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Business management Unit 2

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Who is argued by some to have originated management theory?

Nicocolé Michiavelli

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

During the last century

What is the main reason for studying management theory?

To develop professional competence

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

Quantitative Approach

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

Chaos theory

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

To develop a holistic understanding of the discipline

What is the main purpose of Think Point 2.1?

To identify and compare different management styles

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

A coherent group of assumptions to explain relationships between observable facts

What influences the development of management theories?

The dynamic environment, including political, social, economic, and ecological forces

What is the primary purpose of Figure 2.1?

To depict the environmental forces that shape management thought

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

It is based on the principles of scientific management and administrative management

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

The shift from farm work to factory work during the Industrial Revolution

How do later management theories relate to earlier theories?

They complement or coexist alongside earlier theories

What is the purpose of studying management theories?

To understand the framework of principles that guide management actions

What is depicted in Figure 2.2?

The chronological sequence of management theories

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

Their management style

What was the main goal of the Scientific Management Theory?

To increase productivity of individual workers

Who is credited with developing the Gantt Chart?

Henry Gantt

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

What was the main limitation of the Scientific Management Theory?

It neglected to address the 'human' element

Who is recognised as Europe's greatest management pioneer?

Henri Fayol

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

Planning, Organising, Commanding, Coordinating, Controlling

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

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

A hierarchical organisation governed by lines of authority

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

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

Frank and Lillian Gilbreth

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

Non-linear relationships and unpredictable outcomes

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

Globalisation, technology, and increased competition

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

The pace of change and complexity

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

Chaordic organisation

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

Adaptation

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

Equifinality

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

Chaos Theory

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

Decentralized and non-hierarchical

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

It allows managers to tailor their approach to the situation

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

Homeostasis

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

Quantitative management

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

What is the principle of synergy in systems theory?

The whole is greater than the sum of its parts

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

Achieving a balance between the parts of the organisation

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

Informal organisation, task, individual, and formal organisation

What is a characteristic of an open system?

It interacts with its environment

What is internal interdependence in a system?

Changes in one component result in changes or repercussions in the system's other components

What is equilibrium in a system?

A state of homeostasis in the system

What is a system defined as?

A set of interrelated components

What is the benefit of achieving congruence in an organisation?

Increased effectiveness of the organisation

What is a key characteristic of a chaordic organisation?

Innovation and creativity

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

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

Preventing mistakes

What is a key principle of The Learning Organisation approach?

Challenging assumptions and generalisations

What is the primary goal of Re-engineering?

Creating and sustaining value for customers

What is a major criticism of the Classical Management Approach?

It is not applicable to modern organisations.

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

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

The needs of the worker.

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

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

Improving customer service

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

Mary Parker Follett, Elton Mayo and Douglas McGregor.

What was the main finding of the Hawthorne Experiment?

Productivity improved regardless of the lighting conditions.

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

Managers must learn to be selective in adopting management techniques

What is a key characteristic of a learning organisation?

Commitment to lifelong learning

What is the focus of the Classical Approach to management?

The use of scientific methods to manage organizations

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

The Hawthorne Effect.

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

To understand and improve organisational performance

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

They undermine the status and relevance of management work

What is the main benefit of studying management theory?

To develop effective management practices

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.

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

Concern for the well-being and performance of workers

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

Focus on people-management skills.

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

Human behaviour is complex and difficult to study.

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

The evolution of management theory

What is the main focus of the Quantitative Approach?

The use of quantitative techniques to achieve productivity.

What is another name for the Quantitative Approach?

The Management Science Approach.

What is the primary goal of business management?

To achieve specific goals and objectives

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

Leading

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

To develop and implement overall business strategy

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

Monitoring and measuring business performance

What is the role of middle management in a business?

To manage specific business functions

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

Marketing

What is the primary role of supervisors in a business?

Overseeing day-to-day operations

What is SWOT analysis used for in business management?

Identifying strengths, weaknesses, opportunities, and threats

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

Clearly conveying information to employees, stakeholders, and customers

What is the purpose of performance metrics in business management?

To track and measure business performance

What is involved in strategic thinking in business management?

Thinking critically and strategically

What is budgeting and financial management involved in business management?

Managing financial resources and planning

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

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.

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