978-1305502215 Chapter 1 Part 2

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The World of Innovative Management •

include the human relations movement, the human resources perspective, and the

behavioral sciences approach.

A. Early Advocates

1. Mary Parker Follett (1868–1933) stressed the importance of people rather than

engineering techniques and addressed ethics, power, and empowerment. Her

concepts included facilitating rather than controlling employees, and allowing

employees to act according to the situation.

2. Chester I. Barnard (1886–1961) contributed the concept of the informal

organization, which occurs in all formal organizations and includes cliques

and social groupings. Barnard argued that organizations were not machines

and that informal relationships are powerful forces that can help the

organization if properly managed. Barnard also contributed the acceptance

theory of authority—the notion that employees have free will and can choose

whether to follow management orders. Acceptance of authority can be critical

to success in important situations.

B. Human Relations Movement

1. The human relations movement was based on the idea that truly effective

control comes from within the individual worker rather than from strict,

authoritarian control. This school of thought recognized and directly

responded to social pressures for enlightened treatment of employees. The

human relations movement emphasized satisfaction of employees’ basic needs

as the key to increased worker productivity.

2. The Hawthorne studies were a series of experiments on worker productivity

at the Hawthorne plant of Western Electric Company, Chicago. The tests

were originally designed to investigate the effects of illumination on output;

however, many of the tests pointed to the importance of factors other than

illumination in affecting productivity. The Hawthorne studies were important

in shaping ideas concerning how managers should treat workers.

3. Early interpretations agreed that human relations, not money, caused

increased output. Workers performed better when managers treated them

positively. New data showed that money mattered, but productivity increased

because of increased feelings of importance and group pride employees felt

when they were selected for the project.

4. One unintended contribution of the experiments was a rethinking of field

research practices. Researchers realized that the researcher could influence

the outcome of an experiment by being too involved with research subjects—a

phenomenon now known as the Hawthorne effect.

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C. Human Resources Perspective Exhibit 1.12

1. The human resources perspective suggests jobs should be designed to meet

higher-level needs by allowing workers to use their full potential. This

perspective combines prescriptions for design of job tasks with theories of

motivation.

2. Abraham Maslow (1906–1970), a psychologist, suggested a hierarchy of

needs because he observed that problems usually stemmed from an inability to

satisfy needs. This hierarchy started with physiological needs and progressed

to safety, belongingness, esteem, and self-actualization needs.

3. Douglas McGregor (1906–1964) formulated his Theory X and Theory Y

about workers, believing that the classical perspective was based on Theory

X, a set of assumptions about workers that suggest workers:

a. dislike work and prefer to be directed;

b. must be coerced to work;

c. want to avoid responsibility and have little ambition; and

d. want security above everything.

4. Theory Y was proposed as a more realistic view of workers, consisting of

assumptions that:

a. they do not inherently dislike work;

b. they will achieve objectives to which they are committed;

c. they will accept and seek responsibility;

d. they have intellect that could be applied to organizational goals; and

e. the intellectual potential of the average worker is only partially used.

NEW MANAGER SELF-TEST: WHAT’S YOUR MACH?

Managers differ in how they view human nature and the tactics that they use to get things

done through others. This exercise helps students to determine their Mach score. Having

a high Mach score means that they see life as a game and are not personally engaged with

other people.

D. Behavioral Sciences Approach

1. The behavioral sciences approach applies social science in organizational

context, drawing from economics, psychology, sociology, and other

disciplines. For example, when Zappos.com conducts research to determine

the best set of tests, interviews, and employee profiles to use when selecting

new employees, it is using behavioral science techniques.

2. One set of management techniques based in the behavioral sciences approach

is organization development (OD). The techniques and concepts of

The World of Innovative Management •

organization development have been broadened and expanded to cope with

the increasing complexity of organizations.

3. Other concepts that grew of out the behavioral sciences approach include

matrix organizations, self-managed teams, ideas about corporate culture, and

management by wandering around. In recent years, behavioral sciences and

OD techniques have been applied to help managers build learning

organizations.

NOTES__________________________________________________________________

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XI. MANAGEMENT SCIENCE

Management science, also known as the quantitative perspective, emerged after World

War II. It applied math, statistics, and other quantitative techniques to managerial

problems.

Operations research consists of mathematical model building and other applications of

quantitative techniques to managerial problems.

Operations management refers to the field of management that specializes in the physical

production of goods and services using management science to solve manufacturing

problems.

Some of the more commonly used methods are forecasting, inventory modeling, linear

and nonlinear programming, queuing theory, scheduling, simulation, and break-even

analysis.

Information technology (IT) is the most recent subfield of management science, often

reflected in management information systems. IT has evolved to include intranets and

extranets, and software programs that help managers estimate costs, plan and track

production, manage projects, and allocate resources, or schedule employees. Most

organizations have departments of IT specialists to help them apply quantitative

techniques to complex organizational problems.

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XII. RECENT HISTORICAL TRENDS

Elements of each of the three previously discussed management perspectives are still in

use today. The most prevalent of these is the human resources perspective. Major

contemporary extensions of the human resource perspective include systems thinking, the

contingency view, and total quality management.

A. Systems Thinking Exhibit 1.13

1. Systems thinking is the ability to see the distinct elements of a system or

situation and the complex and changing interaction among those elements. A

system is a set of interrelated parts that function as a whole to achieve a

common purpose.

a. Subsystems are parts of a system that depend on one another to function.

Changes in one part of the system (the organization) affect other parts.

Synergy means that the whole is greater than the sum of its parts.

Individuals, groups, and organizations can accomplish more working

together than working alone.

2. It is the relationship among the parts that form a whole system that matters.

Systems thinking enables managers to look for patterns of movement over

time and focus on the qualities or rhythm, flow, direction, shape, and networks

of relationships that accomplish the performance of the whole.

3. An important element of systems thinking is to discern circles of causality.

Understanding the circles of casualty enables leaders to allocate resources.

B. Contingency View Exhibit 1.14

1. The classical management perspective assumed a universalist view; concepts

that would work in one organization would work in another. In business

education, an alternative view exists, known as the case view, in which each

situation is believed to be unique and there are no universal principles. One

learns about management by experiencing a large number of case problem

situations.

2. The contingency view states that the successful resolution of organizational

problems depends on a manager’s identification of key variations in the

situation. Management’s job is to search for important contingencies in their

industries, technologies, environments, and international cultures. When

managers learn to identify important patterns and characteristics of their

organizations, they can fit solutions to those characteristics.

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C. Total Quality Management (TQM)

1. Total quality management (TQM) focuses on managing the total organization

to deliver better quality to customers. The ideas of W. Edwards Deming,

“father of the quality movement” were scoffed at in America but embraced in

Japan, which then became an industrial world power.

2. Japanese management shifted from an inspection-oriented approach to quality

control, emphasizing employee involvement in the prevention of quality

problems. The preventive approach to quality control infuses quality values

throughout every activity, with front-line workers intimately involved in the

process. There are four significant elements:

a. Employee involvement. TQM requires companywide participation in

quality control.

b. Focus on the customer. TQM companies find out what the customer

wants.

c. Benchmarking. A process whereby companies find out how others do

something better and imitate or improve it.

d. Continuous improvement. The implementation of small, incremental

improvements in all areas of the organization on an ongoing basis.

XIII. INNOVATIVE MANAGEMENT THINKING FOR A CHANGING WORLD

A. Contemporary Management Tools

1. Managers tend to look for fresh ideas to help them cope during difficult times.

Recent challenges have left today’s executives searching for any management

tool that can help them get the most out of limited resources.

a. The 2010–2011 Bain and Company survey identified benchmarking as the

most popular tool for the first time in more than a decade, reflecting

managers’ concern with efficiency and cost-cutting in a difficult economy.

Three tools that ranked high were benchmarking, strategic planning, and

mission and vision statements.

b. Other popular management tools around the world in recent years include

downsizing, outsourcing, supply chain management, total quality

management, strategic alliances, collaborative innovation, and decision

rights tools.

NOTES__________________________________________________________________

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XIV. Managing the Technology-Driven Workplace

Many of today’s popular techniques are related to the transition to a technology–

driven workplace. Two popular contemporary tools are customer relationship

management and supply chain management. A more recent tool is social media,

which is growing in use and importance.

A. SOCIAL MEDIA PROGRAMS Social media programs include company

online community pages, social media sites, and company online forums. The

use of social media has been to look into the backgrounds of job candidates,

generate awareness about the company’s products and services, sharing ideas

and seeking customer feedback, strengthening employee relationships, and

selling products.

B. CUSTOMER RELATIONSHIP MANAGEMENT Customer relationship

management (CRM) involves collecting and managing large amounts of data

about customers and making them available to employees, enabling better

decision making and superior customer service.

1. Supply chain management refers to managing the sequence of suppliers

and purchasers, covering all stages of processing from obtaining raw

materials to distributing finished goods to consumers. A supply chain is a

network of multiple businesses and individuals that are connected through

the flow of products or services. Exhibit 1.15

SUGGESTED ANSWERS TO END–OF-CHAPTER DISCUSSION

QUESTIONS

1. How do you feel about having management responsibilities in today’s world,

characterized by uncertainty, ambiguity, and sudden changes or threats from the

environment? Describe some skills and qualities that you think are important to

managers working in these conditions.

Students should understand that even with the high levels of uncertainty, ambiguity,

2. Assume that you are a project manager at a biotechnology company, working with

managers from research, production, and marketing on a major product

modification. You notice that every memo you receive from the marketing manager

has been copied to senior management. At every company function, she spends time

talking to the big shots. You are also aware that sometimes when you and the other

project members are slaving away over the project, she is playing golf with senior

managers. What is your evaluation of her behavior? As project manager, what do you

do?

The marketing manager seems to want to move up the management hierarchy as

quickly as possible. There are two behaviors illustrating this desire. Sending copies

3. Jeff Immelt, CEO of GE, tweeted for the first time in September 2012, prompting this

response: “@JeffImmelt how come my grandfather got on twitter before you?” Do

you think managers should use Twitter and other social media? Can you be an

effective manager today without using new media? Why?

4. Think about the highly publicized safety problems at General Motors (GM). One

observer said that a goal of efficiency had taken precedence over a goal of quality

within this company. Do you think managers can improve both efficiency and

effectiveness simultaneously? Discuss. How do you think GM’s leaders should

respond to the safety situation?

The World of Innovative Management •

Organizational effectiveness is the degree to which the organization achieves a stated

goal, or succeeds in accomplishing what it tries to do. Organizational efficiency

5. You are a bright, hard-working, entry-level manager who fully intends to rise up

through the ranks. Your performance evaluation gives you high marks for your

technical skills, but low marks when it comes to people skills. Do you think people

skills can be learned, or do you need to rethink your career path? If people skills can

be learned, how would you go about doing it?

6. A college professor told her students, “The purpose of a management course is to

teach students about management, not to teach them to be managers.” Do you agree

or disagree with this statement? Discuss.

7. The 2010–2011 Bain survey of management tools and trends found that the use of

social media programs is growing, but as a tool, social media also has one of the

lowest satisfaction ratings. How would you explain this?

8. Can you think of potential drawbacks to retailers using labor-waste elimination

systems based on scientific management principles, as described in the text? Despite

their being about 100 years old, do you believe scientific management characteristics

will ever cease to be a part of organizational life? Discuss.

Labor waste elimination systems ignore social context and workers’ needs, and can

9. A management professor once said that for successful management, studying the

present was most important, studying the past was next, and studying the future was

least important. Do you agree? Why?

The management professor was arguing the opposite of what most managers and

10. As organizations become more technology-driven, which do you think will become

more important—the management of the human element of the organization or the

management of technology? Discuss.

APPLY YOUR SKILLS: SELF-LEARNING

Management Aptitude Questionnaire

Students should complete the questionnaire using the 5-point Likert scale.

The scale is designed to give a general idea (it is not validated) of management issues.

Such a scale can be used as a kind of “mirror” to the student. Undergraduates,

particularly, lack knowledge about what the job of a manager is. Helping them to look at

these three skill areas can be of some assistance in assessing their own abilities to be

good managers.

After the students score their questionnaires, you may ask them to share their scores in

small groups of 4–5 and discuss their potential strengths and weaknesses as managers.

Also, you may ask them to share answers to the following questions. These questions

may be used with the entire class, without any small group discussions.

1. Why do you think the three skills are all needed to be an effective manager? Give

examples of times when each one is used.

The World of Innovative Management •

APPLY YOUR SKILLS: GROUP LEARNING

Your Best and Worst Managers and Action Learning

These exercises help students understand how different management styles affect their

behavior and motivation, ultimately impacting performance. Stress to students that the

purpose of group discussions is to share insights and help each other rather to grade

people on “right” or “wrong” answers.

APPLY YOUR SKILLS: ETHICAL DILEMMA

The New Test

1. Ignore the test. Sheryl has proved herself via work experience and deserves the job.

2. Give the job to the candidate with the highest score. You don’t need to make enemies

on the Civil Service Board, and, although it is a bureaucratic procedure, the test is an

objective way to select a permanent placement.

3. Press the board to devise a more comprehensive set of selection criteria—including

test results as well as supervisory experience, ability to motivate employees, and

knowledge of agency procedures—that can be explained and justified to the board

and to employees.

The World of Innovative Management •

APPLY YOUR SKILLS: CASE FOR CRITICAL ANALYSIS

SmartStyle Salons

1. What positive and negative managerial characteristics does Jamika possess?

behavior are the other negative traits that Jamika possess.

2. How do these traits help or hinder her potential to get to the top position at the

Riverwood Mall salon?

3. How do you think Jamika should have handled each of the incidents with Marianne?

Holly and Carol Jean? Victoria?

ON THE JOB VIDEO CASE ANSWERS

Camp Bow Wow: Innovative Management for a Changing World

1. In what ways is Barcelona’s management approach consistent with modern

developments in management thinking?

2. In what ways does Barcelona’s management approach run counter to contemporary

developments in management thinking?

3. What aspects of restaurant work are especially challenging to wait staff, and how

does Barcelona’s approach to management help employees overcome the downsides

of the job?