Business management Unit 2

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Questions and Answers

Who is argued by some to have originated management theory?

Peter Drucker

Frederick Taylor

Nicocolé Michiavelli (correct)

Adam Smith

When did management undergo systematic investigation and become a formal discipline?

During the last century (correct)

In ancient times

Since the Industrial Revolution

In the 19th century

What is the main reason for studying management theory?

To develop professional competence (correct)

To understand the history of management

To understand the different approaches to management

To become a better manager

What approach to management focuses on the application of quantitative methods to solve problems?

Quantitative Approach Signup and view all the answers

What is the name of the theory that suggests that management is affected by uncertainty and unpredictability?

Chaos theory Signup and view all the answers

What is the benefit of studying management theory, according to the text?

To develop a holistic understanding of the discipline Signup and view all the answers

What is the main purpose of Think Point 2.1?

To identify and compare different management styles Signup and view all the answers

What is a 'theory' in the context of management?

A coherent group of assumptions to explain relationships between observable facts Signup and view all the answers

What influences the development of management theories?

The dynamic environment, including political, social, economic, and ecological forces Signup and view all the answers

What is the primary purpose of Figure 2.1?

To depict the environmental forces that shape management thought Signup and view all the answers

What is the main characteristic of the Classical Approach to management?

It is based on the principles of scientific management and administrative management Signup and view all the answers

What led to the emergence of the Classical Approach to management?

The shift from farm work to factory work during the Industrial Revolution Signup and view all the answers

How do later management theories relate to earlier theories?

They complement or coexist alongside earlier theories Signup and view all the answers

What is the purpose of studying management theories?

To understand the framework of principles that guide management actions Signup and view all the answers

What is depicted in Figure 2.2?

The chronological sequence of management theories Signup and view all the answers

What is the main difference between Manager A and Manager B in Think Point 2.1?

Their management style Signup and view all the answers

What was the main goal of the Scientific Management Theory?

To increase productivity of individual workers Signup and view all the answers

Who is credited with developing the Gantt Chart?

Henry Gantt Signup and view all the answers

Which of the following is a principle of Frederick Taylor's Scientific Management Theory?

Record the new methods of performing the task as rules and standard operating procedures Signup and view all the answers

What was the main limitation of the Scientific Management Theory?

It neglected to address the 'human' element Signup and view all the answers

Who is recognised as Europe's greatest management pioneer?

Henri Fayol Signup and view all the answers

What are the five basic functions of administration identified by Henri Fayol?

Planning, Organising, Commanding, Coordinating, Controlling Signup and view all the answers

What is the main difference between the Scientific Management Theory and Administrative Management Theory?

The former focuses on work, while the latter focuses on the organisation Signup and view all the answers

What is the theory of bureaucratic management developed by Max Weber?

A hierarchical organisation governed by lines of authority Signup and view all the answers

What is the main contribution of the Administrative Management Theory to the field of management?

A considerable number of its principles are still being used in management research and practice today Signup and view all the answers

Who built on the work of Frederick Taylor and focused on work simplification?

Frank and Lillian Gilbreth Signup and view all the answers

What is the primary focus of Chaos Theory in complex systems?

Non-linear relationships and unpredictable outcomes Signup and view all the answers

According to Tetenbaum, what characterizes the information age of the present?

Globalisation, technology, and increased competition Signup and view all the answers

What is the main difference between the industrial era and the information age, according to Tetenbaum?

The pace of change and complexity Signup and view all the answers

What is the term for the complex, self-organizing, and adaptive systems described by Chaos Theory?

Chaordic organisation Signup and view all the answers

What is the term for the process of systems achieving equilibrium after an event has disturbed the balance?

Adaptation Signup and view all the answers

Which theory emphasizes that systems can achieve their outputs through different ways or system configurations?

Equifinality Signup and view all the answers

What is the term for the dynamic and complex nature of the contemporary management environment?

Chaos Theory Signup and view all the answers

What is the characteristic of a chaordic organisation, as described by Tetenbaum?

Decentralized and non-hierarchical Signup and view all the answers

What is the benefit of a contingency approach to management, according to the text?

It allows managers to tailor their approach to the situation Signup and view all the answers

What is the term for the systems' ability to maintain a state of balance within the greater system in which it operates?

Homeostasis Signup and view all the answers

Which of the following approaches focuses on the application of mathematical techniques to improve decision-making?

Quantitative management Signup and view all the answers

What is a key shortcoming of the Classical Approach, the Behavioural & Human Relations Approach, and the Quantitative Approach?

They do not consider the influence of the environment Signup and view all the answers

What is the principle of synergy in systems theory?

The whole is greater than the sum of its parts Signup and view all the answers

What is the concept of congruence in Nadler & Tushman's model?

Achieving a balance between the parts of the organisation Signup and view all the answers

What are the four main components of an organisation according to Nadler & Tushman's Congruence Model?

Informal organisation, task, individual, and formal organisation Signup and view all the answers

What is a characteristic of an open system?

It interacts with its environment Signup and view all the answers

What is internal interdependence in a system?

Changes in one component result in changes or repercussions in the system's other components Signup and view all the answers

What is equilibrium in a system?

A state of homeostasis in the system Signup and view all the answers

What is a system defined as?

A set of interrelated components Signup and view all the answers

What is the benefit of achieving congruence in an organisation?

Increased effectiveness of the organisation Signup and view all the answers

What is a key characteristic of a chaordic organisation?

Innovation and creativity Signup and view all the answers

According to Tetenbaum, what is the role of management in facilitating the move to a chaordic organisation?

Manage the transition and build resilience to change Signup and view all the answers

What is the primary focus of Total Quality Management (TQM)?

Preventing mistakes Signup and view all the answers

What is a key principle of The Learning Organisation approach?

Challenging assumptions and generalisations Signup and view all the answers

What is the primary goal of Re-engineering?

Creating and sustaining value for customers Signup and view all the answers

What is a major criticism of the Classical Management Approach?

It is not applicable to modern organisations. Signup and view all the answers

Why do Micklethwait and Wooldridge argue that management theory is characterised by a mixture of legitimate approaches and damaging management fads?

All of the above Signup and view all the answers

What was the main focus of the Behavioural & Human Relations Approach?

The needs of the worker. Signup and view all the answers

What is the solution to the problem of management fads according to Donaldson & Hilmer?

Establishing management as a profession with ideals, ethics, and a body of knowledge Signup and view all the answers

What is the primary concern of the bank in the Practical Application 2.2?

Improving customer service Signup and view all the answers

Who is credited with making significant contributions to the Behavioural & Human Relations Approach?

Mary Parker Follett, Elton Mayo and Douglas McGregor. Signup and view all the answers

What was the main finding of the Hawthorne Experiment?

Productivity improved regardless of the lighting conditions. Signup and view all the answers

What is the main message of Micklethwait & Wooldridge regarding management fads?

Managers must learn to be selective in adopting management techniques Signup and view all the answers

What is a key characteristic of a learning organisation?

Commitment to lifelong learning Signup and view all the answers

What is the focus of the Classical Approach to management?

The use of scientific methods to manage organizations Signup and view all the answers

What is the term used to describe the phenomenon observed in the Hawthorne Experiment?

The Hawthorne Effect. Signup and view all the answers

What is the primary purpose of management theory, according to the text?

To understand and improve organisational performance Signup and view all the answers

What is the consequence of management fads, according to Donaldson and Hilmer?

They undermine the status and relevance of management work Signup and view all the answers

What is the main benefit of studying management theory?

To develop effective management practices Signup and view all the answers

What is the main difference between Theory X and Theory Y managers?

Theory X managers assume employees are lazy, while Theory Y managers assume employees are motivated. Signup and view all the answers

What is the primary characteristic of the Behavioural & Human Relations Approach to management?

Concern for the well-being and performance of workers Signup and view all the answers

What is the main contribution of the Behavioural & Human Relations Approach to the field of management?

Focus on people-management skills. Signup and view all the answers

What is a limitation of the Behavioural & Human Relations Approach?

Human behaviour is complex and difficult to study. Signup and view all the answers

What is the main theme of the section summarized in 2.6?

The evolution of management theory Signup and view all the answers

What is the main focus of the Quantitative Approach?

The use of quantitative techniques to achieve productivity. Signup and view all the answers

What is another name for the Quantitative Approach?

The Management Science Approach. Signup and view all the answers

What is the primary goal of business management?

To achieve specific goals and objectives Signup and view all the answers

Which of the following is a key function of business management?

Leading Signup and view all the answers

What is the role of top-level management in a business?

To develop and implement overall business strategy Signup and view all the answers

What is the primary focus of the controlling function of business management?

Monitoring and measuring business performance Signup and view all the answers

What is the role of middle management in a business?

To manage specific business functions Signup and view all the answers

Which of the following is NOT a key function of business management?

Marketing Signup and view all the answers

What is the primary role of supervisors in a business?

Overseeing day-to-day operations Signup and view all the answers

What is SWOT analysis used for in business management?

Identifying strengths, weaknesses, opportunities, and threats Signup and view all the answers

What is an important aspect of effective communication in business management?

Clearly conveying information to employees, stakeholders, and customers Signup and view all the answers

What is the purpose of performance metrics in business management?

To track and measure business performance Signup and view all the answers

What is involved in strategic thinking in business management?

Thinking critically and strategically Signup and view all the answers

What is budgeting and financial management involved in business management?

Managing financial resources and planning Signup and view all the answers

Study Notes

Evolution of Management Theory

Management theory is argued to have originated with Niccolò Machiavelli, while others argue that the Egyptians were the first management thinkers.
The study of management theory is critical in developing a holistic understanding of the discipline and professional competence.

Why Study Management Theory?

The study of management theory helps to develop a framework of principles that guide management-related actions.
Understanding management theory provides a sound basis for predicting future events.

Understanding Management Theory

A theory is a coherent group of assumptions that explain the relationship between two or more observable facts and provide a sound basis for predicting future events.
Environmental forces such as political, social, economic, ecological, and international forces shape management thought.

Theories of Management

The Classical Approach includes:
- Scientific Management Theory (focus on increasing productivity)
- Administrative Management Theory (focus on increasing productivity at the organisational level)
The Behavioural & Human Relations Approach focuses on the needs of the worker.
The Quantitative Approach focuses on the use of rigorous quantitative techniques to increase productivity.
Contemporary Approaches include:
- Systems Theory
- Contingency Theory
- Chaos Theory

The Classical Approach

Scientific Management Theory:
- Emerged in response to the Industrial Revolution
- Focus on increasing productivity through:
  - Job division and specialisation
  - Recordings of new methods of performing tasks
  - Matching workers' skills and abilities with task requirements
  - Determining an acceptable level of performance
Administrative Management Theory:
- Focus on increasing productivity at the organisational level
- Henri Fayol's 14 principles of management
- Max Weber's theory of bureaucratic management

The Behavioural & Human Relations Approach

Focus on the needs of the worker
Emerged in response to the Classical Approach
Contributions from:
- Mary Parker Follett
- Elton Mayo
- Douglas McGregor

The Quantitative Approach

Focus on the use of rigorous quantitative techniques to increase productivity
Includes:
- Quantitative management
- Operations management
- Total Quality Management (TQM)
- Management information systems (MIS)

Contemporary Approaches

Systems Theory:
- Views the organisation as a purposeful and unified system
- Focus on the interrelated components of the organisation
- The concept of congruence refers to achieving an appropriate balance between the parts of the organisation
Contingency Theory:
- Focus on the dynamic environment in which organisations operate
- Managers need to tailor their management approach to the particular situation
Chaos Theory:
- Focus on the complexity and nonlinear relationships in organisations
- Acknowledges the dynamic nature of the contemporary management environment
- Incorporates the concept of self-organising entities### Chaordic Organisation
A chaordic organisation is decentralised, non-hierarchical, and evolving
Characteristics of a chaordic organisation include:
- Knowledge and information sharing
- Innovation and creativity
- Teamwork and project orientation
- Diversity
- Strong core values
The role of management in facilitating the move to a chaordic organisation includes:
- Managing the transition
- Building resilience to change
- Destabilising the system
- Managing complexity and paradox
- Creating and maintaining a learning organisation

Contemporary Management Theories

Total Quality Management (TQM) focuses on the achievement of quality through the prevention of mistakes
Central principles of TQM include:
- Strong emphasis on the customer
- Focus on continual improvement
- Quality improvement in all organisational activities
- Accurate measurement
- Employee empowerment
The Learning Organisation approach, advocated by Peter Senge, involves:
- Commitment to lifelong learning
- Challenging assumptions and generalisations
- Sharing the organisation's vision
- Promoting active dialogue within the organisation
- Encouraging systems thinking
Re-engineering, put forth by Hammer & Champy, involves:
- Redesigning organisational processes to create and sustain value for customers while managing costs

Management Theory or Management Fad?

The proliferation of management theories can be ascribed to the existence of a management theory industry
Management theory is a young discipline, negatively influenced by managers' demands for instant solutions
Management fads often fail to bring about the benefits they claim
Solutions to the problem of management fads include:
- Establishing management as a profession
- Adopting a medium to long-term view
- Being selective and learning to differentiate between effective and ineffective management approaches

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Description

This quiz covers the evolution of management theory, its importance, and different approaches such as classical, behavioral, and quantitative. It also explores contemporary management theories like systems, contingency, and chaos theories, and their applications.