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Supply chain studies year 1 > Business Management 1 - Chapter 2 > Flashcards

Business Management 1 - Chapter 2 Flashcards

1
Q

Why study management theory?

A

To guide and assist management with the following

  • Develop holistic understand;
  • Develop professional competence;
  • Guide management decisions;
  • Shape the manager’s view of organisations;
  • Make the manager aware of the business environment;
  • Provide the manager with a source of new ideas.
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2
Q

What is the management theory?

A

Management theory provides a framework of principles which serve to guide not only the manager’s understanding of management issues, but his/her management-related actions as well.

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3
Q

Define the concept “theory”

A

Definition of Theory
Stoner and Freeman (1992) define a “theory‟ as a “coherent group of assumptions put forth to explain the relationship between two or more observable facts and to provide a sound basis for predicting future events”. Another definition of the word “theory‟ is “a supposition or system of ideas explaining something”. In essence, therefore, a theory is a framework of principles.

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4
Q

What factors influence the development of a theory?

A
  • Economic Forces
  • Political Forces
  • Social Forces
  • Ecological Forces
  • International Forces
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5
Q

Draw a diagram depicting the evolution of management theory.

A

PG 13 study guide

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6
Q

List the four schools/approaches of management (theories of management)

A
  • Classical Approach.
  • Behavioral and Human Relations Approach.
  • Quantitative Approach
  • Contemporary Approach.
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7
Q

When did the “Classical management school” emerge?

A

EARLY 1900’S

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8
Q

What Influenced “Classical management school”?

A

ECONOMIC, TECHNICAL AND CULTURAL CHANGES OF INDUSTRIAL REVOLUTION AND INTRODUCTION OF STEAM POWER

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9
Q

When did the “Behavioral Management School” emerge?

A

1920’s / 1930’s

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10
Q

What Influenced “Behavioral Management School”?

A

WORLD WAR II, DECLINE IN PROSPERITY, LACK OF WORKPLACE HARMONY

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11
Q

When did the “Quantitative Management Approach” emerge?

A

1940’s

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12
Q

What Influenced “Quantitative Management Approach”?

A

MATHEMATICAL APPROACHES AND TECHNOLOGY TO SOLVE WAR-RELATED PROBLEMS

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13
Q

When did the “Contemporary Management Approach” emerge?

A

1950’S

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14
Q

What Influenced “Contemporary Management Approach”?

A

RAPID AND ONGOING CHANGE AFTER WORLD WAR II

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15
Q

List the two major theories which comprise the Classical Management Approach.

A
  • Scientific Management Theory

- Administrative Management Theory

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16
Q

Briefly explain the Classical management school.

A
  • Influenced by the steam engine and the Industrial
    Revolution
  • Shift from farm work to factory work
  • Mass production was possible
  • Poor motivation of workers lead to development of
    Classical Theories
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17
Q

What is the focus of the “Scientific Management Theory”?

A

Increase worker productivity

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18
Q

List the four names of the people that are best known for their contributions to the field of Scientific Management

A
  • Fredrick Taylor
  • Henry Gantt
  • Frank and Lillian Gilbreth
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19
Q

List Frederick Taylor’s principles to increase efficiency in the work place.

A
  • Examine the way in which workers perform their tasks
  • Record the new methods as rules and standard operating procedures
    -Train workers to perform the task according to the
    written rules and standard operating procedures
  • Develop a remuneration system which rewards
    performance which exceeds the acceptable level
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20
Q

List Frank and Lillian Gilbreth’s principles to simplify work.

A
  • Analysing each individual action required to perform a task
  • Identifying better ways of performing each action
  • Increasing the efficient performance of the whole task
    through reorganizing the individual actions
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21
Q

How did Henry Gantt redesign the incentive system?

A
  • Payment of bonuses to workers who
    exceed daily targets
  • Payment of bonuses to their supervisors
  • production scheduling – Gantt chart
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22
Q

What is the overall result of the “Scientific management Approach”

A

Scientific Management approach succeeded in increasing productivity, however, it lead to worker dissatisfaction and distrust of management, as it ignored the human element

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23
Q

What is the focus of the “Administrative Management Theory”?

A

Increase organisation productivity

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24
Q

List the two names of the people that are best known for their contributions to the field of Administrative Management

A
  • Henri Fayol

- Max Weber

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25
Q

How many management principles did Henri Fayol identify?

A

14 management principles

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26
Q

List 5 of the 14 management principles identified by Henri Fayol

A
  • Division of labour
  • Authority and responsibility
  • Unity of command
  • Unity of direction
  • Team Spirit
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27
Q

How many administration functions did Henri Fayol identify?

A

5 administration functions

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28
Q

List the 5 administration functions identified by Henri Fayol

A
  • Planning
  • Organising
  • Commanding
  • Coordinating
  • Controling
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29
Q

List 2 contributions that Max Weber made to the field of administrative management.

A
  • Developed a theory of bureaucratic management

- Hierarchy governed by lines of authority

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30
Q

What is the overall result of the “Administrative management theory”?

A

Administrative Management Theory
principles are still being applied today,
however, it is more applicable to the
predictable environments of the past

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31
Q

What is the focus of the “Behavioral & Human Relations Approach”?

A

Behavioral & Human Relations Approach focuses on the needs of the worker

32
Q

List the 3 names of the people that are best known for their contributions to the Behavioral & Human Relations Approach

A
  • Mary Parker Follett
  • Elton Mayo
  • Douglas McGregor
33
Q

List 2 contributions/beliefs that Mary Parker Follett made to the Behavioral & Human Relations Approach

A
  • Workers should be involved in job analysis process

- Horizontal, as opposed to vertical power and authority

34
Q

What is Elton Mayo most famous for?

A

Developing of the Hawthorne Effect

35
Q

What does the Hawthorne Effect entail?

A
  • Worker’s performance affected by management’s
    interest
  • Interest in behaviour and leadership caused the
    Human Relations Movement
36
Q

According to Douglas McGregor, how many sets of assumptions determine how we manage?

A

2 sets of assumptions

37
Q

List the 2 sets of assumptions according to Douglas McGregor

A
  • Theory X

- Theory Y

38
Q

Briefly explain Theory X according to Douglas McGregor

A

managers assume workers are lazy and need

to be closely supervised and controlled

39
Q

Briefly explain Theory Y according to Douglas McGregor

A

managers believe in creating a climate in

which employees can effectively perform their work

40
Q

What is the overall result of the “Behavioral & Human Relations Approach”?

A

Behavioural and Human Relations approach

has led to the development of people management skills, however, the complexity of human behaviour is a challenge

41
Q

What is the “Quantitative Approach” also referred to?

A

Management Science Approach

42
Q

What is the focus of the “Management Science Approach/Quantitative Approach”?

A

focus on most efficient and effective use of

resources to produce goods or services

43
Q

List the four approaches of the quantitative school which provide the manager with tools and techniques to increase the effectiveness of his/her decision-making.

A
  • Quantitative management
  • Operations management
  • Total Quality Management (TQM)
  • Management Information Systems (MIS)
44
Q

What does “Quantitative management” entail?

A

mathematical techniques

45
Q

What does “Operations management” entail?

A

overseeing, designing, and controlling the process of production

46
Q

What does “Total Quality Management (TQM)” entail?

A

ongoing improvement in quality of products and processes

47
Q

What does “Management Information Systems (MIS)” entail?

A

computer systems that allow us to manage people, technology and data

48
Q

List four contemporary management theories focused on under the Contemporary Approach

A
  • Systems Theory
  • Contingency Theory
  • Chaos Theory
  • Other Theories
49
Q

What is the focus of the “System theory”?

A

focus is on the organisation as a unified system

composed of interrelated elements

50
Q

Define a “system”

A

A system is defined to be a set of interrelated components.

51
Q

List the characteristics of a Basic system

A
  • Internal interdependence
  • Capacity for feedback
  • Equilibrium
  • Equifinality
  • Adaptation
52
Q

What does “Internal interdependence” entail?

A

changes have repercussions

53
Q

What does “Capacity for feedback” entail?

A

info on outputs can be used

54
Q

What does “Equilibrium” entail?

A

systems seek homeostasis (balance)

55
Q

What does “Equifinality” entail?

A

various configurations can achieve outputs

56
Q

What does “Adaptation” entail?

A

survives by adapting to greater system

57
Q

Briefly explain The Concept of Congruence

A

The concept of congruence refers to achieving an appropriate balance between the parts of the organisation (system).

58
Q

who developed the Congruence Model of Organisational Behaviour?

A

Nadler and Tushman’s (1980)

59
Q

List the four main components according to the Congruence Model of Organisational Behaviour

A
  • The Work/ task
  • The people/ individual
  • The formal organisation
  • The informal organisation
60
Q

what does “the work/task” entail in the Congruence Model of Organisational Behaviour?

A

real day-to-day activities carried out by individuals. E.g. Process design, individual pressures and rewards

61
Q

what does “The people/ individual” entail in the Congruence Model of Organisational Behaviour?

A

skills and characteristics of the employees. E.g. their backgrounds and expectations

62
Q

what does “The formal organisation” entail in the Congruence Model of Organisational Behaviour?

A

management of the structure, systems and policies in organisation

63
Q

what does “The informal organisation” entail in the Congruence Model of Organisational Behaviour?

A

unplanned, unwritten activities that come out over time such as power, influence, values and norms.

64
Q

What is the contingency approach also know as?

A

Situational Approach

65
Q

Briefly explain the contingency/situational approach?

A

Concept in management stating that there is no one universally applicable set of management principles (rules) by which to manage organisations. Organisations are individually different, face different situations, and require different ways of managing.

66
Q

What is the belief of the Chaos Theory?

A

Events can rarely be controlled as the management

environment is dynamic

67
Q

List the characteristics of the information age

A
  • TECHNOLOGY
  • GLOBALISATION
  • COMPETITION
  • CHANGE
  • SPEED
  • COMPLEXITY & PARADOX
68
Q

List the characteristics of the Chaos Theory/ Chaordic organisation

A
  • Knowledge & information sharing
  • Innovation & creativity
  • Teamwork & project orientation
  • Diversity
  • Strong core values
69
Q

List the roles of management in facilitating the move to the chaordic organisation.

A
  • Manage the transition
  • Build resilience to change
  • Destabilise the system
  • Manage complexity and paradox, i.e. order and
    disorder, the present and the future;
  • Create and maintain a learning organisation.
70
Q

List three further contemporary management theories as identified by Cronje (2004)

A
  • Total Quality Management (TQM)
  • The Learning Organisation
  • Re-engineering
71
Q

What is the focus of “Total Quality Management”?

A

achieving quality by preventing mistakes

72
Q

List the central principles of Total Quality Management.

A
  • strong emphasis on customer
  • focus on continual improvement
  • quality improvement in everything
  • accurate measurement
  • employee empowerment
73
Q

List the focus points organisations should use to overcome their learning disabilities according to the Learning Organisation approach.

A
  • commitment to lifelong learning
  • challenging assumptions and generalisations
  • sharing the organisation’s vision
  • promoting active dialogue
  • encouraging systems thinking
74
Q

Who put forth the Re-engineering approach?

A

Hammer & Champy

75
Q

What is the focus of “Re-engineering”?

A

Focuses on the redesign (re-engineering) of organizational processes so as to “create and sustain value for customers while managing costs”

76
Q

What is undermining the status and relevance of

management work?

A

FADS, jargon and superficial research.

77
Q

What is believed to be the antidote to management fads?

A

establishment of management as a profession, characterised by ideals, ethics, a body of knowledge,
sound reasoning and clear language

Supply chain studies year 1 (28 decks)

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