HISTORY OF MANAGEMENT THOUGHT LIBRARY TIMES INSTITUTE MULTAN KEY TAKEAWAYS, & identify what can be learned from the classical management approaches. { SKILLS MAKE YOU VALUABLE EVALUATE Career Situations: ‘What Would You Do? = identify what can be learned from the behavioral management approaches. REFLECT On the Self-Assessment: Managerial Assumptions 1m CONTRIBUTE To the Class Exercise: Evidence-Based Management Quiz 1 Identify what can be learned from the modern management approaches. @ MANAGE A Critical Incident: ‘Theory X versus Theory Y 1 COLLABORATE On the Team Activity: Management in Popular Culture fw ANALYZE The Case Study: Zara International: Fashion at the Speed of Light [Link] is a hugely popular website. It helps people learn more about their rootsand by extension, themselves. The history of management thought offers similar insights. In order to manage successfully today, and into the ever-changing future, itis itizal to understand the insights and lessons of the past. Knowing where you're going requires knowledge of where you've been. That is our focus in this chapter. Inhis book The Evolution of Management Thought, Daniel Wren traces management as far back ‘as 5000 BC, when the ancient Sumerians used written records to improve government and busi- ness activities, Management was crucial in the construction of the Egyptian pyramids, the spread of the Roman Empire across the globe, and the renowned commercial success of 14th-century Venice, By the time of the start of the Industrial Revolution inthe late 1700s, great social changes helped stimulate major manufacturing advances in basic products and consumer goods. Adam Smith's revolutionary (atthe time) concepts of division of labor and task specialization acceler- ated industrial development. With the turn of the 20th century, Henry Ford had made mass pro” duction a core aspect of the emerging economy. Since then, both the scienee and practice of ‘management have been on the fast track toward continued development. Many crucial insights can be taken from the history of management thought. Rather than assuming that our generation invented current management practice out of thin at, is important to understand the historical roots of what we think of today as modern ideas, andScientific manage- ment emphasizes careful alignment of worker training, incentives, and supervisory support with job requirements. HISTORY OF MANAGEMENT THOUGHT 10 perfect these ideas and approaches yt to por 5 _ also toy adtanit that we are still ‘current business reality Classical Management Approache TAKEAWAY 1 What can we learn from classical management thinking? TEARN MORE. scientific management § Adminis ABOUT ' ur sty of management begins with u foeus 6H the three major classical approaches (1) Scien tific management, (2) administrative principles, and (3) bureaucratic organization. Figure 21 ties each of these classical approaches a prominent historical figure —Taylor, Fayol, and Web ‘What can be seen here is that the classical approaches share a common assumption: People rae nally consider theit opportunities and do whatever is necessary to achieve the greatest person, and monetary gain. ative principles * Bureaucratic organization Scientific Management 4n 1911, Frederick W. Taylor published The Principles of Scientific Management, where he state “The principal object of management should be to secure maximum prosperity for the employe, coupled with the maximum prosperity for the employee."* Taylor, often called the “father of Scientific management,” noticed that workers often did their jobs with wasted motions and with- out a consistent approach. This resulted in inefficiency and low performance. He believed that this problem could be fixed if workers were taught to do their jobs in the best ways and then ‘were helped and guided by supervisors to always work this way. Taylor’s goal was to improve workers’ productivity. He used the concept of “time study" to analyze the motions and tasks required to do a job, and to develop the most efficient ways to Perform that job. He then linked these job requirements to both worker training and support from supervisors in the form of precise direction, work assistance, and monetary incentives. Taylor's approach, known as scientific management, includes four guiding principles. 1, Develop a “science” that includes rules of motion, standardized work implements, and proper working conditions for every job. 2. Carefully select workers with the right abilities for the job, 3. Carefully train workers to do the job and give 1 ence.” 4. Support workers by carefully planning their ork and by smoothing the way as they do their sntives to cooperate with the job work. Classical approaches ‘Assumption: People are rational Sclentifie Administrative Bureaucratic FIGURE 2.1 ‘management principles organization Major branchos in the classical eae Tayor oma ratT eee approach to management,Cassi Although Taylor eatled hig. “scientific” Manageme Poraty scholars have questioned hiy | Practical Insights truthfulness in reporting arnt the scientific ripF OF his stilion® Ing Taylor's ideas still iaitvence yen ‘al Management Approaches Ea Approach, I. conte: from Scientific Management A! compensation a performance incentive. hs with efficient work methods, * Make resutts tase * Carefully design j agement thinking.” A contemporary | * Cellly seteet workers with the abilities to do these jobs. example is the United Pawwel Service |" T4in workers to perform jobs 10 the best of their abilities CUPS), UPS workers are guided | * Train by carefully eatitvrated pyroxhietivity abilities, standards, Sorters at repional huby are timed! acconting 10 strict tac of packages-per-hour, A GPS j registered in on-board computers that are ot design explicit procedures for dri in traffic, unbuckle se, k requireme ‘me. "3 ts und are expected to load vans at a set number Motion study is the science of reducing a tack to its basic physical and tripled their productivity! motions. Insights from scientific management have led to advances in job design, work standards, and incentive wage plans—all of which + ate techniques organizations use today. The next time you pass by a Taco Bell, think of the number 164, which is the average number of seconds it takes « money handling, food prepa- ration, and order delivery. Workers’ actions are carefully designed in assembly-line style, where each worker learns the script for his or her station and then delivers it over and over again, The hole pioeess is supported by training, and rewards ae given to employees for doing things the Taco Bell way.!? Administrative Principles In 1916, after a career in French industry, Henri Fayol published Administration Industrielle et Générale!’ in which he outlines his views on the management of organizations and workers. Fayol idemtifies five “rules” or “duties” of management, which support the four functions of management—planning, organizing, leading, and controlling—that we talk about today: 1. Foresight—to complete a plan of action for the future. 2. Organization—to provide and mobilize resources to implement the plan, 3. Command—to lead, select, and evaluate workers to get the best work toward the plan. 4, Coordination—to fit diverse efforts together and to ensure information is shared and prob- lems solved. Control—to make sure things happen according to plan and to take necessary corrective action, Fayol believed that management could be taught, He wanted to improve the quality st matiae: ment and defined a number of “principles” to help managers. A number of these principA dorenmcrpey 8 ratsonal won! sent toon a oewarmir toon (sented on hey: aartt ne! hogitienatc HHeTORY OF MANAGRAENE THOUGHT he sewlar chain priveiple-—there should be 4 clear ang the tap to the botion Of the organization; the unity of Jul receive orders from only one boss; and the unity of of all wctivitios that have the sane perfor. guide managers toalay. They intelite th vwatbesben tine af exminianication fram ceeomomand prvi mle — each person sho aaarre rian ame peso shal he iv char maner ODONTINE Bureaucratic Organization ‘ olitical econ ho had a major impact in the Max Weber was a hate: 19th-contury German political economist who hi o tas of management and sociology. His ideas developed after noticing that organizations «tea performed poorly, Among other things, Weber noticed that employees often held posi. toons of authority not because of their capabilities, but because of their “privileged” social status in German society. AL the heart of Weber's thinking was an ideal; an intentionally ratio. form of organization called a bureaucracy." It was founded on princi- teristics of Weber's bureaucratic nal and very efficiem b piles of logic, order, and legitimate authority, The defining charac organization are: + Clear division of labor: obs are well defined, and workers are highly skilled at performing them, ‘Authority and responsibility are well defined for each position, * Clear hierarchy of authori _and each position reports to a higher level. * Formal rules and procedures: Written guidelines direct behavior and decisions in jobs, and written files are kept for historical record. + Impersonaliy: Rules and procedures are impartially and uniformly applied, with no one receiving preferential treatment. + Careers based on merit: Workers are selected and promoted on ability, competency, and per- formance, and managers are career employees of the organizations. ‘Weber believed that organizations structured as bureaucracies would use resources more efficiently and treat employees more fairly than other systems, He wrote:"? ‘The purely bureaucratic type of administrative organization . . . is, from a purely technical point of view, capable of attaining the highest degree of efficiency. . . . It is superior to any other form in precision, in stability, in the stringency of its discipline, and in its reliability. I thus makes possible a particularly high degree of calculabiity of results for the heads of the ‘organization and for those acting in relation to it. Today we recognize that bureaucracy works well sometimes, but not all of the time. In fact it's ‘common to hear the terms bureaucracy and bureaucrat used with negative connotations. We picture bureaucracies as bogged down in excessive paperwork or “red Tie Gaede Resovery: tape,” slow in handling problems, rigid in the fuce of shifting customer needs, and high in resistance to change and employee apathy." These \ are disadvantages for organizations that have to be flexible and adaptive to the changing circumstances that are common today. A impersonal \ major management challenge is to know when bureaucratic features Career managers ‘work well and what are the best altematives when they don’t, Later in bees Sainte ae ‘ the chapter we'll call this contingency thinking. eon, ‘The United States Postal Service (USPS) is perhaps the most eur wainabe cca, rent, large-scale example of the problems bureaucracies face in meet- ing customers’ constantly evolving needs. As more and more business is conducted online and through web-based services, a GovernmentRehnavioral Mar Approaches [29 | Accountability Office (GAO) repent stated that the “USPS's business model isnot viable!" ‘This ‘conclusion is Hot surprising in light of continuing, annual losses of billions of dollars, What is clear isthat if Weber's bureaucratic principles are taretnin practi viability in the USPS and other orga- nizations, they need to be mexlitied t bost handle the constraints of the modern marketplace — amore flexibility and creativity, and a better customer foets, Would you agree that bureaucracies Hike the USPS can be retrofited to toxay’s challenges, or is it time to put in place all-new organi rational designs? Learning Check 1 TAKEAWAYOUESTION 1 What can we learn from classical management thinking? gE SURE YOU CAN « principles of Tay ® the underlying assumption of the classical management approaches « list the or scientific management + identify three of Fayol’s principles for guiding managerial n+ lst the key characteristics of bureaucracy and explain why Weber considered it an ideal form of von + identify the possible disadvantages of bureaucracy in today’s environment Behavioral Management Approaches TAKEAWAY 2 What insights come from the behavioral management approaches? Follett’s organizations as communiti alow s hierarchy of needs * Me Argyris’ person, The Hawthorne studies ‘Theory Xand Theory Y LEARN MORE ABOUT “20 organization Daring the 1920s, an emphasis on the human side of the workplace began to influence manage- ment thinking. Major branches in the behavioral—or human resource—approaches to manage- ‘ment are shown in Figure 2.2, These include Follet’s ideas about organizations as communities, the Hawthome studies, Masiow’s theory of human needs, and related ideas of Douglas McGregor and Chris Argyrs. The behavioral approaches assume that people enjoy social relationships, rgantsational respond to group pressures, and search for persona fallen. These historia! foundations set Seu faeanieals the stage for what is now known asthe field of organizational behavior, the study of individuals nd roupa in snd groups in organizations, organizations. Organizations as communitios. Mary Parker Folett a | Bion Mayo ‘Abraham Maslow Ny Human resource 4~ ‘approaches Assumption. People ae social i a ~, FIGURE Theory X and Theory Y and sel-acual2ing personality and organization Foundations inthe behav- page wcss —Gaskgrs ~—«lotalor human resource 6 McGregor approaches to management.wt JOSTORY OF MANAGENIINT THE ; nities Pollott’s Onqunizations as Commun ; / iw pao portant aston fom classical thingy The weet of Mary Fare Holt book Mary Purker Folleti—Prophet of Managemen, in Rehavhorl Maer ie £920 offers a Inipertant teminder ofthe wiadce ha, Crtednvennan of Writing te ‘of history, Although Pollett wrote at a different time in history, he Cae Fo a enighis She tuaght roopect foe workers! experience and knowledge, warn? aaa ee rrr tno much Airarohy, atid called for Visionary leadership. Flee saeetcd upon her death in 1933 as “one of the most important worsen Arsene? hhas yet pre eulogized po Juced in the fields of eivies and sociology.""® Follett thought of organ ations as “communities” where managers and workers should in harmony without one party dominating the other, and with the freedom to talk over and wap reconcile conflicts and differences. For her, groups were a way for individuals to combine the, talents toward a greater good. She believed it was the job of managers to help workers cooperate ‘with one another and to integrate their goals and interests, Foes eryphasis on groups and her commitment to human cooperation are highly relevan themes teday.!” She believed that making every employee an owner in a business would create feelings of collective responsibility. Today, we address the same issues under such labels ag employee ownership, profit sharing, and gain-sharing plans. She believed that business Problems involve a wide variety of factors that must be considered in relationship to one another. Today, we talk about od and “contingency thinking.” Follett also believed that businesses were ser. vice organizaffons and that private profits should always be considered vis-a-vis the public good, Today, we pursue the same issues under the labels managerial ethics and corporate social respon. sibility. Follett was, in many ways, a woman ahead of her time, and whose insights and philosophy bear on organizational practice today. ‘The Hawthorne Studies Ze shift toward behavioral thinking in management gained momentum in 1924 when the Westem Electric Company commissioned a research program to study worker productivity at the Hawthome ‘Works ofthe firm's Chicago plant team led by Harvard's Eton Mayo set out to leary how eco. nomic incentives and workplace conditions afected workers’ output, But they concluded that unfore- seen “psychological factors” somehow interfered with thei experiments Social Setting and Human Relations One study focused on worker fatigue and output, Six assembly workers were isolated for intensive study in a special test room. Their Production was measured as changes were made to the lengih of rest pauses, workdays, and workweeks, Results showed ther productivity increased regardless of the changes. Researchers concluded that the new “sociay setting” in the test room made workers want to do a good job. They shared pleasant social interactions with one another and received special attention that made them feel important. They were Eber 4 101 of information and were frequently asked for their opinions. None ofthis was the ase in their regular jobs. In other words, good “human relations” seemed to result in higher Productivity, Further studies of employee attitudes, interpersonal relations, and group dynamics also led to “complex” and “baffling” results, Factors like work conditions or wages were found to increase satisfaction for some workers and dssatisfuetion for others, Some workers were willing to restrict their output to avoid upsetting the group, even if it meant sacrificing pay that could otherwise be earned by increasing outputNehavioral Managernent Approaches e ethics > KNOW RIGHT FROM WRONG * “Four drivers have to veer of, they call and say wo ar taking a tle personal time {tis changing their behavior in a positive way: Tracking Technology Monitors Worker Behavior ‘management, 2 For many in the trucking industry, the tracking technology that monitors drivers to mate sure they follow their engincered routes and aren't wwasting—or even stealing—company time. How far should ‘his wacking technology go and what ground rules should be followed? I! you pur technology together with scientific what do your gee At a small pest control company, the general manager secretly installed GPS software on company-issued smart. ghones. This allowed him to track drivers. After noticing that one was stopping regularly ata single address, confronted the driver and leamed he was seci The driver was fired. That was the first anyone the manager ing a woman, i new the man- using the tracking technology. Now, the manager ys: “If our drivers have to veer off, they call and say we are ‘aking alte personal time. It is changing their behavior in a positive way.” ‘The founder of the National Workrights Institute, Lewis Maltby, champions worker privacy, But he also says the issue is ‘ot “whether employers should monitor” but “a question of how.” The institute's position is that employees have the right to know they are being monitored and also what the procedures are for handling alleged violations. The landscaping. frm Plants, Inc. follows that advice, and all 16 employees know ‘heir company phones have mobile monitoring turned on. Still, Lessons of the Hawthorne Studies Some employees complain that their privacy rights are being Violated, Employees who don't like tracking technology have little legal recourse. Employment law professor Matt Finkin from the University of Iinois says that this is an area where “tech- nology is ahead of the law by about a generation.” Unions are taking issue with the practice in some cases and negotiating rules of use, including disciplinary procedures. But for now electronic monitoring has gained a strong foothold both inside and outside the office. WHAT DO YOU THINK? ‘Should the use of tracking technology to monitor employee ‘behavior be regulated by law? Or, isit a practice that employ- ‘ers have the rights to use at their discretion? Would you be comfortable being monitored when making outside sales calls, for example, or when using your company phone for private browsing and conversations? What message does the use of electronic monitoring communicate to employees? What are the limits to using technology this way, and who has the rights to what in this case? How would you feel if your phone or computer had a tracking device on it that informed Your parents what sites you'd visited, or what people you'd «called? Would it matter if they were paying for these devices? Why or why net? Scholars now criticize the Hawthorne studies for poor research design and weak empirical sup- Por for the conclusions drawn.” Yet, despite these problems, the studies shifted managers’ and researchers’ attention toward social and human factors as drivers of productivity. They brought Visibility to the idea that workers’ feelings, attitudes, and relationships with co-workers affected their work, and that groups have important influences on individuals. They also identified the Hawthorne effeet—the tendency of workers singled out for special attention to perform as g00d—or better than anticipated—because of expectations created by the situation, Maslow’s Theory of Human Needs ‘The work of psychologist Abraham Maslow, in the area of human “needs,” also has had a major ‘impact on the behavioral approach to management,® Maslow described a need as a physiological ‘The Hawthorne effect is the tendency of persons singled out for special attention to perform as expected. Aneedisa physiological ‘or psychological deficiency that aperson feels compelled to satis.jysTORY OF MANAGEMENT THOUGHT HIGHER-ORDER mene NEEDS ‘Nood for estoam in oyes of others; ‘need for respect, prostige, recognition; need for self-esteem, personal sense of ‘competence, mastery Social needs Need for ove, affection, sense of bol hones bolongingness in one's olatonships LOWER-ORDER NEEDS FIGURE 2.3 ‘Maslow’s hierachy of human neods. ‘or psychological deficiency a person fecls compelled to satisfy, Importantly, needs create te. sions that can influence workers’ attitudes and behaviors. Maslow placed needs into the hierarchy shown in Figure 2.3, From lowest to highest in order, they are physiological, safety, social esteem, and self-actuatization needs. Maslow’s theory is hased on two underlying principles—the deficit prineiple and the progression principle. The deficit principle is a satisfied need that does not motivate behavior, People try to satisfy “deprived” needs or those for which there is a “deficit” (ie., when I’m hun. gry, I seck to satisfy my hunger by eating—when I'm done eating, hunger doesn’t motivate me anymore). The progression principle i the five needs that exist in a hierarchy of “prepotency.” A need at any level becomes active only when the next-lower-level need is satisfied (ie, 'm thirty ‘and lonely—but I won't be motivated to chat with my friends until I’ve had something to drink), Maslow argued that people try to satisfy these five needs in sequence, They progress, step by step, from the lowest level in the hierarchy up to the highest. Along the way, a deprived need ‘dominates attention and determines behavior until itis satisfied. Then, the nexthigher-level need is activated. At the level of self-actualization, the deficit and progression principles cease to oper- ate. The more this need is satisfied, the stronger it grows. Consistent with human relations thinking, Maslow’s theory implies that managers who under- ‘stand and help workers to satisfy their important needs at work will get more productivity out of their employees. Although scholars now recognize things are more complicated than this, Maslow’s ideas are still relevant. Consider the case of volunteer workers at the local Red Cross, animal shelter, or other community organizations. What can be done to motivate workers who aren’t paid? Maslow’s ideas suggest linking volunteer work with opportunities to satisfy higher- order needs like esteem and self-actualization,Helvavioral Management Approaches MeGregor's Theory X and ‘Theory Y Douglas McGregor was heavily influenced by both the Hawthorne studies and Abraham Maslow. Whis classic book, The Human Side af Enterprise, McGregor argued that managers should give more attention t0 workers’ social and self-actualizing needs.2! He called on managers to shift their view of human nature away from a set of assumptions he called Theory X and toward ones be called! Theory Y. You can check your own managerial assumptions by completing the self- asseesment at the end of the chapter Acconiing (0 McGregor, managers with Theory X assumptions believe that employees gen- cally dislike work, have litte ambition, are irresponsible, resistant to change, and prefer to be led rather than to lead. In contrast, managers with Theory Y assumptions believe employees are willing to work hard, accept responsibility, are capable of self-coygrol and self-direction, and are imaginative and creative. A One important point regarding Theory X and Theory Y is that MeGregor believed these assumptions create self-fulfilling prophecies. When managers behave consistent with the assumptions, he said, they end up encouraging employees to act in ways that confirm managers" original expectations,” Managers with Theory X assumptions tend to act ina very directive, command-and-control, top- down way that gives employees little say over their work. These behaviors create passive, depen- dent, reluctant subordinates, who tend o do only what they are told to do or required to do, reinforcing the original Theory X viewpoint. In contrast, managers with Theory Y assumptions tend to behave in ways that engage workers, giving them more job involvement, freedom, and responsibility. This creates opportunities for employees to satisfy esteem and self-actualization needs, and they respond by performing with initiative and high performance, creating a positive self-fulfilling prophecy.?* ‘Theory Y thinking is reflected in a lot of the ideas and developments discussed in this book, such as valuing diversity, employee engagement, self-managing teams, empowerment, and lead- ership. You need to ponder your Theory X and Y assumptions and think through their implica- tions for how you behave as a manager and team leader. You also must be prepared to mect and work with others holding different assumptions. , Argyris’s Theory of Adult Personality ‘The ideas of Maslow and McGregor inspired the well-regarded scholar and business consultant Chris Argyris. In his book Personality and Organization, Argyris contrasts management prac- tices found in traditional, bureaucratic organizations with the needs and capabilities of mature adults.” Argyris believed that common problems, such as absenteeism, turnover, apathy, alien- ation, and low morale may be signs of a nlismatch, He also argued that managers who treat employees as responsible adults will achieve the highest productivity. It’s the self-fulfilling prophecy notion again: If you treat people as grown-ups, that’s the way they'll behave. Consider these examples of how Argyris’s thinking differs from that of earlier management thinking. In scientific management, the principle of specialization assumes that people will ‘work more efficiently as tasks become simpler and better defined, Argyris believed that this prin- ciple limits opportunities for self-actualization. In Weber's bureaucracy, people work in a clear hierarchy of authority, with higher levels directing and controlling lower levels. Argyris worried that this creates dependent, passive workers who feel they have little control over their work environments, In Fayol’s administrative principles, the concept of unity of direction assumes that efficiency increases when work is planned! und directed by supervisors. Argyris argued that this may create conditions for psychological failure; conversely, psychological success is more likely when employees are allowed to define their own goals. ‘Theory X assumes people dislike work, lack ambition, act irresponsibly, and Prefer to beled. Theory ¥ assumes people are willing to work, like responsibility, and are self-directed and creative. Aself-fulfiling Prophecy occurs when ‘person acts in ways that confirm another's expectations.Asystem isa collection of interrelated parts working together fora purpose. Asubsystemis a smaller component of a larger system. Anopen system interacts with its environment and transforms resource inputs into outputs. Organizations as Systems ave long been described as cooperative systems that achieve great things by tributions of many individuals toward @ common purpose. In real- different moving parts is imperfect and can be improved. That e full complexity of organizations as a system of interrelated her to achieve common goals.” .ms that interact with their environment ina continual technology. information, money, and supplies—into ods and services. ws how an organization functions as an interacting bsystems. The activities of these subsystems individually and collectively support things happen. The operations and service management subsystems process, while linking with other subsystems such as purchasing, ations can only perform well when each subsystem both performs th other subsystems. Organizations ha focusing resources ity, cooperation among people and is why it’s critical to understand thé parts or subsystems that work togell Organizations function as open syste. ts—people, process of transforming inpu Figure 2.4 sho outputs—s" network of su the larger system to make anchor the transformation ing, and sales. Organiz: accounti tes wil its tasks well and coopera!Modern Management Foundations Ds] ‘Markoting, salon, iv ation ssyatoma systioms Operations and vice management « ¥ systema Suppite Customers Accounting Information and financial and technology systems systems FIGURE 2.4 Organizations as complex networks of interacting subsystems. Contingency Thinking Seocntll hor idemtify'and implement practices that best fit with the unique demands of ferent si ns. This requires contingency thinking that matches actions with problems and Contingency opportunities specific to different people and settings. From a contingency perspective, there is thinking tries to no “one best way” to manage in all circumstances. The challenge is to understand situational match management differences and respond to them in ways that fit with their unique characteristics." Can you think Practices with of situations at work or at school where you need to adjust your interpersonal behavior, forexam- “atonal demands, ple, to succeed? ‘Contingency thinking is an important theme in this book, and its implications extend to all of the management functions—from planning and controlling for diverse environmental condi- tions, to organizing for different strategies, to leading in different performance situations. A good illustration takes us back once again to the concept of bureaucracy, which Weber offered as an ideal form of organization. But from a contingency perspective, bureaucracy is only one possible way of organizing. What turns out to be the “best” structure in any given situation will depend on a range of factors, including environmental uncertainty, an organization's primary technology, and the strategy being pursued. A tight bureaueracy works best when the environ: ment is relatively stable and ope ‘e predictable and uncomplicated. In complex and ‘ i ‘o changing situations, more flexible structures are needed. sions Quality Management ‘The work of W, Edwards Deming is a cornerstone of the quality movement in management.”” His story began in 1951, when he was invited to Japan to explain quality control techniques that had been developed in the United States. “When Deming spoke,” we might sa, “the Japanese lis- tened.” The principles he taught the Japanese were straightforward and they worked: Tally defects, analyze and trace them to the source, make corrections, and keep a record of what hap- ward, Deming’s approach emphasizes the use of statistical tools, ‘commitment to qual- pens afte if nt innovation. ity assurance training, and constainsigh HeTRY OF MANAL > Make Learning Style Work for You complexities associated with modern or ate management practice, it is importat jpecsonal learning style. Think of learning style as how you Jike to learn through receiving, processing, and recalling new information Each of us tends to Kearn in slightly different ways. Look drow some students do well in lecture classes, while others do rot. But these others might excel in case study or project classes that emphasize discussion and problem solving rather than digesting information. ‘Likes logical rearing, to eam by information Total quality management is an ‘organization-wide commitment to continuous improve ment, product quality, and customer needs. t > LEARN ABOUT YOURSELF There's no right or wrong when it comes to learning styles, But we should rec eres no ig ' cue MeNT THOUGHT and understand there ‘There's no right or wrong learning style; however, it is | critical to recognize and understand some underlying diffe ences. Some people learn by watching. They observe othery and model what they see. Others learn by doing. They act and experiment, leaming as they go. Some people are feelers, for ‘whom emotions and values are very important. Others are thinkers who emphasize reason and analy t's a personal challenge to Jeam something new every day, and it's a managerial challenge to consistently help employees earn as well. One of our most significant challenges is to always ‘embrace experiences at school, at work, and in everyday living ‘and try our best to leam from these experiences. Every employee is unique, most problem situations are complex, and Key perfor. mance factors are constantly changing, Professional success is Mauch more likely for managers who are excited to Jeam, and sd to help others to learn, also are e GET TO KNOW YOURSELF BETTER j j Look atthe diagram of learning styles and think about your own preferences. Shade in each circle to show the degree to which that description best fits with your preferences. This snapshot (of your personal learning style is good food for thought. Ask: (1) “What are the implications of my learning style for how I Perform academically and how well {perform at work? (2) “How does my learning style influence my relationships with others in study groups and work teams?” (3) "How does my learning stylo | influence the kinds of information I pay the most attention to and the kindof information | tend to overlook?” These ideas contributed to the emergence of total quality management, or TQM, which incorporates quality principles in organizations’ strategic objectives. TQM principles are applied to all aspects of operations with a focus on meeting customers’ needs by doing things Fight the first time, Most TQM approaches begin with buy-in on a total quality commitment. This applies to all employees and every organizational subsystem—from resource acquisition and supply chain management, through production and into physical distribution of finished Gonsinaous goods and services, and ultimately to customer relationships. The search for and commitment pee Head to quality reflects an emphasis on continuous improvement—always looking for new ways searching for new ways 10 improve on current practices. The key takeaway is that it is eritieal to never be satisfied: toimprove work quality something always can and should be improved—whether it is machines, people, processes, ot and performance. relationships.Moserm Management Foundations L | SO certification by the International Standards Organization in Geneva, Switzerland, has 180 cortification become a global stamp of approval for quality management, Husinesses and nonprofits that strive indientes conformance tobe “world-class” are increasingly expected to have ISO certiication, ‘To obtain it, they undergo ee 4 rigorous assessment by independent ermine whether ISO's strict qu pine, tnenetionel air: iments have been met . Se ERTS NY OR desde uditors ty Evidence-Based Management Managers are always searching for practical answers to questions dealing with day-to-day dilemmas and sitvations."® What is the best performance appraisal method’? What selection method works best for high-performance teams? How should a merit pay system be designed and implemented? When does directive leadership work best? How do you structure organizations for innovation? Given the importance of the answers to such questions, itis critical to be cautious and a bit skep- tical when separating fads from facts and assumptions from informed insight based on empirical data and analysis, 1m light of the complexity of work and organizations today, a critical concern of manage- ‘ment scholars is that we may be too quick to accept the results of studies based on poor science ‘oF questionable evidence. And if research may be flawed or preliminary in terms of drawing firm conclusions, extra care needs to be taken when interpreting and applying results to man- agement practice.” Scholars Jeffrey Pfeffer and Robert Sutton make the case for evidence-based management Evidence-based ‘where management decisions are made based on “hard facts’—that is, about what really works— management involves rather than on “dangerous half-truths"—things that sound good but lack solid evidence.™ Pfeffer making decisions based and Sutton want managers to be well informed and knowledgeable when making decisions. woe Evidence-based management is about managers “making decisions through the conscientious, — explicit, and judicious use of four sources of information: practitioner expertise and judgment, evidence from the local context, a critical evaluation of the best available research evidence, and the perspectives of those people who might be affected by the decision." You may recognize incidents in your personal affairs where you make decisions based on less-than-complete infor- mation, or even hearsay. When you do, are you prepared to learn from experience and rely more ‘on evidence-based decision making in the future? Management scholars support and inform evidence-based management by conducting solid and meaningful research using sciemtfic methods, and by rigorously examining and reporting case studies and insights from managers’ experiences.” Some research carves out new and innovative territory while other research refines and extends knowledge that has come down in building-block fashion over time. You'll notice that management research involves data collec- tion and analysis in one form or another. But just because a research study uses data, doesn't make it solid and scientific. The following criteria are useful as a first step to determine whether or not good scientific methods have been used. + Arresearch question or problem is clearly identified, 4 Cteria for evaluating One or more hypotheses is stated to describe possible explanations. ee “The research design provides a good tes ofthe hypotheses. Data are rigorously gathered, analyzed, and interpreted. Hypotheses are accepted or rejected and conclusions made based on the evidence. When research satisfies the scientific methods test, managers can be more confident accepting, and applying results in actual practice. Gathering data from a sample of some 1,000 firms, for ‘example, Pfeffer and a colleague studied the link between human resource management and organizational performance.”” They found that firms using a mix of positive human resourceHISTORY OF MANAGEMENT THOUGHT management practices had more sales- per-employee and higher profits-per-employee than firms that did not. These positive practices included employment security, selective hiring, self-managed teams, high wages based on pestoumieice merit, training and skill development, minimal status differences, and shared information.** Teornine Chock 2