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Principles of Management Exam 2 – Chapter 2

Who is Peter Drucker?
The creator and inventor of modern management. He gave us a handbook for managing incredibly complex organizations.
Discuss evidence based management.
Evidence-based management means translating principles based on best evidence into organizational practice, bringing rationality to the decision-making process. It involves making management decisions based on evidence.
Describe the two overarching perspectives about management.
1. Historical: The historical perspective includes three viewpoints – classical, behavioral, and quantitative.
2. Contemporary: The contemporary also includes three viewpoints – systems, contingency, and quality-management.
Discuss the classical viewpoint of the historical perspective and its two branches.
The classical viewpoint emphasized ways to manage work more efficiently and had two branches, scientific and administrative.

1. Scientific management was pioneered by Frederick Taylor and the team of Frank and Lilian Gilbreth. It emphasized the scientific study of work methods to improve the productivity of individual workers.

2. Administrative management, pioneered by Henri Fayol and Max Weber, is concerned with managing the total organization.

Know Pg. 43
Who was Frederick Taylor? What is soldiering? How did Taylor believe managers could eliminate soldiering?
Frederick Taylor is known as the father of scientific management. Soldiering is deliberately working at less than full capacity. He believed you could eliminate soldiering by applying the following four principles of science:

1. Evaluate a task scientifically by studying each part
2. Carefully select workers with the right abilities for the task
3. Give workers the training and incentives to do the task properly
4. Use scientific principles to plan the work methods

The system was based on motion studies (breaking down each workers job) and he suggested differential pay (higher wages for more efficient workers).

If used correctly scientific management can enhance productivity.

Who is Henri Fayol and why is he important?
Henri Fayol was the first to identify the major functions of management: planning, organizing, leading, and controlling.
Who is Max Weber and why is he important?
Max Weber’s work influenced the structure of large corporations. He believed an organization should have the following bureaucratic features:
1. A well-defined hierarchy of authority
2. Formal rules and procedures
3. A clear division of labor
4. Impersonality
5. Careers based on merit
What is the problem with the classical viewpoint?
It is too mechanistic. It doesn’t take into account the importance of human needs but rather shows humans as cogs with machines.
Discuss the behavioral viewpoint and its three phases.
The behavioral viewpoint emphasized the importance of understanding human behavior and of motivating employees toward achievement. It developed over three phases: (1) early behaviorism, (2) human relations movement, and (3) behavioral science.
Who is Hugo Muntsberg and why is he important?
Hugo Muntsberg was a psychologist and one of the pioneers of early behaviorism. He believed psychologists could contribute to industry in the following ways:
1. Study jobs and determine which people are best suited to specific jobs
2. Identify the psychological conditions under which employees do their best work
3. Devise management strategies to influence employees to follow management’s interests.
Who was Mary Parker Follett and why is she important?
One of the pioneers of early behaviorism. She proposed that managers and employees should work together cooperatively. She believed:
1. Organizations should be operated as communities with managers and subordinates working together in harmony
2. Conflicts should be resolved through communication and finding solutions that satisfy both parties – process called INTEGRATION
3. Workers should control the work process and managers should act as facilitators.
Who was Elton Mayo? What is the Hawthorne Effect?
Elton Mayo was one of the pioneers of early behaviorism. He conducted and led the Hawthorne studies which concluded that employees work harder if they received added attention, if managers and supervisors showed care toward them.
Discuss the human relations movement and who pioneered it.
The human relations movement is a branch of the behavioral viewpoint, under the historical perspective of management. It was pioneered by Abraham Maslow and Douglas McGregor and proposed that better human relations could increase worker productivity.
Who is Abraham Maslow and why is he important? Who is Douglas McGregor and why is he important?
Maslow proposed the hierarchy of human needs (starting from the bottom): Physiological, safety, love, esteem, and self-actualization. This increases motivation.

Douglas McGregor proposed that managers needed to be aware of their attitudes toward employees through theories called “Theory X” and “Theory Y.” Theory X represents a pessimistic view of workers; a view where workers are irresponsible, lack ambition, hate work, and want to be led rather than lead. Theory Y represents an optimistic, positive view of workers; a view where workers are capable of accepting responsibility, self-direction, self-control, and being imaginative and creative.

Discuss the behavioral science approach.
The behavioral science approach is a branch of the behavioral viewpoint, under the historical perspective of management. It relies on on scientific research for developing theories about human behavior that can be used to provide practical tools for managers. Behavioral science suggests the following:
1. Cooperation is superior to competition in promoting achievement and productivity
2. Cooperation is superior to individualistic efforts in promoting achievement and productivity
3. Cooperation without intergroup competition promotes higher achievement and productivity
Discuss quantitative management and its two branches.
Quantitative management is a viewpoint under historical management and is defined as the application to management of quantitative techniques, such as statistics and computer simulations. The two branches are:
1. Management science
– Focuses on using mathematics to aid in problem solving and decision making (Ex. Determining how many package sorters you need and at what times for delivery service at UPS).
2. Operations management
– Focuses on managing the production and delivery of an organizations’s products or services more effectively
– Concerned with work scheduling, production planning, facilities location and design, and optimum inventory levels
Discuss lean management.
Lean management is a form of operations management that focuses on efficiency. For example, Toyota employs many lean management techniques. It performs VALUE STREAM MAPPING which identifies the many steps in a production process and eliminates the unnecessary ones. They also helped pioneer the JUST-IN-TIME INVENTORY approach, obtaining supplies only as they needed them.
Discuss the systems viewpoint and the four parts of a system.
The systems viewpoint is a viewpoint under the contemporary perspective of management and regards the organization as a system of interrelated parts (Ex. A college is made up of a collection of departments, staff, and students).

The four parts of a system are:
1. INPUTS – people, money, information, equipment, and materials required to produce a good or service
2. TRANSFORMATION PROCESSES – organization’s capabilities in management, internal processes, and technology that are applied to converting inputs into outputs
3. OUTPUTS – products, services, profits, losses, employee satisfaction or discontent (whatever comes out of the system)
4. FEEDBACK – information

Discuss open and closed systems and the complexity theory.
An open system continually interacts with its environment (receives feedback) and a closed system does not (receives very little feedback. The complexity theory is the study of how order and pattern arise from very complicated systems.
Discuss the contingency viewpoint.
The contingency viewpoint emphasizes that a manager’s approach should be contingent on the individual and the environmental situation. Ex.) “What method is best to use under these circumstances.”

Money is not the only way to motivate employees – sometimes a free lunch, or a thank-you note, or some type of quirky perk can be just as effective.

The contingency viewpoint is the most practical because is addresses problems on a case-by-case basis and varies the solution accordingly. The contingency viewpoint requires managers to be mindful, not mindless.

Who is Gary Hamel and why is he important?
He is the cofounder of management innovation lab. He says that management theory is dated and management innovation is essential to future organizational success. He believes management needs to be looked at as a process that can always be improved.
Describe mindlessness and mindfulness.
Mindlessness is characterized by the following:
1. Entrapment in old categories
2. Automatic behavior
3. Acting from a single perspective

Mindfulness means constantly adapting.
1. There is more than one answer
2. Be open to new information
3. Be aware of multiple perspectives

Discuss the quality-management viewpoint and what it consists of.
The quality-management viewpoint is one of three viewpoints under the contemporary perspective of management and consists of:
1. Quality control
– The strategy for minimizing errors by managing each stage of production
– Developed by Walter Shewart
2. Quality assurance
– Focuses on the performance of workers
– Strives for “zero defects”
– Less successful b/c employees often have no control over design of the work process
3. Total quality management
– Pioneered by W. Edwards Deming and Joseph M. Juran
– Comprehensive approach led by top management and supported throughout the organization that is dedicated to continuous quality improvement, training, and customer satisfaction
Who is W. Edwards Deming? Joseph M. Juran?
They are both pioneers of TQM.

Deming believed quality stemmed from: constant focus on the mission, statistical measurement, and reduction of variations in production processes. He believed in teamwork and proposed the 85-15 rule where 85% of the time, what went wrong is the systems fault (system includes machinery, management, and rules) and 15% of the time, the individual is at fault.

Juran defined quality as “fitness for use.” He believed the key was to concentrate on the REAL NEEDS of the customers.

Discuss TQM and its 4 components.
TQM is one of three parts that makes up the quality-management viewpoint of the contemporary management perspective. It is a comprehensive approach – led by top management and supported throughout the organization – dedicated to continuous improvement, training, and customer satisfaction. It’s 4 components are:
1. Make continuous improvement a priority
– Small improvements everyday
2. Get every employee involved
– Helps build teamwork, trust, and mutual respect
3. Listen to and learn from customers and employees
4. Use accurate standards to identify and eliminate problems
– Be alert to how competitors do things better, and then try to improve on them. This is called BENCHMARKING.
What is a learning organization? How do you build one?
A learning organization does three things:
1. Create and acquire knowledge
– Create new ideas
– Scan external environment, hire new talent, devote resources to employee training and development
2. Transfer knowledge
– Share info with each other
– Reduce barriers to sharing info and ideas among employees
3. Modify behavior
– Use new knowledge to change behavior to help achieve goals

Managers must perform the following to build a learning organization:
1. Build a commitment to learning
– Invest in, promote, and reward learning
2. Generate ideas with impact
– Generate 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. Generalize ideas with impact
– Reduce barrier to learning among employees
– Reduce conflict, promote teamwork, increase communication, reward risk taking, reduce fear of failure
– Create a safe and comfortable environment that increases sharing of successes, failures, and best practices

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