CH2: Development of Management Theory Flashcards
Why is studying management theory important?
Because it helps guide decisions, shapes how managers view organizations, builds awareness of environmental factors, and provides a base for innovative thinking and action.
How is a theory defined in a management context?
A theory is a coherent group of assumptions that explains relationships between observable facts and helps predict future events, guiding both understanding and actions in a managerial context.
What factors influence the development of management theories?
Economic trends, technological advances, cultural shifts, wars, recessions, and other environmental changes all shape how and why management theories evolve.
What historical event led to the Classical Management Approach?
The Industrial Revolution, especially the introduction of the steam engine and the shift from agrarian to factory work.
What was the main goal of Scientific Management?
To increase individual worker productivity through work optimization, specialization, and performance-based rewards.
What were Frederick Taylor’s four principles of Scientific Management?
- Analyze and improve each task.
- Standardize procedures.
- Train workers to match task demands.
- Reward output exceeding expected standards.
How did Frank and Lillian Gilbreth contribute to Scientific Management?
They focused on simplifying work by analyzing each motion, identifying better methods, and reorganizing tasks for maximum efficiency.
What tool did Henry Gantt develop that is still used today?
The Gantt Chart – a visual tool for scheduling tasks and tracking project timelines.
What was the main criticism of Scientific Management?
It focused too much on productivity and ignored the human element, leading to dissatisfaction and mistrust among workers.
What did Henri Fayol contribute to management theory?
He developed 14 principles of management and identified five key managerial functions: Planning, Organising, Commanding, Coordinating, and Controlling.
What is Max Weber known for in management theory?
For his bureaucratic model, emphasizing formal hierarchy, rules, and clear lines of authority to ensure efficiency and predictability.
What is a key limitation of Administrative Management Theory?
It’s most effective in stable environments and less suited for today’s dynamic and rapidly changing organizations.
What was the main focus of the Behavioural Management Approach?
Understanding and addressing the needs and motivations of workers to improve productivity and satisfaction.
What did Mary Parker Follett advocate for in the workplace?
That employees should be involved in job design and decision-making; she promoted ideas like teamwork and horizontal power structures.
What was the significance of the Hawthorne Studies?
They revealed that workers perform better when they feel observed and valued, not just when physical conditions change—this became known as the Hawthorne Effect.
What are Theory X and Theory Y in management?
Theory X: Assumes employees dislike work and need control.
Theory Y: Assumes employees are self-motivated and seek responsibility when given the right environment.
What are the main contributions of the Behavioural Approach?
It emphasized human motivation, group dynamics, and interpersonal relationships, contributing to the rise of people-management skills in leadership.
What is a key challenge of the Behavioural Approach?
Human behaviour is complex and unpredictable, making it difficult to develop universal management solutions.
What is the goal of the Quantitative or Management Science Approach?
To improve decision-making effectiveness by using mathematical models and statistical tools to optimize the use of resources and increase productivity.
What are common techniques used in quantitative management?
Linear programming, simulation, modeling, queuing theory, decision trees, and forecasting.
What role do computers play in the Quantitative Approach?
Computers allow rapid processing of variables in mathematical models, enabling managers to simulate scenarios and find optimal solutions to problems.
What are the four major areas under the Quantitative Approach?
Quantitative Management, Operations Management, Total Quality Management (TQM), Management Information Systems (MIS).
What does Systems Theory view an organization as?
An interconnected and open system that interacts with its environment, made up of interrelated parts working together for a common purpose.
What are five key characteristics of systems?
Internal Interdependence – All parts affect one another
Feedback Mechanisms – Used for correction and improvement
Equilibrium – Strives for balance when disrupted
Equifinality – Multiple paths to the same outcome
Adaptation – Can respond and adjust to environmental change.
What is the Congruence Model (Nadler & Tushman)?
A model that says organizational effectiveness depends on alignment (or ‘congruence’) between four components: tasks, individuals, formal structure, and informal systems.
What is the main idea behind Contingency Theory?
There is no universally best management style—the best course of action depends on the specific situation or context.
What did Fred Fiedler contribute to Contingency Theory?
He developed the LPC (Least Preferred Co-worker) scale to assess whether a leader is task- or relationship-oriented and argued that leadership effectiveness depends on matching style to context.
What does Contingency Theory require from managers?
The ability to diagnose situations and adapt their leadership style or strategy based on contextual variables like team maturity, environment, or task complexity.
What is the central idea of Chaos Theory in management?
Organizations are nonlinear, unpredictable systems where small changes can lead to significant and unexpected outcomes, yet underlying patterns still emerge.
What makes Chaos Theory relevant to modern organizations?
The modern business environment is defined by rapid change, globalization, speed, complexity, and paradox, which make traditional control-based approaches less effective.
What are the characteristics of a chaordic organization?
Encourages innovation and creativity
Operates with team-based, decentralized structures
Embraces diversity and flexibility
Values learning and adaptability
Balances order and disorder dynamically.
How should managers behave in a chaordic organization?
Facilitate adaptation
Build resilience to change
Manage paradoxes (e.g., control vs. freedom)
Foster knowledge sharing and learning.
What is the main goal of Total Quality Management (TQM)?
To achieve long-term success through customer satisfaction by engaging all employees in continuous improvement across all organizational processes.
What are the five central principles of TQM (according to Deming)?
Customer focus, Continuous improvement, Quality in all operations, Accurate performance measurement, Employee empowerment.
How does TQM prevent errors in the organization?
By focusing on root cause analysis, proactive planning, and building quality into the process instead of relying solely on inspections after the fact.
What is a Learning Organisation and who popularized it?
An organization that continuously improves by encouraging lifelong learning, collaboration, and adaptability—popularized by Peter Senge.
What are the key components of a Learning Organisation?
Commitment to lifelong learning, Challenging assumptions and outdated mental models, A shared organizational vision, Open, two-way dialogue, Emphasis on systems thinking.
Why is systems thinking essential in a Learning Organisation?
Because it helps individuals understand the interconnectedness of processes, avoids short-term thinking, and enables better long-term decision-making.
What is Business Process Reengineering (BPR)?
A radical approach to management that involves redesigning business processes from scratch to achieve dramatic improvements in cost, speed, quality, and customer value.
How does Reengineering differ from traditional process improvement?
Unlike incremental improvements, BPR starts from a blank slate, challenges all assumptions, and seeks major breakthroughs, not small enhancements.
What is the primary focus of Reengineering?
To rethink and redesign core processes that directly affect customer value, performance, and competitiveness.
What was the main focus of Chapter 2 in Business Management I?
Understanding the evolution of management theory, including Classical, Behavioural, Quantitative, and Contemporary approaches, and recognizing how the environment influences the development and application of these theories.
