Chapter 2 The Evolution of Management Thought END OF CHAPTER FEATURES • Terms to Understand – encourage students to make use of the flashcards available on the student website. Also, suggest they visit the Manager’s Toolkit section on the website for tips and suggestions for aspiring managers. • Action Learning Exercise – Open Systems Thinking and Recycling Encourage students to keep a log for 24 hours recording all tangible items they buy or consume, include in the report what they did with packaging, waste and leftovers. Then have students respond to the questions for consideration at the end, and discuss the results in class. • Ethics Exercise – Do The Right Thing, Putting the Recent Recession into Historical Perspective. After reading John Gerzema’s observations have students respond to the questions that follow. A few possible responses they are likely to offer are included. What are the ethical implications of the following interpretations? 1. Managers will need to be mindful of the new reality – money has become less important to people. Answer: From an ethical perspective we hope this is good news. Although we may see less bad behavior that is motivated by money and instead is replaced by a quality of life incentive. Changes in motivation do not automatically eliminate ethical concerns. Therefore, managers will need to learn what does motivate their employees as they strive to increase employee loyalty and productivity while still fostering an ethical workplace. The American Dream that was driven by material possessions has taken a bit of turn to also include happiness that is derived from activities and relationships. 2. Historical blip or new reality? Have we learned from the past? Answer: A walk down memory lane will remind us of “old-fashioned” values – family, faith and community. These have come and gone often times as unemployment rates and prosperity hit peaks and valleys. Students’ opinions will vary on whether or not this new reality is here to stay. 3. Younger employees are less motivated by money and more interested in balancing their work and personal lives. In an effort to find the keys to motivating this new generation, managers should begin by simply asking each employee. Answer: As we learned from Mary Parker Follett, employees are a complex collection of emotions, beliefs, attitudes and habits. From an ethical perspective it simply makes good sense to treat each person as a unique individual with emotional needs rather than a number or machine. Each person has a unique set of needs, wants and values so a manager cannot assume that each of their team members is motivated by the same opportunities or rewards. Lead by seeking input and inviting feedback. Ask them “what’s working?” and “what’s not?”. • Managers-In-Action Video Case Study – Mitchell Gold + Bob Williams Gold & Williams Industry Trendsetter Length: 8 minutes and 15 seconds Topics: Quality, Employees, Eco-friendly manufacturingRecycling, Employee Benefits, Customer Expectations, Diversity, Work environment, Recruitment, Retention, Health & Wellness, and Innovation. Company Background Source: Mitchell Gold + Bob Williams company website January 4, 2011 http://www.mgbwhome.com/ Whether you're raising a baby or a business, there are more than enough rules on how to do it. The furniture industry is no exception. Right from the start, Mitchell Gold knew he had to break some of those rules to satisfy their customers. And it paid off big time. In 1989 when the economy was unstable, he and his partner, Bob Williams, naively created The Mitchell Gold Co. Since then, despite tough economic times and upheaval in the furniture industry, sales have reached in excess of $100 million. The combination of Gold's years of marketing experience with Williams' talents as art director set the course for Mitchell Gold and changed the furniture industry. One of their earliest ideas, "Relaxed Design," was based on trends they saw in the apparel industry. Designing furniture Bob Williams would want in his own home - comfortable, classic, affordable - he dressed his pieces in relaxed slipcovers of pre-washed fabrics like denim, khaki and velvet. He also addressed the need for a less-intimidating shopping experience by limiting choices to avoid confusing consumers. Along the way, Williams has received numerous awards, including Design 100 awards from Metropolitan Home magazine. And today, the line, which started with dining chairs, offers both slipcovered and tailored upholstery (including down-blend cushions, premium goose-down-blend and comfortable sleepers), leather, sectionals, beds, ottomans, recliners and yes.. dining chairs. Mitchell Gold + Bob Williams has won accolades from the media, as well as its consumers. Following are some innovations on the company's journey to success: Customer Service. "Our emphasis is on taking care of a small and highly select number of customers extremely well," says Gold. "And on training each store's salespeople so that consumers feel safe and satisfied buying from them." To do that, explains Gold, "we added a special group called TAPs (The Answer People), who travel the country doing no selling, but only sharing knowledge of our products." Retail Partners. The company is a leading home-furnishings brand, carried in such national chains as Pottery Barn, Restoration Hardware, Williams Sonoma Home, and Bloomingdale’s, as well as in more than 60 independent retailers nationwide. In addition, there is a growing chain of Mitchell Gold + Bob Williams Signature Stores that carries exclusively their products, in cities ranging from New York to D.C., Miami, Houston, Portland OR, and L.A. Commercial Ventures. Mitchell Gold + Bob Williams furniture is so popular that hip hotel chains such as the W Hotels or Rande Gerber's Whiskey Bars want to treat their guests to Mitchell Gold + Bob Williams. Brand Building. "People want to know who makes the furniture they're spending their lives on and want to buy a brand associated with the lifestyle they want to live", says Gold. The right ads, the right publications and subtle "co-branding" with retailers have helped Gold do that. Hot Stuff. It's not just advertising that makes people remember a brand, says Gold. It's the right advertising. Designed to "make a statement" and grab consumers' attention by pushing the envelope in style, content and theme, Mitchell Gold's advertising campaigns are always unexpected and a strong departure from typical advertisements in the industry. Besides, who said furniture ads can't be as provocative as apparel or cosmetics? Instant Antiques. Leather European club chairs that look as if they'd been in the family for years and go so well with flea market finds - but are proportioned just right for today. Factory Power. Where does 18 years of incredible growth lead? A big factory. In 1998 Mitchell Gold built a 267,000 sq-ft., state-of-the-art factory, bringing total manufacturing and warehouse space to 400,000 sq. ft. The new facility has a health-conscious café, employee gym and indoor walking track, and even its own on-site daycare center for its over 700+ employees (lulu's child enrichment center link) - the first one of its kind in the residential furniture industry. Community Advocacy. Mitchell Gold + Bob Williams are honored to support grass-roots and national not-for-profits who champion for those less fortunate and individuals living with life-challenging illnesses. The company is proud to support groups such as the Human Rights Campaign, Empire State Pride Agenda, DIFFA (Design Industries Foundation for AIDS), Friends In Deed, ALFA (AIDS Leadership Foothills-area Alliance), Juvenile Diabetes Research Foundation, Ovarian Cancer Research Fund and the Leukemia Society. On the Mitchell Gold + Bob Williams website there is a link (http://mgbwhome.com/whoweare.asp) to “Who We Are” which leads to the list below which is great for class discussion on company values and becoming a people-centered organization. This also appears in the background on a wall during the video. Mitchell Gold + Bob Williams Synopsis of Video Company Founders Mitchell Gold and Bob Williams discuss their unique approach in the furniture industry when they started their company. They clearly demonstrate how successful companies can produce quality products while also providing a great place to work. Employees share their perspective, which makes it easy to understand why Mitchell Gold + Bob Williams has grown from 23 employees to more than 700. For more information about Mitchell Gold + Bob Williams visit their website: http://www.mgbwhome.com/ Previewing Questions 1. Describe quality management ideas and practices suggested by quality advocates Deming, Ishikawa, Juran, and Feigenbaum (discussed in this chapter in the Quality Advocates section)? Answer: Kaoru Ishikawa who advocated quality by focusing on prevention. He also introduced the idea of both internal and external customers, and fishbone diagrams as a problem-solving tool. W. Edwards Deming introduced concepts such as employee participation and continuous improvement. Joseph M. Juran helped strongly establish the concept of the internal customer. Teamwork, partnerships with suppliers, problem solving, and brainstorming are all Juran trademarks. He also introduced Pareto analysis, a technique for separating major problems from minor ones (80/20 rule) Armand V. Feigenbaum developed the concept of total quality control focused on quality improvement throughout an organization. He felt that the customer is the one who ultimately determines quality. 2. What responsibility should a company have to their employees’ quality of life and working conditions? Provide specific examples to support your answer. Answer: Personal opinion question, however, based on the Ethics Exercise at the end of the chapter, evidence would suggest managers should pay attention to quality of life and working conditions. Examples will vary – consider using REI or Google as examples. They provide excellent employee benefits and outstanding working conditions that foster creativity, empowerment, loyalty, productivity, and long-term success. 3. How can business owners and managers get employees to produce their best work? Answer: Taking the time to learn about each employee and what motivates them will help managers to provide the appropriate level of challenge and independence and to structure meaningful rewards. Postviewing Questions 4. For each of the quality advocates referenced in question one, identify a quality ideaperspective and discuss a corresponding practice in place today at Gold + Williams. Answer: Kaoru Ishikawa the idea of both internal and external customers is demonstrated when the owners discuss not only their commitment to being driven by the external customer as it relates to design but also focused on listening to their employees. This example also illustrates W. Edwards Deming’s concept of employee participation and Joseph M. Juran’s internal customer and teamwork. Armand V. Feigenbaum felt that the customer is the one who ultimately determines quality. Gold + Williams redefined how the furniture industry did business after listening to customers. The results were more affordable, flexible products delivered faster. 5. How does the work environment at Gold + Williams impact quality and success? Answer: Gold + Williams have created a corporate culture centered around people with the belief that if people are having fun and enjoy their job they will produce their best work. Air conditioning, good lighting and a place where everyone is welcome and valued contribute to a higher sense of ownership, employee engagement and success. 6. From an employee recruitment and retention perspective, what benefits, policies, and management practices provide Gold + Williams with a competitive advantage? Explain why. Answer: Air conditioning, good lighting and good coffee were some of the items mentioned that brought people to the company. Policies and practices that are inclusive, where people are accepted regardless of their sexual orientation is another example. Their annual health fair with free physicals is yet another benefit where management has sent a strong message through their actions that people in the company are important. The owners also set an example by being friendly and personable with employees and leading by example in the community. Creating an environment where the emphasis is on teamwork: “Each person’s success is everyone’s success” contributes to a positive work environment. All of these things combine to create a company where employees feel valued and are therefore loyal and committed to doing their best work. 7. One of the five overarching changes mentioned in chapter 1 was environmentalism and sustainability. Discuss how Gold + Williams is responding to this change and adapting its manufacturing practices? Answer: From day one, Gold + Williams has had a commitment to the environment. They changed the perspective to consumer/retail driven which leads to faster shipping and ideally, less waste. CLOSING CASE: SIX GENERATIONS HAVE FINE TUNED GUITAR MAKER 1. Division of Work: Specialization of labor includes a group of employees who make just the guitar strings. Unity of command: No more absentee managers off fixing other factories. Unity of direction: A commitment from every employee to try to make the perfect guitar. Remuneration: Since 1986 employees have received about $15 million in profit sharing. Initiative: Shifting from a traditional hierarchical structure to a more team oriented environment where employees were more involved. Esprit de corps: Successfully producing 85,000 guitars in a team oriented environment where everyone is striving to make the perfect guitar and is rewarded with profit sharing for the effort implies there is a good bit of esprit de corps. 2. She would be very positive about it. Shifting from a top-down management structure to a more team oriented approach is certainly aligned with Follett’s focus on people. Everything Martin does is about valuing a motivated workforce and creating an environment where workers can shine. 3. Martin is definitely a Theory Y manager. His pride in the company and his belief in his employees’ ability to make the perfect guitar is evident. 4. An open system. They rely on customers for their business, they hired people from different industries with expertise in quality and they seek learning opportunities from outside, nontraditional experiences such as Outward Bound. 5. The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change. Because all employees of any company should have the concepts in this book as part of their toolkit. Reengineering the Corporation: A Manifesto for Business Revolution. Staying competitive in any industry involves using the all the productivity tools available for manufacturing and design. INSTRUCTIONAL TIPS 1. In order to help support your students on research projects assigned in this class, this chapter in the manual provides a list of periodicals that are good resources for articles on management and related topics. You are welcome to copy this list and share it with your students when giving research assignments. 2. A brief class discussion of the impact of one’s personal background on one’s present and future perspective and direction can help highlight the value of using a historical perspective as a basis for understanding. 3. An interesting and enjoyable class exercise that helps personalize the material in Chapter 2 is to assign individuals or groups the roles of Henri Fayol, F. W. Taylor, Mary Parker Follett, Chester I. Barnard, W. Edwards Deming, and Thomas J. Peters. Then ask each expert to debate and discuss how he or she would handle various contemporary management situations (e.g., global competition, employee alcohol/drug abuse, diversity issues, the changing character and nature of the workforce, and motivation of younger employees who value leisure more than work). 4. A debate or other structured class discussion session about the relative merits of each of the major approaches to management is a good way to compare and contrast the various perspectives. It quickly becomes apparent that there is no single best approach and that each perspective contributes something of value to our knowledge of management. 5. There is a saying that “those who do not study history are condemned to repeat it.” Ask students which of the various approaches to management they think they could use when they become managers. What ideas do they think would no longer be effective in today’s workplace? 6. To add energy to the discussion of chaos theory and complex adaptive systems theory, bring a number of small soft balls or toys to class and start the students tossing them around the classroom. You’ll see the energy level of the class shoot up as students toss the items around. (You can add arbitrary rules such as “Toss objects to a different person each time.” You can also vary the size of the balls and toys. For example, add a beach ball to the collection being tossed around.) Slowly add additional balls and toys, one at a time, until the “system” collapses under the sheer number of flying things. Discuss the fine line between a complex system and total chaos, using this example. (Caution: To ensure the safety of this exercise, use only soft balls and toys, and allow only underhand throwing.) ADDITIONAL DISCUSSION/ESSAY QUESTIONS 1. What was Henri Fayol’s contribution to the evolution of management thought? Answer: Henri Fayol made significant contributions to the evolution of management thought through his development of the classical management theory. Fayol's key contributions include the development of the fourteen principles of management and the five functions of management. 1. Fourteen Principles of Management: Fayol outlined fourteen principles that he believed were essential for effective management. These principles include unity of command, division of work, authority and responsibility, discipline, and equity. These principles provided a framework for managers to organize their work and manage their teams more effectively. 2. Five Functions of Management: Fayol identified five functions of management: planning, organizing, commanding, coordinating, and controlling. These functions are still widely recognized as the fundamental activities of management and form the basis of modern management theory. 3. Administrative Theory: Fayol's work laid the foundation for the administrative management theory, which emphasizes the management of organizations as a whole. This approach focuses on the development of principles that can be applied to all types of organizations, regardless of their specific industry or size. Overall, Henri Fayol's contributions to the evolution of management thought have had a lasting impact on the field of management and continue to influence how organizations are managed today. 2. How did F. W. Taylor go about improving job performance through scientific management? Answer: F.W. Taylor, often considered the father of scientific management, revolutionized job performance by introducing scientific methods to the field. His approach focused on maximizing efficiency and productivity through systematic analysis and implementation of work processes. Taylor's key principles included: 1. Scientific Study of Tasks: Taylor believed that jobs could be scientifically analyzed to determine the most efficient way of performing them. This involved studying each part of a task, breaking it down into smaller elements, and finding the best method for each element. 2. Selection and Training: Taylor emphasized the importance of selecting and training employees based on their ability to perform tasks efficiently. He believed that employees should be matched to jobs that suited their skills and abilities. 3. Standardization of Tools and Procedures: Taylor advocated for the standardization of tools, equipment, and procedures to eliminate variability and increase efficiency. This included developing standard work methods and providing employees with the best tools for the job. 4. Incentive Systems: Taylor introduced incentive systems to motivate workers to perform at their best. He believed that workers should be rewarded based on their performance, which would encourage them to work more efficiently. 5. Functional Foremanship: Taylor proposed the concept of functional foremanship, where each worker would have multiple supervisors, each responsible for a specific aspect of the worker's performance. This was aimed at providing workers with more specialized and effective supervision. Overall, F.W. Taylor's approach to improving job performance through scientific management laid the foundation for modern management practices, emphasizing the importance of systematic analysis, standardization, and incentive systems in maximizing efficiency and productivity. 3. What circumstances gave rise to the human relations movement? Answer: The human relations movement emerged as a response to the perceived limitations of classical management theories, particularly scientific management. Several key circumstances contributed to its rise: 1. Critique of Scientific Management: While scientific management focused on increasing efficiency and productivity, critics argued that it neglected the human aspect of work. Workers felt dehumanized and viewed as mere cogs in the machinery of production. 2. Hawthorne Studies: The Hawthorne studies conducted at the Western Electric Company's Hawthorne Works in the 1920s and 1930s played a crucial role in the development of the human relations movement. These studies revealed that workers' productivity was influenced by factors beyond monetary incentives, such as social interactions and work environment. 3. Emphasis on Employee Welfare: The human relations movement emphasized the importance of considering employees' needs, motivations, and emotions. It highlighted the role of management in creating a supportive work environment that fosters employee satisfaction and well-being. 4. Shift in Management Focus: The movement represented a shift from a strictly task-oriented approach to management to a more people-oriented approach. Managers were encouraged to pay attention to the social and psychological aspects of work, such as group dynamics and leadership styles. 5. Rise of Psychology and Sociology: The human relations movement was also influenced by advancements in psychology and sociology, which provided insights into human behavior and group dynamics. This interdisciplinary approach helped managers understand and address the complexities of human interactions in the workplace. Overall, the human relations movement arose in response to the need for a more holistic and humane approach to management that recognizes the importance of employees as individuals with unique needs and motivations. 4. What is an open system, and why is it useful to view organizations as open systems? Answer: An open system in the context of organizational theory refers to a system that interacts with its environment, exchanging inputs and outputs with the external environment. This is in contrast to a closed system, which does not interact with its environment. Viewing organizations as open systems is useful because it helps managers understand the dynamic and interconnected nature of organizations and their environments. 1. Dynamic Nature: Open systems are dynamic, meaning they are constantly adapting and evolving in response to changes in the environment. By viewing organizations as open systems, managers can better understand the need for flexibility and agility in response to external changes. 2. Interconnectedness: Open systems are interconnected with their environments, which means that changes in one part of the system can have ripple effects throughout the organization. This interconnectedness highlights the importance of considering the broader context in which the organization operates. 3. Resource Dependency: Open systems depend on inputs from the environment, such as raw materials, information, and financial resources, to function effectively. By recognizing this dependency, managers can better manage their relationships with external stakeholders and ensure a stable supply of resources. 4. Adaptation and Learning: Viewing organizations as open systems emphasizes the importance of adaptation and learning. Organizations must continuously learn from their environment and adapt their strategies and practices to remain competitive and sustainable. 5. Holistic Perspective: Open systems theory encourages a holistic perspective, which means considering the organization as a whole and its interactions with the environment, rather than focusing solely on internal processes. This broader perspective can lead to more effective decision-making and problem-solving. In conclusion, viewing organizations as open systems provides a valuable framework for understanding their dynamic and interconnected nature, highlighting the importance of adaptation, learning, and holistic thinking in managing organizations effectively. 5. As this chapter shows, the basis for the quality movement actually started in the 1930s. Why do you think it took so long to catch on in the United States? Answer: The quality movement, rooted in principles of improving product and service quality, did indeed have its foundations in the 1930s, notably with the work of Walter Shewhart and W. Edwards Deming. However, it took several decades for these ideas to gain widespread acceptance and adoption in the United States. Several factors contributed to this delay: 1. Focus on Mass Production: In the early to mid-20th century, the United States was experiencing rapid industrialization and a focus on mass production. This emphasis on quantity often overshadowed considerations of quality, as companies prioritized output volume to meet growing demand. 2. Resistance to Change: Implementing quality improvement initiatives often requires significant changes to processes, systems, and organizational culture. Many companies were resistant to such changes, preferring to stick with familiar methods rather than embracing new, potentially disruptive approaches. 3. Lack of Understanding: The concepts of quality management, such as statistical process control and continuous improvement, were not widely understood or appreciated in the business community. Many managers were unfamiliar with these concepts and were therefore hesitant to adopt them. 4. Short-Term Focus: Many businesses were focused on short-term profits and immediate returns on investment. Quality improvement initiatives, which often require upfront investment and may not show immediate results, were seen as less attractive compared to other investment opportunities. 5. Competitive Pressures: In the post-World War II era, the United States faced limited competition from other industrialized nations. This lack of external competitive pressure may have reduced the urgency for American companies to prioritize quality improvement. 6. Cultural Factors: American business culture traditionally placed a strong emphasis on individual achievement and competition, which may have hindered collaboration and the sharing of best practices in quality management. Overall, the quality movement took time to catch on in the United States due to a combination of cultural, organizational, and economic factors. It was not until the latter half of the 20th century that the principles of quality management became more widely accepted and integrated into American business practices. 6. How would you react if a new boss gave you a book to read and told you that the organization was going to change dramatically to reflect the book’s ideas? Answer: If a new boss gave me a book to read and told me that the organization was going to change dramatically to reflect the book's ideas, I would react with a mix of curiosity, enthusiasm, and cautious optimism. Here's how I would approach the situation: 1. Curiosity: I would be curious about the book's ideas and how they align with the organization's current practices and future direction. I would want to understand the rationale behind the proposed changes and how they are expected to benefit the organization. 2. Enthusiasm: I would approach the opportunity with enthusiasm, seeing it as a chance to learn and grow professionally. Reading the book and discussing its ideas with colleagues could lead to valuable insights and contribute to personal and organizational development. 3. Cautious Optimism: While I would be open to change and new ideas, I would also maintain a sense of cautious optimism. I would want to ensure that the proposed changes are well-thought-out, supported by evidence, and aligned with the organization's values and goals. 4. Engagement: I would actively engage with the book's ideas, seeking to understand how they could be applied in my role and how I can contribute to the organization's transformation. I would be proactive in sharing my thoughts and feedback with my boss and colleagues. 5. Adaptability: I would prepare myself to adapt to potential changes in the organization's structure, processes, and culture. I would be flexible and open-minded, recognizing that change is often necessary for growth and innovation. Overall, I would see the boss's gesture as an opportunity for personal and professional development, and I would approach it with a positive attitude and a willingness to embrace change. DISCUSSION STARTER: HISTORICAL PERSPECTIVE AND CONTEXT; MANAGEMENT HISTORY; TODAY’S STUDENTS Although management theory and practice have been researched and analyzed for hundreds of years, it is often difficult to convince today’s aspiring managers that learning about the history of management is worth their time. Today’s college students have grown up with the internet, social media and smart phones. How can they possibly learn from managers who never had access to these modern day communication tools? For Discussion: 1. What impact has technology had on contemporary managers? Answer: Technology has had a profound impact on contemporary managers, reshaping how they plan, organize, lead, and control their organizations. Some key impacts of technology on managers include: 1. Communication: Technology has revolutionized communication, enabling managers to stay connected with employees, stakeholders, and other managers around the world in real time. Email, instant messaging, video conferencing, and collaboration tools have made communication faster, more efficient, and more accessible. 2. Decision-Making: Technology has provided managers with access to vast amounts of data and information, allowing for more informed and data-driven decision-making. Analytics tools and software help managers analyze trends, predict outcomes, and make strategic decisions based on empirical evidence. 3. Automation and Efficiency: Technology has automated many routine and repetitive tasks, freeing up managers to focus on more strategic and creative aspects of their work. Automation has also improved efficiency and productivity in areas such as production, logistics, and customer service. 4. Globalization: Technology has facilitated globalization, allowing businesses to operate across borders and reach new markets. Managers must now navigate complex international regulations, cultural differences, and market dynamics, requiring a more global mindset and skill set. 5. Flexibility and Remote Work: Technology has enabled greater flexibility in how and where work is done. Remote work has become more common, requiring managers to adapt their leadership styles to manage virtual teams effectively and maintain employee engagement and productivity. 6. Innovation: Technology has fueled innovation in products, services, and business models. Managers must now be more innovative and entrepreneurial, constantly seeking new opportunities and ways to differentiate their organizations in a competitive marketplace. In conclusion, technology has transformed the role of contemporary managers, demanding new skills, attitudes, and approaches to leadership. Managers who embrace technology and leverage its potential can drive organizational success in today's rapidly evolving business landscape. 2. What aspects of management remain the same? Answer: While management practices have evolved over time in response to changing environments, technologies, and organizational structures, several fundamental aspects of management have remained consistent: 1. Planning: The process of setting goals, determining strategies, and outlining tasks to achieve objectives remains a core function of management. While the methods and tools used for planning may have changed, the fundamental principles of setting direction and allocating resources remain the same. 2. Organizing: Organizing involves arranging tasks, resources, and people to achieve organizational goals. While the nature of work and organizational structures may have evolved, the basic principles of organizing work and coordinating efforts remain essential in management. 3. Leading: Leadership is about inspiring, motivating, and guiding individuals and teams towards achieving organizational goals. While leadership styles and approaches may vary, the fundamental principles of effective leadership, such as communication, decision-making, and team-building, remain constant. 4. Controlling: Controlling involves monitoring performance, comparing it with goals, and taking corrective action as needed. While the tools and technologies for controlling may have changed, the fundamental need to monitor progress and ensure alignment with organizational objectives remains unchanged. 5. Decision-Making: Making decisions based on analysis, evaluation, and judgment is a key aspect of management. While the complexity and speed of decision-making may have increased, the fundamental process of identifying problems, generating alternatives, and selecting the best course of action remains the same. 6. Human Element: Managing people and relationships has always been a critical aspect of management. While the nature of work and workforce demographics may have changed, the fundamental importance of understanding and engaging with people remains unchanged. In conclusion, while management practices have evolved in response to changing environments, several fundamental aspects of management, such as planning, organizing, leading, controlling, decision-making, and the human element, remain consistent and essential in effectively managing organizations. 3. What useful lessons have you learned from the “school of hard knocks” (e.g., your own historical context)? Answer: The "school of hard knocks," or learning from personal experience and challenges, has taught me several valuable lessons that I apply to my approach to management: 1. Resilience: Facing difficulties and setbacks has taught me the importance of resilience. I've learned to bounce back from failures, adapt to change, and persevere in the face of challenges. 2. Problem-Solving: Dealing with unexpected challenges has honed my problem-solving skills. I've learned to think creatively, explore alternative solutions, and make decisions under pressure. 3. Adaptability: The ever-changing nature of challenges has taught me the importance of adaptability. I've learned to be flexible, open-minded, and willing to adjust my approach based on new information and circumstances. 4. Empathy: Going through tough times has increased my empathy towards others. I've learned to listen more attentively, understand different perspectives, and support colleagues during their own challenges. 5. Humility: Facing difficulties has humbled me and taught me the value of humility. I've learned to acknowledge my mistakes, seek feedback, and continuously strive for improvement. 6. Leadership: The challenges I've faced have shaped my leadership style. I've learned to lead by example, inspire others through my actions, and remain positive and focused during tough times. Overall, the "school of hard knocks" has been a valuable teacher, providing me with practical lessons and insights that have shaped my approach to management and leadership. 4. What lessons can be learned from managers who came before us? And why is it important (or unnecessary) to put modern management practices into historical context? Answer: Managers who came before us have left a wealth of knowledge and experiences from which we can learn valuable lessons. By studying their practices and approaches, we can gain insights that can help us navigate the complexities of modern management. Here are some lessons that can be learned from managers of the past: 1. Principles of Management: Many early managers, such as Henri Fayol and Frederick Taylor, developed principles of management that are still relevant today. By understanding these principles, we can apply them to modern management practices and improve organizational effectiveness. 2. Leadership Styles: Studying the leadership styles of past managers can provide us with insights into effective leadership. For example, the transformational leadership style of leaders like Steve Jobs and Jack Welch has been highly influential in modern management. 3. Innovation and Change: Managers who embraced innovation and change in the past can inspire us to do the same. For example, managers who led successful organizational transformations can teach us valuable lessons about managing change effectively. 4. Ethical Leadership: Managers who demonstrated ethical leadership in the past can serve as role models for us today. By studying their practices, we can learn how to make ethical decisions and lead with integrity. Putting modern management practices into historical context is important for several reasons: 1. Learning from Mistakes: Studying past management practices allows us to learn from the mistakes of others. By understanding what went wrong in the past, we can avoid making similar mistakes in the future. 2. Building on Successes: By studying successful management practices of the past, we can build on their successes and apply them to our own organizations. This can help us improve efficiency, productivity, and overall performance. 3. Understanding the Evolution of Management: Putting modern management practices into historical context helps us understand how management has evolved over time. This can give us a deeper appreciation for the challenges faced by managers in the past and how they have shaped the field of management today. In conclusion, managers who came before us have left a lasting legacy that can provide us with valuable lessons and insights. By studying their practices and putting modern management practices into historical context, we can learn from their successes and failures and improve our own management practices. BONUS VIDEOS BIZFLIX VIDEO CASES FROM THE TEXTBOOK WEBSITE Discussion Questions and Guide Chapter 2Video Case: Casino VIDEO CASE SYNOPSIS Martin Scorcese’s film is a lengthy, complex, and beautifully photographed study of Las Vegas gambling casinos and their organized crime connections during the 1970s. According to VideoHound’s Golden Movie Retriever, it completes his trilogy that includes Mean Streets (1973) and Goodfellas (1990). Ambition, greed, drugs, and sex destroy the mob’s gambling empire. The film includes strong performances by Robert De Niro, Joe Pesci, and Sharon Stone. The violence and the expletive-filled dialogue give Casino its R rating. This scene is part of “The Truth about Las Vegas” sequence that appears early in the film. It follows the scenes of the casino deceiving the Japanese gambler. The scene starts with a close-up of Sam “Ace” Rothstein (Robert De Niro) standing between his two casino executives (Richard Amalfitano and Richard F. Strafella). In a voice-over narration he says, “In Vegas, everybody’s gotta watch everybody else.” The scene ends after Rothstein describes the former cheaters who monitor the gambling floor with binoculars. VIDEO CASE DISCUSSION QUESTIONS AND SUGGESTED ANSWERS 1. Apply Fayol’s principles of management to this scene. Which ones appear in the scene? Give examples from the scene of what you see. Answer: The scene offers examples of several of Fayol’s principles of management discussed in this chapter, including: Unity of command: Each person has a single manager to whom they report. Examples: Dealers watch players; boxmen watch dealers; floormen watch boxmen. Division of work: Each function on the gambling floor has a specialized division of labor. Examples: Dealers deal cards and collect the casino’s take; ex-cheaters specialize in surveillance. Unity of direction: All similar gambling floor activities group together with a single focus. Scalar chain: Rothstein’s description captures the extensive scalar chain of the Tangiers casino. The chain of authority relationships extends from him to the lowest level in the casino through each of managers he describes. 2. Compare the Theory X and Theory Y assumptions to this scene. Which assumptions appear in this scene from Casino? Answer: The scene primarily shows management behavior associated with Theory X assumptions. Strong control and direction are major features of management behavior on the gambling floor. The ex-cheaters appear closer to some Theory Y assumptions than those of Theory X. They show self-direction and self-control and likely have high commitment to identifying and catching cheaters. 3. How might the systems approach be applied to this managerial environment? Answer: The behind-the-scenes workings of a casino can definitely be described as a system. Students may disagree as to whether this is an open or a closed system, and in fact, as in most cases, it is both. However, it is probably best described as relatively open because the internal system is dependent on the gamblers who play at the casino. Also noteworthy is the amount of time that both gamblers and casino managers spend in attempting to discern “the rules” that govern the seemingly chaotic nature of any type of gambling. BONUS LECTURE The M.B.B.S. Syndrome Shortly after Blanchard and Johnson’s first runaway best seller came out, a joke made the rounds among management consultants. “Have you heard about the man who studied the One Minute Manager and still got fired?” “What happened?” “He didn’t know what to do with the other 59 minutes.” Recently another story has been circulating based on the constant push for quality in organizations today. It tells of a CEO who walked into the office of the human resource director one morning and said simply, “I want our company reengineered too,” and then walked out. Both of these are examples of a concept referred to as M.B.B.S., Management by Best Seller. This describes the tendency of some managers, and consequently some businesses, to jump on the bandwagon of every new idea they run across and just as quickly discard it when it doesn’t work immediately and the next new idea hits. M.B.B.S. occurs at all levels of an organization but can have the most impact when initiated at the top. This is because the people at the top have the authority and dollars to make their ideas a part of the organization. In its most extreme form, M.B.B.S. can cause an organization to experience many sudden shifts in direction and focus, leading to confusion and frustration at lower organizational levels. Even when it appears at lower levels, too strong a focus on one approach to management can cause problems with a manager’s career or subordinates. This perspective is not meant to disparage new business ideas. They are generally quite useful and well-thought-out and can prove to be a positive force when integrated properly into a company. The problem occurs when executives choose to jump on the bandwagon of one new business or management concept after another without fully understanding any of them. Here are some reasons for this pattern of behavior: • Weak or unfocused corporate culture and/or strategic focus. When the direction of an organization is unclear, it is easier to be blown off course by the winds of each new idea. • An insecure or incompetent executive team. The team knows something is wrong but not how to fix it. The members hope that the new idea will prove to be a panacea for their company. • Strong, unquestioning top-down control. This creates a situation in which a top executive can become inspired by a new idea, and no one else in the organization will question the new focus, even if it is inappropriate. • Consultants who recognize the market value of a new concept and present themselves as experts despite limited experience or understanding. This can lead to spending a great deal of money hiring people to do consulting or training that doesn’t work. • An unwillingness to spend the time and money or do the hard work that is needed. This refers either to doing what is required to successfully implement the new idea or to solving the problems that made the new idea look so appealing in the first place. • A short-term focus. This leads to top management’s constant search for a “quick fix.” The main problem with this approach is also discussed in Chapter 2 of the text. No one concept or idea can serve as a cure-all for every organization’s ills. New ideas have to be carefully evaluated for their value in a specific situation before a decision is made to incorporate them into an organization. Managers need to understand that even the best ideas require time, money, and effort to implement. Finally, it is important not to throw out older ideas that have shown their value in favor of the “flavor of the month” approach to business. One major danger of this approach is that good ideas can be discarded because of hasty, unsuccessful attempts to execute them. Another danger is the possibility that a company will ignore or cut back on business basics because the firm’s time and money are jumping from one big idea to another indiscriminately. The end result is an injustice to the new ideas as well as to the old. To avoid this pattern, there are steps a company can take: • Build a strong focus and a clear mission. This applies both to direction and to the way of achieving that direction within the company. • Develop a system for evaluating new business ideas. This may include a committee to determine whether the idea will fit with the organization and a phased approach to implementation, involving testing the new idea on a small department or division first. • Analyze failures. When a new business concept doesn’t work, the organization has to determine whether the fault lies with itself or with the idea. • Work for balance in the organization. A focus on the new shouldn’t automatically include a rejection of systems and ideas that have worked well in the past. • Don’t ignore the nuts and bolts of good management. Basics such as feedback, fairness, and other elements of good management have to be continuously supported no matter what new ideas develop. M.B.B.S. does not have to be standard procedure. With the right kind of focus, managers can benefit from every new business idea, adding the components that best match their needs and letting go of ideas that may be glamorous but are ineffective or inappropriate for their organization. BONUS PROJECT ASSIGNMENT One of the challenges for management students is to identify credible sources for their research. Although sites such as Wikipedia are fast and easy to access, the reality is that anyone can publish anything they choose without the need for fact checking or referencing valid, reliable data. In other words, everything you read on an opensource page should be viewed with a level of skepticism. In contrast, there are many good resources available for management scholars. Select a topic from this chapter and find an article from one of the following publications to bring to class for discussion. The college library subscribes to many of these publications and they are availabe in print and in a digital format online. Check with the reference librarians for more information. Management Literature Resources These periodicals are good resources for management articles. Many libraries also have the Business Periodicals Index, the Business Publications Index and Abstracts, and “online” listings of business articles. Some of these publications are also partially or totally available online. However, if you access them directly you may have to pay a fee. Try accessing them through the library databases first where the articles are available to students for free. Academy of Management Executive Journal of Business Research Academy of Management Journal Journal of Business Strategy Academy of Mgt. Learning and Education Journal of Contemporary Business Academy of Management Review Journal of International Business Studies Across the Board Journal of Management Administrative Management Journal of Management Development American Journal of Sociology Journal of Management Studies Association Management Journal of Organizational Behavior Barron’s Journal of Organizational Excellence Black Enterprise Journal of Purchasing The Bureaucrat Journal of Small Business Management Business 2.0 Journal of Systems Management Business Ethics Journal of World Business Business Horizons Labor Law Journal Business Month Long Range Planning Business and Society Review Management Accounting Business Week Management International Review California Management Review Management Today Canadian Business Management World Cost and Management Managerial Planning Decision Sciences MIT Sloan Management Review Euro-Asia Business Review Monthly Labor Review Executive Female National Business Woman Fast Company Operations Research Fortune Organizational Dynamics Futurist Personnel Group and Organization Management Personnel and Guidance Journal Harvard Business Review Personnel Psychology Hispanic Business Planning Review HR Magazine Psychology Today Human Relations Public Administration Inc. Public Administration Review Industrial & Labor Relations Review Public Personnel Management Industrial Relations Quality Progress Industry Week Risk Management Information Week Strategic Management Journal Information Technology Supervisory Management Inside Supply Management Technology Review International Management Training Journal of Applied Behavioral Science Training and Development Journal of Applied Psychology The Wall Street Journal Journal of Business Communication Web Bound Journal of Business Ethics Working Mother Solution Manual for Management Robert Kreitner, Charlene Cassidy 9781111221362
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