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Don Hellriegel

Susan E. Jackson
John W. Slocum, Jr.

MANAGING: A COMPETENCY
BASED APPROACH
11th Edition

Chapter 2: Learning from the History


of Management Thought
Prepared by
Argie Butler
Texas A&M University
Learning from the History of
Management Thought

Learning Goals

1. Describe the three branches of the traditional


viewpoint of management:

Bureaucratic, Scientific, and


Administrative

2. Explain the behavioral viewpoint’s contribution


to management

Chapter 2: PowerPoint 2.1


Learning Goals (cont’d)

3. Describe how managers can use systems and


quantitative techniques to improve employee
performance

4. State the two major components of the


contingency viewpoint

5. Explain the impact of the need for quality on


management practices

Chapter 2: PowerPoint 2.2


 Administrative
Management

 Bureaucratic Goals:
Management Efficiency
Consistency
 Scientific
Management

Chapter 2: PowerPoint 2.3


Quality Viewpoint

Contingency Viewpoint

Systems Viewpoint

Behavioral Viewpoint

Traditional Viewpoint

1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

Chapter 2: PowerPoint 2.4 (Adapted from Figure 2.1)


Bureaucratic Management
 Use of rules, hierarchy, a clear division of labor,
and detailed procedures to guide employees’
behaviors
 Seven characteristics
 Rules—formal guidelines for the behavior of
employees on the job
 Impersonality—employees are evaluated
according to rules and objective data
 Division of Labor—splitting work into
specialized positions
Chapter 2: PowerPoint 2.5
 Hierarchical Structure—ranks jobs according
to the amount of authority in each job
 Authority—who has the right to make
decisions of varying importance at different
organizational levels
 Traditional authority
Charismatic authority
Rational, legal authority
 Lifelong Career Commitment—both the employee
and the organization view themselves committed to
each other over the working life of the employee
 Rationality—the use of the most efficient
means available to accomplish a goal
Chapter 2: PowerPoint 2.6
Snapshot

“Each job has a policy manual detailing the rules


that a person needs to follow to ensure efficiency.
Drivers are told to walk to a customer’s door at a
brisk pace of 3 feet per second, carrying the
package in the right hand and clipboard in the
left. They should knock on the door so as not to
lose valuable seconds searching for a doorbell.”

Michael Eskew
Chairman and CEO, UPS
Chapter 2: PowerPoint 2.7
Bureaucratic Continuum

LOW MIDRANGE HIGH

DreamWorks Sony IRS


MP3 PepsiCo State Motor
Vehicle
Registration

R&D Thinktank 7-11 McDonalds


Chapter 2: PowerPoint 2.8 (Adapted from Figure 2.3)
Potential Benefits of Bureaucracy
 Efficiency
 Consistency
 Functions best when routine tasks are performed
 Performance based on objective criteria
 Most effective when
 Large amounts of standard information have to be processed
 The needs of the customer are known and are unlikely to
change
 The technology is routine and stable (e.g., mass production)
 The organization has to coordinate the activities of employees
in order to deliver a standardized service/product to the
customer
Chapter 2: PowerPoint 2.9
Potential Costs of Bureaucracy
Protection of authority Slow decision making

Rigid rules
and
Incompatible with red tape Incompatible with
changing 21st century workers’
technology values for freedom
and participative
management
Chapter 2: PowerPoint 2.10
Scientific Management
 A philosophy and set of management practices that
are based on fact and observation, not on hearsay
or guesswork
 Frederick W. Taylor
 Believed increased productivity depended on
finding ways to make workers more efficient
 Used time-and-motion studies to analyze work
flows, supervisory techniques, and worker fatigue
 Used functional foremanship, a division of labor
that assigned eight foremen to each work area
 Assumed workers motivated by money
Chapter 2: PowerPoint 2.11
Scientific Management

 The Gilbreths
 Frank Gilbreth used motion pictures
to analyze workers’ motions
 Lillian Gilbreth championed protecting
workers from unsafe working conditions

 Henry Gantt
 Focused on control systems for
production scheduling (Gantt Chart)

Chapter 2: PowerPoint 2.12


Insights from Scientific Management
 Many companies have used scientific management
principles to improve efficiency, employee selection
and training

 Scientific management failed to recognize the


social needs of workers and the importance of
working conditions and job satisfaction

Chapter 2: PowerPoint 2.13


Snapshot
“Walgreens is constantly pushing to drive costs down. It
pioneered the application of satellite communications and
computer technology and linked these to increase store
efficiency. By using tried-and-proven management concepts,
each of its 6,100 stores [is] able to process around 280
prescriptions a day and beat Wal-Mart by 27 cents and CVS
by 94 cents on each prescription.”

David Berbauer
CEO, Walgreens
Chapter 2: PowerPoint 2.14
Administrative Management: Overview

 Focuses on the manager and basic managerial


functions of planning, organizing, controlling
and leading
 Unity of Command Principle: an
employee should report to only one
manager

 Authority Principle: managers have the


right to give orders to get things done

Chapter 2: PowerPoint 2.15


Behavioral Viewpoint: Overview
 Focuses on dealing effectively with the
human aspects of organizations
 Started in the 1930’s
 Emphasis on working conditions
 Workers wanted respect

 Workers formed unions to bargain


with management

Chapter 2: PowerPoint 2.16


Mary Parker Follett’s Contributions

M
anag
u ld com ers n
s s h o
l v i ng mun eed
r k e r i n so wor icate to
 Wo ticipate kers with
par lems Goal:
pro b
Improve
Coordination

 Managers need to establish


good working relationships
with employees

Chapter 2: PowerPoint 2.17


Snapshot

“Managers need to have a common


touch and to be a team leader and not a
drill sergeant. When their people shine,
they shine.”

Vickie Yoke, Senior Vice President, Alcatel

Chapter 2: PowerPoint 2.18


Chester Barnard’s Contributions
 People should continuously communicate
and cooperate with one another
 Acceptance theory of authority holds that employees
have free wills and, thus, choose whether to follow
management’s orders. Employees will follow orders if
they:
 Understand what is required
 Believe the orders are consistent with
organization goals
 See positive benefits to themselves in
carrying out the orders
Chapter 2: PowerPoint 2.19
Productivity increases Informal work groups
occur when managers control productivity
recognize employee
feelings

Hawthorne effect: Peer pressure to


when employees are conform to norms is
given special attention, important
productivity changes

Chapter 2: PowerPoint 2.20


Employees are Employees’ performance
motivated by social is more a result of peer
needs and association pressure than
with others management’s incentives
and rules

Employees want to Managers need to


participate in decisions involve subordinates
that affect them in coordinating their
work to improve
efficiency
Chapter 2: PowerPoint 2.21
Snapshot

“Teamwork is one of the most beautiful


experiences in life. Teamwork is our
core value and a primary way that the
Container Store enriches the quality
of employees’ work life.”

Kip Tindell, President, The Container Store

Chapter 2: PowerPoint 2.22


 System: an association of interrelated
and interdependent parts

 Systems viewpoint: an approach to solving


problems by diagnosing them within a
framework of transformation processes,
outputs, and feedback

Chapter 2: PowerPoint 2.23


Inputs Outputs
Human, physical, Transformation Products
financial, and
Process and
information
services
resources

Feedback Loops

Chapter 2: PowerPoint 2.24 (Adapted from Figure 2.4)


 Closed system: limits its interactions with
the environment (e.g., stamping department
in GM assembly plant)

 Open system: interacts with the external


environment (e.g., marketing department)

Chapter 2: PowerPoint 2.25


Primary focus is Alternatives are
on decision based on
making economic criteria

Mathematical Computers are


models are used essential
to simulate
changes

Chapter 2: PowerPoint 2.26


Emphasis on Focus on
objective criteria planning
for decision
making

Lead to Enables
creation of managers to
blogs simulate
conditions

Chapter 2: PowerPoint 2.27


 Management practices should be consistent
with the requirements of the external
environment, the technology used to make a
product or provide a service, and capabilities
of the people who work for the organization

 Uses concepts of the traditional, behavioral


and system viewpoints

Chapter 2: PowerPoint 2.28


 External environment—stable or
changing

 Technology—simple or complex

 People—ways they are similar and


different from each other

Chapter 2: PowerPoint 2.29


Behavioral Viewpoint
How managers influence others;
 Informal group
 Cooperation among employees
 Employee’s social needs Traditional Viewpoint
What managers do:
Systems Viewpoint  Plan
How the parts fit together.  Organize
 Inputs  Lead
 Transformations  Control
 Outputs
Contingency Viewpoint
Managers’ use of other viewpoints
to solve problems involving:
 External environment
 Technology
 Individuals
Chapter 2: PowerPoint 2.30 (Adapted from Figure 2.5)
 Quality: how well a product or service
does what it is supposed to do—how closely
and reliably it satisfies the specifications to
which it is built or provided

 Total Quality Management (TQM): a


philosophy that makes quality values the
driving force behind leadership, design,
planning, and improvement initiatives

Chapter 2: PowerPoint 2.31


 Inputs or raw materials

 Operations
 Statistical process control
 Quality of a process (e.g., sigma)

 Outputs

 Measuring by variable or a product’s characteristics


 Measuring by attribute or a product’s acceptable/
unacceptable characteristics
Chapter 2: PowerPoint 2.32
Positive Lower Costs
Company and Higher
Image Market Share

Decreased
Product
Liability Quality

Chapter 2: PowerPoint 2.33 (Adapted from Figure 2.6)

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