Principles of Management Exam 2 – Chapter 2
2. Contemporary: The contemporary also includes three viewpoints – systems, contingency, and quality-management.
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.
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.
1. A well-defined hierarchy of authority
2. Formal rules and procedures
3. A clear division of labor
5. Careers based on merit
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.
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.
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.
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
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
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
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.
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
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
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.
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.
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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