MGMT can be traced back to ancient roots Viziers ancient managers who used the managerial functions of planning organizing leading and controlling Pillars of Modern MGMT pg 28 33 all looking for the one best way Scientific MGMT pg 28 Frederick Taylor empirical observation scientific method efficient task performance artisan to employee industrialization Micro Approach looked at the worker as a piece of equipment TWO ideas efficiency and standardization specialization each person should become a specialist and master of specific tasks Cooperation combine MGMT and labor interests Motivation equitable compensation Bureaucratic Model pg 32 Max Weber Macro Approach How an organization should be organized division of labor authority and structure depersonalization and formal hierarchy several benefits of the bureaucratic form Efficiency predictability calculability control power is forced compliance and authority is voluntary compliance expected of a subordinate Administrative MGMT Theory pg 31 Tips and tools for how to be a manager Henri Fayol s 6 categories of an organization s activities technical commercial financial security accounting managerial 14 Operating principles 4 most important unity of command 1 boss exception principle only call boss for exceptions to the norm span of control of employees reporting to manager Scalar chain work from the bottom to the top Functions of MGMT Planning Organizing Commanding Controlling Moderating Influences behavioral sciences independent or collective motivation and morale job satisfaction quality of work life quantitative sciences computers machines quantitative business analysis Behavioral Management pg 33 Elton Mayod human relations approach individuals working in group settings and in which managers and workers are studied in relation to what occurs in the group Hawthorne Studies Famous studies conducted which tried to prove a relationship between efficiency and lighting but showed that workers perform better when in the presence of scientists Known as the Hawthorne Effect Workers are motivated by more than economic factors behavioral science approach pg 35 a theory that views workers as more complex than the economic man described in the classical approach or the social man described in the human relations approach Hugo Munsterberg Mary Parker Follett MGMT is an applied behavioral science Decision Sciences pg 36 Modern MGMT theories decision making information systems math and statistics to aid in making choices Herbert Simon s 3 stages of decision making Finding occasions requiring a decision intelligence Inventing designing possible courses of action design selecting a course of action choice limits to decision making economically rational bounded rationality satisfice rather than optimize James March Contributions and Limitations of the Decision Sciences pg 37 Types of MGMT production MGMT a sphere of MGMT science that focuses on manufacturing technology and the flow of material in manufacturing operations MGMT a sphere of MGMT science that includes the areas of purchasing materials MGMT production inventory and quality control maintenance and plant MGMT Information system a computerized system that helps managers make better decisions by permitting them to gather and accurately process large volumes of data Systems Approach pg 38 A system is generally defined as an organized unitary whole comprised of two or more interdependent parts components or subsystems and delineated by identifiable boundaries from its environmental subsystem concrete subsystems things you can see abstract subsystems things you can t see technical converts inputs to outputs refers to knowledge techniques equipment and facilities required to perform tasks structural hierarchy concerned with the ways in which the tasks of the organization are divided differentiation and with task coordination integration managerial has its own subsystem establishes goals plans organizes controls relates the organization to its enviornment psychosocial the vibe consists of individual Behavior and motivations status and role group dynamics influence goals and values consider the modern organization as a system of consciously coordinated activities or forces of two or more parties general environment the overall environment containing the elements that affect all organizations Task environment the environment containing elements that can have an immediate impact on organizational success synergistic effect the sum total effect of all systems components as in an organization in which each of its parts performs a specific function 1 1 3 open system a system that is open to influences from the environment Chester Barnard Dell McDonalds Inducement contribution balance ratio described with a numerator that included the monetary and other inducements offered to an employee by the organization The denominator represented the contributions made by the employee in the form of direct work and other helpful acts and behaviors Contingency Theory pg 41 The contingency approach reflects a search for patterns of relationships and configuration among subsystems Rather than searching for the one best way to organize and manage under all conditions the Contingency approach studies the functions of organizations and managers in relation to the needs and demands of other entities It depends Pillars were static and systems approach was dynamic Boundary Transaction how the systems contingency theory relates with the outside world Ex PSU has press releases on how it contributes to the economy to maintain image Technology the conversion process used in organizations transform raw materials into a complete product input to output small batch production mass production continuous production Technological imperative An organization theory asserting that as technological complexity increases different organizational structures are needed for optimal results Kaizen the Japanese word for the continuing improvement of everything an organization does Beyond Contingency the learning organization Team based and boundary less organizations empowered decision making knowledge based MGMT Peter Drucker pg 43 W Edwards Demin pg 44 Deeming stressed quality is whatever the customer wants pg 44 proposed 14 points of total quality MGMT 3 key aspects continual improvement constancy of purpose and profound knowledge Tom Peter s nine aspects of excellently run companies pg 44 Managing ambiguity and paradox a bias for action