CH2: Development of Management Theory

Question 1

Why is studying management theory important?

Answer 1

Because it helps guide decisions, shapes how managers view organizations, builds awareness of environmental factors, and provides a base for innovative thinking and action.

Question 2

How is a theory defined in a management context?

Answer 2

A theory is a coherent group of assumptions that explains relationships between observable facts and helps predict future events, guiding both understanding and actions in a managerial context.

Question 3

What factors influence the development of management theories?

Answer 3

Economic trends, technological advances, cultural shifts, wars, recessions, and other environmental changes all shape how and why management theories evolve.

Question 4

What historical event led to the Classical Management Approach?

Answer 4

The Industrial Revolution, especially the introduction of the steam engine and the shift from agrarian to factory work.

Question 5

What was the main goal of Scientific Management?

Answer 5

To increase individual worker productivity through work optimization, specialization, and performance-based rewards.

Question 6

What were Frederick Taylor’s four principles of Scientific Management?

Answer 6

1. Analyze and improve each task.
2. Standardize procedures.
3. Train workers to match task demands.
4. Reward output exceeding expected standards.

Question 7

How did Frank and Lillian Gilbreth contribute to Scientific Management?

Answer 7

They focused on simplifying work by analyzing each motion, identifying better methods, and reorganizing tasks for maximum efficiency.

Question 8

What tool did Henry Gantt develop that is still used today?

Answer 8

The Gantt Chart – a visual tool for scheduling tasks and tracking project timelines.

Question 9

What was the main criticism of Scientific Management?

Answer 9

It focused too much on productivity and ignored the human element, leading to dissatisfaction and mistrust among workers.

Question 10

What did Henri Fayol contribute to management theory?

Answer 10

He developed 14 principles of management and identified five key managerial functions: Planning, Organising, Commanding, Coordinating, and Controlling.

Question 11

What is Max Weber known for in management theory?

Answer 11

For his bureaucratic model, emphasizing formal hierarchy, rules, and clear lines of authority to ensure efficiency and predictability.

Question 12

What is a key limitation of Administrative Management Theory?

Answer 12

It’s most effective in stable environments and less suited for today’s dynamic and rapidly changing organizations.

Question 13

What was the main focus of the Behavioural Management Approach?

Answer 13

Understanding and addressing the needs and motivations of workers to improve productivity and satisfaction.

Question 14

What did Mary Parker Follett advocate for in the workplace?

Answer 14

That employees should be involved in job design and decision-making; she promoted ideas like teamwork and horizontal power structures.

Question 15

What was the significance of the Hawthorne Studies?

Answer 15

They revealed that workers perform better when they feel observed and valued, not just when physical conditions change—this became known as the Hawthorne Effect.

Question 16

What are Theory X and Theory Y in management?

Answer 16

Theory X: Assumes employees dislike work and need control.
Theory Y: Assumes employees are self-motivated and seek responsibility when given the right environment.

Question 17

What are the main contributions of the Behavioural Approach?

Answer 17

It emphasized human motivation, group dynamics, and interpersonal relationships, contributing to the rise of people-management skills in leadership.

Question 18

What is a key challenge of the Behavioural Approach?

Answer 18

Human behaviour is complex and unpredictable, making it difficult to develop universal management solutions.

Question 19

What is the goal of the Quantitative or Management Science Approach?

Answer 19

To improve decision-making effectiveness by using mathematical models and statistical tools to optimize the use of resources and increase productivity.

Question 20

What are common techniques used in quantitative management?

Answer 20

Linear programming, simulation, modeling, queuing theory, decision trees, and forecasting.

Question 21

What role do computers play in the Quantitative Approach?

Answer 21

Computers allow rapid processing of variables in mathematical models, enabling managers to simulate scenarios and find optimal solutions to problems.

Question 22

What are the four major areas under the Quantitative Approach?

Answer 22

Quantitative Management, Operations Management, Total Quality Management (TQM), Management Information Systems (MIS).

Question 23

What does Systems Theory view an organization as?

Answer 23

An interconnected and open system that interacts with its environment, made up of interrelated parts working together for a common purpose.

Question 24

What are five key characteristics of systems?

Answer 24

Internal Interdependence – All parts affect one another

Feedback Mechanisms – Used for correction and improvement

Equilibrium – Strives for balance when disrupted

Equifinality – Multiple paths to the same outcome

Adaptation – Can respond and adjust to environmental change.

Question 25

What is the Congruence Model (Nadler & Tushman)?

Answer 25

A model that says organizational effectiveness depends on alignment (or 'congruence') between four components: tasks, individuals, formal structure, and informal systems.

Question 26

What is the main idea behind Contingency Theory?

Answer 26

There is no universally best management style—the best course of action depends on the specific situation or context.

Question 27

What did Fred Fiedler contribute to Contingency Theory?

Answer 27

He developed the LPC (Least Preferred Co-worker) scale to assess whether a leader is task- or relationship-oriented and argued that leadership effectiveness depends on matching style to context.

Question 28

What does Contingency Theory require from managers?

Answer 28

The ability to diagnose situations and adapt their leadership style or strategy based on contextual variables like team maturity, environment, or task complexity.

Question 29

What is the central idea of Chaos Theory in management?

Answer 29

Organizations are nonlinear, unpredictable systems where small changes can lead to significant and unexpected outcomes, yet underlying patterns still emerge.

Question 30

What makes Chaos Theory relevant to modern organizations?

Answer 30

The modern business environment is defined by rapid change, globalization, speed, complexity, and paradox, which make traditional control-based approaches less effective.

Question 31

What are the characteristics of a chaordic organization?

Answer 31

Encourages innovation and creativity Operates with team-based, decentralized structures Embraces diversity and flexibility Values learning and adaptability Balances order and disorder dynamically.

Question 32

How should managers behave in a chaordic organization?

Answer 32

Facilitate adaptation Build resilience to change Manage paradoxes (e.g., control vs. freedom) Foster knowledge sharing and learning.

Question 33

What is the main goal of Total Quality Management (TQM)?

Answer 33

To achieve long-term success through customer satisfaction by engaging all employees in continuous improvement across all organizational processes.

Question 34

What are the five central principles of TQM (according to Deming)?

Answer 34

Customer focus, Continuous improvement, Quality in all operations, Accurate performance measurement, Employee empowerment.

Question 35

How does TQM prevent errors in the organization?

Answer 35

By focusing on root cause analysis, proactive planning, and building quality into the process instead of relying solely on inspections after the fact.

Question 36

What is a Learning Organisation and who popularized it?

Answer 36

An organization that continuously improves by encouraging lifelong learning, collaboration, and adaptability—popularized by Peter Senge.

Question 37

What are the key components of a Learning Organisation?

Answer 37

Commitment to lifelong learning, Challenging assumptions and outdated mental models, A shared organizational vision, Open, two-way dialogue, Emphasis on systems thinking.

Question 38

Why is systems thinking essential in a Learning Organisation?

Answer 38

Because it helps individuals understand the interconnectedness of processes, avoids short-term thinking, and enables better long-term decision-making.

Question 39

What is Business Process Reengineering (BPR)?

Answer 39

A radical approach to management that involves redesigning business processes from scratch to achieve dramatic improvements in cost, speed, quality, and customer value.

Question 40

How does Reengineering differ from traditional process improvement?

Answer 40

Unlike incremental improvements, BPR starts from a blank slate, challenges all assumptions, and seeks major breakthroughs, not small enhancements.

Question 41

What is the primary focus of Reengineering?

Answer 41

To rethink and redesign core processes that directly affect customer value, performance, and competitiveness.

Question 42

What was the main focus of Chapter 2 in Business Management I?

Answer 42

Understanding the evolution of management theory, including Classical, Behavioural, Quantitative, and Contemporary approaches, and recognizing how the environment influences the development and application of these theories.