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Dan C. Lungescu, PhD, assistant professor2015-2016
Management
Part I: Introduction
Ch. 2. The evolution of management
Course outline
Part I: Introduction
Part II: Planning
Part III: Organizing
Part IV: Leading
Part V: Controlling
Management
Part I outline
Part I: Introduction
Ch. 1. Manager’s job
Ch. 2. The evolution of management
Ch. 3. Organizational environments
Ch. 4. Social responsibility and ethics
Management
Learning objectives
After studying this chapter, you should be able to:
Identify several early innovative management practices and explain the basic evolution of management theories.
Trace the preclassical contributions to the field of management.
Explain the major approaches within the classical viewpoint of management.
Describe the major developments contributing to the establishment of the behavioral viewpoint.
Explain the major approaches within the quantitative viewpoint.
Discuss the relevance of systems theory and contingency theoryto the field of management.
Explain how management in Japan influenced the emerging Theory Z viewpoint of management.
Explain how current knowledge about management is the result of innovative processes involving many management pioneers.
Chapter 2 outline
A. The major viewpoints
B. Early management
C. The birth of management ideas
D. Classical viewpoint
E. Behavioral viewpoint
F. Quantitative viewpoint
G. Contemporary viewpoints
A. The major viewpoints
Outline » A. The major viewpoints
Management theory
Preclassical contributors
Scientific Management
Bureaucratic Management
Administrative Management
Early behaviorists
Hawthorne studies
Human Relations
movement
Management science
Operations management
Management information
systems
Systems theory
Contingency theory
Emergingviews
Behavioral science
approach
Classical viewpoint
Behavioral viewpoint
Contemporary viewpoints
Quantitative viewpoint
B. Early management
Key decisions were made by a central authority such as a king.
Organizations managed on a basis of a ruler's divine right, a church's use of dogma, or the military's use of discipline.
Little need to develop and record a formal body of management.
Early ideas of management tended to reappear or be reinvented sporadically in one culture after another.
Political, religious, and economic beliefs did not allow business organizations to develop to any degree.
Outline » B. Early management
Before the Industrial Revolution (England, 18th century).Beginnings: thousands of years back in time.
Early management
Early management (2)
Sumerians: used written rules and regulations for governance.
Egyptians: used management practices to construct pyramids.
Babylonians: used extensive set of laws and policies for governance.
Greeks: used different governing systems for cities and state.
Romans: used organization structure for communication and control.
Chinese: used extensive organization structure for government agencies and the arts.
Venetians: organization design and planning concepts to control the seas.
Outline » B. Early management (2)
3000BC
2500BC
2000BC
1500BC
1000BC
500BC
AD1
AD500
AD1000
AD1500
Sumerians
Egyptians
Babylonians
Greeks
Romans
Chinese
Venetians
Early management concepts
Outline » B. Early management » Early management concepts
Chinese bureaucracy (1000 BC) fully developed into ahierarchy of officials based upon a merit rating system.
Hierarchy
An Egyptian practice of allocating around 10 servants to eachsupervisor.
“Rule of ten”
The Hebrews under Moses, then the ancient Roman army:the concepts of span of control and a hierarchy of authority.
Span of control. Hierarchy of authority
Ancient Greeks: Aristotle (in his Politics) commented on thevalue of specialization of labor, departmentalization, anddelegation of authority, among other managerial concepts.
Specialization of labor. Departmentalization. Delegation
Machiavelism
Outline » B. Early management » Machiavelism
An exposition on how to rule successfully by gaining and holdingpower.His comments on the nature of people reflects a set of assumptionswhich sounds like an early version of what was much later referredto as Theory X management.
Niccolò Machiavelli: The Prince (1513)
“Whoever desires to found a state and give it laws, must start with the assumption that all men are bad and ever
ready to display their vicious nature, whenever they may find occasion for it.”
Cottage industry
Skilled non-agricultural work was performed by craft-workers who, using relatively simple, all-purpose tools, produced an entire product, such as a chair or a watch, and sold it directlyto individual consumers.
Outline » B. Early management » Cottage industry
Merchants sent material to homes where the families spun, bleached,or dyed the cloth before returning it to the merchant to sell.
Cottage industry
Industrial revolution
Outline » B. Early management » Industrial revolution
First workable steam engine (James Watt):
Muscle power replaced with machine power.
Power engines housed in a central factory location » workers left cottages to go to work in factories.
Steam power » lower production costs, expanded marketsfor more cheaply priced and more available goods.
Expanding market » more workers, more machines, and a larger scale of production on a regular basis » increasing need to find methods of organizing and directing.
Governing way of government, church, or military replaced by a new philosophy: capitalism (laissez-faire economics).
C. The birth of management ideas
Outline » C. The birth of management ideas
Recognized the importance of human resources.Became interested in the working and living conditions of hisemployees – upgraded streets, houses, sanitation,educational system.
Robert Owen (1771-1858, British entrepreneur)
The father of modern computing (first practical mechanicalcalculator and a prototype of modern computers); predictedthe specialization of mental work; suggested profit sharing.
Charles Babbage (1792-1871, English mathematician)
Outlined the importance of management as a science andcalled for the development of management principles.
Henry R. Towne (1844-1924, American engineer)
D. Classical viewpoint
Outline » D. Classical viewpoint
A perspective on management that emphasizes finding ways tomanage work and organizations more efficiently.
Classical viewpoint
I. Scientific management (USA)
II. Bureaucratic management (Germany)
III. Administrative management (France)
Classical organizational theory
I. Scientific management
Outline » D. Classical viewpoint » I. Scientific management
An approach that emphasizes the scientific study of work methodsin order to improve worker efficiency.
Scientific management
1. Frederick Winslow Taylor [1856-1915]
2. Frank and Lillian Gilbreth [1868-1924 / 1878-1972]
3. Henry Laurence Gantt [1861-1919]
Major representatives:
4. Harrington Emerson [1853-1931]
1. Frederick Winslow Taylor
Outline » D. Classical viewpoint » I. Scientific management » 1. Frederick Winslow Taylor
1. Scientifically study each part of a task and develop the bestmethod for performing the task.
2. Carefully select workers and train them to perform the task byusing the scientifically developed method.
3. Cooperate fully with workers to ensure that they use the propermethod.
4. Divide work and responsibility so that management isresponsible for planning work methods using scientific principlesand workers are responsible for executing the work accordingly.
The principles of scientific management
Mechanical engineer, then management consultant.Sought to improve industrial efficiency (the efficiency of theoperative employee).1911: The principles of scientific management.1914: Shop management.
“The father of scientific management”
2. Frank & Lillian Gilbreth
Outline » D. Classical viewpoint » I. Scientific management » 2. Frank & Lillian Gilbreth
Proposed using motion studies to streamlinethe bricklaying process.
Designed special scaffolding for different typesof jobs.
Reduced the motions involved in bricklayingfrom 18½ to 4 – workers increased the numberof bricks laid per day from 1000 to 2700 withno increase in physical exertion.
Isolated 17 basic motions » therbligs. Lillian’s doctoral thesis: The psychology of
management » a pioneer in this field.
Frank & Lillian Gilbreth
3. Henry Laurence Gantt
Outline » D. Classical viewpoint » I. Scientific management » 3. Henry L. Gantt
Worked with Taylor in several companies »independent consultant.
Gantt chart: a graphic aid to planning,scheduling, and control.
A unique pay incentive system (not only forworkers but also for their supervisors).
Henry Laurence Gantt
Gantt chart software:
GanttProject™ (free)Microsoft Project™ConceptDraw PROJECT™SmartDraw™Gant Chart Software™Project KickStart™
Gantt chart: Excel™ file
Outline » D. Classical viewpoint » I. Scientific management » 3. H.L. Gantt » Excel Gantt chart
http://www.vertex42.com/ExcelTemplates/excel-gantt-chart.html
II. Bureaucratic management
Outline » D. Classical viewpoint » II. Bureaucratic management
German economist and lawyer. One of the originators of sociology. Devoted his attention to the organization itself
as an object of study. Did not directly deal withtask-level issues.
Concerned with designing a structure ofauthority-activity relationships which wouldfacilitate the attainment of organizational goals.
He developed the concept of bureaucracy as anideal type of organization.
Max Weber [1864-1920]
An approach that emphasizes the need for organizations to operatein a rational manner rather than relying on the arbitrary whims ofowners and managers.
Bureaucratic management
Max Weber
Outline » D. Classical viewpoint » II. Bureaucratic management » Max Weber
“Experience tends universally to show that the purely bureaucratic type of administrative organization [...] is, from
a purely technical point of view, capable of attaining the highest degree of efficiency and is in this sense formally the
most rational known means of carrying out imperative control over human beings. It is superior to any other form in precision, in stability, in the stringency of its discipline, and in
its reliability…”
Did not invent the bureaucratic form oforganization, merely described it in detail andshowed why it was superior to previous types ofsystems such as monarchies and dictatorships.
Contribution
Bureaucracy
Outline » D. Classical viewpoint » II. Bureaucratic management » Bureaucracy
in detail…
Standardized procedures (rule-following). Formal division of responsibility. Hierarchy. Impersonal relationships.
Core features of bureaucracy
In practice the interpretation and execution of policy can lead to informal influence.
The structure and set of regulations in place to control activity,usually in large organizations and government.
Bureaucracy
Characteristics of bureaucracy
Outline » D. Classical viewpoint » II. Bureaucratic management » Bureaucracy » Characteristics
Written rules and procedures specify the behaviors desired frommembers, facilitate coordination and ensure uniformity.
Formal rules and procedures
Rules, procedures, and sanctions are applied uniformly regardless ofindividual personalities and personal considerations.
Impersonality
Jobs are broken down into routine, well-defined tasks so thatmembers know what is expected of them and can becomeextremely competent at their particular subset of tasks.
Specialization of labor
Characteristics of bureaucracy (2)
Outline » D. Classical viewpoint » II. Bureaucratic management » Bureaucracy » Characteristics (2)
Selection and promotion are based on the qualifications andperformance.
Career advancement based on merit
Multiple levels of positions, with carefully determined reportingrelationships among levels, provide supervision of lower offices byhigher ones.
Well-defined hierarchy
III. Administrative management
Outline » D. Classical viewpoint » III. Administrative management
An approach that focuses on principles that can be used bymanagers to coordinate the internal activities of organizations.
Administrative management
1. Henry Fayol [1841-1925]
2. Chester Barnard [1886-1961]
Major representatives:
Henri Fayol
Outline » D. Classical viewpoint » III. Administrative management » Henri Fayol
French industrialist, mining engineer » ManagingDirector of a large coal and iron company.
Focused on organization-level issues (problems facinggeneral managers in upper management positions).
1916: General and industrial management[Administration industrielle et générale].
Henri Fayol [1841-1925]
1. Planning2. Organizing3. Commanding4. Coordinating5. Controlling
Functions of management
1. Production2. Financial3. Accounting4. Commercial5. Security6. Administrative
Enterprise’s functions
[14 principleswithin
4 major areas]
Principles of management
Fayol’s 4 major areas
Outline » D. Classical viewpoint » III. Administrative management » Henri Fayol » Areas
A hierarchy of authority.
Scalar process
A person could usually only control five or six people.
Span of control
Not only should jobs be broken down into their smallest components(specialization), but also an organization should be broken down into aseries of specialized departments.
Departmentalization
To allocate to the manager a staff person (or group) who was an expert in aspecialized area and could provide advice and counsel to the manager.
Line and staff
Fayol’s principles of management
Outline » D. Classical viewpoint » III. Administrative management » Henri Fayol » Principles
Encourages continuous improvement in skills and the development ofimprovements in methods.
Specialization of labor
The right to give orders and the power to exact obedience.
Authority
No slacking, bending of rules. The workers should be obedient andrespectful of the organization.
Discipline
Each employee has one and only one boss.
Unity of command
A single mind generates a single plan and all play their part in that plan.
Unity of direction
Fayol’s principles of mg. (2)
Outline » D. Classical viewpoint » III. Administrative management » Henri Fayol » Principles (2)
When at work, only work things should be pursued or thought about.
Subordination of individual interests
Employees receive fair payment for services, not what the company can getaway with.
Remuneration
Consolidation of management functions. Decisions are made from the top.
Centralization
Formal chain of command running from top to bottom of the organization,like military.
Chain of superiors (line of authority)
All materials and personnel have a prescribed place, and they must remainthere.
Order
Fayol’s principles of mg. (3)
Outline » D. Classical viewpoint » III. Administrative management » Henri Fayol » Principles (3)
Equality of treatment (but not necessarily identical treatment).
Equity
Limited turnover of personnel. Lifetime employment for good workers.
Personnel tenure
Thinking out a plan and do what it takes to make it happen.
Initiative
Harmony, cohesion among personnel. It's a great source of strength in theorganization. For promoting esprit de corps, the principle of unity ofcommand should be observed and the dangers of divide and rule and theabuse of written communication should be avoided.
Esprit de corps
E. Behavioral viewpoint
Outline » E. Behavioral viewpoint
Developed as a school of thought in reaction to the cold,impersonal work place of the Classical viewpoint (Traditionalmanagement - TM).
Behavioral viewpoint
Focused on technological and structural considerations.Classical theorists generally viewed individuals as mechanisms ofproduction. They were primarily interested in finding ways fororganizations to use these productive mechanisms more efficiently.Dysfunctional consequences of TM: Job dissatisfaction and low employee motivation. Displacement of organizational goals. Labor-management conflict. Inability to respond to changing conditions. Customer/client dissatisfaction.
Traditional management
Behavioral viewpoint (2)
Outline » E. Behavioral viewpoint (2)
A perspective on management that emphasizes the importance ofattempting to understand the various factors that affect humanbehavior in organizations.
Behavioral viewpoint
I. The early behaviorists
II. The Hawthorne studies
III. The Human Relations movement
Development:
IV. The more contemporary behavioral science approach
I. Early behaviorists
Outline » E. Behavioral viewpoint » I. Early behaviorists
1. Hugo Münsterberg
2. Mary Parker Follett
The first authors that began to offer alternatives to the emphasis onengineering that characterized the scientific managementapproach.
Early behaviorists
1. Hugo Münsterberg
Outline » E. Behavioral viewpoint » I. Early behaviorists » 1. Hugo Münstergerb
German psychologist. Ph.D. in psychology and a medical degree. 1913: Psychology and industrial efficiency –
psychologists could help industry in 3 majorways:1. Studying jobs and finding ways of identifying
the individuals who are best suited toparticular jobs.
2. Identifying the psychological conditions underwhich individuals are likely to do their bestwork.
3. Developing strategies that would influenceemployees to behave in ways that arecompatible with management interests.
“The father of industrial psychology”.
Hugo Münsterberg [1863-1916]
2. Mary Parker Follett
Outline » E. Behavioral viewpoint » I. Early behaviorists » 2. Mary Parker Follett
American, political science. Social worker who became interested in
employment and workplace issues. Focused on group dynamics in her work and
writings. Pioneering ideas on power sharing, conflict
resolution, integration of organizational systems.
Members of organizations are continuallyinfluenced by the groups within which theyoperates » groups have the capacity to exercisecontrol over themselves and their own activities.
Mary Parker Follett [1868-1933]
II. Hawthorne studies
Outline » E. Behavioral viewpoint » II. Hawthorne studies
A group of studies conducted at the Hawthorne plant of theWestern Electric Company during the late 1920s and early 1930swhose results ultimately led to the human relations view ofmanagement.
Hawthorne studies
1. The illumination studies
2. The relay assembly room tests
3. The interviewing program
Four key research projects:
4. The bank wiring room study
1. The illumination studies
Outline » E. Behavioral viewpoint » II. Hawthorne studies » 1. The illumination studies
Examining the effect of illumination on worker productivity.
Objective
Improved lighting led to improved performance.
Previous research
Illumination seemed to only have a minor influence on output. Other psychological variables were probably involved.
Failure (abandoned in 1927)
A new series of studies were begun in the relay assembly test room.
Ending
The illumination studies: results
Outline » E. Behavioral viewpoint » II. Hawthorne studies » 1. The illumination studies: Results
amount of light reductionlow high
pro
du
ctiv
ity
low
hig
h
control group: expected
experimental group: expected
control group: actual
experimental group: actual
2. The relay assembly room test
Outline » E. Behavioral viewpoint » II. Hawthorne studies » 2. The relay assembly room test
Five women relay assemblers, one layout operator, and an observer-experimenter.
Participants
1. Rest periods added, work week shortened from 5-1/2 days to 5days, free refreshments and lunches.
2. Rest pauses and free food removed, the work week returned toits original length.
Changes made in working conditions and incentive plans
Despite all of these changes (even the restrictive ones), the generaltrend was for greater output than ever before. The results, likethose of the illumination studies, appeared to make little sense.
Result
3. The interviewing program
Outline » E. Behavioral viewpoint » II. Hawthorne studies » 3. The interviewing program
The founder of Human Relations movement. Professor at Harvard University. 1930: The interviewing program. 1933: The social problems of an industrialised civilization.
George Elton Mayo [1880-1949]
To get the workers to express what was on their minds – to listen to theperson and summarize from time to time what had been said; no advicewas to be given. The average length of each interview was 1-1/2 hours.
The interviewer's job
1. Just talking about a problem appeared to act as an “emotional release”that seemed to make the workers feel better even though their situationhad not changed.
2. The worker should not be thought of as an isolated individual, but as amember of a group or groups.
Results
4. The bank wiring room study
Outline » E. Behavioral viewpoint » II. Hawthorne studies » 4. The bank wiring room study
To better understand what had happened in the relay assembly test room.
Objective
1. Nine wiremen, three solder men, and two inspectors, placed in a specialobservation room.
2. An observer who kept records and an interviewer who tried to sense theworkers' attitudes, thoughts, and feelings.
Participants
Wage payments were based on a group incentive plan which rewarded eachworker on the basis of the group's total output.
Changes
Workers had a definite notion of a proper day's work - wiring about twounits per day.
The observer was regarded with some distrust.
Results
Hawthorne studies: conclusions
Outline » E. Behavioral viewpoint » II. Hawthorne studies » 4. The bank wiring room study
The reaction of people to the experiment itself instead of to the plannedchange.
Hawthorne effect
Social organization formed by employees to provide the social benefits notprovided by the company's formal organization.
Informal organization
Workers are not so much driven by pay and working conditions as bypsychological needs which can be satisfied by belonging to a work group.
People feel more positive about their work when they have a chance toparticipate in decisions regarding that work.
Concern by the supervisor for the workers' needs and recognition of theircontribution to the production process make workers feel more positiveabout the organization and more willing to perform at a high level.
Main contributions
III. Human Relations movement
Outline » E. Behavioral viewpoint » III. Human relations movement
1. Emphasis was placed on building more collaborative andcooperative relationships between supervisors and workers.
2. Managers now needed social skills in addition to technical skills.3. Managers required a better understanding of how to make
workers feel more satisfied with their jobs.
Directions provided by the Hawthorne studies
1. Abraham Maslow
2. Douglas McGregor
1. Abraham Maslow
Outline » E. Behavioral viewpoint » III. Human relations movement » 1. Abraham Maslow
American, Ph.D. in psychology, chairman of thepsychology department at Brandeis University.
The theory of the hierarchy of needs – 3assumptions about human nature:1. Human beings have needs that are never
completely satisfied.2. Human action is aimed at fulfilling the needs
that are unsatisfied at a given point in time.3. Needs fit into a somewhat predictable
hierarchy, ranging from basic to higher-levelneeds.
Abraham Maslow [1908-1970]
physiological
safety
belongingness
esteem
self-actualization
2. Douglas McGregor
Outline » E. Behavioral viewpoint » III. Human relations movement » 2. Douglas McGregor
Ph.D. at Harvard, professor of industrialmanagement at the Massachusetts Institute ofTechnology.
He developed the concept of Theory X versusTheory Y, a dichotomy dealing with the possibleassumptions that managers make about workers.
These 2 theories describe managers’ attitudestowards employees, and not employee behavior!
Douglas McGregor [1906-1964]
Theory X assumptions
Theory Y assumptions
Theory X assumptions
1. The average person dislikes work and will try to avoid it.
2. Most people need to be coerced, controlled, directed, and threatened with punishment to get them to work toward organizational goals.
3. The average person wants to be directed, shuns responsibility, has little ambition, and seeks security above all.
Outline » E. Behavioral viewpoint » III. Human relations movement » 2. D. McGregor » Theory X
Theory Y assumptions
1. Most people do not inherently dislike work; the physical and mental effort involved is as natural as play or rest.
2. People will exercise self-direction and self-control to reach goals to which they are committed; external control and threat of punishment are not the only means for ensuring effort toward goals.
3. Commitment to goals is a function of the rewards available, particularly rewards that satisfy esteem and self-actualizationneeds.
4. When conditions are favorable, the average person learns not only to accept but also to seek responsibility.
5. Many people have the capacity to exercise a high degree of creativity and innovation in solving organizational problems.
6. The intellectual potential of most individuals is only partiallyutilized in most organizations.
Outline » E. Behavioral viewpoint » III. Human relations movement » 2. D. McGregor » Theory Y
IV. Behavioral science approach
Outline » E. Behavioral viewpoint » IV. Behavioral science approach
An approach that emphasizes scientific research as the basis fordeveloping theories about human behavior in organizations thatcan be used to establish practical guidelines for managers.
Behavioral science
Frederick Herzberg [1923–2000]
Takes a holistic view of behavior by considering individual, group,and organization processes.
Organizational behavior
Frederick Herzberg
Outline » E. Behavioral viewpoint » IV. Behavioral science approach » Frederick Herzberg
American psychologist.
2 major contributions:1. Work enrichment.2. Two factor theory (Motivator-hygiene theory; 1959).
Frederick Herzberg [1923–2000]
2 kinds of factors:1. Motivator factors: increase satisfaction (achievement,
recognition, work itself, responsibility, promotion, growth).2. Hygiene factors: decrease dissatisfaction (pay and benefits,
company policy and administration, relationships with co-workers, physical environment, supervision, job security).
Two factor theory
F. Quantitative viewpoint
Outline » F. Quantitative viewpoint
Focuses on the use of mathematics, statistics, and information aidsto support managerial decision making and organizationaleffectiveness.
Quantitative viewpoint
1. Management science (operations research)
2. Operations management
3. Management information systems
Three main branches have evolved:
Quantitative viewpoint branches
Outline » F. Quantitative viewpoint » Branches
An approach aimed at increasing decision effectiveness through theuse of sophisticated mathematical models and statistical methods.
Management science (Operations research)
The function, or field of expertise, that is primarily responsible formanaging the production and delivery of an organization’s productsand services.
Operations management
The field of management that focuses on designing andimplementing computer-based information systems for use bymanagement.
Management information systems
G. Contemporary viewpoints
Outline » G. Contemporary viewpoints
Major innovations in ways of thinking about management.
Contemporary viewpoints
Two of the most important contemporary viewpoints :
I. Systems theory
II. Contingency theory
Today: III. Emerging views
I. Systems theory
Outline » G. Contemporary viewpoints » I. Systems theory
An approach based on the notion that organizations can bevisualized as systems.
Systems theory
A set of interrelated parts that operate as a whole in pursuit ofcommon goals.
System
1. Inputs2. Transformation processes3. Outputs4. Feedback
Organizational system’s components
Organizational system’s components
Outline » G. Contemporary viewpoints » I. Systems theory » Organizational system’s components
The various human, material, financial, equipment, andinformational resources required to produce goods and services.
Inputs
The organization’s managerial and technological abilities that areapplied to convert inputs into outputs.
Transformation processes
The products, services, and other outcomes produced by theorganization.
Outputs
Information about results and organizational status relative to theenvironment.
Feedback
A systems view of organizations
Outline » G. Contemporary viewpoints » I. Systems theory » A systems view of organizations
InputsTransformation
processOutputs
Feedback from environment
Resources: Human Materials Equipment Financial Informational
Managerial andtechnological abilities: Planning Organizing Leading Controlling Technology
Outcomes: Products and services Profits and losses Employee growth and
satisfaction
Information about: Results Organizational status
System theory’s advantages
It can analyze systems at different levels.
It provides a framework for assessing how well the various parts of an organization interact to achieve a common purpose.
It emphasizes that a change in one part of the system may affect other parts.
It considers how an organization interacts with its environment – the factors outside the organization that can affect its operations » an organization needs to operate as an open system.
Outline » G. Contemporary viewpoints » I. Systems theory » System theory’s advantages
Open systems
Outline » G. Contemporary viewpoints » I. Systems theory » Open systems
A system that operates in continual interaction with itsenvironment.
Open system
A system that does little or no interacting with its environment andreceives little feedback.
Closed system
1. Negative entropy.2. Differentiation.3. Synergy.
3 major characteristics of open systems
Open system’s characteristics
Outline » G. Contemporary viewpoints » I. Systems theory » Open systems » Characteristics
The ability to bring in new energy, in the form of inputs andfeedback from the environment, in order to delay or arrest entropy.
Negative entropy
The tendency of open systems to become more complex.
Differenciation
The tendency of systems to decay over time.
Entropy
The ability of the whole to equal more than the sum of its parts.
Synergy
II. Contingency theory
Outline » G. Contemporary viewpoints » II. Contingency theory
A viewpoint that argues that appropriate managerial actiondepends on the particular parameters of the situation.
Contingency theory
The contingency approach applies particularly in such areas as: Environmental factors. Strategy. Organizational design. Technology. Leadership.
Areas of contingency
Contingency theory (2)
Outline » G. Contemporary viewpoints » II. Contingency theory (2)
Universal view
Same managerial principles apply to every situation.
Contingency view
Appropriate managerial action depends on the situation.
Situation2
Situation3
Situation1
III. Emerging views
Outline » G. Contemporary viewpoints » III. Emerging views
Management is a complex endeavor »Innovative approaches are constantly needed to help advance theknowledge base »Some new approaches develop into major viewpoints whenresearch and managerial practice show that they are effective.
Everging views
An approach that focuses on aspects of management in Japan thatmay be appropriate for adoption in the United States.
Japanese management
Theory Z
Outline » G. Contemporary viewpoints » III. Emerging views » Theory Z
A concept that combines positive aspects of American and Japanesemanagement into a modified approach aimed at increasing USmanagerial effectiveness while remaining compatible with thenorms and values of American society and culture.
Theory Z
Author: William Ouchi [born 1943]
Companies that have adopted aspects of Theory Z:General Motors, Ford, Hewlett-Packard, Intel…
Theory Z (2)
Outline » G. Contemporary viewpoints » III. Emerging views » Theory Z (2)
Type A (American)
Short-term employmentIndividual DMIndividual responsibilityRapid evaluation and promotionExplicit, formalized controlSpecialized career pathSegmented concern
Type J (Japanese)
Lifetime employmentConsensual DM
Collective responsibilitySlow evaluation and
promotionImplicit, informal control
Nonspecialized career pathHolistic concern
Type Z (modified American)
Long-term employmentConsensual decision making
Individual responsibilitySlow evaluation and promotionImplicit, informal control with explicit, formalized measures
Moderately specialized career pathHolistic concern, including family
Dan C. Lungescu, PhD, assistant professor2015-2016