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