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Behavioral science relies on data from past sales to determine forecasts regarding human
behavior to develop strategic plans and goals.
When the Americans entered the war in 1941, they used the British model to form
operations research teams to determine how to deploy troops, submarines, and equipment
most effectively. These techniques have evolved into quantitative management.
Quantitative management is the sales management theory related to determining if a
prospective customer really qualifies for the company’s product or service.
Management science focuses on using behavioral techniques to aid in problem solving
and decision making.
Operations management focuses on managing the production and delivery of an
organization’s products or services more effectively.
Through the rational management of resources and distribution of goods and services,
scientific management helps ensure that business operations are efficient and effective.
The just-in-time approach, which comes under the term
lean
management,
allows
organizations to obtain supplies from vendors only as they are needed in the factory.
A system is an organization’s method of determining if employees succeed.
Outputs are the products, services, profits, losses, employee satisfaction or discontent,
and the like that are produced by the organization.
The five parts of a system are inputs, outputs, transformational processes, monitoring, and
feedback.
The customers of Best Auto Sales complete an online survey after purchasing an
automobile from Best. The information from the customer survey is a form of feedback.
An open system continually interacts with its environment, so it receives feedback from
the outside environment.
Right Office Equipment continually talks with customers after they purchase their
products, and Right Office managers regularly visit customers to gather feedback on new
products, product improvements, and how Right Office can better serve their customers.
This is an example of an open system.
In a fixed-learning system, company employees typically will participate in continuous
learning, such as workshops on product improvements, more often than in organizations
with an open system.
The contingency viewpoint emphasizes that a manager’s approach should vary according
to—that is, be contingent on—costs and competition.
Many times when working with a new manager, Amy, a successful small-business owner,
asks the manager, “What management method do you think will work best in this
situation?” In this situation, Amy is utilizing the scientific management approach.
Gary Hamel of the Management Innovation Lab suggests that core beliefs about an
organization can be rooted out by repeatedly asking the right questions, such as, “Is this a
belief worth challenging?” or “Is this belief universally valid?”
When Mr. Jones, the owner of a local hardware store, asks one of his lawnmower suppliers
about the total ability of their product to meet customer needs, he is questioning the
quality of that mower.
Quality is seen as one of the most important ways of adding value to products and
services, thereby distinguishing them from those of competitors.
A-Plus Manufacturing has a policy of using statistical sampling to locate errors by testing
just some (rather than all) of the items in a particular production run. This strategy of
minimizing errors is known as synergy.
Quality assurance focuses on the performance of workers, urging employees to strive for
“minimal defects.”
W. Edwards Deming and Joseph M. Juran were pioneers of the quality-management
movement.
With TQM, it is vital that organizations listen to and learn from their customers and
employees and make continuous improvement a priority.
A local furniture retailer routinely develops and acquires new knowledge, and the
employees communicate what they learn to other employees, so the company is able to
modify its behavior to reflect what they have learned. This organization is an example of a
learning organization.
The five ingredients of a learning organization are acquiring knowledge, training, studying
knowledge, pondering, and monitoring employees.
To develop a learning organization, managers must build a commitment to learning, work
to generate ideas with impact, and work to generalize ideas with impact.
Multiple Choice Questions
The beliefs that there are few really new ideas and that true is better than new are two of
the foundational principles of ___.
When faced with a business problem, Sally, a young grocery store owner, discusses
business problems with Don, the assistant manager and an employee for over 30 years.
Sally believes Don “has seen it all” and knows there are few really new ideas; plus the
business has done many simple things, such as offering friendly service, to have a
competitive edge. This is an example of _____ management.
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The historical perspective includes three viewpoints: _______.
Within his company, Greg has set up a system with inputs, outputs, transformation
processes, and feedback. Within his organization he utilizes a management style that
varies according to the individual and environmental situation, with a strategy for
minimizing errors by managing each stage of production. Greg is utilizing a _______
perspective.
Wanda, a CEO, has been encouraging her managers to study and utilize theoretical
perspectives of management because this approach _____.
The classical viewpoint of management emphasized ways to ___.
Mateo, an IT manager, has been studying the work methods of each task to increase the
productivity of the employees in his department. Mateo is utilizing ____.
The 17 basic units of motion, identified by Frank and Lillian Gilbreth, were named _____.