1. Classical

2. Quantitative

3. Behavioral

4. Contemporary

Major Approaches to Management

Historial Background

- Early Examples of Management

- Adam Smith

- Industrial Revolution

Major Approaches to Management

Classical Approach

Scientific Mgmt

General Administrative

Major Approaches to Management

Quantitative Approach

Major Approaches to Management

Behavioral Approach

- Early Adovates

- Hawthrone Studies

- Organizational Behavior

Major Approaches to Management

Contemporary Approach

- Systems Approach

- Contingency Approach

1. Rationality

2. Efficiency

* First study of mgmt

* 1911

* Frederick Taylor

- Use scientific methods to define the "one best way" for a job to get done

Focused on what managers do and what constitutes good management practice.

-> Henri Fayol & Max Webber

* analyze basic work-tasks

* time-and-motion study

* hire best qualified workers

* design incentive systems

14 Principles of Management

* Designed by Henri Fayol

1. Division of Work = speicalization increases output, employees efficient

2. Authority = managers must give orders and authority gives them the right

3. Discipline = employees obey and respect the rules of the organization

4. Unity of Command = employee receives commands from 1 superior

5. Unity of Direction = single plan of action to guide workers and managers

6. Subordination of individual interests to the general interest = group > individual

7. Remuneration = workers must be paid fair wages

8. Centralization = degree where subordinates involved in decision making

9. Scalar Chain = line of authority

10. Order = people and materials = right place and right time

11. Equality = managers are kind to subordinates

12. Stability of tenure personnel = orderly personnel planning - can find replacements

13. Initiative = employees who are allowed to originate and cary out plans will exert high lvls of effort

14. Esprit de corps = promote team spirit

*Designed by Max Webber in the early 1900s.

Division of Labor

Jobs broken down into simple, routine, well defined tasks.

Career Orientation

Managers are career professionals not owners of units they manage

Impersonality

Uniform application of rules and controls not according to personalities

Formal Rules and Regulations

System of written rules and standard operating procedures

Authority Hierarchy

Positions of organized in a hierarchy with a clear chain of command

Formal Selection

People selected for jobs based on technical qualifications

* Still in use today

* not as popular as it was in the 20th century

* Many managers feel that a bureaucratic structure hinders individual employees' creativity and limits an organization's ability to respond quickly to an increasingly dynamic environment

*some bureaucratic mechanisms are neccessary to ensure that resources are used effiently and effectively

Quantitative Approach

aka

management science

Use of quanititative techniques to improve decision making

* developed after WWII

= Involves applying stats, optimization models, information models, computer simulations, and other quantitative techniques  to management activities

Linear Programming

Technique that managers use to improve resource allocation decisions

Work Scheduling

More efficient as a reult of critical-path scheduling analysis

Economic Order Quantity Model

Helps managers determine optimum inventory lvls

TOTAL QUALITY MANAGEMENT

aka

TQM

* Quantitative Technique

1980s - 1990s. W. Edwards Deming & Joseph M. Juran, adopted quickly by the Japanese

** TQM is a management philosophy devotes to continual improvement and responding to customer needs and expectations.

customer = anyone who interacts with organization's product or services. internally or externally. encompasses employees and suppliers as well as the people who purchase the organization's goods or services

What is Quality Management?

1. Intense focus on the customer

2. Concern for continual improvement.

3. Process focused.

4. Improvement in the quality of everything the organization does.

5. Accurate Measurement.

6. Empowerment of employees.

** Field of study that researches the actions (behavior) of people at work is called organizational behavior (OB).

Much of what managers do today when managing people - motivating, leading, building strust, working with a team, managing conflcit and so forth - has come out of OB research.

Early Advocates of Organizational Behavior

4 Advocates

4 Advocates

1. Robert Owen, 1700s

- Concerned about deplorable working conditions

- Proposed idealistic workplace

- Argued that money spent improving labor was smart investment

2. Hugo Munsterberg, 1900s

- Pioneer in field of industrial psychology - scientific study of people at work

- Suggested using psychological tests for employee selection, learning theory concepts for emplyoee training and study of human behavior for human motivation

3. Mary Parker Follet, 1900s

- One of the first to recognize that organizations could be viewed from perspective of individual and group behavior

- Proposed more people-oriented ideas that scientific management followers

- Thought organizations should be based on group ethic

4. Chester Barnard, 1930s

- Actual manager who thought organizations were social systems that req. cooperation

- Believed manager's job was to communication and stimulate employees' high lvls of effort

- First to argue that organizations were open systems

- Series of studies conducted at the Western Electric Company Works in Cicero, Illinois

- Started in 1924, examined the lighting lvls on worker productivity.

- Results showed that productivity only decrease when light as at the level of a moonlit night.Shows that lighting intensity was not directly related to group productivity.

** Harvard Professor Elton Mayo and associates asked to be consultants and they have found that social norms or group standards were the key determinants of individual work behavior.

- Hawthrone Studies stimulated an interest in human behavior in organizations

1960s, management researchers began to look at what was happening in the external environment - outside the boundaries of the organization.

Two contemporary management perspectives:

1. Systems

2. Contingency

A system is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole.

---> Basic Types: Open and Closed

Closed Systems are not influenced by and not not interact with their environment.

Open systems are influenced by and do interact with their environment.

** An organization is referred to as n opened system.

Researchers envisioned an organization as being made up of "interdependent factors, including individuals, groups, attitudes, motives, formal structure, interactions, goals, status and authority"

== Managers coordinate work activities in the various parts of the organization they ensure that all these parts are working together so that the organization's goals can be achieved.

The Contingency Approach

aka

Situtational Approach

Contingency = "if, then"

If this is my situtation...

then this is the best way for me to manage in this situation.

** Primary value of the contigency approach is that it stresses that there are no simplistic or universal rules for managers to follow.

Contingency Approach

Contingency Variable

VARIABLES:

1. Organization Size

= as size increases, so do the probs of coordination. 50,000 more inefficent vs 50

2. Routineness of Task Technology

= To achieve its purpose, an organization uses technology.

Routine technologies require organizational structures, leadership styles, and control systems that differ from those required by customized or nonroutine technogies

3. Environmental Uncertainty

= The degree of uncertainty caused by environmental changes influces the management process.

4. Individual Differences

= Individuals differ in terms of their desire for growth, au tonomy, tolerance of ambiguity, and expectations.