chapter 2: management theory

handbook by drucker

workers should be treated as assets, corporation could be considered a human community, no business without a customer, and institutional management practices are preferable to charismatic cult leaders

forces that influence management

social, political, and economical

management theory

an approach to management that uses rigorous quantitative techniques to help managers make maximum use of organizational resources

assembly lines

arrangement of equipment and workers in which work passes from operation to operation in direct line until the product is assembled

quantitive management

a contemporary management approach that emphasizes the application of quantitative analysis to managerial decisions and problems

evidence based management

translating principles based on best evidence into organizational practice, bringing rationality to the decision-making process

classical viewpoint

emphasized finding ways to manage work more efficiently, had two branches - scientific and administrative

scientific management

the application of scientific principles to increase efficiency in the workplace

taylor

• workers can be retooled like machines

• productivity driven by performance goals and differential rate systems

gilbreths

• time and motion studies to promote efficiency

• links between physical movement and efficiency

• helped eliminate unnecessary motions and reduce worker fatigue

administrative management

concerned with managing the total organization

spaulding

• "Father of African-American Management"

• proposed 8 "necessities" of management

fayol

• proposed the management functions of planning, organizing, commanding, coordinating, and controlling

• first to systemize it

Weber

proposed the rationality of bureaucracy

hierarchy division of labor through organizational stucture

power drives outcome not personality

behavioral viewpoint

emphasized the importance of understanding human behavior and of motivating employees toward achievement

mustenberg

• father of industrial psychology

• studied jobs and determine people who are well suited

• identified the psychological conditions under which employees do best

• devise management strategies to influence employees to follow managements interests

follet

• organizations should be operated as communities

• problems should be resolved by managers and employees

• work processes should be under control of workers with relevant knowledge

mayo

• hawthorne effect

• employees work harder if received added attention

maslow

• hierarchy of needs

• innate needs need to be satisfied to reach full potential

• money isn't all a worker needs

mcgregor

theory X and Y

theory x

assumption that employees dislike work, are lazy, dislike responsibility, and must be coerced to perform

theory y

assumption that employees like work, are creative, seek responsibility, and can exercise self-direction

quantitative viewpoint

applies quantitative techniques to management

operation management

a specialized area in management that converts or transforms resources into goods and services

evidence-based management

translating principles based on best evidence into organizational practice, bringing rationality to the decision-making process

system viewpoint

regards the organization as a system of interrelated parts

subsystems

parts making up the whole system

open system

interacts with the environment

closed system

does not interact with the environment

synergy

the whole is greater than the sum of its parts

parts of a system

inputs, transformational process, outputs, feedback