Management Principles & Policies Chapter 2

Discipline: Management

Type of Paper: Question-Answer

Academic Level: Undergrad. (yrs 3-4)

Paper Format: APA

Pages: 1 Words: 275


Management Principles & Policies Chapter 2

Who is PETER DRUCKER?    "Creator and inventor of modern management"

What are the ideas did Peter Drucker introduce?
  • That workers should be treated as assets.
  • That the corporation could be considered a human community.
  • That there is “no business without a customer.”
  • That institutionalized management practices are preferable to charismatic cult leaders.

What are the (2) PERSPECTIVES of management?The historical perspective (1911–1950s) includes three viewpointsclassical, behavioral, and quantitative. The contemporary perspective (1960s–present) also includes three viewpointssystems, contingency, and quality-management.

Historical Perspective (Summarized Illustration)

Contemporary Perspective (Summary Illustration)

Historical Perspective: CLASSICAL viewpoint  (1911-1947)Emphasis onways to manage more efficientlyassumes "people are rational"
  • TWO approaches:
  1. scientific management
  2. administrative management
Historical Perspective: BEHAVIORAL viewpoint      (1913 - 1950)
  • TWO approaches
    • Human relations movement
      • Munsterberg, Follett, Mayo
      • proposes that better human relation could increase worker productivity
    • Behavioral science approach
      • relies on scientific research for developing theory to provide practical management tools
      • disciplines include: psychology, sociology, anthropology, economics

Historical Perspective: QUANTITATIVE viewpoint   (1940 - 1950)
  • Applies quantitative techniques to management
  • TWO approaches
    • management science
    • operations management

What are the (3) viewpoints of the 'Historical Perspective' of management? (List)
  • Classical
  • Behavioral
  • Quantitative

Historical Perspective > Classical viewpoint > Scientific Management  (Def) emphasized the scientific study of work methods to improve the productivity of individual workers Proponents: Frederick W. Taylor and the husband-and-wife team of Frank and Lillian Gilbreth

"soldiering," according to Frederick Taylor   (Def) “underachieving,” or “loafing,” or what Taylor called it—soldiering, deliberately working at less than full capacity  i.e., shirking

According to Frederick Taylor, what are the (4) ways that could eliminate 'soldiering"?
  1. Evaluate a task by scientifically studying each part of the task (not use old rule-of-thumb methods).
  2. Carefully select workers with the right abilities for the task.
  3. Give workers the training and 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.

Describe Frederick Taylor's "Motion Studies"   (Def) "breaking down each worker's job" into basic physical motions; andthen train(ed) workers to use the methods of their best-performing coworkers

What are the two ideas introduced by Frederick Taylor?
  1. Motion Studies
  2. Differential Rate System
Differential Rate System   (Def) Employers institute a differential rate system, in which more efficient workers earn higher wages. (Frederick Taylor)

Why is Henri Fayol important?   He is the first to identify the major functions of management— (POLC) planning, organizing, leading, and controlling, as well as coordinating

What is the contribution of Frank and Lillian Gilbreth to Taylor's "Motion Studies"   using movie cameras to film workers at work in order to isolate the parts of a job. Note: Lillian Gilbreth, who received a PhD in psychology, was the first woman to be a major contributor to management science.

What is the focus of Scientific Management?   The approach is concerned with the jobs of the individuals (i.e., efficient productivity)

What are the (5) positive bureaucratic features, according to Max Weber?
  1. A well-defined hierarchy of authority
  2. Formal rules and procedures
  3. A 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 merit.
What is the focus of Administrative management?   Concerned with managing the total organization. Pioneering theorists were Henri Fayol and Max Weber

Why is the Classical Viewpoint important?
Because of time and motion studies, and job specialization it was possible to boost productivity led to innovations such as management by objectives and goal setting.

Henri Fayol was not the first to investigate management behavior, but he was the first to _______________ it.  systemize

Describe the view of "bureaucracy," according to Max Weber   "rational, efficient, [and an] ideal organization based on principles of logic"

What is the problem with the Classical viewpoint?   The viewpoint is "too mechanistic"It tends to view humans as cogs within a machine, not taking into account the importance of human needs

Why is Frederick Taylor important?   Although “Taylorism” met considerable resistance from employees fearing that working harder would lead to lost jobs except for the highly productive few, Taylor believed that by raising production both labor and management could increase profits to the point where they no longer would have to quarrel over them.

Why is Max Weber important?   He was an important influence on the structure of large corporations (e.g., Coca-Cola Company)

Historical Perspective > Behavioral Viewpoint
  • Emphasized the importance of understanding human behavior and of motivating employees toward achievement
  • (3) Phases:
    • (1) early behaviorism,
    • (2) the human relations movement, and
    • (3) behavioral science.

Early Behaviorism: Pioneered by Hugo Munsterberg     Called “the father of industrial psychology,” German-born Hugo Munsterberg had a PhD in psychology and a medical degree and joined the faculty at Harvard University in 1892Suggested the psychologists can contribute to industry in (3) ways:Study jobs and determine which people are best suited to specific jobs.Identify the psychological conditions under which employees do their best work.Devise management strategies to influence employees to follow management’s interests.

Early Behaviorism: Mary Parker Follett and Power Sharing among Employees and Managers      was lauded on her death in 1933 as “one of the most important women America has yet produced in the fields of civics and sociology.”
  • thought organizations should become more democratic, with managers and employees working cooperatively.(3) Ideas:Organizations should be operated as “communities,” with managers and subordinates working together in harmony.Conflicts should be resolved by having managers and workers talk over differences and find solutions that would satisfy both parties—a process she called integration.The work process should be under the control of workers with the relevant knowledge, rather than of managers, who should act as facilitators.

Why is Mary Parker Follett important?    Anticipated some of today’s concepts of “self-managed teams,” “worker empowerment,” and “interdepartmental teams”—that is, members of different departments working together on joint projects.

Early Behaviorism: Elton Mayo and the Supposed “Hawthorne Effect     Hawthorne studies began with an investigation into whether workplace lighting level affected worker productivity.  In later experiments, other variables were altered, such as wage levels, rest periods, and length of workday. Worker performance varied but tended to increase over time, leading Mayo and his colleagues to hypothesize what came to be known as the Hawthorne effect—namely, that employees worked harder if they received added attention, if they thought that managers cared about their welfare and that supervisors paid special attention to them.

Why are the Hawthorne Studies important?    Ultimately, the Hawthorne studies were faulted for being poorly designed and not having enough empirical data to support the conclusions. Nevertheless, they succeeded in drawing attention to the importance of “social man” (social beings) and how managers using good human relations could improve worker productivity.
This in turn led to the so-called human relations movement in the 1950s and 1960s.

The Human Relations Movement   (Def) proposes that better human relations could increase worker productivity  Pioneered by Maslow and McGregor

The Human Relations Movement > Abraham Maslow and the Hierarchy of Needs   The chairman of the psychology department at Brandeis University and one of the earliest researchers to study motivation, in 1943 Maslow proposed his famous hierarchy of human needs: [bottom] physiological, safety, love, esteem, and self-actualization [top]

What are the "hierarchy of needs," according to Abraham Maslow?    [From top to bottom]
  1. self-actualization
  2. esteem
  3. love
  4. safety
  5. physiology
The Human Relations Movement: Douglas McGregor and Theory X versus Theory Y  He came to realize that it was not enough for managers to try to be liked; they also needed to be aware of their attitudes toward employees.
Suggested in a 1960 book, these attitudes could be either “X” or “Y”

Describe the "Theory X" and "Theory Y"    Theory X represents a pessimistic, negative view of workers. In this view, workers are considered to be irresponsible, to be resistant to change, to lack ambition, to hate work, and to want to be led rather than to lead.
  Theory Y represents the outlook of human relations proponents—an optimistic, positive view of workers. In this view, workers are considered to be capable of accepting responsibility, self-direction, and self-control and of being imaginative and creative.

Why is the Theory X/Theory Y important?    It helps managers understand how their beliefs affect their behavior. Managers can be more effective by considering how their behavior is shaped by their expectations about human nature.For example, Theory X managers are more likely to micromanage, which leads to employee dissatisfaction, because they believe employees are inherently lazy.

Describe the Behavioral Science Approach    Behavioral science relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers. The disciplines of behavioral science include psychology, sociology, anthropology, and economics.

Quantitative Viewpoints: Management Science and Operations Management     Operations Research (OR) techniques have evolved into quantitative management, the application to management of quantitative techniques, such as statistics and computer simulations.
Two branches of quantitative management are:
  • management science
  • operations management.

Quantitative viewpoint > Management Science: Using Mathematics to Solve Management Problems    Management science focuses on using mathematics to aid in problem solving and decision making. AKA operations research

Quantitative viewpoint > Operations Management: Being More Effective      Focuses on managing the production and delivery of an organization’s products or services more effectively. Concerned with work scheduling, production planning, facilities location and design, and optimum inventory levels.

Why is Operations Management important?   It helps ensure that business operations are efficient and effective

Contemporary Perspective > Systems Viewpoint     Regards the organization as a system of interrelated parts.
An organization is both:
  • (1) a collection of subsystems—parts making up the whole system
  • (2) a part of the larger environment.

System     (Def) a set of interrelated parts that operate together to achieve a common purpose

What are the (4) parts to a 'system'
  1. Inputs are the people, money, information, equipment, and materials required to produce an organization’s goods or services. Whatever goes into a system is an input.
  2. Transformational processes are the organization’s capabilities in management, internal processes, and technology that are applied to converting inputs into outputs. The main activity of the organization is to transform inputs into outputs.
  3. Outputs are the products, services, profits, losses, employee satisfaction or discontent, and the like that are produced by the organization. Whatever comes out of the system is an output.
  4. Feedback is information about the reaction of the environment to the outputs that affects the inputs. Are the customers buying or not buying the product? That information isfeedback.                                            
Contemporary Perspective > Contingency Viewpoint     emphasizes that a manager’s approach should vary according to—that is, be contingent on—the individual and the environmental situation

Contemporary Perspective > Contingency Viewpoint > Evidence-based Management Approach    Translating principles based on
  • best evidence into organizational practice, bringing rationality to the decision-making process.

Contemporary Perspective > Quality-Management Viewpoint     Includes:
  • quality control
  • quality assurance
  • total quality management (TQM)

Quality     (Def) refers to the total ability of a product or service to meet customer needs

Quality Control    (Def) the strategy for minimizing errors by managing each stage of production. Quality control techniques were developed in the 1930s at Bell Telephone Labs by Walter Shewart, who used statistical sampling to locate errors by testing just some (rather than all) of the items in a particular production run.

Quality Assurance
(Def) focuses on the performance of workers, urging employees to strive for “zero defects.”  Though, it as been less successful because often employees have no control over the design of the work process

Who is W. Edwards Deming and his ideas about Quality Control and Quality Assurance    Desperate to rebuild its war-devastated economy, Japan eagerly received mathematician W. Edwards Deming’s lectures on “good management.” Deming believed that quality stemmed from:“constancy of purpose”—steady focus on an organization’s missionstatistical measurement
  • reduction of variations in production processes managers should stress teamworkbe helpful rather than simply give orders make employees feel comfortable about asking questions.

Total Quality Management (TQM)   A comprehensive approach to quality—led by top management and supported throughout the organization—dedicated to continuous quality improvement, training, and customer satisfaction.

What are the (4) components of 'Total Quality Management (TQM)"?
  1. Make continuous improvement a priority. TQM companies are never satisfied. They make small, incremental improvements an everyday priority in all areas of the organization. By improving everything a little bit of the time all the time, the company can achieve long-term quality, efficiency, and customer satisfaction
  2. Get every employee involved. To build teamwork, trust, and mutual respect, TQM companies see that every employee is involved in the continuous improvement process. This requires that workers must be trained and empowered to find and solve problems.
  3. Listen to and learn from customers and employees. TQM companies pay attention to their customers, the people who use their products or services. In addition, employees within the companies listen and learn from other employees, those outside their own work areas.
  4. Use accurate standards to identify and eliminate problems. TQM organizations are always alert to how competitors do things better, then try to improve on them—a process known as benchmarking. Using these standards, they apply statistical measurements to their own processes to identify problems.
Learning organization    (Def) an organization that actively creates, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge

How to Build a Learning Organization: What are the (3) Roles Managers Play
  • (1) build a commitment to learning
    • intellectual and emotional commitment to learning--- as a manager, publicly promoting it, creating rewards and symbols of it, etc
  • (2) work to generate ideas with impact
    • promoting ideas that add value for customers, employees, and shareholders by increasing employee competence through training, experimenting with new ideas, and engaging in other leadership activities.
  • (3) work to generalize ideas with impact
    • reducing barriers to learning among employees within the organization; creating a climate that reduces conflict, increases communication, promotes teamwork, rewards risk taking, reduces fear of failure, and increases cooperation

Complexity Theory    AKA "the ultimate Open System"
(Def) The study of how order and pattern arise from very complicated, apparently chaotic systems
recognizes that all complex systems are networks of many interdependent parts that interact with each other according to certain simple rules Used in strategic management and organizational studies, the discipline seeks to understand how organizations, considered as relatively simple and partly connected structures, adapt to their environments.

Why is the Systems Viewpoint, particularly, Open Systems, important?     The system stresses open feedback from both inside and outside the organization, resulting in a continuous learning process to try to correct old mistakes and avoid new ones

Synergy and open systems - how do they relate?   Synergy is the idea that two or more forces combined create an effect that is greater than the sum of their individual effects. Open systems have the potential of producing synergy --- because an open systems interacts with its environment

Peter Drucker's rational approach or ideas culminated ____________ management.   evidence-based

  • Who pioneered "Scientific Management"?   Frederick Taylor   
  • Frank and Lillian Gilbreths

Who pioneered "Administrative Management"?
  • Henri Fayol
  • Max Weber

Who pioneered "Early Behaviorism"?
  • Hugo Munsterberg (Applying Psychology)
  • Mary Parker Follett (Power Sharing)
  • Elton Mayo (Hawthorne Effect)

Who pioneered the "Human Relations Management"?
  • Abraham Maslow (Hierarchy of Needs)
  • Douglas McGegor (Theory X and Y)

Describe Jeffrey Pfeffer and Robert Sutton's "attitude of wisdom" (relation to evidence-based management)   A mind-set that: is willing to set aside belief and conventional wisdom and to act on facts;has an unrelenting commitment to gathering information necessary to make informed decisions to keeping pace with new evidence to update practices

Research should follow the scientific method. What are the (4) steps of the scientific method?
  1. observe events and gather facts
  2. pose a possible solution or explanation based on those facts
  3. make a prediction of future events
  4. test the prediction under systematic conditions
What are the "three truths" that evidence-based management is based on?
  1. There are few really new ideas (most supposedly new ideas are old, wrong, or both)
  2. True is better than new (effective organizations and managers are more interested in what is true than new)
  3. Doing well usually dominates (organizations that do simple, obvious, and seemingly trivial things well will dominate)
Describe Joseph Duran's "fitness for use"    refers to a product or service that satisfies the customer's real needs

Describe Mary Parker Follett's idea of "integration"   Refer to a process where conflicts are resolved by having managers and workers talk over differences and find solutions that would satisfy both parties

Various parts that make up a complete system are commonly known as?          subsystems

The goal of quality assurance is?    Zero or NO defects

A(n) _________ system is characterized by the fact that it receives minimal feedback from the external environment.  closed