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Management, 10/e
John R. Schermerhorn, Jr. Chapter 2: History of Management Thought

Prepared by: Jim LoPresti University of Colorado, Boulder Published by: John Wiley & Sons, Inc.

Planning Ahead Chapter 2 Study Questions

 What can be learned from classical

management thinking?  What insights come from behavioral management approaches?  What are the foundations of modern management thinking?

Management 10/e - Chapter 2

Study Question 1: What can be learned from classical management thinking?

 Classical approaches to

management include:
  

Scientific management Administrative principles Bureaucratic organization

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Figure 2.1 Major branches in the classical approach to management.

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Study Question 1: What can be learned from classical management thinking?

 Scientific management (Frederick

Taylor)


Develop rules of motion, standardized work implements, and proper working conditions for every job. Carefully select workers with the right abilities for the job. Carefully train workers and provide proper incentives. Support workers by carefully planning their work and removing obstacles.
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Study Question 1: What can be learned from classical management thinking?

 Scientific management (the

Gilbreths)


Motion study


Science of reducing a job or task to its basic physical motions.

Eliminating wasted motions improves performance.

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Study Question 1: What can be learned from classical management thinking?

 Practical lessons from scientific

management
    

Make results-based compensation a performance incentive Carefully design jobs with efficient work methods Carefully select workers with the abilities to do these jobs Train workers to perform jobs to the best of their abilities Train supervisors to support workers so they can perform jobs to the best of their abilities

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Study Question 1: What can be learned from classical management thinking?

 Administrative principles (Henri Fayol) rules of management:

 Foresight to complete a plan of action for the
   

future. Organization to provide and mobilize resources to implement the plan. Command to lead, select, and evaluate workers to get the best work toward the plan. Coordination to fit diverse efforts together and ensure information is shared and problems solved. Control to make sure things happen according to plan and to take necessary corrective action.

Management 10/e - Chapter 2

Study Question 1: What can be learned from classical management thinking?

 Administrative principles (Henri Fayol) key principles of management:

 Scalar chain there should be a clear and

unbroken line of communication from the top to the bottom of the organization.


Unity of command each person should receive orders from only one boss. Unity of direction one person should be in charge of all activities with the same performance objective.

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Study Question 1: What can be learned from classical management thinking?

 Bureaucratic organization (Max

Weber)


Bureaucracy


An ideal, intentionally rational, and very efficient form of organization.

Based on principles of logic, order, and legitimate authority.

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Study Question 1: What can be learned from classical management thinking?

 Characteristics

of bureaucratic organizations:
 

Possible disadvantages of bureaucracy:

 

 

Clear division of labor Clear hierarchy of authority Formal rules and procedures Impersonality Careers based on merit

 

Excessive paperwork or red tape Slowness in handling problems Rigidity in the face of shifting needs Resistance to change Employee apathy

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Study Question 1: What can be learned from classical management thinking?

 Administrative principles (Mary

Parker Follett)
 Groups and human cooperation:  Groups are mechanisms through which individuals can combine their talents for a greater good.  Organizations are cooperating communities of managers and workers.  Managers job is to help people in the organization cooperate and achieve an integration of interests.
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Study Question 1: What can be learned from classical management thinking?

 Administrative principles (Mary Parker

Follett)
 Forward-looking management insights:  Making every employee an owner creates a sense of collective responsibility (precursor of employee ownership, profit sharing, and gain-sharing)  Business problems involve a variety of interrelated factors (precursor of systems thinking)  Private profits relative to public good (precursor of managerial ethics and social responsibility)
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Figure 2.2 Foundations in the behavioral or human resource approaches to management

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Study Question 2: What insights come from the behavioral management approaches?

 Behavioral Management - human

resource approaches include:

 Hawthorne studies  Maslows theory of human needs  McGregors Theory X and Theory Y  Argyriss theory of adult personality

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Study Question 2: What insights come from the behavioral management approaches?

Hawthorne studies


Initial study examined how economic incentives and physical conditions affected worker output.

 

No consistent relationship found. Psychological factors influenced results.

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Study Question 2: What insights come from the behavioral management approaches?

 Hawthorne studies (cont.)  Relay assembly test-room studies

Manipulated physical work conditions to assess impact on output.  Designed to minimize the psychological factors of previous experiment.  Factors that accounted for increased productivity:

 

Group atmosphere Participative supervision

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Study Question 2: What insights come from the behavioral management approaches?

 Hawthorne studies (cont.)  Employee attitudes, interpersonal relations and group processes.
Some things satisfied some workers but not others.  People restricted output to adhere to group norms.


Lessons from the Hawthorne Studies:

Social and human concerns are keys to productivity.  Hawthorne effect people who are singled out for special attention perform as expected.

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Study Question 2: What insights come from the behavioral management approaches?

Maslows theory of human needs



A need is a physiological or psychological deficiency a person feels compelled to satisfy. Need levels:
Physiological  Safety  Social  Esteem  Self-actualization


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Figure 2.3 Maslows hierarchy of human needs.

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Study Question 2: What insights come from the behavioral management approaches?

Maslows theory of human needs



Deficit principle


A satisfied need is not a motivator of behavior.

Progression principle


A need becomes a motivator once the preceding lower-level need is satisfied.

Both principles cease to operate at selfactualization level.

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Study Question 2: What insights come from the behavioral management approaches?


McGregors Theory X assumes that workers:

    

McGregors Theory Y assumes that workers are:

    

Dislike work Lack ambition Are irresponsible Resist change Prefer to be led

Willing to work Capable of self control Willing to accept responsibility Imaginative and creative Capable of selfdirection

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Study Question 2: What insights come from the behavioral management approaches?

 Implications of Theory X and Theory Y:  Managers create self-fulfilling prophecies.  Theory X managers create situations where workers become dependent and reluctant.  Theory Y managers create situations where workers respond with initiative and high performance.


Central to notions of empowerment and selfmanagement.

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Study Question 2: What insights come from the behavioral management approaches?

 Argyriss theory of adult personality



Classical management principles and practices inhibit worker maturation and are inconsistent with the mature adult personality. Management practices should accommodate the mature personality by:
  

Increasing task responsibility Increasing task variety Using participative decision making

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Study Question 3: What are the foundations of modern management thinking?

 Foundations for continuing

developments in management
   

Systems view of organizations Contingency thinking Commitment to quality and performance Learning organizations

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Study Question 3: What are the foundations of modern management thinking?

 Management science or operations

research


The scientific applications of mathematical techniques to management problems



Mathematical forecasting makes future projections useful for planning

Inventory modeling controls inventories mathematically

Linear programming calculates how to allocate scarce resources among competing uses

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Study Question 3: What are the foundations of modern management thinking?

 Management science or operations

research


Queuing theory allocates service personnel/workstations to minimize service cost and customer waiting time

Network models break large tasks into smaller components for for better coordination

Simulations create problem models to test different solutions

 Operations management is the study of how

organizations produce goods and services
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Study Question 3: What are the foundations of modern management thinking?

 Organizations as Systems


System


Collection of interrelated parts that function together to achieve a common purpose. A smaller component of a larger system.

Subsystem


Open systems  Organizations that interact with their environments in the continual process of transforming resource inputs into outputs.

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Figure 2.4 Organizations as complex networks of interacting subsystems.

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Study Question 3: What are the foundations of modern management thinking?

 Contingency thinking


Tries to match managerial responses with problems and opportunities unique to different situations.


Especially individual or environmental differences.

 

No one best way to manage. Appropriate way to manage depends on the situation.
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Study Question 3: What are the foundations of modern management thinking?

 Quality and performance excellence



Managers and workers in progressive organizations are quality conscious.



Quality and competitive advantage are linked. Comprehensive approach to continuous quality improvement for a total organization. Creates context for the value chain.
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Total quality management (TQM)



Study Question 3: What are the foundations of modern management thinking?

 Quality and performance excellence



ISO certification
 

Global quality benchmark. Refine and upgrade quality to meet ISO standards Continual search for new ways to improve quality Something always can and should be improved on
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Continuous improvement


Study Question 3: What are the foundations of modern management thinking?

 Knowledge Management and

Organizational Learning


Knowledge management is the process of using intellectual capital for competitive advantage
Portfolio of intellectual assets include patents, intellectual property rights, trade secrets, and accumulated knowledge of the entire workforce.

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Study Question 3: What are the foundations of modern management thinking?



Learning organizations

Organizations that are able to continually learn and adapt to new circumstances. Core ingredients include:
    

Mental models Personal mastery Systems thinking Shared vision Team learning

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Study Question 3: What are the foundations of modern management thinking?



High Performance Organizations

Organizations that consistently achieve excellence while creating a high quality work environment. Common characteristics of high performance organizations include:


People oriented value people as human assets Team oriented achieve synergy through teamwork Information oriented mobilizes the latest information technology
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Study Question 3: What are the foundations of modern management thinking?



High Performance Organizations

 Achievement

oriented focuses on the needs of customers and stakeholders oriented operates with internal culture that respects and facilitates learning

 Learning

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Study Question 3: What are the foundations of modern management thinking?

 Evidence-Based Management
Making management decisions on hard facts about what really works

 Evidence-Based Positive Human Resource Management Practices

Employment security Selective hiring Self-managing teams High pay based on merit Training and development Reduced status distinctions Shared information
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