Management A Practical Introduction Third Edition Angelo Kinicki & Brian K Williams Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Chapter 2: Management Theory Essential Background For Managers How We Got To Where We Are Today Classical Viewpoint Behavioral Viewpoint Quantitative Viewpoint Systems Viewpoint Contingency Viewpoint The Learning Organization Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 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 present provides a guide to action provides a source of new ideas gives 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/Irwin 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 quantitative the contemporary which includes three views— systems, contingency, and quality-management Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 2.2 Classical Viewpoint: Scientific & Administrative Management Figure 2.1: The Historical Perspective Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 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 facts posing solutions or explanations based on those facts making predictions of future events testing predictions under systematic conditions Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Chapter 2: Management Theory CLASSROOM PERFORMANCE SYSTEM Which of the following is a contemporary perspective of management? A) behavioral B) classical C) contingency D) quantitative Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Chapter 2: Management Theory CLASSROOM PERFORMANCE SYSTEM Which of the following is a contemporary perspective of management? A) behavioral B) classical C) contingency D) quantitative Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 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 productivity administrative - concerned with managing the total organization Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Scientific Management Frederick Taylor Time-Motion Gantt Charts Gilbreths Principle of Motion Economy Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 10 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 organization transformation 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/Irwin 35 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/Irwin 36 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/Irwin 37 2.5 Systems Viewpoint An open system continually interacts with its environment A 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/Irwin 38 Chapter 2: Management Theory CLASSROOM PERFORMANCE SYSTEM The classical management viewpoint sees the organization as A) a contingency system B) a transformation system C) an open system D) a closed system Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 39 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/Irwin 40 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 others Quality control is the strategy for minimizing errors by managing each stage of production Quality assurance focuses on the performance of workers, and emphasizes a goal of zero defects Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 41 B2-14 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 McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc All rights rese 42 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 manufacturing Deming 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/Irwin 43 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: make continuous improvement a priority get every employee involved listen to and learn from employees and customers use accurate standards to identify and eliminate problems Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 44 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 knowledge transfers knowledge within itself modifies its behavior to reflect the new knowledge Organizations 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/Irwin 45 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 email, collaborative computing, and other computer connections the 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 customers the imperative for speed and innovation Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 46 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 information an 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 relationships a 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/Irwin 47 2.8 The Learning Organization In An Era Of Accelerated Change To build a learning organization, managers must: build a commitment to learning generate ideas with impact generalize ideas with impact Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 48 B2-16 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 McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc All rights rese 49 ... quantitative techniques such as statistics and computer simulations Two branches of quantitative management are management science and operations management Kinicki/Williams, Management: A Practical. .. contemporary perspective of management? A) behavioral B) classical C) contingency D) quantitative Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Chapter 2: Management. .. 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