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M

Management
anagement Thought
Thought

Brushing Up the Memory

11

Discussion
Discussion Outline
Outline
An Introduction to Management
Kinds of Managers
Basic Management Functions
Fundamental Management Skills

The Evolution of Management


Classical Management Perspective
Scientific Management & Administrative Theory

The Behavioral Management Perspective


Human Relations and Human Resources Management

The Quantitative Management Perspective

Contemporary Management Thought


The Systems Perspective
The Contingency Perspective
Contemporary Management Challenges and Opportunities

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12

Management
Management
A form of work that involves coordinating an organizations
human, financial, physical and information resources
toward accomplishing organizational objectives.
Attainment of organizational goals in an effective and
efficient manner through planning, organizing, leading and
controlling organizational resources.
NOTE THESE CHARACTERISTICS:

Goal-driven
Activity is effective and efficient
Uses the four managerial functions
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13

What
What is
is Management?
Management?
A set of activities
planning and decision making, organizing, leading, and
controlling

directed at an organizations resources


human, financial, physical, and information

with the aim of achieving organizational goals


in an efficient and effective
manner.

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14

Efficiency
Efficiency
versus
versus
Effectiveness
Effectiveness

Efficiency:
Operating in
such a way
that resources
are not wasted

Effectiveness:
Successful
Managemen
t

Doing the right


things in the
right way at
the right times

Source: Adapted from Van Fleet, David D., Contemporary Management, Second Edition.
Copyright 1991 by Houghton Mifflin Company. Used with permission.
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15

What
What is
is aa Manager?
Manager?
Someone whose primary responsibility is to
carry out the management process.
Someone who plans and makes decisions,
organizes, leads, and controls
human, financial, physical,
and information resources.

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16

Figure
Figure 1.1
1.1
Kinds
Kinds of
of Managers
Managers by
by Level
Level and
and Area
Area

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17

Kinds
Kinds of
of Managers
Managers by
by Level
Level
Top Managers
The relatively small group of executives who manage
the organizations overall goals, strategy, and
operating policies.

Middle Managers
Largest group of managers in organizations
Implement top managements policies and plans.
Supervise and coordinate lower-level managers activities.

First-Line Managers
Managers who supervise and coordinate the activities
of operating employees.

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18

Examples
Examples of
of Managers
Managers by
by Area
Area
Marketing Managers
Work in areas related to getting consumers and clients to buy the
organizations products or services.

Financial Managers
Deal primarily with an organizations financial resources.

Operations Managers
Concerned with creating and managing the systems that create
organizations products and services

Human Resource Managers


Involved in planning, recruiting and selection, training and
development, designing compensation and benefit systems,
formulating performance appraisal systems.

Administrative Managers
Serve as generalists in functional areas and are not associated
with any particular management specialty.
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19

Management
Management in
in Organizations
Organizations

Planning
and decision
making

Organizing

Inputs from the environment


Human resources
Financial resources
Physical resources
Information resources

Goals attained
Efficiently
Effectively

Controlling

Leading

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110

The
The Management
Management Process
Process

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111

The
The Functions
Functions of
of Management
Management
Planning
Setting an organizations goals and selecting a course
of action to achieve them.

Organizing
Determining how activities and resources are grouped.

Leading
Getting organizational members to work together to
advance the interests of the organization.

Controlling
Monitoring organizational progress towards goals.

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112

Planning
Planning and
and Organizing
Organizing Involve
Involve
Planning
Environmental scanning and analysis
Developing a vision of the future
Setting long-term organizational objectives
Developing organizational and competitive strategies

Organizing
Defining tasks and duties
Grouping positions into effective structures (departments)
Clarifying authority, responsibility, and reporting relationships
Allocating scarce resources (financial, human, physical)
Staffing positions with qualified personnel

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113

Leading
Leading and
and Controlling
Controlling Involve
Involve
Leading
Effective communication
Inspiring others to do their best
Motivation and rewards
Trust and assurance

Controlling
Clear standards
Monitoring progress and results
Knowing when and how to intervene
Correcting deviations successfully

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114

Skills
Skills and
and the
the
Manager
Manager

Technical Skills
Interpersonal Skills

Fundamental
Fundamental
Management
Management
Skills
Skills

Conceptual Skills
Diagnostic Skills
Communication Skills
Decision-Making Skills
Time-Management Skills

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115

Fundamental
Fundamental Management
Management Skills
Skills
Technical
Skills necessary to accomplish or understand the
specific kind of work being done in an organization.

Interpersonal
The ability to communicate with, understand, and
motivate both individuals and groups.

Conceptual
The managers ability to think in the abstract and to
see the big picture. To perceive how all the parts fit
together.

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116

33 Primary
Primary Managerial
Managerial Skills
Skills

(KATZ)
(KATZ)

Technical skills

FOCUS IS ON WHAT IS DONE

Specialized knowledge and proficiency


Analytical ability
Works with things, tools and techniques

Interpersonal skills FOCUS IS ON HOW SOMETHING IS DONE


Works with and through people
Effective as a group/team member
Motivates, communicates, & resolves conflicts

Conceptual skills

FOCUS IS ON WHY SOMETHING IS DONE

Sees the big picture (how the parts fit together)


Understands the corporation as a whole
Future-orientedthinks strategically
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Fundamental
Fundamental Management
Management Skills
Skills (contd)
(contd)
Diagnostic
The managers ability to visualize the most appropriate response
to a situation.

Communication
The managers abilities both to convey ideas and information
effectively to others and to receive ideas and information
effectively from others.

Decision-Making
The managers ability to recognize and define problems and
opportunities correctly and then to select an appropriate course
of action to solve the problems and capitalize on opportunities.

Time-Management
The managers ability to prioritize work, to work efficiently, and to
delegate appropriately.

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118

Management
Management Skill
Skill Mixes
Mixes at
at Different
Different
Organizational
Organizational Levels
Levels

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119

Managerial
Managerial Activities
Activities

MINTZBERG
MINTZBERG

Characterized by variety, fragmentation, and brevity


Little time for quiet reflection
Crises are interspersed with trivial events
Must be able to shift gears quickly

Managers perform a great deal of work at an unrelenting


pace.
In one day
Processed 36 memos, letters and notes
Attended 8 meetings
Got 11 phone calls
Met with some very unhappy customers
Refereed two internal managerial disputes
Spent an average of 9 minutes on each task during the day
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120

Key
Key Managerial
Managerial Roles
Roles (Mintzberg)
(Mintzberg)
Key
KeyManagement
Management
Roles
Roles

Interpersonal
Interpersonal
Roles
Roles

Informational
Informational
Roles
Roles

Decisional
Decisional
Roles
Roles

1.1. Figurehead
Figurehead
2.2. Leader
Leader
3.3. Liaison
Liaison

1.1. Monitor
Monitor
2.2. Disseminator
Disseminator
3.3. Spokesperson
Spokesperson

1.1. Entrepreneur
Entrepreneur
(Innovator)
(Innovator)
2.2. Disturbance
Disturbance
handler
handler
3.3. Resource
Resource
Allocator
Allocator
4.4. Negotiator
Negotiator

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121

Managerial
Managerial Success
Success Factors
Factors
Personal Factors
Abilities and skills
Motivation
Personality

Situational Factors
Nature of the work and environment
Relationships with subordinates and supervisors
Abilities of subordinates

Actions Taken
Appropriate for the situation?

Luck
Being in the right place at the right time?
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122

Management:
Management: Science
Science or
or Art?
Art?
The Science of Management
Assumes that problems can be approached using
rational, logical, objective, and systematic ways.
Requires technical, diagnostic, and decision-making
skills and techniques to solve problems.

The Art of Management


Decisions are made and problems solved using a
blend of intuition, experience, instinct, and personal
insights.
Requires conceptual, communication, interpersonal,
and time-management skills to accomplish the tasks
associated with managerial activities.

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123

The
The Importance
Importance of
of Theory
Theory
Most managers develop theories about how to run the organization
Management Models represents the real world and how it functions
Provides a framework for organizing knowledge & a blueprint for action
Helps us organize our knowledge
Tells us what to pay attention to and what to ignore
Helps us to understand why events occur (causal relationships)
Summarizes diverse findings and highlights relationships
Gives guidance about how to bring about positive change

Three Types of Management Theories


DESCRIPTIVE
80% +
PREDICTIVE ~ 15%
PRESCRIPTIVE < 5%

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124

Theories
Theories are
are derived
derived from
from
Observation and deduction
Personal experience
On-site observation
Archival records

Survey research
Interviews
Questionnaires

Experimentation
Laboratory
Field
Natural

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125

Research
Research Designs--Observation
Designs--Observation
POSITIVES
Probe one situation in great detail
A search for clues/causes of problems
Discovers unexpected relationships
Rich in optional explanations

NEGATIVES
Selective observation and limited recall
Researcher bias toward the dramatic
Data not easily quantified or recorded
Generalizations are difficult (impossible) to make
Time consumingwhen do you stop observing/gathering info?

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126

Research
Research Designs--Surveys
Designs--Surveys
POSITIVES
Collect data independent of the researcher
Questions/info gathered can be standardized
Allows quantitative analysis of findings
Sampling of populations is possible (census isnt necessary)

NEGATIVES
Objectivity of responses?
Issue of non-responses
Identifies symptoms, not cause-effect links
Requires much expertise and time

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Research
Research Designs--Experiments
Designs--Experiments
POSITIVES
Can infer cause-effect relationships
Can be repeatedchecked for consistency

NEGATIVES
Difficult to control all the variables (precision)
Timing of observations and measurements
Impact of the experiment on work productivity
Subject bias and loss
Generalizability to other organizations

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128

History
History of
of Management
Management Through
Through the
the Ages
Ages

D Greeks
C Babylonians

G Venetians

B Egyptians

E Romans

A Sumerians
3000 B.C.

2500 B.C.

F Chinese
2000 B.C.

1500 B.C.

1000 B.C.

500 B.C.

A.D.500

A.D.1000

A.D.1500

A Used written rules and regulations for governance

E Used organized structure for communication and control

B Used management practices to construct pyramids

F Used extensive organization structure for government


agencies and the arts

C Used extensive set of laws and policies for governance


D Used different governing systems for cities and state

G Used organization design and planning concepts to


control the seas

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129

Early
Early Management
Management Pioneers
Pioneers
Robert Owen (17711858)
British industrialist who was one of the first managers
to recognize the importance of human resources and
the welfare of workers.

Charles Babbage (17921871)


English mathematician who focused on creating
efficiencies of production through the division of labor,
and the application of mathematics
to management problems.

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130

Classical
Classical Management
Management Perspective
Perspective
Scientific Management
Concerned with improving the performance of
individual workers (i.e., efficiency).
Grew out of the industrial revolutions labor shortage
at the beginning of the twentieth century.

Administrative Management
A theory that focuses on
managing the total organization
rather than individuals.

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131

Scientific
Scientific Management
Management
Frederick Taylor (18561915)
Replaced old methods of how to do work with
scientifically-based work methods.
Eliminated soldiering, where employees deliberately worked
at a pace slower than their capabilities.

Believed in selecting, training, teaching, and


developing workers.
Used time studies of jobs, standards planning,
exception rule of management, slide-rules, instruction
cards, and piece-work pay systems to control and
motivate employees.

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132

Steps
Steps in
in Scientific
Scientific Management
Management

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133

Frederick
Frederick Taylor
Taylor
Work Experiments
Midvale Steel
Simonds Rolling Machine Co.
Bethlehem Steel
Pig Iron
Shoveling

Contributions
Time Study
Standards for Work
Job Specialization
Managerial Planning and Control
Worker Selection and Training
Incentives
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134

Others
Others in
in Scientific
Scientific Management
Management
Henry Gantt
Gantt Charts
Sliding Incentives for Workers
Incentives for Supervisors

Frank & Lillian Gilbreth


Motion Studies (therbligs)
Fatigue Reduction
Suggestion Systems

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135

Summary
Summary of
of Scientific
Scientific Management
Management
Assumptions
Productivity is a primary workplace problem
Managers should plan and direct the work
Individuals are economically motivated
Contributions
Scientific or systematic study of work (time and motion)
Division of laborManagers vs workers
Setting of work standards (and job descriptions)
Careful selection and training of workers
Use of Incentives
Limitations
Social needs of workers overlooked
Many studies werent very scientific
Loss of self-control alienated workers
Group dynamics were ignored
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136

Administrative
Administrative Management
Management Theory
Theory
Focuses on managing the whole organization
rather than individuals
Henri Fayol (18411925)
Was first to identify the specific management functions of
planning, organizing, leading, and controlling.

Lyndall Urwick (18911983)


Integrated the work of previous management theorists.

Max Weber (18641920)


His theory of bureaucracy is based on a rational set of
guidelines for structuring organizations.

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137

Administrative
Administrative Theory
Theory Henry
Henry Fayol
Fayol
Functions of Management
Planning
Organizing
Commanding
Coordinating
Controlling

Principles of Management
Division of Labor (specialization)
Scalar Chain of Command (hierarchy of authority)
Unity of Command (only one superior for each worker)
Span of Control (number of subordinates supervised)

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138

The
The Ideal
Ideal Bureaucracy
Bureaucracy Max
Max Weber
Weber
Division of Labor
Horizontal specialization

Hierarchy of Authority
Vertical specialization

Rules and Procedures


Enforced

Technical Competence
Selection and promotion

Impersonal Treatment
No favoritism

Centralized Decision-Making
Exceptions controlled from the top

Formalization
Documentation

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139

Summary
Summary of
of Administrative
Administrative Theory
Theory
Assumptions
There is an ideal way to structure the organization and administer
the management processes necessary for organizational success
Management skills are generalizable
Contributions
Functions and Principles of management
Ideal Bureaucracy
Raised awareness of basic management problems likely to be found
in any organization

Limitations
Stressed a one-best-way of organizing and managing
Theories were based on intuition and observation rather than
empirical investigation
Principles are not applicable to organizations which exist in
turbulent environments
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140

The
The Hawthorne
Hawthorne Studies
Studies (19271932)
(19271932)
Conducted by Elton Mayo and Fritz Roethlisberger at
Western Electric
Illumination studies
Relay Assembly 1
Relay Assembly 2

Incentive Studies
Mica-splitting
Bank Wiring Room

Interview program

Discoveries at Hawthorne
Hawthorne Effect
Catharsis
Informal Group Influence
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141

Human
Human Relations
Relations Management
Management Views
Views
Assumptions
Workers are motivated by social relationships and needs
Satisfied workers are the most productive workers
Management needs strong social skills to be successful

Contributions
Grew out of the Hawthorne studies
The Hawthorne Effect and Catharsis attention given to workers
impacts their behavior
Influence of the informal group
Emphasized worker needs and motivation

Limitations
Happy, satisfied workers arent necessarily productive workers
Economics (money, wages) DOES affect work activity
Boring work isnt less so with friendly supervisor motivation problem
Suspicion that supervisor interest isnt genuine is this manipulation?
Should business be responsible for meeting ALL human needs on the
job?
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142

The
The Transition
Transition to
to Human
Human Resource
Resource
Management
Management
Abraham Maslow (1943)
Advanced a theory that employees are motivated by a
hierarchy of needs that they seek to satisfy.

Douglas McGregor (1964)


Proposed Theory X and Theory Y concepts of
managerial beliefs about people and work.

Frederick Herzberg (1965)


Proposed the Two-Factor Theory of motivation
(hygienes and intrinsic factors) which implies that job
enrichment is important.
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143

Theory
Theory XX and
and Theory
Theory YY
Theory X Assumptions
People do not like work and try to avoid it, so managers have to
control, direct, coerce, and threaten employees to get them to
work toward organizational goals.
People prefer to be directed, to avoid responsibility, and to want
security; they have little ambition.

Theory Y Assumptions
People do not dislike work; work is a natural part of their lives.
People are internally motivated to reach objectives to which they
are committed. People can be innovative in solving problems.
People are committed to goals to the degree that they receive
rewards when they reach their objectives.
People both seek and accept responsibility under favorable
conditions.
People are bright, but under most organizational conditions their
potentials are underutilized.
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144

Emergence
Emergence of
of Organizational
Organizational Behavior
Behavior
A contemporary field focusing on behavioral
perspectives on management.
Draws on psychology, sociology, anthropology,
economics, and medicine.

Important topics in organizational behavior


research:
Job satisfaction and job stress
Motivation and leadership
Group dynamics and organizational politics
Interpersonal conflict
The structure and design of organizations

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145

Human
Human Resource
Resource Management
Management Views
Views
Assumptions
Interesting work motivates intrinsically
Workers are trustworthygive them responsibility
The Managers job is to challenge workers to develop their talents

Contributions
Theory X and Y
Participative decision-making and management
Job Enrichment and Job Redesign
Management by Objectives
More rigorously-tested theories

Limitations
Not everyone wants a challenging job
Complexity of individuals makes behavior difficult to predict.
Contemporary research findings are not often communicated to
practicing managers in an understandable form.
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146

Quantitative
Quantitative Management
Management Perspective
Perspective
Quantitative Management
Emerged during World War II to help the Allied forces
manage logistical problems.
Focuses on decision making, economic effectiveness,
mathematical models, and the use of computers to
solve quantitative problems.

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147

Quantitative
Quantitative Management,
Management, Contd
Contd
Management Science
Focuses on the development of representative
mathematical models to assist with decisions.

Operations Management
Practical application of management
science to efficiently manage the
production and distribution
of products and services.

Quality Management
Statistical improvement models
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148

Quantitative
Quantitative Management
Management
Contributions
Developed sophisticated quantitative techniques to assist in
decision making.
Application of models has increased our awareness
and understanding of complex processes and situations.
Has been useful in the planning and controlling processes.

Limitations
Quantitative management cannot fully explain or predict the
behavior of people in organizations.
Mathematical sophistication may come at the expense of other
managerial skills.
Quantitative models may require unrealistic or unfounded
assumptions, limiting their general applicability.

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149

The
The Systems
Systems Perspective
Perspective of
of Organizations
Organizations

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150

Systems
Systems Perspectives
Perspectives for
for Managers
Managers
A system is an interrelated set of elements functioning
as a whole
Open system
An organizational system that interacts with its environment.

Closed system
An organizational system that does not interact with its
environment.

Subsystems
A system within another system. Their importance is due to their
interdependence on each other within the organization.

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151

Synergy
Synergy and
and Entropy
Entropy
Synergy
Subsystems are more successful working together in a
cooperative and coordinated fashion than working alone.
The whole system (subsystems working together as one system)
is more productive and efficient than the sum of its parts.

Entropy
A normal process in which an organizational system declines due
to failing to adjust to change in its environment
Entropy can be avoided and
the organization re-energized
through organizational change
and renewal.

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152

The
The Contingency
Contingency Perspective
Perspective
Universal Perspectives
Include the classical, behavioral, and quantitative
approaches.
An attempt to identify the one best way to manage
organizations.

The Contingency Perspective


Suggests that each organization is unique.
The appropriate managerial behavior for
managing an organization depends
(is contingent) on the current
situation in the organization.

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153

The
The Contingency
Contingency Perspective
Perspective (contd)
(contd)
Problem
Problem or
orSituation
Situation

Important
Important
Contingencies
Contingencies

Solution
Solutionor
or
Action
ActionAA

Solution
Solutionor
or
Action
ActionBB

Solution
Solutionor
or
Action
Action CC

Source: Van Fleet, David D., Contemporary Management, Second Edition.


Copyright 1991 by Houghton Mifflin Company. Used with permission.
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154

An
An Integrative
Integrative Framework
Framework
of
of Management
Management Perspectives
Perspectives
Systems Approach
Recognition of internal
interdependencies
Recognition of
environmental influences
Classical
Management
Perspectives
Methods for
enhancing
efficiency and
facilitating planning,
organizing, and
controlling

Contingency Perspective
Recognition of the situational
nature of management
Response to particular
characteristics of situation
Behavioral
Management
Perspectives
Insights for motivating performance
and understanding
individual behavior,
groups and teams,
and leadership

Quantitative
Management
Perspectives
Techniques for
improving decision
making, resource
allocation, and
operations

Effective and efficient management

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155

The
The Emergence
Emergence of
of Modern
Modern Management
Management
Perspectives
Perspectives
How management theory and practice has evolved over time

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156

Contemporary
Contemporary
Management
Management Issues
Issues and
and Challenges
Challenges
An increasingly diverse and globalized workforce
The need to create challenging, motivating, and flexible work
environments
Acute labor shortages in high-technology job sectors and an
oversupply of less-skilled labor
The effects of information technology on how people work
The complex array of new ways of structuring organizations
Increasing globalization of product and service markets
The renewed importance of ethics and social responsibility
The use of quality as the basis for competition
The shift to a predominately service-based economy

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157

Now Start to
Exploring
Management
Thought
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