Organizational Environment • The set of forces and conditions that operate beyond an organization’s boundaries but affect a manager’s ability to acquire and utilize resources Contingency Theory • Contingency theory claims that there is no best way toorganize a corporation, to lead a company or to make decision, instead, the optimal course of action is contingent (dependent) upon the internal and external situation.

Management Science theory • Quantitative management: utilizes linear and nonlinear programming, modeling, simulation, queuing theory and chaos theory. • Operations managementtechniques: used to analyze any aspect of the organization’s production system. • Total Quality Management (TQM): focuses on analyzing input, conversion, and output activities to increase product quality. • Management Information Systems (MIS): provides information vital for effective decision making.

Theory X and Y (Douglas McGregor) Theory X: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: workers are not lazy, want to do a good job • Managers should allow workers greater latitude and authority (decentralization, empowerment, self-managed teams)

Behavioral Theory (Mary Parker Follet) • Suggested workers help in analyzing their jobs • If workers have relevant knowledge of the task, they should control the task

• Division of Labor: jobs can have too much specialization leading to poor quality and worker dissatisfaction. • Authority and Responsibility: both formal (managers) and informal (special expertise). • Unity of Command: Employees should have only one boss. • Line of Authority: A clear chain of command from top to bottom. • Centralization:The degree to which authority rests at the top of the organization (decentralization is now encouraged)

1.A manager’s formal authority derives his position 2.People should occupy positions because of their performance 3.The authority and task responsibilities and its relationship to other positions should be clearly specified. 4.Authority is effective when positions are arranged hierarchically, reporting is clear 5.Managers must create a well-defined system of rules, SOP, and norms so they can control behavior. • Rules – formal written instructions that specify actions under different circumstances to achieve specific goals • Standard Operating Procedures (SOPs) – specific sets of written instructions about how to perform a certain aspect of a task • Norms – unwritten, informal codes of conduct that prescribe how people should act in particular situations

1.Study the way workers perform their tasks, gather all informal job knowledge &how tasks are performed (Time and Motion) 2.Codify the new methods of performing tasks into written rules and standard operating procedures 3.Select workers who possess skills & abilities that match the needs of the task, and train them 4.Establish a fair or acceptable level of performance for a task, and develop a rewardsystem 1.Managers did not share increased profit with workers (no reward) 2.Specialized jobs became very boring, dull. 3.Workers could purposely “under-perform.”