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Flashcards in Week 2 Deck (47):
1

Classical approach to management

There are three major branches within the classical approach to management: scientific management, administrative management and bureaucratic management. The figure shows that the branches all share a common assumption: people at work act in a rational manner that is driven mainly by economic concerns. Workers are expected to rationally consider opportunities made available to them and do whatever is necessary to achieve the greatest personal and monetary gain.

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Scientific management

Scientific management emphasises careful selection and training of workers and supervisory support. The four guiding action principles are develop, select, train, support

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Develop

Develop for every job a ‘science’ that includes standardised work processes and proper working conditions

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Select

Carefully select workers with the right abilities for the job

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Train

Carefully train and incentivise workers

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Support

Support workers with carefully planned work

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Behavioural approaches to management

The behavioural approaches maintain that people are social and self-actualising. People at work are assumed to seek satisfying social relationships, respond to group pressures and search for personal fulfilment.

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The Hawthorne studies

In 1924, the ‘Hawthorne Studies’ had a scientific management perspective and sought to determine how economic incentives and the physical conditions of the workplace affected the output of workers. It seemed reasonable to expect that better lighting would improve performance. After failing to find this relationship, however, the researchers concluded that unforeseen ‘psychological factors’ somehow interfered with their illumination experiments.

9

Elton Mayo

In 1927, Harvard’s Elton Mayo (an Australian psychologist) began more research to examine the effect of worker fatigue on output. Researchers failed to find any direct relationship between changes in physical working conditions and output. Productivity increased regardless of the changes made which is now known to be due to the strengthening of social support networks.

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The Hawthorne studies and human relations

The Hawthorne studies showed that people’s feelings, attitudes and relationships with co-workers should be important to management, and they recognised the importance of the work group. They also identified the Hawthorne effect

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The Hawthorne effect

the tendency of people who are singled out for special attention to perform as anticipated merely because of expectations created by the situation.

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What did the Hawthorne studies contribute to

The Hawthorne Studies contributed to the emergence of the human relations movement. This movement was largely based on the viewpoint that managers who used good human relations in the workplace would achieve productivity. Furthermore, the insights of the human relations movement set the stage for what has now evolved as the field of organisational behaviour, the study of individuals and groups in organisations

13

The quantitative approach to management

The foundation of the quantitative approach to management is the assumption that mathematical techniques can be used to improve managerial decision-making and problem-solving. Today these applications are increasingly driven by computer technology and software programs

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3 aspects of the quantitative approach

Management science
Mathematical forecasting
Inventory modelling

15

Management science

Describes the application of mathematical techniques to analyse and solve management problems.

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Mathematical forecasting

Makes future projections that are useful in the planning process.

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Inventory modelling

Helps control inventories by mathematically establishing how much to order and
when.

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Systems thinking 4 parts

System
Cooperative system
Subsystem
Open system

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System

A system is a collection of interrelated parts working together for a purpose.

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Cooperative system

Chester Barnard defined organisations as cooperative systems in which
individual contributions are integrated for a common purpose.

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Subsystem

A subsystem is a smaller component of a larger system.

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Open system

Open systems transform resource inputs from the environment into product
outputs.

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Continuing management themes

Quality and performance excellence (TQM)

Global awareness

Learning organisations

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Quality excellence

Managers and workers in truly progressive organisations are quality conscious. They understand the basic link between competitive advantage and the ability to always deliver quality goods and services to their customers. The best organisational cultures include quality as a core value and reinforce the quality commitment in all aspects of the work environment.

25

TQM

Every effort is made in total quality management (TQM) to build quality into all aspects of operations from initial acquisition of resources, through the transformation processes and work systems, all the way to ultimate product delivery to customers or clients.

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8 attributes of performance excellence

Bias
Closeness
Autonomy
Productivity
Hands on
Knitting
Simple
Loose-tight

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Bias

Bias towards action — making decisions and making sure that things get done.

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Closeness

Closeness to the customers — knowing their needs and valuing customer satisfaction.

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Autonomy

Autonomy and entrepreneurship — supporting innovation, change and risk-taking.

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Productivity

Productivity through people — valuing human resources as keys to quality and performance.

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Hands on

Hands-on and value-driven — having a clear sense of organisational purpose.

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Knitting

Sticking to the knitting — focusing resources and attention on what the organisation does best.

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Simple

Simple form and lean staff — minimising management levels and staff personnel.

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Loose-tight

Simultaneous loose–tight properties — allowing flexibility while staying in control.

35

Global awareness

While the best formulas for success continue to be tested and debated, an important fact remains — much of the pressure for quality and performance excellence is created by a highly competitive global economy. Includes theory Z

36

Theory Z

The term ‘Theory Z’ describes a management framework that incorporates into Australasian and North American practices a variety of insights found in the Japanese models. Prominent in the Theory Z management approach are things such as long-term employment, slower promotions and more lateral job movements, attention to career planning and development, use of consensus decision-making, and emphasis on use of teamwork and employee involvement.

37

Learning organisations

This remains the age of the learning organisation, an organisation that operates with values and systems that result in ‘continuous change and improvement based on the lessons of experience’.
Learning organisations require for their success a value-driven organisational culture that emphasises information, teamwork, empowerment, participation and leadership.
We must all recognise that new managerial outlooks and new managerial competencies appropriate to the new workplace are requirements for future leadership success.

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Learning organisations - 21st century manager must be:

A global strategist
A master of technology
An effective politician
An inspiring leader

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A global strategist

understands interconnections among nations, cultures and economies; plans and acts with due consideration of them

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A master of technology

comfortable with information technology; understands technological trends and their implications; able to use technology to best advantage

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An effective politician

understands growing complexity of government regulations and the legal environment; able to relate them with the interests of the organisation

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An inspring leader

attracts highly motivated workers and inspires them with a high performance culture where individuals and teams can do their best work.

43

Do managers lead (4 critical skills of an effective manager)/leader

Listen to people
Play the politics
Know the organisation
Have the ability to persevere

44

What can be learned from classical management thinking

Frederick Taylor’s four principles of scientific management focused on the need to carefully select, train and support workers for individual task performance. Henri Fayol suggested that managers should learn what are now known as the management functions of planning, organising, leading and controlling. Max Weber described bureaucracy with its clear hierarchy, formal rules and well-defined jobs as an ideal form of organisation.

45

What ideas were introduced by the human resource approaches?

The human resource approaches shifted attention towards the human factor as a key element in organisational performance. The historic Hawthorne Studies suggested that work behaviour is influenced by social and psychological forces and that work performance may be improved by better ‘human relations’. Abraham Maslow’s hierarchy of human needs introduced the concept of self-actualisation and the potential for people to experience self-fulfilment in their work. Douglas McGregor urged managers to shift away from Theory X and towards Theory Y thinking, which views people as independent, responsible and capable of self-direction in their work.

46

What is the role of quantitative analysis in management?

The availability of high-powered desktop computing provides new opportunities for mathematical methods to be used for problem-solving.Many organisations employ staff specialists in quantitative management science and operations research to solve problems. Quantitative techniques in common use include various approaches to forecasting, linear programming and simulation, among others.

47

What is unique about the systems view and contingency thinking?

Organisations are composed of many internal subsystems that must work together in a coordinated way to support the organisation’s overall success. Contingency thinking avoids ‘one best way’ arguments, and recognises the need to understand situational differences and respond appropriately to them.