessimistic; negativenegative view of workers. view of workers.* * Theory YTheory Y: optimistic; : optimistic; positivepositive view of workers. view of workers.

2

3 Behavioral Science: Behavioral Science: *Relies on *Relies on scientific researchscientific research for developing for developing theories about human behaviortheories about human behavior that can be used that can be used to provide practical tools for managers.to provide practical tools for managers.

Theory X PremisesTheory X Premises A manager who views employees from a A manager who views employees from a

Theory X (negative) perspective believes:Theory X (negative) perspective believes: Employees inherently dislike work and, Employees inherently dislike work and,

whenever possible, will attempt to avoid it.whenever possible, will attempt to avoid it.

Because employees dislike work, they must be Because employees dislike work, they must be coerced, controlled, or threatened with coerced, controlled, or threatened with punishment to achieve desired goals.punishment to achieve desired goals.

Employees will shirk responsibilities and seek Employees will shirk responsibilities and seek formal direction whenever possible.formal direction whenever possible.

Most workers place security above all other Most workers place security above all other factors associated with work and will display factors associated with work and will display little ambition.little ambition.

Exhibit 10.3

Theory Y PremisesTheory Y Premises

A manager who views employees from a A manager who views employees from a Theory Y (positive) perspective believes:Theory Y (positive) perspective believes: Employees can view work as being as natural Employees can view work as being as natural

as rest or play.as rest or play.

Men and women will exercise self-direction and Men and women will exercise self-direction and self-control if they are committed to the self-control if they are committed to the objectives.objectives.

The average person can learn to accept, even The average person can learn to accept, even seek, responsibility.seek, responsibility.

The ability to make good decisions is widely The ability to make good decisions is widely dispersed throughout the population and is not dispersed throughout the population and is not necessarily the sole province of managers.necessarily the sole province of managers.

Exhibit 10.3 (cont’d)

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Panel 2.2

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The Contemporary Perspective: Three Viewpoints

The System Viewpoint

The Contingency Viewpoint

The Quality Management

Viewpoint

Quality Control Quality Assurance Total Quality Management

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The Systems Viewpoint

A System: A System: is a set of is a set of interrelated partsinterrelated parts that that operate togetheroperate together to achieve a common to achieve a common purpose.purpose.

Looks at the organization as Looks at the organization as

1) a collection of subsystems, 2) a part 1) a collection of subsystems, 2) a part of a larger environment.of a larger environment. Subsystems: Subsystems: parts making up the whole parts making up the whole

system.system.

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Panel 2.3

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The Four Parts of a System

Input

The people, money, information, equipment and materials required to produce and organization’s goods or services

Transformational Process

The organization’s capabilities in management and technology that are applied to converting inputs to outputs

Output

The products, services, profits, losses, employee satisfaction or discontent, and the like that are produced by the organization

Feedback

Information about the reaction of the environment to the outputs that affect the inputs

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Open and Closed Systems

Open System:Open System: continually interactscontinually interacts with with its environment; its environment; receives receives sufficient sufficient feedbackfeedback from outside from outside

Closed System Closed System has has little interactionlittle interaction with its with its environment; it receives environment; it receives very very little feedbacklittle feedback from from the outside.the outside.

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The Contingency Viewpoint

situational view of management based on the assumption that managers should draw freely

from other viewpoints to effectively solve problems.