Management Approaches

1. Management Approaches

2. Overview • Human resources approach to management • Quantitative approach to management • How social events shape management approaches • Management approaches today Chapter 2 Lesson 2

3. Quick Write Do you have an optimistic or pessimistic view of human nature? How does this view affect your thinking about organizations? Chapter 2 Lesson 2 Courtesy of Clipart.com

4. Human Resources Approach to Management Chapter 2 Lesson 2 Courtesy of Clipart.com

5. Robert Owen • Successful Scottish Businessman • Early Industrial Revolution • Saw practices that repulsed him • Children working in factories • Workers not making living wage • Sought to reduce suffering of workers Chapter 2 Lesson 2 Courtesy of Library of Congress

6. Hugo Munsterberg • Founder of Industrial Psychology • Called for psychological tests to better match people with jobs • Today’s knowledge built on his ideas • Choosing, training, and motivating employees • Designing jobs Chapter 2 Lesson 2

7. Mary Parker Follett • One of first to consider organizations in terms of individual and group behavior • Believed that the manager’s job was to coordinate group efforts • Stressed the manager’s power with employees, rather than power over them • Her ideas about motivation, leadership, power, and authority remain current today Chapter 2 Lesson 2

8. Chester Barnard • President of the New Jersey Bell Telephone Company • Saw organizations as social systems that needed human cooperation to work rather than being impersonal • A company, in Barnard’s view, was a set of people with interacting social relationships Chapter 2 Lesson 2

9. Chester Barnard • Suggested that the manager’s job was to communicate and to get workers to put out top effort • Realized that a successful business has to win and keep the support of investors, suppliers, customers, and other outside stakeholders Chapter 2 Lesson 2

10. The Hawthorne Studies • A series of studies during the 1920s and 1930s that provided new insights into group norms and behaviors • Researchers studied the influence of factors such as lighting intensity, job redesign, length of the work day and work week, rest periods, and pay systems on productivity Chapter 2 Lesson 2

11. The Hawthorne Studies • Discovered that group influences, group standards, and group acceptance and security affect behavior more than other factors • Brought renewed attention to human factors • Helped business owners get away from the idea that workers were just like machines Chapter 2 Lesson 2

12. The Human Relations Movement • Members of this group felt that a satisfied worker would be a productive worker • Dale Carnegie, Abraham Maslow, and Douglas McGregor were three people leading the human relations movement • Views were rooted more in their personal philosophies than in objective research Chapter 2 Lesson 2 Courtesy of Library of Congress

13. Carnegie’s Four Points • Make others feel important by sincerely appreciating their efforts • Make a good first impression • Win people over to your way of thinking by letting them do the talking, being sympathetic, and never telling a man that he is wrong • Change people by praising their good traits and letting offenders save face Chapter 2 Lesson 2

14. Maslow’s Hierarchy of Needs Chapter 2 Lesson 2

15. McGregor on Human Nature • Theory X is a negative view that assumes people have little ambition, dislike work, shun responsibility, and need close supervision to get anything done • Theory Y, on the other hand, assumes human beings like to work and can accept responsibility and direct themselves Chapter 2 Lesson 2

16. Role Play ~ Theory X or Y? Your employee has just arrived late to work for the third time in two weeks. Role play how you will confront his or her tardiness as a “Theory X” manager. Role play how you will confront his or her tardiness as a “Theory Y” manager. Chapter 2 Lesson 2

17. Role Play ~ Theory X or Y? Your employee grew frustrated with a rude customer and walked away from him or her. Role play how you will confront his or her frustrated behavior as a “Theory X” manager. Role play how you will confront his or her frustrated behavior as a “Theory Y” manager. Chapter 2 Lesson 2

18. Behavioral Science Theorists • Used the scientific method to study organizational behavior • Tried to keep their personal beliefs out of their work • Tried to do research others could replicate Chapter 2 Lesson 2

19. Human Resources Approach Today • Hundreds of different approaches • Researchers have generated a wealth of studies that fairly accurately predict behavior in organizations • Work affects the current understanding of issues such as leadership, motivation, job design, organizational culture, and performance appraisal Chapter 2 Lesson 2

20. Quantitative Approach to Management Chapter 2 Lesson 2 Courtesy of Photos.com

21. Management by the Numbers • Began during World War II • Efforts to find mathematical and statistical solutions to military problems • After the war, businesses began to use these number-crunching techniques on their own problems Chapter 2 Lesson 2 Courtesy of Comstock Images

22. Quantitative Techniques • Computer simulation ~ analyze the effect on a company’s payroll if everyone receives a 10 percent pay increase every year for 10 years • Optimization model ~ analyze the best price the company can charge for its new product, to maximize profit but not scare away potential customers • Critical path analysis ~ examine how long it will really take to get a new product to market, with separate teams working on different parts of the project all at the same time Chapter 2 Lesson 2

23. How Social Events Shape Management Approaches Chapter 2 Lesson 2 Courtesy of Photos.com

24. What Stimulated the Classical Approach • Industrial revolution created a need to improve productivity by making work places more efficient • Developing efficiencies reduced the cost of making products ~ allowed prices to go down and sales to go up • Selling more products allowed markets to grow and companies to hire more people • As more people were earning a living wage and product prices went down more people could afford to purchase products like stoves and refrigerators • Scientific management raised the entire country’s standard of living Chapter 2 Lesson 2

25. What Stimulated the Human Resources Approach • The classical view of workers as machines and the Great Depression stimulated the human resources approach • The human resource approach encouraged employers to treat people like people, not machines • Encouraging workers was very important during the tough times of the Depression Chapter 2 Lesson 2 Courtesy of Library of Congress

26. What Stimulated the Quantitative Approach • World War II was the force behind the quantitative approach • There was a need to develop mathematical and statistical tools to apply to military problems • When these efforts scored some impressive successes, they soon found applications in civilian life Chapter 2 Lesson 2

27. Management Approaches Today Taken from Fundamentals of Management, 5th Ed.By Robbins/DeCenzo, p. 42Pearson Prentice Hall, 2005 Chapter 2 Lesson 2

28. The Process Approach Process approachconsiders the performance of planning, organizing, leading, and controlling as circular and continuous Chapter 2 Lesson 2 Courtesy of Photos.com

29. The Systems Approach • The systems approachdefines a system as a set of related and interdependent partsarranged in a manner that produces a unified whole • An organization, with its management, is a system that interacts with and depends on its environment Chapter 2 Lesson 2

30. The Systems Approach • Managers deal with an organization’s stakeholders who are any group affected by the organization’s decisions and policies • Government agencies, labor unions, competing companies, employees, suppliers, customers and clients, local community leaders, and public interest groups can all be stakeholders in the system Chapter 2 Lesson 2

31. The Systems Approach • The manager’s job is to coordinate all these parts (stakeholders) to achieve the organization’s goals • In the global economy, “environment” has a broader meaning than ever, including broad labor-market trends (e.g., Asian workers receiving more education and competing against American workers), new technologies, changes in energy and oil prices, and political developments are all part of the global environment Chapter 2 Lesson 2

32. What Do You Think? How does the principal of the school “coordinate all the parts to achieve the school’s goals?” What are the parts the principal coordinates? Who are the stakeholders? Is the government a stakeholder? Are there labor unions? Competing companies? Employees? Suppliers? Community Leaders? Chapter 2 Lesson 2

33. A Contingency Approach • The contingency approachreplaces simpler principles of management and integrates much of management theory • In management theory, contingency means something like “variable” • How a manager manages depends (is contingent) on the “variables” in a particular organizational environment Chapter 2 Lesson 2

34. Review • Owen, Munsterberg, Follett, and Barnard were major historical contributors to the human resource approach to management • The Hawthorne studies were a series of studies during the 1920s and ’30s that provided new insights into group norms and behaviors and brought renewed attention to human factors of production • Carnegie, Maslow, McGregor, and the behaviorists were all key contributors to the human relations movement Chapter 2 Lesson 2

35. Review • The quantitative approach is management by the numbers that seeks to find mathematical and statistical solutions to problems • After the war, businesses began to use these number-crunching techniques on their own problems • Quantitative techniques include computer simulations, optimization models, and critical path analysis Chapter 2 Lesson 2

36. Review • The industrial revolution stimulated the classical approach because of a need to improve productivity by making work places more efficient • The classical view of workers as machines and the Great Depression stimulated the human resources approach • The need to find solutions to military problems during World War II stimulated the quantitative approach Chapter 2 Lesson 2

37. Review • The process approachconsiders the performance of planning, organizing, leading, and controlling as circular and continuous • The systems approachdefines a system as a set of related and interdependent partsarranged in a manner that produces a unified whole • The contingency approach suggests that how a manager should manage depends (is contingent) on the “variables” in a particular organizational environment Chapter 2 Lesson 2

38. Summary • Human resources approach to management • Quantitative approach to management • How social events shape management approaches • Management approaches today Chapter 2 Lesson 2

39. What’s Next… Management and the Economy Chapter 2 Lesson 2 Courtesy of Clipart.com