Management theories

Management theories The exam is going to be 10 questions mostly about what is the best solution or decision for each situation, therefore you required to think critically and create 10 questions and provide a logical answers which based on the management theories IF YOU HAVE ANY QUESTION LET ME KNOW BEFORE YOU START PLEASE. Management Practice and Theory MGT5MPT – Final Test Scenario: You are the newly appointed Human Resources (HR) Manager and member of the Senior Management Team of a large foodstuffs manufacturer in the western suburbs of Melbourne. The company has 200 employees. For fifty years the company has specialised in the manufacture of quality biscuit products. On an adjacent industrial site, a company which is a heavy engineering manufacturer has supplied manufactured products for the defence industries for some one hundred and twenty years. With the defence industries sourcing product from overseas, owing to Australia’s numerous free trade agreement obligations, this heavy engineering group has recently ceased to operate. A decision has been taken to demolish the factory and sell the land for real estate development purposes. To date you have not carried out an investigation of the situation and do not expect this process to interfere with the normal operations of your company. You keep handy, a copy of Wren and Bedeian, always prominent on your desktop, it is your key source of management advice. One Fateful Monday: 8:10am Your CEO has convened a meeting of the senior management group for the routine daily briefing from all senior managers. 8:30am You brief the CEO on the situation as you see it. Because of limited information you make no statement of concern or urgency regarding the demolition. The CEO appears unworried by the current issue based on the information you have provided. You return to your offices and continue preparing routine business. 9:10am The newly appointed Junior HR Manager is informed by the group’s Executive Assistant that a female staff member wishes an immediate and confidential meeting with you, on a matter of the utmost seriousness. An agreement is made to see the member. You are made aware of concerns regarding perceived inappropriate conversations in the factory recreation room (where most workers take breaks and eat their lunch). You learn that many attempts have been made to stop this behaviour for an extended period of time. 10:00am The Site Occupational Health and Safety (OH&S) Officer has demanded an immediate meeting with you. He is concerned aboutthe demolition of the adjacent heavy engineering factory premises. Hazardous items and dangerous wastes are being broken up and collected into open  Management Practice and Theory  Page 1 heaps on the building site allotment. The OH&S officer was previously an apprentice at the food factory. He received an injury some years ago when working as a storeman. He is often frustrated by his failure to articulate himself and irritated by others becoming impatient with him. It is generally considered that he may have been promoted after his accident to avoid possible and ongoing costly litigation. You notice that most personnel generally ignore him or seek to avoid having discussions with him. The Managing Director has ensured that the OH&S Officer has been trained in OH&S legislation, food standards and hazardous waste and dangerous goods legislation. The site biscuit makers’ union representative has also now arrived on the premises insisting that he see you. He has heard rumours of the toxic waste situation next door. He demands that workers must be released, on full pay, until the situation is fully disclosed and any danger to the workers removed. 11.00am An employee has approached you in the company recreation room at morning tea time (you also overhear some inappropriate conversations that some might consider to be offensive (e.g. sexist). You are informed that the member has been an electroplater in the past, and in fact once worked in the factory currently being demolished next door. His information is that the concrete chemical tanks currently being demolished had, until recently contained hydrochloric acid and cyanide. 12:00 Noon A local community environmental pressure group has arrived at the front security gate of your site to protest your inaction regarding the demolition activity on the allotment adjacent. They threaten an immediate blockade of the factory exits and entrances, unless you act to join them in opposing the demolition next door. 1:00pm Demolition on the adjacent block is continuing, large concrete tanks are being smashed and the rubble pushed together in preparation for removal. A hot northerly wind is blowing and the weather bureau predicts thunder storms and a cool southerly change in the early afternoon. Disturbed by the ex-electroplater’s remarks, you telephone the La Trobe University Biochemistry Department. You ask about the potential risk associated with concrete demolition, cyanide, hydrochloric acid. You are advised that risk is minimal unless water is combined with the mix. 1.30pm Your Executive Assistant informs you that the local environmental group has now blockaded the factory and it is no longer possible to open the factory exit and entry gates. 2:00PM  Management Practice and Theory  Page 2 La Trobe Biochemistry department calls to inform you that should it rain it is possible that a cloud of nerve gas large enough to cover West Melbourne will erupt from the concrete demolition site. 2:30pm The Executive Assistant announces that the Chairman of the Board, and company owner, is waiting on the telephone to speak with you. He is requesting a pre-release copy of the manufacturing performance figures for the last quarter. Concerned with the chemical risk next door, and your inability to take action, you attempt to contact the CEO. You are told he is off-site. You ring his mobile and receive the answer “The mobile phone you are attempting to contact is out of range or not in a…” Due to reports of violence between protestors and workers attempting to leave your site, a police civil order squad has arrived outside and now confronts the angry mob. 3:00pm The factory Equal Opportunity Officer calls you and demands an immediate meeting regarding the offensive conversations that you have been advised about previously. She alleges you have not taken the matter seriously and have not responded with immediate action. You call the demolition manager on the site next door, by telephone, and ask if he is aware of a dangerous waste issue. You request information regarding the chemical containment procedures. He tells you to “mind your own business, he is a contractor and working to a deadline”. 3:30pm A press crew arrives in time to film the protestor/worker/police violence at the front gates and reports on national news that this is the result of reports of inappropriate worker behaviour by way of forms of harassment activities occurring onsite. You now have the ex-electroplater, the union representative, Equal Opportunity Officer, the OH&S manager and a Senior Police Officer outside your office wanting to meet with you. And you hear thunder in the distance, and the sky is becoming dark... ********  Management Practice and Theory  Page 3 Questions – Each Question is worth 1 mark You should take no more than six minutes to answer each question. You should answer the questions in short answer format. Reference to theorists and their advice is essential. It is recommended that you commence with creating a very brief timeline of events. ********** 1770                                        1780                                        1790                                        1800                                        1810                                        1820                                        1830                                        1840                                        1850                                        1860                                        1870                                        1880                                        1890                                        1900                                        1910                                        1920                                        1930                                        1940                                        1950                                        1960                                        1970                                        1980                                        1990                                            2000 Robert Owen          1771 - 1858                            BELIEFS: New moral order based on social reorganisation; vision of new agriculture / industrial society; people powerless in the face of technological change.  SUCCESS: Exactness and knowledge of human behaviour.  REFORMS: Phase out child labour, restructuring social conditions. PERFORMANCE MANAGEMENT TECHNIQUES: not based on traditional corporal punishment, but on personal pride.  First HR specialist.  Opposed expensive machinery / cheap labour mix  Politically opposed child labour. Andrew Ure           1778 - 1857                            First Management Educator.  Developed initial principles of manufacturing management.  Prior to this they had been technically oriented.  Noted the pluralist nature of worker / owner relationships. Charles Dupin          1784 - 1873                            Industrial Educationalist who learnt from Ure.  Developed understanding of Division of Labour and Division of Time. Charles Babbage      1792 - 1871                                    Father of Operations research.  Forerunner of Scientific Management. Announced the concept of Mutuality between worker and owner.                                                                                                                                                            Henry Poor             1812 - 1905                            Supported McCallum completely. RESPONSIBILITY => ACCOUNTABILITY.  Accurate accounting of all operations.  Information was recorded communication.  Developed the first databases.                                                                                Daniel McCallum     1815 - 1878                                    Management Principles: a) Division of responsibilities; b) Authority commensurate with responsibility; c) reporting Systems; d) Prompt action on negative performance; e) Daily reporting and checking; f) No lessening influence on supervisors; g) Early error and delinquency detection ; h) developed formal organisational structure; i) All principles based on personal accountability.                                                                                                                                                                                                                                            Andrew Carnegie    1835 - 1919                                    Learned and developed McCallum's management principles.  Promoted single focus of resources.  Measured all performance.  Combined technology and management.                                                                                                        Henri Fayol     1841 - 1925                            Mining Engineer famous for firefighting.  Promoted resource acquisition and concentration.  Developed Economies of Scale.  Believed in Arrangement and Integration of Production/Sales/Accounting and HR. Separated managerial ability from technical knowledge and that technical expertise could be destroyed by defective administration.  Understood latent and surge capacity, planning and preparation.  Unity of Command; Separation of Power [Departmentalisation]; Delegation.                                                                                                                                                                                     Frederick Taylor        1856 - 1915                                    Educated and chose industrial career.  Worked the shop floor.  Recognised worker pride and poor working conditions.  Defined NATURAL SOLDIERING: an individual's tendency to 'take it easy'.  SYSTEMATIC SOLDIERING: the tendency for groups to conform with output norms.  Set out to measure what COULD be achieved by PLANNING, INCENTIVES, PERFORMANCE STANDARDS, & SPI's.  The founder of Scientific Management discipline.                                                                                                                                            Durkheim    1858 - 1917                                    Formed intellectual triad of sociological theorist with Weber and Pareto in 19th century.  Divided societies into MECHANICAL - dominated by a collective conscience, & ORGANIC - characterised by specialisation, div. of labour and social interdependence.  Mechanical soc. bound by friendliness & kinship. This lack of solidarity in organic soc leads to ANOMIE - a state of confusion, insecurity and "normlessness".  Restoration of this solidarity comes thru a "collective consciousness"  to create values and norms and impose them on the individual.  Substituted the group as the source of values and norms [the new collective].                                                                                                                                                                                                                                                                                                                                            Carl Barth      1860 - 1939                            Mathematician; solved Feed and Speed problems for Taylor.  Taylor's most ardent supporter.                                                                                                                                                                                                                        Henry Gantt   1861 - 1919                            Teacher of natural science and mechanics.  Stressed the mutuality of interest between worker and owner.  Conceived the Gantt Chart, still in use today - Time vs. Planned - Actual Activity.                                                                                                                        Affluent, Sociologist, first rate intellectual. Founder of Organisational Theory. Father of Bureaucracy - Pure form of Organisation; Management by Office; Bureaucracy facilitates transition from small to larger organisation. Three types of Authority: Rational/Legal, Traditional, Charismatic.  ELEMENTS: Div. of labour, authority & responsibility; hierarchy of office; selection by examination; officers appointed not elected; career officials on fixed salaries, not owners, only administrators; Weber believed in SYSTEMATISATION.                                                                                                                                                                                                            Mary Parker-Follett 1868 - 1933                                    Political philosopher.  Interested in vocational guidance, adult education & social psychology.  Belonged to scientific management and social person era.  Supported Fichte's notion of freedom of individual had to be suborninated to the group.  Accepted Gestalt and Cooley's idea of enlargement of self thru association.  Only thru group could individual find "true self".                                                                                                                                                                                                                                                                   Frank Gilbreth  1868 - 1924                            Engineer - Worked with wife Lillian.  See below.                                                                                                                                                                                                                                                                                Henry Dennison  1877 - 1952                            Organisation Engineer. Promoted making success of group life; building org structure from groups of Like-Minded people; having capable leadership, resolved frictions and unified motives.  Key Selection criteria: regard for welfare and standing of the family; liking the work itself; regard for other members of the org; liking for working with other members; regard and respect for the purposes of the org.  Advocated modifying jobs to promote satisfaction, ie. job enrichment, multi-skilling.  Recognition of informal org, financial and non-financial reward.  Org structure should be flexible and promote success of group life.  Span of Control: seldom runs beyond 6 - 12 people.                                                                                                                                                                                                                                                                                                                     Lillian Gilbreth  1878 - 1972                            Conducted Scientific Management as Time and Motion Studies.  Workers involved in solution development.  Worked independently of Taylor.                                                                                                    Elton Mayo     1880 - 1949                            Australian.  Identified psychology of total situation.  Increased rest periods educed employee turnover. Reduce pessimistic reveries. New supervision - openness, concern, willingness to listen.. Hawthorne STUDIES: Psychology of the individual key factor. Increase in productivity due to: small group; type of supervision; increased earnings; novelty of experiment; attention given to operators by management.  WIRING ROOM: Restriction of output. Cliques - Rate Busters [too much work] - Rate Chisellers [too little work] - Squealer [don't tell management anything.  Workgroups are social systems where logic of efficiency does not apply.                                                                                                                                              James Mooney     1884 - 1957                                Worked at GM.  Believed in solidarity & collaboration, efficient org design and operation.  PROFIT THRU SERVICE.  The alleviation of human want & misery via productive efficiency.  Organised group effort towards org goals.  FORMALISM: The efficient coordination of all relationships.  Closely related to Weberism.  Organisation is the formation of every human association for the attainment of common purpose.  MANAGEMENT actuates, directed, controls and plans the org's procedures.  With management enters the personal factor.  Without management there is no direction to a given purpose.  The principles of management: Coordination: the orderly arrangement of group effort, to provide unity of action in pursuit of common purpose.                                                                                                                                                Formal org is cooperation among men that that is conscious, deliberate, and purposeful.  Three org goals: 1) Maintain equilibrium (survival), 2) examine external forces and adjust; 3) analyse the functions of the executives at all levels.   FORMAL SYSTEMS of cooperation if successful are efficient.  Cooperative efficiencies are the result of individual efficiencies.  Cooperation is entered into only to satisfy individual motives.  Efficiency is the degree to which individual motives are satisfied.  The only measure of the efficiency of an organisation is its capacity to survive.  I > B =M+                                                                                                                                                                                                                                                                                                                                                    Harold Koontz       1908 - 1984                                Management Theory Jungle. Six main groups of management thought: 1) MANAGEMENT PROCESS SCHOOL; 2) EMPIRICAL; 3) HUMAN BEHAVIOUR; 4) SOCIAL SYSTEM; 5)DECISION THEORY; 6) MATHEMATICAL SCHOOL.    Believed each school had a contribution to management theory.  Not really schools, but TOOLS to understand management.  Described arguments over terminology as the "SEMANTICS JUNGLE". Saw unwillingness of theorists to understand one another and the general desire to protect their own "cults".                                                                                                                                                                                                                                                                                                                Peter Drucker   1909 - 2005                                MANAGEMENT BY OBJECTIVES: "A Manager's job should  be based on a task to be performed in order to attain the company's objectives…. The manager should be directed and controlled by the objectives of performance rather than by his boss."                                                                                                                                                                                                                                                                            Ernest Dale  1917 - 1996                                Rejected the concept of universality of management.  Transferability of management was not valid.  The notion of a universal manager was contradicted by actual experience. 37.