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© 2009 South-Western, Cengage Learning
• Identify two key assumptions supporting the universal process approach, and briefly describe Henri Fayol’s contribution. • Discuss Frederick W. Taylor’s approach to improving the practice of industrial management. • Identify at least four key quality improvement ideas from W. Edwards Deming and the other quality advocates. • Describe the general aim of the human relations movement and explain the circumstances in which it arose. • Explain the significance of applying open-system thinking to management. • Explain the practical significance of adopting a contingency perspective.
© 2009 South-Western, Cengage Learning 2|2
Management is a Global Affair
The contributors to management theory and practice have come from around the globe.
© 2009 South-Western, Cengage Learning 2|3
– Today. mathematics.The Practice and Study of Management • The Egyptian pyramids required managed effort. • The systematic study of management started only during the 20th century. and engineering. history. • An Interdisciplinary Field – The multiple increase in management theory information is due largely to its interdisciplinary nature or contributions from several fields such as psychology. • Information Overload – Management has not had a systematically recorded body of knowledge until recently. economics. Cengage Learning 2|4 . vast amounts of relevant information are readily available in print and electronic media. © 2009 South-Western.
– The universal process approach – The operational approach – The behavioral approach – The systems approach – The contingency approach © 2009 South-Western. Cengage Learning 2|5 .No Universally Accepted Theory of Management There are several approaches to the theory and practice of management.
• Core management process remains the same regardless of the purpose of the organization. © 2009 South-Western. • The management process can be reduced to a set of separate functions and related principles. Cengage Learning 2|6 .The Universal Process Approach Universal Process Approach – Assumes all organizations require the same rational management process.
© 2009 South-Western. Cengage Learning 2|7 .Henri Fayol’s Universal Management Process – Fayol divided a manager’s job into five functions: • Planning • Organizing • Command • Coordination • Control – He developed 14 universal principles of management.
© 2009 South-Western. Cengage Learning 2|8 .
– The functional approach is useful because it specifies what managers should do. © 2009 South-Western.Henri Fayol’s Universal Management Process (cont’d) Lessons from the Universal Process Approach – The management process can be separated into interdependent functions. – Management is a continuous process beginning with planning and ending with controlling. Cengage Learning 2|9 .
The Operational Approach Frederick W. Taylor’s Scientific Management – Developing performance standards on the basis of systematic observations and experimentation • Standardization of work practices and methods to reduce waste and increase productivity • Time and task study of workers’ efforts to maximize productivity and output • Systematic selection and training of workers to increase efficiency and productivity • Differential pay incentives based on established work standards © 2009 South-Western. Cengage Learning 2 | 10 .
Taylor’s Followers • Frank and Lillian Gilbreth (THERBLIGS) – Refined time and motion study methods for use in work simplification • Henry L. Gantt – Refined production control and cost-control techniques – Developed the Gantt chart for work scheduling of projects © 2009 South-Western. Cengage Learning 2 | 11 .
Edwards Deming – Based his 14 principles on reformed management style. Shewhart – Introduced the concept of statistical quality control • Kaoru Ishikawa – Proposed a preventive approach to quality – Developed fishbone diagram approach to problem solving • W. and striving for continuous improvement © 2009 South-Western. Cengage Learning 2 | 12 . employee participation.The Quality Advocates • Walter A.
Crosby – Promoted the idea of zero defects (doing it right the first time) © 2009 South-Western. and brainstorming – Developed Pareto analysis (the 80/20 rule) as a tool for separating major problems from minor ones • Armand V. Cengage Learning 2 | 13 . Feigenbaum – Developed the concept of total quality control • Philip B.The Quality Advocates (cont’d) • Joseph M. teamwork. partnerships with suppliers. Juran – Proposed the concept of internal customers.
The Operational Approach • Lessons from the Operational Approach – A dedication to finding a better way is still important. © 2009 South-Western. Cengage Learning 2 | 14 . have been right all along about the importance of quality and continuous improvement. – The operational approach fostered the development of operations management. – Quality advocates. – Using scientific management doesn’t dehumanize workers. inspired by the scientific approach.
Cengage Learning 2 | 15 .The Behavioral Approach • The Human Relations Movement – An effort to make managers more sensitive to their employees’ needs – Arose out of the influences of • The threat of unionization • The Hawthorne studies • The philosophy of industrial humanism © 2009 South-Western.
Cengage Learning 2 | 16 .The Human Relations Movement Pyramid © 2009 South-Western.
• The Hawthorne Studies (1924) – The study’s results that productivity was strongly affected by workers’ attitudes turned management toward the humanistic and realistic viewpoint of the “social man” model. Cengage Learning 2 | 17 . promoting the growth of unions and union avoidance by firms. © 2009 South-Western.The Behavioral Approach (cont’d) • The Threat of Unionization – The Wagner Act of 1935 legalized unionmanagement collective bargaining.
© 2009 South-Western. • Mary Parker Follett – Cooperation. Cengage Learning 2 | 18 .The Philosophy of Industrial Humanism • Elton Mayo – Emotional factors were more important determinants of productive efficiency than were physical and logical factors. spirit of unity and self-control are the keys to productivity.
The Philosophy of Industrial Humanism (cont’d) • Douglas McGregor – Developed Theory X and Theory Y • Theory X: Management’s traditionally negative view of employees as unmotivated and unwilling workers • Theory Y: The positive view of employees as energetic. creative. and willing workers © 2009 South-Western. Cengage Learning 2 | 19 .
Cengage Learning 2 | 20 .© 2009 South-Western.
– Managerial sensitivity to employees is necessary to foster the cooperation needed for high productivity. – Success depends on motivated and skilled individuals committed to the organization.Organizational Behavior • Organizational Behavior – A modern research-oriented approach seeking to discover the causes of work behavior and to develop better management techniques • Lessons from the Behavioral Approach – People are the key to productivity. © 2009 South-Western. Cengage Learning 2 | 21 .
Cengage Learning 2 | 22 .The Systems Approach • What Is a System? – A collection of parts operating interdependently to achieve a common purpose • Systems Approach – The performance of the whole is greater than the sum of the performance of its part. © 2009 South-Western. – Seeks to identify all parts of an organized activity and how they interact.
Barnard’s Early Systems Perspective – Characterized all organizations as cooperative systems – Defined principal elements in an organization as • Willingness to serve • Common purpose • Communication – Strong advocate of business ethics © 2009 South-Western. Cengage Learning 2 | 23 .The Systems Approach Chester I.
Cengage Learning 2 | 24 . – Identification of systems at various levels helps translate abstract systems theory into more concrete terms.General Systems Theory • General Systems Theory – An interdisciplinary area of study based on the assumptions that everything is part of a larger. interdependent arrangement • Levels of systems – Each system is a subsystem of the system above it. © 2009 South-Western.
General Systems Theory (cont’d) Closed Versus Open Systems: – Closed system: A self-sufficient entity – Open system: Something that depends on its surrounding environment for survival © 2009 South-Western. Cengage Learning 2 | 25 .
– Manager should not become preoccupied with one aspect of organizational management while ignoring other internal and external realities. Cengage Learning 2 | 26 . – The systems approach tries to integrate various management theories.Systems Approach • Lessons from the Systems Approach – Managers now have a greater appreciation for the importance of seeing the whole picture. © 2009 South-Western.
Cengage Learning 2 | 27 . © 2009 South-Western.The Contingency Approach • Contingency Approach Also called Situational Approach. A research effort to determine which managerial practices and techniques are appropriate in specific situations.
The Contingency Approach Lessons from the Contingency Approach – Approach emphasizes situational appropriateness rather than rigid adherence to universal principles – Approach creates the impression that an organization is captive to its environment © 2009 South-Western. Cengage Learning 2 | 28 .
• The operational approach has evolved from scientific management to operations management. • By definition. • The universal approach to management suggests that the administration of companies requires the same rational process. © 2009 South-Western. • Quality advocates teach the strategic importance of high-quality goods and services. • Management has turned to the human factor in the human relations movement and organizational behavior approach. Cengage Learning 2 | 29 . the operational approach is oriented toward the production area of management.Summary • Management is an interdisciplinary and international field that has evolved over the years.
Summary (cont’d) • Under the systems approach. modern organizations are viewed as open systems. © 2009 South-Western. Cengage Learning 2 | 30 . • The contingency approach stresses situational appropriateness rather than universal principles.
Cengage Learning 2 | 31 .End of Chapter 2 © 2009 South-Western.
subject.ASSIGNMENT (Chapter 3) Describe the impact of TECHNOLOGICAL ENVIRONMENT (CHANGE) to you as a manager and to your organization. Requirements: • Write your name & section. prelim assignment#02 and date at the top. Cengage Learning 2 | 32 . • Write clearly & legibly in BIG letters • Use 1 sheet yellow paper • Essay format • To be submitted on Friday. July 08 © 2009 South-Western.
Cengage Learning 2 | 33 . How will #1 affects your organization if changes will be adapted? 3. How will #1 affects your organization if changes will not be adapted? Will your organization still be competitive? © 2009 South-Western.1. 2. Identify future technological changes in your organization.
Identify and explain at least 5 of Henry Fayol’s 14 Universal Principles of Management © 2009 South-Western. the central focus of organized activity should be people (operations approach. Douglas McGregor) 6 -10. behavioral. Management is studied by _______ theorists. Systems Approach. According to advocates of _______. who put things together and assume that the whole is greater than the sum of its parts (systems. Elton Mayo. Henry Fayol. parallel) 3.Quiz no. Cengage Learning 2 | 34 . scientific management) 5. Edwards Deming recommended _______ improvement for all types of operations (continuous. Behavioral Approach. behavioral approach. Operational Approach. training. Universal Process Approach) 2. segmented. scientific management. 2 . W. economic. universal process. Frederick Taylor. universal process approach.The Evolution of Management Thought Choose the correct Answer: (1 – 5) (10% each ) 1. quality control management) 4. ________ also called situational approach states that different situations require different practices to deal with a given situation (Contingency Approach. human relations. ________ developed Theory X & Theory Y (Mary Parker Follett.
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