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evolution of management theories
Exhibit 2–1 Major Approaches to Management

Copyright © 2010 Pearson
Education, Inc. Publishing as
Prentice Hall

2–1

Exhibit 2–4Weber’s Bureaucracy

Copyright © 2010 Pearson
Education, Inc. Publishing as
Prentice Hall

2–2

Theory X and Y
Douglas McGregor proposed the two different sets of worker assumptions.
 Theory X:

Assumes the average worker is lazy, dislikes work and will do as little as possible.


Managers must closely supervise and control through reward and punishment.

 Theory Y:

Assumes workers are not lazy, want to do a good job and the job itself will determine if the worker likes the work.


Managers should allow the worker great latitude, and create an organization to stimulate the worker.

Theory X v. Theory Y
Figure 2.3

Theory X
Employee is lazy
Managers must closely supervise
Create strict rules
& defined rewards

Theory Y
Employee is not lazy Must create work setting to build initiative Provide authority to workers

Theory Z
• William Ouchi researched the cultural differences between Japan and USA.



USA culture emphasizes the individual, and managers tend to feel workers follow the Theory X model.
Japan culture expects worker committed to the organization first and thus behave differently than USA workers. • Theory Z combines parts of both the USA and
Japan structure.


Managers stress long-term employment, work-group, and organizational focus.

Systems Considerations
• An open system interacts with the environment. A closed system is selfcontained.


Closed systems often undergo entropy and lose the ability to control itself, and fails.

• Synergy: performance gains of the whole surpass the components.


Synergy is only possible in a coordinated system.

The Organization as an Open System
Figure 2.4

Input Stage

Conversion
Stage

Output
Stage

Raw
Materials

Machines

Goods
Services

Human skills

Sales of

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