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 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 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 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.
What is Scientific Management, and who were its key contributors?
Scientific Management aimed to improve efficiency through scientific analysis of work. Frederick Taylor introduced four principles for optimizing tasks. Frank and Lillian Gilbreth contributed motion studies, and Henry Gantt developed the Gantt chart. Critics argue it dehumanized workers and focused too much on efficiency.
What is the Behavioural Management Approach and its key ideas, contributors, and challenges?
The Behavioural Approach emphasized human relations and employee motivation.
(Mary Parker Follett) promoted collaboration.
(Hawthorne Studies) revealed social factors impact productivity.
(Douglas McGregor) introduced Theory X and Theory Y. It contributed insights on leadership and motivation but was criticized for lack of structure.
What is the Quantitative Management Approach and what techniques does it use?
The Quantitative Approach uses mathematical models and data to aid decision-making. It includes operations research, simulations, and forecasting. Computers enhance its capabilities. Key areas: inventory modeling, queuing theory, and network models.
What is Contingency Theory and how does Fiedler’s model apply?
Contingency Theory states there is no one best way to manage, effectiveness depends on context. Fiedler’s model suggests leadership effectiveness is based on matching leadership style to situational favorableness. Managers must adapt based on internal and external factors.
What is Chaos Theory and what are the features of chaordic organizations?
Chaos Theory sees organizations as dynamic and unpredictable. It led to the idea of chaordic organizations, which blend chaos and order. These are adaptive, decentralized, and require flexible, responsive managers.
What is a Learning Organisation and what are its key features?
A Learning Organisation, popularized by Peter Senge, is one that continuously transforms through shared learning. Key elements include:
- systems thinking,
- personal mastery,
- shared vision,
- team learning,
- mental models.
What is Business Process Reengineering and how does it differ from traditional improvement?
BPR involves radically redesigning core business processes for dramatic improvements. Unlike incremental changes, BPR seeks fundamental rethinking and uses technology to streamline workflows.
What is Total Quality Management (TQM) and what are its core principles?
TQM aims for continuous quality improvement in all organizational processes. Deming’s five principles include:
- customer focus,
- process-centered approaches,
- continuous improvement,
- teamwork,
- decision-making based on data.
TQM emphasizes preventing errors rather than correcting them.
