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Principles of Management

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Principles of Management ­ MGT503
VU
Lesson 4.11
SYSTEM'S VIEW OF MANAGEMENT AND ORGANIZATION
Managing Systems
Another way to look at the manager's job is from the perspective of managing systems.
System:
A system is a set of interrelated and interdependent parts arranged in a manner that produces a unified
whole. It's a concept taken from the physical sciences and applied to organizations.
The two basic types of systems are
Closed systems are not influenced by and do not interact with their environment.
Open systems dynamically interact with their environment.
Today, when we call organization systems, we mean open systems, that is, an organization that constantly
interacts with its environment.
1.
The systems theory approach is based on the notion that organizations can be visualized as
systems of interrelated parts or subsystems that operate as a whole in pursuit of common goals.
This will be discussed in more detail in the next session.
1.
The major components of a system are:
a.
Inputs:
the various human, material, financial, equipment, and
informational resources required to produce goods and services.
b.
Transformation processes:
the  organization's  managerial  and
technological abilities that are applied to convert inputs into outputs.
c.
Outputs: the products, services, and other outcomes produced by the
organization.
d.
Feedback: information about results and organizational status relative to
its environment.
2.
Open versus closed systems.  These are terms indicating the relative degree with which a
system interacts with its environment. While there are very few, if any, completely open or
completely closed systems, we usually view open systems as those having continual interaction with
its environment. Closed systems are those with little interaction and feedback from their
environments.
3.
Two major characteristics of open systems are:
a.
Negative entropy is the ability of open systems to bring in new energy in
the form of inputs and feedback from the environment in order for the
organization to delay or to arrest entropy, the decaying process.
b.
Synergy is the ability of the whole to equal more than the sum of its
parts.
c.
The systems viewpoint suggests that managers are likely to be more
successful if they attempt to operate their units as open systems rather
than as closed system.
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Principles of Management ­ MGT503
VU
The Organization as an Open System
Environment
System
Inputs
Transformation
Outputs
Raw
Materials
Employees' Work
Products and Services
Human Resources
Activities
Financial Results
Capital
Management Activities
Information
Technology
Technology and
Human Results
Information
Feedback
Operations
Methods
Environment
Answer to Test Yourself on Management Viewpoints and Theories!!!!
What are some early evidences of management practice?
1.
Some early evidences of management practice are the Egyptian pyramids, the Great Wall of China,
and the status of Venice as a major economic trade center in the 1400s.
Explain why division of labor and the Industrial Revolution were important to the study of
2.
management.
Division of labor increases productivity by increasing each worker's skill and dexterity, saves time
that is commonly lost in changing tasks, and creates labor-saving inventions and machinery. During
the Industrial Revolution, business owners were creating large businesses that required formalized
management practice.
What are the four major approaches to the study of management?
3.
The four major approaches to the study of management are scientific, general administrative,
quantitative, and organizational behavior. Each is correct and makes an important contribution to
our overall understanding of management.
What relevance does scientific management have to current management practice?
4.
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Principles of Management ­ MGT503
VU
Scientific management is the use of scientific methods to define the "one best way" for a job to be
done. Its relevance to current management practice is that managers still use many of the
techniques developed by Taylor, the Gilbreth, and other practitioners.
Describe Frederick W. Taylor's contributions to scientific management?
5.
Frederick Taylor defined four principles of management--develop a science for each element of an
individual's work; scientifically select, train, teach, and develop each worker; cooperate with
workers to ensure that all work is done in accordance with the principles of science; and divide
work and responsibility almost equally between management and workers.
Explain Frank and Lillian Gilbreth's contributions to scientific management?
6.
Frank and Lillian Gilbreth studied work arrangements to eliminate wasteful hand and body
motions. They also experimented with the design and use of proper tools and equipment for
optimizing work performance.
Describe Fayol's principles of management and how they compare with Taylor's?
7.
Henri Fayol's principles of management were division of work, authority, discipline, unity of
command, unity of direction, subordination of individual interests, remuneration, centralization,
scalar chain, order, equity, stability of tenure of personnel, initiative, and esprit de corps. In contrast
to Taylor's principles, Fayol's focused on the entire organization and not just the individual worker.
What did Weber contribution to the general administrative theories of management?
8.
Max Weber described an ideal type of organization called a bureaucracy, characterized by division
of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships.
Rules and controls were to be applied uniformly, avoiding involvement with individual personalities
and preferences of employees.
Explain how the quantitative approach evolved and how it has contributed to the field of
9.
management.
The quantitative approach, also called operations research or management science, is the use of
quantitative techniques to improve decision making, and it evolved out of the development of
mathematical and statistical solutions to military problems during World War II. After the war,
many quantitative techniques that had been used for military problems were applied to the business
sector. The quantitative approach has added another dimension to the evolution of management
practice and thinking and has contributed most directly to management decision making in
planning and control.
What is organizational behavior?
10.
Organizational behavior is the field of study concerned with the actions or behavior of people at
work.
What were some of the contributions of the early advocates of OB?
11.
Early advocates of the OB approach were Robert Owen, who proposed an idealized workplace
where work hours would be regulated, child labor outlawed, public education and meals provided,
and business involved in community projects; Hugo Munsterberg, who created the field of
industrial psychology, the study of individuals at work to maximize their productivity and
adjustment; Mary Parker Follett, who thought that organizations should be based on a group ethic
rather than on individualism to release individual potential; and Chester Barnard, who saw
organizations as social systems that required human cooperation.
Describe the Hawthorne studies and their contribution to management practice.
12.
The Hawthorne studies, conducted at the Western Electric Company Works in Cicero Illinois,
from 1924 through the early 1930s, exposed an experimental group of workers to various lighting
intensities while providing a control group with constant intensity. As the level of light was
increased in the experimental group, the output of both groups increased. The series of studies led
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Principles of Management ­ MGT503
VU
to a new emphasis on the human behavior factor and helped change the dominant theme of the
time that employees were not different from any other machines the organization used.
How is globalization affecting the way managers do their jobs?
13.
Management is no longer constrained by national borders, and managers in organizations of all
sizes and types around the world are faced with the opportunities and challenges of operating in a
global market.
What is workforce diversity, and what implications does it have for managers?
14.
Workforce diversity exists when workers are more heterogeneous in terms of gender, race,
ethnicity, age, and other characteristics that reflect their differences. It's an important issue because
as more women, minorities, elderly, and immigrants enter the job market in the first part of the 21st
century, monumental changes are predicted in the workplace.
Discuss the three important themes in the definition of entrepreneurship?
15.
First, is the pursuit of opportunities, because entrepreneurship is about pursuing environmental
trends and changes that no one else has seen or paid attention to.
Second, is innovation, because entrepreneurship involves changing, revolutionizing, transforming,
and introducing products or services or new ways of doing business.
Third, is growth, because entrepreneurs are not content to stay small or to stay the same in size.
How is e-commerce different from e-business, and what are the main forms of e-commerce
16.
transactions?
E-business is more than e-commerce, although e-business can include e-commerce. E-business is a
comprehensive term describing the way an organization does its work by using electronic linkages
with its key constituencies. The main forms of e-commerce transactions are business-to-business,
business-to-consumer, consumer-to-consumer, and government-to-business.
Describe the three categories of e-business involvement.
17.
The three main categories of e-business are: enhanced--using the Internet to enhance but not
replace traditional ways of doing business; enabled--using the Internet to perform its traditional
business functions better, but not to sell anything; total--whole existence is made possible by and
revolves around the Internet.
Why should managers be concerned about innovation and flexibility?
18.
Without a constant flow of new ideas an organization is doomed to obsolescence or failure. Also,
flexibility is required in a context where customers/needs may change overnight, where new
competitors come and go quickly, and where employees and their skills are shifted as needed from
project to project
.
What is TQM, and how is it affecting manager's jobs?
19.
TQM is a philosophy of management driven by continual improvement and response to customer,
employee, and supplier needs and expectations. It encompasses employees and suppliers as well as
the people who purchase the organization's goods or services. The objective of managers is to
create an organization committed to continuous improvement in work processes.
How does knowledge management fit into the concept of a learning organization?
20.
A learning organization is one that has developed the capacity to continuously learn, adapt, and
change. Knowledge management involves cultivating a learning culture where organizational
members systematically gather knowledge and share it with others in the organization in order to
achieve better performance.
What is workplace spirituality and how is it an issue that managers must deal with?
21.
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Principles of Management ­ MGT503
VU
Workplace Spirituality is "a recognition of an inner life that nourishes and is nourished by
meaningful work that takes place in the context of community." Workers, and society in general,
are searching for a deeper understanding of who they are and why they're here on Earth. They want
more than just a steady job and a paycheck. Current research studies looking at the relationship
between workplace spirituality and productivity have shown interesting results. Workplace
spirituality is likely to be manifested in how managers treat employees and how employees'
contributions are respected and valued.
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Table of Contents:
  1. HISTORICAL OVERVIEW OF MANAGEMENT:The Egyptian Pyramid, Great China Wall
  2. MANAGEMENT AND MANAGERS:Why Study Management?
  3. MANAGERIAL ROLES IN ORGANIZATIONS:Informational roles, Decisional roles
  4. MANAGERIAL FUNCTIONS I.E. POLCA:Management Process, Mistakes Managers Make
  5. MANAGERIAL LEVELS AND SKILLS:Middle-level managers, Top managers
  6. MANAGEMENT IDEAS: YESTERDAY AND TODAY, Anthropology, Economics
  7. CLASSICAL VIEW OF MANAGEMENT:Scientific management
  8. ADMINISTRATIVE VIEW OF MANAGEMENT:Division of work, Authority
  9. BEHAVIORAL THEORIES OF MANAGEMENT:The Hawthorne Studies
  10. QUANTITATIVE, CONTEMPORARY AND EMERGING VIEWS OF MANAGEMENT
  11. SYSTEMíS VIEW OF MANAGEMENT AND ORGANIZATION:Managing Systems
  12. ANALYZING ORGANIZATIONAL ENVIRONMENT AND UNDERSTANDING ORGANIZATIONAL CULTURE
  13. 21ST CENTURY MANAGEMENT TRENDS:Organizational social Responsibility
  14. UNDERSTANDING GLOBAL ENVIRONMENT WTO AND SAARC
  15. DECISION MAKING AND DECISION TAKING
  16. RATIONAL DECISION MAKING:Models of Decision Making
  17. NATURE AND TYPES OF MANAGERIAL DECISIONS:Decision-Making Styles
  18. NON RATIONAL DECISION MAKING:Group Decision making
  19. GROUP DECISION MAKING AND CREATIVITY:Delphi Method, Scenario Analysis
  20. PLANNING AND DECISION AIDS-I:Methods of Forecasting, Benchmarking
  21. PLANNING AND DECISION AIDS-II:Budgeting, Scheduling, Project Management
  22. PLANNING: FUNCTIONS & BENEFITS:HOW DO MANAGERS PLAN?
  23. PLANNING PROCESS AND GOAL LEVELS:Types of Plans
  24. MANAGEMENT BY OBJECTIVE (MBO):Developing Plans
  25. STRATEGIC MANAGEMENT -1:THE IMPORTANCE OF STRATEGIC MANAGEMENT
  26. STRATEGIC MANAGEMENT - 2:THE STRATEGIC MANAGEMENT PROCESS
  27. LEVELS OF STRATEGIES, PORTERíS MODEL AND STRATEGY DEVELOPMENT (BCG) AND IMPLEMENTATION
  28. ENTREPRENEURSHIP MANAGEMENT:Why Is Entrepreneurship Important?
  29. ORGANIZING
  30. JOB DESIGN/SPECIALIZATION AND DEPARTMENTALIZATION
  31. SPAN OF COMMAND, CENTRALIZATION VS DE-CENTRALIZATION AND LINE VS STAFF AUTHORITY
  32. ORGANIZATIONAL DESIGN AND ORGANIC VS MECHANISTIC VS VIRTUAL STRUCTURES
  33. LEADING AND LEADERSHIP MOTIVATING SELF AND OTHERS
  34. MASLOWíS NEEDS THEORY AND ITS ANALYSIS
  35. OTHER NEED AND COGNITIVE THEORIES OF MOTIVATION
  36. EXPECTANCY, GOAL SETTING AND RE-ENFORCEMENT THEORIES
  37. MOTIVATING KNOWLEDGE PROFESSIONALS LEADERSHIP TRAIT THEORIES
  38. BEHAVIORAL AND SITUATIONAL MODELS OF LEADERSHIP
  39. STRATEGIC LEADERSHIP MODELS
  40. UNDERSTANDING GROUP DYNAMICS IN ORGANIZATIONS
  41. GROUP CONCEPTS, STAGES OF GROUP DEVELOPMENT AND TEAM EFFECTIVENESS
  42. UNDERSTANDING MANAGERIAL COMMUNICATION
  43. COMMUNICATION NETWORKS AND CHANNELS EFFECT OF ICT ON MANAGERIAL COMMUNICATION
  44. CONTROLLING AS A MANAGEMENT FUNCTION:The control process
  45. CONTROLLING ORGANIZATIONAL PERFORMANCE THROUGH PRODUCTIVITY AND QUALITY