Video 2B
In this video we will:
Discuss the characteristics of the
following management time periods
Quantitative
Systems
Contingency
Quality
Quantitative Management Theory
Solving management problems using math
Incorporates models, simulations
“What If” analysis Ex: Change work flow process
Decisions based on accumulation of data
Information Systems play vital role
Examine processes seeking cost reduction
History repeating itself?
Made decisions based on “science”.
Forgot employees sometimes have better ideas
A right decision was based on math, not human
intuition
Lack of concern for people characteristic of
classical mgt.
Systems Management Theory
Emphasis placed on understanding the
organization as a system
Various internal subsystems interact with each other
Marketing
Production
Finance
Synergy: Increased effectiveness achieved when
working together (as a system)
Focuses on quality throughout the system
Recognizes external variables can affect the system
Political, Environmental, Social
Con: Difficult to get people to work together
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Contingency Theory
Right actions depend (are contingent) on
the situation.
Solutions might be determined by
Quantitative means
Human Intuition
A combination
Characteristic of non-programmed
decision making
McDonald’s explores menu items to add to
overseas operations
Right choice contingent on cultural taste
Quality Management Theory
Emphasis placed on meeting/exceeding
customer expectation
Shift away from “quantity” to “quality”
High oil prices force automakers to redefine
“quality”
Customers wanted fuel-efficient cars
Foreign producers took large share of industry
Build a “better” car and they will come
Approach to Improving Quality
Reengineering Approach
Radical redesign of processes to improve
quality, cost, service
1960’s: US auto industry must reengineer or face
extinction
Focused on:
Complete redesign, rather than gradual
improvements
Outsourcing becomes popular
Let others manage non-core business processes
More time to improve quality of essential business
processes
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Approach to Improving Quality
Kaizen Approach
Gradual, continuous improvement
Quality is not a terminal goal
Ex: Wal-Mart strives to bring lower prices
Each day labor cost must be lower
compared to one year ago
Could this be the death of the superstore?
Review
Classical Management Theory
Command & Control to ensure productivity
Behavioral Management Theory
Human needs affect productivity and quality
Quantitative Management Theory
Best decisions are made mathematically, not by
human intuition
Systems Management Theory
Decision makers must see the whole picture
Contingency Management Theory
Right decisions depend on the situation. Blend of
quantitative and human intuition
Quality Management Theory
Right decisions improve quality, meeting or exceeding
customer expectations
Concluding Remarks
This concludes our discussion entitled
“Evolution of Management”
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