Chapter 2 – Management Theory & Practice

What are the Big 3 approaches to management theory and practice?
1. classical
2. behavioral
3. modern
What are the categories of classical management research and who established them?
1. scientific management – Frederick Taylor
2. bureaucratic organization – Max Weber
3. administrative principles – Henri Fayol
What is the assumption of classical management approaches?
people are rational
What are Frederick Taylor’s 4 scientific principles
-develop a “science” for each job
-hire workers with the right abilities
-train and motivate workers (science)
-support workers (based on science)
What is the goal of Frederick Taylor’s scientific management approach?
to secure maximum prosperity for employer and employee
Define motion study
the science of reducing a job or task to its basic physical motions
Explain Max Weber’s bureaucratic organization
-clear division of labor
-hierarchy of authority
-formal rules and procedures
-impersonal
-careers based on management
-key: power = ability to coerce actions, authority = actions taken voluntarily
Why did Weber create his theory?
he was concerned with the idea that people were in positions of authority not because of their job-related capabilities but because of their social standing or “privileged” status in German Society
What is a negative to a bureaucratic organization?
it can become too rigid, focusing on the rules not the business
Explain Henri Fayol’s 5 administrative principles
-foresight/planning
-organization
-command/leadership
-coordination
-control
keys: scalar principle= clear communication all levels of organization, unity of command = one boss per person
What are the three parts to behavioral approaches? Who established them?
-Hawthorne studies: Elton Mayo
-Theory X & Y : Douglas McGregor
-Human Needs Theory: Abraham Maslow
Explain the Hawthorne Effect
-focused on the human side of organizations
-sought to determine how economic incentives and physical conditions of the workplace affected the output of workers
-tendency of persons singled out for special attention to perform as expected
Explain Abraham Maslow’s human needs theory
hierarchy of needs (bottom to top)
-physiological
-safety
-social
-esteem
-self actualization
can’t move to the next one until that one is fulfilled
Define the progression principle and deficit principle
-progression principle: a need at any level becomes activated only after the next-lower-level need is satisfied
-deficit principle: people act to satisfy needs for which a satisfaction deficit exists; a satisfied need doesn’t motivate behavior
Explain Douglas McGregor’s Theory X vs Theory Y
-X dislike work, Y willing to work
-X lack ambition, Y capable/creative
-X follow not lead, Y self-controlled
-X resist change, Y self-directed
-X irresponsible, Y responsible
What are the keys to McGregor’s theories?
1. reflects ways managers manage today
2. practically – a mix of both approaches
What did Argyris suggest?
that workers treated as adults will be more productive
-no one wants to be treated like a child, but thats just the way many organizations treated their workers
What are the four parts of modern approaches to management?
-operations and management science
-customer driven open systems
-contingency thinking
-quality management evidence based management
Explain operations and management science
-analytics is the systematic use and analysis of data to solve problems and make informed decisions
-Big Data
-examples: network models, forecasting, inventory analysis, queuing theory, linear programming
Explain customer driven open systems
-resources are used by the business to create an output to customers
-inputs: people, money, materials, technology, information
-work = resource to outputs
-outputs: finished goods, completed services
-customers give feedback
Explain Zara
-2 week design cycle – usually 6 months
-design imitator
-attractive price points
-“fast fashion”
-2000+ stores in 87 countries
Explain contingency thinking
“what if” thinking
-tries to match management practices with situational demands
-recognizes that the structure that works well for one organization may not work well for another and different circumstances
Explain quality management evidence based management
-six sigma: tools and methodologies to improve any process
-lean principles: tools and methods to reduce waste in any process
-high performance organizations
-quality management