Slide 1LEARNING OBJECTIVESSlide 3MANAGEMENT CHALLENGESTHREE MANAGEMENT THEORIESSlide 6Slide 7Slide 8EVOLUTION OF MANAGEMENT THEORYCLASSICAL PERIOD:CONTEMPORARY PERIOD:POSTMODERN PERIOD:BEHAVIORAL MODEL OF MANAGEMENT:MANAGERIAL ROLES (Mintzberg):Wrapp’s SUCCESSFUL MANAGER:COGNITIVE PERSPECTIVE1. MANAGERIAL SENSE-MAKING:2. KNOWLEDGE-BASED VIEW OF FIRM:LEVELS OF DECISION MAKINGTYPES OF DECISIONSSlide 21STAGES OF DECISION MAKINGINDIVIDUAL MODELS OF DECISION MAKINGORGANIZATIONAL MODELS OF DECISION MAKINGConnect to the INTERNETSlide 264.14.1LEARNING OBJECTIVESLEARNING OBJECTIVES•EVALUATE SCHOOLS OF EVALUATE SCHOOLS OF MANAGEMENT THINKINGMANAGEMENT THINKING•DESCRIBE LEVELS, TYPES, STAGES DESCRIBE LEVELS, TYPES, STAGES OF DECISION MAKINGOF DECISION MAKING•COMPARE INDIVIDUAL & COMPARE INDIVIDUAL & ORGANIZATIONAL DECISION MAKINGORGANIZATIONAL DECISION MAKING**4.24.2LEARNING OBJECTIVESLEARNING OBJECTIVES•ASSESS CHANGING MANAGEMENT ASSESS CHANGING MANAGEMENT PROCESSPROCESS•EXPLAIN HOW INFO SYSTEMS AID EXPLAIN HOW INFO SYSTEMS AID MANAGERS & DECISION MAKINGMANAGERS & DECISION MAKING**4.34.3MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES•WHAT MANAGERS DOWHAT MANAGERS DO•INTRODUCTION TO DECISION MAKINGINTRODUCTION TO DECISION MAKING•INDIVIDUAL MODELS OF DECISION INDIVIDUAL MODELS OF DECISION MAKINGMAKING•HOW INFORMATION TECHNOLOGY HAS HOW INFORMATION TECHNOLOGY HAS CHANGED MANAGEMENT PROCESSCHANGED MANAGEMENT PROCESS**4.44.4THREE MANAGEMENT THEORIESTHREE MANAGEMENT THEORIES•TECHNICAL - RATIONAL TECHNICAL - RATIONAL “Classical”“Classical”•BEHAVIORALBEHAVIORAL•COGNITIVECOGNITIVE**4.54.5THREE MANAGEMENT THEORIESTHREE MANAGEMENT THEORIESTECHNICAL - RATIONAL “Classical”:TECHNICAL - RATIONAL “Classical”:•EMPHASIZES PRECISION OF TASKEMPHASIZES PRECISION OF TASK•ORGANIZES TASKS INTO JOBSORGANIZES TASKS INTO JOBS•ORGANIZES JOBS INTO ORGANIZES JOBS INTO PRODUCTION SYSTEMSPRODUCTION SYSTEMS**4.64.6THREE MANAGEMENT THEORIESTHREE MANAGEMENT THEORIESBEHAVIORAL:BEHAVIORAL:•EMPHASIZES ORGANIZATION’S EMPHASIZES ORGANIZATION’S ADAPTATION TO EXTERNAL, ADAPTATION TO EXTERNAL, INTERNAL ENVIRONMENTINTERNAL ENVIRONMENT**4.74.7THREE MANAGEMENT THEORIESTHREE MANAGEMENT THEORIESCOGNITIVE:COGNITIVE:•EMPHASIZES LEARNING & APPLYING EMPHASIZES LEARNING & APPLYING KNOW-HOW, KNOWLEDGEKNOW-HOW, KNOWLEDGE•HOW WELL MANAGERS PROVIDE HOW WELL MANAGERS PROVIDE MEANING TO NEW MEANING TO NEW SITUATIONSSITUATIONS**4.84.8EVOLUTION OF MANAGEMENT THEORYEVOLUTION OF MANAGEMENT THEORY•CLASSICAL (1880-1927)CLASSICAL (1880-1927)•CONTEMPORARY (1930-1962)CONTEMPORARY (1930-1962)•POSTMODERN (1965 - present)POSTMODERN (1965 - present)**4.94.9CLASSICAL PERIOD:CLASSICAL PERIOD:•TECHNICAL-RATIONAL VIEWTECHNICAL-RATIONAL VIEW•TIME & MOTION STUDIESTIME & MOTION STUDIES•SCIENTIFIC MANAGEMENTSCIENTIFIC MANAGEMENTPlanning, organizing, coordinating, Planning, organizing, coordinating, deciding, controllingdeciding, controlling**4.104.10CONTEMPORARY PERIOD:CONTEMPORARY PERIOD:•SOCIAL PSYCHOLOGISTSSOCIAL PSYCHOLOGISTS•SOCIOLOGISTSSOCIOLOGISTS•ORGANIZATIONAL BEHAVIORISTSORGANIZATIONAL BEHAVIORISTSEmphasized individualEmphasized individualcollective behaviorcollective behavior**4.124.12POSTMODERN PERIOD:POSTMODERN PERIOD:•ECONOMISTSECONOMISTS•SOCIOLOGISTSSOCIOLOGISTS•MANAGEMENT THEORISTSMANAGEMENT THEORISTSEmphasizes knowledge basis of Emphasizes knowledge basis of organizationsorganizations**4.124.12BEHAVIORAL MODEL OF MANAGEMENT:BEHAVIORAL MODEL OF MANAGEMENT:High-volume; high-speed workHigh-volume; high-speed workVariety; fragmentation; brevityVariety; fragmentation; brevitySpeculation; hearsay; gossipSpeculation; hearsay; gossipComplex web of interactions; contactsComplex web of interactions; contactsPrefer verbal mediaPrefer verbal mediaControl agendaControl agenda**4.134.13MANAGERIAL ROLES (Mintzberg):MANAGERIAL ROLES (Mintzberg):Interpersonal: Interpersonal: figureheads & leadersfigureheads & leadersInformational: Informational: receive; disseminate receive; disseminate critical infocritical infoDecisional: Decisional: initiate activities; handle initiate activities; handle disturbances; allocate resources; disturbances; allocate resources; negotiate conflictsnegotiate conflicts**4.144.14Wrapp’s SUCCESSFUL MANAGER:Wrapp’s SUCCESSFUL MANAGER:OPERATING PROBLEMSGENERAL MANAGEROPERATING DECISIONSCORPORATE STRATEGY4.154.15COGNITIVE PERSPECTIVECOGNITIVE PERSPECTIVEORGANIZATION:ORGANIZATION:•Is knowing, sentient organismIs knowing, sentient organism•Can “learn” & “know”Can “learn” & “know”•Success depends on learning- & Success depends on learning- & knowledge processing infrastructureknowledge processing infrastructure•Two schoolsTwo schools**4.164.161. MANAGERIAL SENSE-MAKING:1. MANAGERIAL SENSE-MAKING:MANAGERS:MANAGERS:•Create mental mapsCreate mental maps•Are problem solvers, decision makersAre problem solvers, decision makers•Are information processorsAre information processors•Create & support information Create & support information processingprocessing**4.174.172. KNOWLEDGE-BASED VIEW OF FIRM:2. KNOWLEDGE-BASED VIEW OF FIRM:KNOWLEDGE:KNOWLEDGE:•Central productive / strategic assetCentral productive / strategic asset•Explicit (codified); Tacit (know-how)Explicit (codified); Tacit (know-how)•Includes information, social relations; know-how; Includes information, social relations; know-how; skillsskills•Change based on new informationChange based on new information•Firm creates value by integrating specialized Firm creates value by integrating specialized knowledgeknowledge•Strategy: Develop core competenciesStrategy: Develop core competencies**4.184.18LEVELS OF DECISION MAKINGLEVELS OF DECISION MAKING•STRATEGIC:STRATEGIC: Long-term objectives; Long-term objectives; resources; policiesresources; policies•MANAGEMENT CONTROL:MANAGEMENT CONTROL: Monitor use of Monitor use of resources; performanceresources; performance•KNOWLEDGE-LEVEL:KNOWLEDGE-LEVEL: Evaluate potential Evaluate potential innovations; knowledgeinnovations; knowledge•OPERATIONAL:OPERATIONAL: How to carry out specific How to carry out specific day-to-day tasksday-to-day tasks**4.194.19TYPES OF DECISIONSTYPES OF DECISIONS•STRUCTURED:STRUCTURED: Repetitive; Repetitive; routine; routine; definite procedure;definite procedure; certainty certainty•SEMISTRUCTURED:SEMISTRUCTURED: One or more One or more factors not structured; riskfactors not