Week 3 | Management Philosophies, Perspectives and Models

Question 1

What are the 3 different approaches and their assumption?

Answer 1

Classical approach - assume ppl are rational and money is most important motivator
Behavioral approach - assumes ppl have needs and are social
Modern approach - assumes that customers and quality are most important

Question 2

Name 3 classical approaches.

Answer 2

Scientific management (Frederick Taylor, Frank + Lillian Gilbreth)
Administrative principles (Henri Fayol)
Bureaucratic organisations (Max Weber)

Question 3

Explain steps of scientific management.

Answer 3

1. Develop for every job a ‘science’ that includes standardised work processes and conditions.
2. Carefully select workers with the right abilities for the job.
3. Carefully train and incentivise workers (KPI’s).
4. Support workers with carefully planned work.
5. Motion study (F + L Gilbreth)

Question 4

What do you know about the behavioral approach?

Answer 4

(during 1920's)
* Hawthorne Studies (Elton Mayo) 
* (Abraham) Maslow's Theory of human needs
-> Human Resources (ppl are social)
=> Theory X and Theory Y

Question 5

Explain the Hawthorne Studies.

Answer 5

Mayo found ….
Group atmosphere (workers shared pleasant social relations with each other)
Participative supervision (Test-Room workers were given loads of information and ask for opinions. They were made to feel important)
…. It set the stage for ……
Human relations movement (Managers using good human relations and will achieve productivity)

Question 7

Explain McGregor’s Theory X and Theory Y.

Answer 7

*Managers should give more attention to the social/self-actualising needs of people at work.
Theory X : Assumes people dislike work, lack ambition, are irresponsible, and prefer to be led.
Theory Y : Assumes people are willing to work day accept responsibility, and are self-directed and creative.
Self-fulfilling prophecies occur when people act in ways that confirm another expectations.

Question 8

Explain the modern approach.

Answer 8

• No one model or theory applies universally in all situations or to the exclusion of the others.
• People are complex and variable. They have many different needs that can change over time. They possess a range of talents and capabilities that can be development.
• Managers should respond to individual differences.
  (TQM, Systems thinking, Contingency model)

Question 9

Explain Systems thinking.

Answer 9

• A system is a collection of interrelated parts working together for a common purpose.
• Chester Barnard defined Organisations as cooperative systems in which individual contributions are integrated for a common purpose.
• A subsystem is a smaller component of a larger system.
• Open Systems transform resource input from the environment into product output.

Question 10

Explain Organisations as complex networks of interacting subsystems.

Answer 10

Inputs / Supplier
⏬⏬
Organisational network of subsystems
(Purchasing & inventory systems, Marketing & Sales, Operations & Service Management, Accounting & Finance, Information & Technology systems)
⏬⏬
Output / Customers

Question 11

Explain Contingency Thinking.

Answer 11

Best solution for the problem depends on the circumstances (People & Environment)
Matching managerial responses/practices with situational demands.
What is good practice for one organisation may not work well for another, and what works well at one time may not work as well in the future as circumstances change.

Question 12

Explain Maslow’s theory of human needs.

Answer 12

5. Self-actualisation needs (Highest level: need for self-fulfillment ; to grow and use abilities to fullest and most creative extent)
6. Esteem needs (Need for esteem in the eyes of others; need for respect; prestige, recognition and self-esteem, personal sense of competence, mastery)
7. Social needs (Need for love, affection, sense of belongingness in relationships with other people)
8. Safety needs (Need for secruity, protection and stability in the events of day-to-day life)
9. Physiological needs (Most basic of all human needs: need for biological maintenance; food, water and physical wellbeing)

Theory starts with Step1 and goes up to Step5.

Question 13

Explain Quality and Performance Excellence in Management today.

Answer 13

TQM : every effort is made to build quality into all aspects of operations - from initial acquisition of resources, through transformation processes and work systems, all the way to ultimate product delivery to customers or clients.
Value Chain : The sequence of activities transforming materials into finished products - Quality is controlled at every point in value chain.
Quality should always be built in the culture of the organisation, it should be a core value
TQM includes quality focussed practices/ techniques such as Lean Manufacturing

Question 14

Explain the Value Chain.

Answer 14

1. Resources and materials flow in
2. Materials received
3. People & Technology creating products
4. Finished products distributed
5. Customers served