MGT 3100 Chapter 2

The practice of management is both an art and a science
Proponents of evidence-based management would say there are few really new ideas
Evidence-based management means translating principles from promising new theories into organizational practice.
Peter Drucker was the author of The Practice of Management and has been described as the creator and inventor of modern management.
Part of evidence-based management is understanding the potential danger in conventional wisdom about management.
The contemporary perspective of management includes three viewpoints: systems, behavioral, and quantitative.
The quantitative viewpoint on management is part of the historical perspective.
Because of radical changes to modern business practice, theoretical perspectives of management provide a historical context but unfortunately do not enhance understanding of the present.
Studying theoretical perspectives of management can be a source of new ideas.
Shanice recently took a management job in the book publishing industry, which is undergoing dramatic change. She should study theoretical perspectives of management to help her predict some of the probable outcomes of this change and help her decide on potential strategy going forward.
Telecommunication company Cisco Systems abandoned its “management councils” experiment, which had replaced a traditional hierarchical structure, because the councils slowed decision making.
The classical viewpoint emphasized ways to manage work more independently.
Frank and Lillian Gilbreth were chief proponents of administrative management.
A “therblig,” a term coined by Frank Gilbreth, is a unit of motion in the workplace.
The two branches of the classical viewpoint of management are rational and bureaucratic.
The central assumption in classical management is that people are self-interested.
Peter was having a hard time concentrating on work on Friday afternoon. He had friends visiting for the weekend and he kept checking his phone and his Facebook page to solidify his plans. He certainly wasn’t working as hard as he could have been, something that scientific management theorist Frederick Taylor would have called “soldiering.”
Motion studies were used to assess and improve efficiency as part of the classical viewpoint
As part of the scientific management viewpoint, Taylor suggested paying all employees doing the same job the same wage.
Under the differential rate system proposed by Frederick Taylor, employees should be paid on the basis of seniority.
Administrative management is most concerned with the jobs of individuals
The first person to identify the major functions of management was Henri Fayol.
Bureaucracy, as conceptualized by Max Weber, was his ideal way to structure an organization.
Max Weber felt that impersonality was a positive attribute of an organization that would lead to better performance.
One of the problems with the classical viewpoint is that its principles are too focused on human needs rather than on organizational ones.
Fast-food companies including McDonald’s have used job specialization, and time and motion studies to increase productivity. This reflects the important contributions of the quantitative viewpoint of management.
Motivating employees toward achievement is a focus of the classical viewpoint of management.
Douglas McGregor was one of the pioneers of early behaviorism.
Hugo Munsterberg suggested that psychologists could contribute to industry by studying jobs and determining which people are best suited to specific jobs.
Among Mary Parker Follett’s most important contributions to management was her belief that conflicts within organization should be resolved to mutual satisfaction through a process called integration.
The idea that workers become more productive if they think that managers care about their welfare is called the “Hawthorne Effect.”
The Hawthorne studies have been criticized for poor design and a lack of empirical data to support the conclusions, so the findings cannot be applied to modern management.
Abraham Maslow and Douglas McGregor were theorists in the human relations movement.
Abraham Maslow would say that some human needs must be satisfied before others.
Jaclyn is a manager who keeps a tight rein on her staff since she thinks they would not work without supervision. She doubts their commitment to the company and even to their own development. She is a Theory Y manager.
Because the human relations movement was considered too simplistic for practical use, it has been superseded by the behavioral science approach to management.
The management theory that draws from the disciplines of psychology, sociology, anthropology, and economics is the management science approach.
Behavioral science research has shown that competition is superior to cooperation in promoting achievement and productivity.
The behavioral science approach to management has its roots in techniques created for American and British military personnel and equipment in World War II.
The application to management of techniques such as statistics and computer simulations is known as quantitative management.
Oscar is a manager of a downtown hotel and is currently considering the pricing of rooms for the upcoming holiday season. He would be wise to use the mathematical tools of management science to help him with this decision.
Facilities management is concerned with work scheduling, productions planning, and optimal levels of inventory.
Over the years, Toyota has used a variety of operations management-based “lean management” techniques to sell its cars on the basis of superior quality.
A set of interrelated parts that operate together to achieve a common purpose is called a system.
For a jewelry designer, gold and silver rings, earrings, and bracelets are considered system inputs.
Feedback is one of the four parts of a system.
Sales data would be considered feedback in a system.
In a closed system, an organization’s outputs are recycled to become inputs.
Netflix’s business suffered when it failed to use an open system in its decision to introduce a large price increase while simultaneously splitting its DVD mail service from its streaming one.
One reason for the success of the Tommy Hilfiger clothing brand in the 1990s was maintaining a closed system with respect to young consumers’ feedback by conducting research in music clubs.
Continuous learning in an organization is more likely to occur in an open system than in a closed one.
The contingency viewpoint began to develop when managers discovered that a variety of different mathematical models can be applied for problem solving and decision making.
The manager following the contingency viewpoint would ask, “What management method is the best to use under these particular circumstances?”
Gary Hamel, cofounder of the Management Innovation Lab, believes than management innovation can be improved by identifying and sometimes challenging core beliefs that people have about an organization.
According to Harvard psychology professor Ellen Langer, one barrier to flexibility is mindlessness.
The total ability of a product or service to meet customer needs is known as functionality.
Quality control focuses on the performance of workers, urging employees to strive for “zero defects.”
Deming and Juran were part of the quality-management movement.
An important source of information about quality in total quality management is competitors.
A learning organization is one that actively creates, acquires, and transfers knowledge within itself and is able to modify itself to reflect new knowledge.
An information organization has three parts: creating and acquiring knowledge, transferring knowledge, and modifying behavior.
Among the functions of a manager in a learning organization are generating and generalizing ideas with impact.
“True is better than new” is one of the truths of
evidence-based management.
________ management means translating principles based on best evidence into organizational practice, bringing rationality to the decision-making process.
Classical, behavioral, and quantitative viewpoints about management are collectively referred to as the ________ perspective.
The contemporary perspective includes which of the following viewpoints?
A good reason for studying theoretical perspectives of management is that it
provides clues to the meaning of your managers’ decisions.
Scientific and administrative management are part of the ________ viewpoint.
______ emphasized the scientific study of work methods to improve productivity of individual workers.
Scientific management
Frank and Lillian Gilbreth identified 17 basic units of ______, each of which they called a “therblig.”
Fredrick Taylor and the Gilbreths were proponents of which of the following?
Scientific management
Taylor called the tendency for people to deliberately work at less than full capacity
Which of the following is not one of the principles proposed by Fredrick Taylor to eliminate soldiering?
Reward employees equally and consistently.
Melissa runs a residential-cleaning service and has noticed that some of her staff are much more efficient than others and can clean a house in about half the average time. She would like to reward these workers with a higher wage by implementing what would be known by Taylor as a(n)
differential rate system.
Which of the following is not a part of Fredrick Taylors’s work in scientific management?
Hierarchy of human needs
__________ was concerned with managing the total organization and was pioneered by Fayol and Weber.
Administrative management
Of the following, which is one of the functions of management described by Fayol?
Which of the following was a positive feature of bureaucracy, according to Max Weber?
Clear division of labor.
The most significant flaw in the classical viewpoint is that it
discounts the importance of human needs.
The essence of the classical viewpoint is that
a rational approach can be used to boost productivity.
McDonald’s ability to deliver food quickly and inexpensively has its roots in which management theory?
Classical viewpoint
Which of the following viewpoints emphasized the importance of understanding human actions and of motivating employees toward achievement?
Behavioral viewpoint
Which of the following is one of the phases in the development of the behavioral viewpoint?
Human relations movement
Who was known as “the father of industrial psychology”?
Hugo Munsterberg
Camille runs a consulting business that assists in the hiring process, using a team of psychologists to help companies to better understand their specific jobs and the type of employees that are best suited to fill them. Her business relies on the work of which behavioral theory pioneer?
Hugo Munsterberg
Among the recommendations of Mary Parker Follett was that
integration should occur in organizations when conflicts arise.
The idea that the work process should be under the control of workers with the relevant knowledge, rather than that of managers, who should act as facilitators, was developed by
Mary Parker Follet.
Which research, though flawed, drew attention to the idea that managers using good human relations could improve worker productivity?
The Hawthorne studies
Who proposed the hierarchy of human needs as a theory of motivation?
An optimistic view of workers that envisions them as capable of accepting responsibility and working in a self-directed manner is representative of
Theory Y.
Amanda was a tough manager and made it a regular practice to check up on her staff, looking for cheating on timesheets and people coming back late from lunch. Her employees were often dissatisfied with Amanda since she was a(n) ________ manager.
Theory X
Behavioral science relies on __________ for developing theories about human behavior that can help managers.
scientific research
Which of the following is a discipline that is part of behavioral science?
Behavioral science research suggests that ________ doesn’t necessarily promote excellence, and actually can make people hostile.
Applying techniques like statistics and computer simulations to management are characteristic of the ______ viewpoint.
______ focuses on using mathematics to aid in problem solving and decision making.
Management science
The tools of ______ are useful for UPS and FedEx in deciding how many employees and aircraft should be scheduled during the month of December.
management science
Matt has developed a mathematical model for the film distribution company that employs him. The model will help in determining release dates and the desirable number of screens for new movies. This model is an application of
management science.
______ focuses on managing the production and delivery of an organization’s products or services more effectively.
Operations management
Alyssa works for a large amusement park and is in charge of scheduling the sizable staff, including ride attendants, food service and janitorial employees, and character actors, in an effective manner. This work is typical of
operations management.
Systems, contingency, and quality-management viewpoints are part of the ________ perspective.
The ______ viewpoint sees organizations as entities made up of interrelated parts known as inputs, outputs, transformation processes, and feedback.
Even though the Russian government is inefficient in the way it collects taxes, it is still an example of a(n)
Curran Investments has had a very profitable year in its business of providing financial advice. The profit would be considered a(n) ______ of the system.
Marcus works on an assembly line for a U.S. automobile manufacturer. He would be considered a(n) ______ of this system.
David is an architect, and the steps he takes in designing and drawing commercial buildings would be considered which part of his organization’s system?
a transformation process
Customers lined up for hours to be among the first to purchase the new iPad. The excitement for the product would be considered ______ in the system.
A(n) _______ system continually interacts with its environment.
Both the classical management view and the management science perspective consider an organization to be a(n) ________; as a simplification for analysis this may work, but in reality it would open up the organization to spectacular failure.
closed system
Many technology companies are hesitant to involve customers in the development of their products, since they are trying to protect their latest products and ideas from competitors’ attempts to replicate them. This typically results in a fairly ______ system.
The study of how order and pattern arise from very complicated, apparently chaotic systems is known as
complexity theory.
The ________ viewpoint emphasizes that a manager’s actions should vary according to the situation.
Over her years as a manager, Rose has had a very diverse group of employees; some were very interested in the financial rewards the company offered while others really would prefer extra time off or even to be recognized at the monthly department meetings. Rose should consider the ______ viewpoint of management in this case.
Which of the following approaches is characteristic of a manager using the contingency viewpoint?
Assessing the characteristics of particular situation before deciding what to do.
Gary Hamel believes that identifying and challenging debilitating core beliefs that people have about an organization can be helpful in improving management
“Mindfulness” is characterized by which of the following attributes?
Active engagement.
The strategy for minimizing errors by managing each stage of production is called
quality control.
Statistical sampling to locate errors by testing just some of the items in a particular production run is a ______ technique.
quality control
The fact that employees often have no control over work process design limits their ability to achieve zero defects, or
quality assurance.
According to Deming, quality stemmed from a steady focus on the organization’s mission and
a reduction in production variation.
Deming proposed that when something goes wrong, chances are __________ that the system is at fault, and __________ that the individual worker is at fault.
85%; 15%
Joseph Juran defined quality as ________, which meant that a product or service should satisfy a customer’s real needs.
fitness for use
The comprehensive approach dedicated to continuous quality improvement, training, and customer satisfaction is known as
total quality management.
Which of the following is not a component of TQM?
Urge employees to strive for “zero defects.”
The term learning organization was coined by
Organizations that actively create, acquire, and transfer knowledge within themselves and are able to modify their behavior to reflect this new knowledge are called __________ organizations.
Managers at Montaigne Prefecture Glass needed to take some important steps to get out ahead of the growing competition. Recently, new talent had been hired, the training and development budget had been doubled, and cross-functional teams were added to improve information flow. It appears that Montaigne is attempting to become a ______ organization.
Travis, an accounting manager at a hospital equipment company, has just attended software training where he learned new processes that could benefit his staff. On the plane home he began planning how he would train everyone in order to help the department reach its goals. Travis’s approach is most characteristic of what type of organization?
A learning organization.
Scott works for an organization that describes itself as a “learning organization.” As a manager, which of the following actions is Scott most likely to take while working for this organization?
When Scott needs another employee, he deliberately looks for someone who will bring something new to the organization.
To create a learning organization, managers must perform three key functions or roles: build a commitment to learning, work to generate ideas with impact, and
work to generalize ideas with impact.
Which of the following is most likely to help build a learning organization?
Create a psychologically safe environment.
How is management both an art and a science?
Intuition, judgment, and experience are part of the successful mix of effective management. These factors are more “art” than science, and may exist in a manager without actual training in management. However, management also uses the scientific method; it observes and gathers facts, makes decisions based on the facts, makes predictions of future events, and tests the prediction under systematic conditions. These are parts of the “science” of management.
Why should one study different theoretical perspectives about management? Give at least three reasons.
There are five good reasons for studying theoretical perspectives. The student may give any three of the following: (1) understanding of the present, (2) guide to action, (3) source of new ideas, (4) clues to meaning of your managers’ decisions, (5) clues to meaning of outside events.
Describe the fundamental ideas underlying the classical viewpoint to management, and give at least one example of a modern practice that has its roots in this view. Compare and contrast its two approaches.
The classical viewpoint is based on the assumption that people are rational. The essence of the classical viewpoint was that work activity was amenable to a rational approach, that through the application of scientific methods, time and motion studies, and job specialization it was possible to boost productivity. The classical viewpoint also led to such innovations as management by objectives and goal setting, as we explain elsewhere.

The two major approaches are the scientific management approach and the administrative approach.

Scientific management emphasized the scientific study of work methods to improve the productivity of individual workers. Two of its chief proponents were Frederick W. Taylor and the team of Frank and Lillian Gilbreth. Taylor used motion studies and suggested using a differential rate system. The Gilbreths expanded on Taylor’s motion studies.

Administrative management is concerned with managing the total organization. Among the pioneering theorists were Henri Fayol, who identified the major functions of management, and Max Weber, who advocated five positive bureaucratic features.

Explain the ideas emphasized by the behavioral viewpoint. List the three phases of development of the behavioral viewpoint and discuss at least one major contribution and its pioneer from each of the first two phases.
The behavioral viewpoint emphasized the importance of understanding human behavior and of motivating employees toward achievement. The three phases include the early behaviorism, the human relations movement, and behavioral science.

Students should describe at least one of the following: The three people who pioneered behavioral theory were Hugo Munsterberg, Mary Parker Follett, and Elton Mayo. Hugo Munsterberg was the first to apply psychology to industry and is called “the father of industrial psychology.” Mary Parker Follet believed that organizations should become more democratic, with managers and employees working cooperatives. She anticipated some of today’s concepts of “self-managed teams,” “worker empowerment,” and “interdepartmental teams.” Elton Mayo conducted the Hawthorne studies, which demonstrated the Hawthorne effect, in which employees worked harder if they received added attention, if they thought that managers cared about their welfare or that supervisors paid special attention to them.

Students should describe at least one of the following: The two theorists who contributed most to the human relations movement, which proposed that better human relations could increase worker productivity, were Abraham Maslow and Douglas McGregor. Abraham Maslow developed the hierarchy of needs in his research to study motivation. Douglas McGregor developed Theory X versus Theory Y to explain managers’ attitudes toward employees.

Explain the emphasis of the quantitative viewpoint. Describe the two major approaches to this viewpoint.
The quantitative viewpoint emphasizes that mathematically based techniques can help managers be more effective. The two approaches of quantitative management are management science and operations management. 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.
Describe the systems viewpoint and provide examples of each of the four associated parts using a real or fictitious company.
The systems viewpoint sees organizations as a system, either open or closed, with inputs, outputs, transformation processes, and feedback.

Inputs are the people, money, information, equipment, and materials required to produce an organization’s goods or services. Example: For a jewelry designer—designer, money, artistic talent, gold and silver, tools, marketing expertise.

Transformational processes are the organization’s capabilities in management and technology that are applied to converting inputs into outputs. Example: Designer’s management skills (planning, organizing, leading, controlling), gold and silver smithing tools and expertise, website for marketing.

Outputs are the products, services, profits, losses, employee satisfaction or discontent, produced by the organization. Example: Gold and silver rings, earrings, bracelets, and the like.

Feedback is the information about the reaction of the environment to the outputs, which affects the inputs. Example: Web customers like African-style designs or dislike imitation Old English designs.

Why is the contingency viewpoint important?
The contingency viewpoint is important because it seems to be the most practical of the viewpoints. It addresses problems on a case-by-case basis and varies the solution accordingly.
Describe total quality management, and list at least three of the four components of it that are used by organizations to implement it.
Total quality management (TQM) is a comprehensive approach, led by top management and supported throughout the organization, dedicated to continuous quality improvement, training, and customer satisfaction. The four components of TQM are as follows: 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
What is a learning organization? What competitive advantage do learning organizations hold?
A learning organization is one that actively creates, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge. Learning organizations can adapt more quickly to changing conditions in the environment, and bring the knowledge and experience of a wide range of employees to bear on new problems. Organizations must continually learn new things or face obsolescence.