Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin

Management A Practical Introduction

Third Edition

Angelo Kinicki & Brian K. Williams

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin2

Chapter 2: Management Theory

Essential Background For Managers

How We Got To Where We Are TodayClassical ViewpointBehavioral ViewpointQuantitative ViewpointSystems ViewpointContingency ViewpointThe Learning Organization

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin3

2.1 Evolving Viewpoints: How We Got To Today’s Management Outlook

WHY STUDY MANAGEMENT THEORIES?

Understanding theoretical perspectives of management: helps us understand the presentprovides a guide to actionprovides a source of new ideasgives clues to the meaning of managers’ ideas gives clues to the meaning of outside events

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin4

2.1 Evolving Viewpoints: How We Got To Today’s Management Outlook

Two perspectives of management are: the historical which includes three views—classical, behavioral, and quantitativethe contemporary which includes three views—systems, contingency, and quality-management

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin5

2.2 Classical Viewpoint: Scientific & Administrative ManagementFigure 2.1: The Historical Perspective

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin6

2.1 Evolving Viewpoints: How We Got To

Today’s Management Outlook

IS MANAGEMENT AN ART OR A SCIENCE?

Management is both an art and a science

Evidence based management involves:observing events and gathering factsposing solutions or explanations based on those factsmaking predictions of future eventstesting predictions under systematic conditions

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin7

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEM

Which of the following is a contemporary perspective of management?

A) behavioralB) classicalC) contingencyD) quantitative

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin8

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEM

Which of the following is a contemporary perspective of management?

A) behavioralB) classicalC) contingencyD) quantitative

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin9

2.2 Classical Viewpoint: Scientific & Administrative Management

WHAT IS THE CLASSICAL VIEWPOINT?

The classical view of management emphasizes finding ways to manage work more efficiently using two approaches:scientific - emphasizes the scientific study of work methods to improve productivityadministrative - concerned with managing the total organization

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin10

Scientific Management

Frederick TaylorTime-Motion

Gantt ChartsGilbreths

Principle of Motion Economy

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin11

2.2 Classical Viewpoint: Scientific & Administrative Management

Frank and Lillian Gilbreth and Frederick W. Taylor pioneered scientific management (emphasized the study or work methods to improve the productivity of individual workers)

Frank & Lillian Gilbreth focused on improving efficiency, and popularized their ideas in the book (and later, the movie), ‘Cheaper by the Dozen’

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin12

2.2 Classical Viewpoint: Scientific & Administrative Management

Frederick Taylor believed that managers could eliminate underachievement, which he called soldiering, by

1. evaluating a task scientifically

2. matching worker ability with the task

3. providing training and incentives

4. using scientific principles to plan work methods and make it easier for workers to do their jobs

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin13

HENRI FAYOL

MAX WEBER

Administrative Management

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin14

2.2 Classical Viewpoint: Scientific & Administrative Management

Administrative management was pioneered by Henri Fayol and Max Weber, and is concerned with managing the total organizationFayol identified the major functions of management: planning, organizing, leading, controlling, and coordinatingWeber believed that an organization should have:

a well-defined hierarchy of authority, formal rules and procedures, a clear division of labor, impersonality, and careers based on merit

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin15

Fayol’s Principles of Organization

Unity of Command

Hierarchy of Authority

Division of LaborSubordination of

Individual InterestAuthority

Degree of Centralization

Communication Channels

OrderEquityEsprit de Corps

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin16

Weber’s Organizational PrinciplesJob DescriptionsWritten Rules, decision

guidelines, and policiesConsistent Procedures,

Regulations, PoliciesStaffing/Promotions based

on Qualifications

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin17

2.2 Classical Viewpoint: Scientific & Administrative Management

THE PROBLEM WITH THE CLASSICAL VIEWPOINT: TOO MECHANISTIC

The classical theory essentially argued that by applying the scientific method, time and motion studies, and job specialization, productivity could be raisedHowever, this view may be too mechanistic because it fails to consider human needs

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin18

2.3 Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science

WHAT IS THE BEHAVIORAL VIEWPOINT?

The behavioral viewpoint of management emphasized the importance of understanding human behavior and of motivating employees toward achievement This perspective was developed over three phases: early behaviorism, the human relations movement, and behavioral science Behavioral theory was pioneered by Hugo Munsterberg, Mary Parker Follett, and Elton Mayo

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin19

2.3 Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science

Munsterberg believed that psychologists could contribute to industry by:

1. studying jobs and identifying people suited to them

2. identifying the psychological conditions under which employees do their best work

3. devising management strategies to encourage employees to follow management’s interests

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin20

2.3 Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science

Follett believed that:

1. organizations should operate as communities with managers and employees working cooperatively

2. organizations should resolve conflicts through integration where managers and workers talked over differences

3. managers should be facilitators, and workers should control the work process

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin21

2.3 Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science

Mayo developed a theory known as the Hawthorne Effect which suggested that employees worked harder if they felt that managers cared about their welfare and paid attention to them

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin22

2.3 Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science

Abraham Maslow and Douglas McGregor pioneered the human relations movement which proposed that better human relations could increase worker productivity

Maslow argued that people are motivated by a hierarchy of human needs: physiological, safety, social, esteem, and self-actualization

McGregor theorized that a manager’s attitudes toward employees could either be Theory X (pessimistic, negative), or Theory Y (optimistic, positive)Understanding the theory can help managers avoid attitudes that become self-fulfilling prophecies

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin23

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEM

Understanding human resource behavior and motivating employees toward achievement is part of the

A) classical viewpoint

B) administrative viewpoint

C) management science viewpoint

D) behavioral viewpoint

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin24

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEM

Understanding human resource behavior and motivating employees toward achievement is part of the

A) classical viewpoint

B) administrative viewpoint

C) management science viewpoint

D) behavioral viewpoint

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin25

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEM

Who argued that people are motivated by a hierarchy of human needs?

A) FayolB) MaslowC) GilbrethD) Mayo

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin26

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEM

Who argued that people are motivated by a hierarchy of human needs?

A) FayolB) MaslowC) GilbrethD) Mayo

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin27

2.3 Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science

The human relations movement was considered too simplistic for practical use It was replaced by the behavioral science approach which relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin28

2.4 Quantitative Viewpoints: Management Science & Operations Research

WHAT IS THE QUANTITATIVE VIEWPOINT?

Quantitative management focuses on the application to management of quantitative techniques such as statistics and computer simulations Two branches of quantitative management are management science and operations management

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin29

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEM

Operations management is an example of

A) The classical view

B) Management science

C) The quantitative view

D) The human relations movement

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin30

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEM

Operations management is an example of

A) The classical view

B) Management science

C) The quantitative view

D) The human relations movement

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin31

2.4 Quantitative Viewpoints: Management Science & Operations Research

MANAGEMENT SCIENCE AND OPERATIONS RESEARCH

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

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin32

Contemporary Perspective

WHAT IS THE CONTEMPORARY PRESPECTIVE?

There are three contemporary management perspectives: systems, contingency, and quality-management

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin33

Contemporary Perspective

Figure 2.2: The Contemporary Perspective

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin34

2.5 Systems Viewpoint

A system is a set of interrelated parts that operate together to achieve a common purposeThe systems viewpoint sees the organization as a system of interrelated partsThus, an organization is both a collection of subsystems (parts making up the whole system) and a part of the larger environment

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin35

2.5 Systems Viewpoint

There are four parts in a system:inputs (the people, money, information, equipment, and materials required to produce an organization’s goods or services)outputs (the products, services, profits, losses, employee satisfaction or discontent that are produced by the organizationtransformation processes (the organization’s capabilities in management and technology that are applied to converting inputs into outputs)feedback (information about the reaction of the environment to the outputs that affect the inputs)

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin36

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEM

All of the following are part of a system except

A) inputs

B) feedback

C) outputs

D) contingency processes

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin37

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEM

All of the following are part of a system except

A) inputs

B) feedback

C) outputs

D) contingency processes

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin38

2.5 Systems Viewpoint

An open system continually interacts with its environmentA closed system has little interaction with its environment

Organizations that ignore feedback from the environment are vulnerable to failure

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin39

Chapter 2: Management Theory

CLASSROOM PERFORMANCE SYSTEM

The classical management viewpoint sees the organization as

A) a contingency systemB) a transformation systemC) an open system D) a closed system

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin40

2.6 Contingency Viewpoint

WHAT IS THE CONTINGENCY VIEWPOINT?

According to the contingency viewpoint of management, a manager’s approach should vary according to the individual situation and the environmental situation

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin41

2.7 Quality-Management Viewpoint

WHAT IS THE QUALITY-MANAGEMENT VIEWPOINT?

The quality-management viewpoint of the contemporary perspective includes quality control, quality assurance, and total quality management Quality is the total ability of a product or service to meet customer needs, and is one of the best ways to add value to a product and differentiate it from othersQuality control is the strategy for minimizing errors by managing each stage of productionQuality assurance focuses on the performance of workers, and emphasizes a goal of zero defects

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin42

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McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Quality Control Standards

Six Sigma () Quality 3.6M defects per million events

Statistical Quality Control (SQC) Continually monitor all phases of production process for quality

Statistical Process Control (SPC) Sample components at each stage and plotting results on a

graph; eliminates need for QC inspection at the end - Deming Cycle (PDCA).

Quality Function Deployment (QFD) Linking needs of end users to design, development, engineering,

manufacturing, and service functions

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin43

2.7 Quality-Management Viewpoint

W. Edwards Deming and Joseph M. Juran led the push to total quality management Deming was instrumental in helping Japan develop its focus on quality in manufacturingDeming believed that managers often mistakenly blamed people for mistakes that were actually system failures Juran was also a pioneer in bringing the notion of quality to Japan Juran believed that a product or service should satisfy a customer’s real needs

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin44

2.7 Quality-Management Viewpoint

Total quality management (TQM) is a comprehensive approach dedicated to continuous quality improvement, training, and customer satisfaction

There are four components of TQM:

1. make continuous improvement a priority

2. get every employee involved

3. listen to and learn from employees and customers

4. use accurate standards to identify and eliminate problems

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin45

2.8 The Learning Organization In

An Era Of Accelerated Change

WHAT IS A LEARNING ORGANIZATION?

A learning organization is an organization that: creates and acquires knowledgetransfers knowledge within itselfmodifies its behavior to reflect the new knowledgeOrganizations need to be learning organizations in order to deal with the many challenges of today’s fast paced world

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin46

2.8 The Learning Organization In An Era Of Accelerated Change

Some of the challenges include:the rise of virtual organizations - organizations whose members are geographically apart, usually working with e-mail, collaborative computing, and other computer connectionsthe rise of boundaryless organizations - fluid, highly adaptive organizations whose members, linked by information technology, come together to collaborate on common tasks, where collaborators may include competitors, suppliers, and customersthe imperative for speed and innovation

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin47

2.8 The Learning Organization In An Era Of Accelerated Change

the increasing importance of knowledge workers - someone whose occupation is principally concerned with generating or interpreting informationan appreciation for human capital - the economic or productive potential of employee knowledge, experience, and actions an appreciation for the importance of social capital - the economic or productive potential of strong, trusting, and cooperative relationshipsa new emphasis on evidence-based management - management based on the belief that firms need to face the facts about what actually works and what is total nonsense

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin48

2.8 The Learning Organization In An Era Of Accelerated Change

To build a learning organization, managers must:build a commitment to learninggenerate ideas with impactgeneralize ideas with impact

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How to Build a Learning Organization: Three Roles Managers Play

You can build a commitment to learning.Instill an intellectual and emotional commitment to

learning

You can work to generate ideas with impact.Ideas that add value for customers , employees, and

shareholders

You can work to generalize ideas with impact.Reduce barriers to learning among employees and

within your organization. Create climate that reduces conflict, increases communication, promotes teamwork, rewards risk-taking, reduces fear of failure, and increase communication.