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JOHN R. SCHERMERHORN, JR.


MANAGEMENT
12 Edition
th

Chapter 2

Management
Learning
Past to Present
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Planning Ahead Text
Here
Chapter 2 Study
Questions

1. What can be learned from classical


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

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Chapter Text HereDashboard
Learning

1. Classical Management Approaches


1. Scientific management
2. Administrative principles
3. Bureaucratic organization
2. Behavioral Management Approaches
1. Folletts organizations as communities
2. The Hawthorne studies
3. Maslows theory of human needs
4. McGregors Theory X and Theory Y
5. Argyriss theory of adult personality

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Chapter Text HereDashboard
Learning

3. Modern Management Foundations


1. Quantitative analysis and tools
2. Organization as systems
3. Contingency thinking
4. Quality management
5. Knowledge management and organizational learning
6. Evidence-based management

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Figure 2.1 Major branches in the classical
approach to management

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Takeaway Title Text Management
1: Classical Here Approaches

Four guiding principles of scientific


management (Frederick Taylor)
1. Develop for every job a science that
includes rules of motion, standardized work
implements, and proper working conditions.
2. Carefully select workers with the right
abilities for the job.
3. Carefully train workers to do the job and
give them the proper incentives to
cooperate with the job science.
4. Support workers by carefully planning their
work and by smoothing the way as they go
about their jobs. 6
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Takeaway Title Text Management
1: Classical Here Approaches

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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Takeaway Title Text Management
1: Classical Here Approaches

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 2-8
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Takeaway Title Text Management
1: Classical Here Approaches

Administrative principles (Henri


Fayol) rules/duties of
management:

Organizat Comman Coordinat


Foresight Control
ion d ion
to fit
to make
to lead, diverse
to provide sure things
select, and efforts
and happen
to complete evaluate together
mobilize according
a plan of workers to and ensure
resources to plan and
action for get the information
to to take
the future best work is shared
implement necessary
toward the and
the plan corrective
plan problems
action
solved

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Takeaway Text Here
Classical Management Approaches

Administrative principles (Henri


Fayol)
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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Takeaway Text Here
Classical Management Approaches

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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1: Classical Here Approaches

Characteristics of bureaucratic
organizations:
Clear division of labor
Clear hierarchy of authority
Formal rules and procedures
Impersonality
Careers based on merit

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1: Classical Here Approaches

Possible disadvantages of
bureaucracy:
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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Figure 2.2 Foundations in the
behavioral or human resource
approaches to management
Organizati
ons as
communiti
es
Theory X
Mary Parker
Hawthorne and Theory
Follett
studies Y
Elton Mayo Douglas
McGregor
Human
resource
Theory of Personality
approaches
human and
Assumption:
needs organizatio
People are
Abraham n
social and
Maslow Chris Argyris
self-
actualizing

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Behavioral Management
Approaches
Organizations as communities
Mary Parker Follett
Groups and human cooperation:
Groups allow individuals to combine their talents for
a greater good
Organizations are cooperating communities of
managers and workers
Managers job is to help people cooperate and
achieve an integration of interests

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2: Behavioral Management Approaches

Organizations as communities
Forward-looking management insights:
Making every
employee an precursor of employee
owner creates a ownership, profit sharing,
sense of collective and gain-sharing
responsibility
Business problems
involve a variety precursor of systems
of inter-related thinking
factors

Private profits precursor of managerial


relative to public ethics and social
good responsibility

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2: 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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2: Behavioral Management Approaches

Hawthorne studies (cont.)


Social setting and human relations
Manipulated physical work conditions to
assess impact on output
Designed to minimize the psychological
factors of previous experiment
Mayo and colleagues concluded:
New social setting led workers to do good job
Good human relations = higher productivity

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2: Behavioral Management Approaches

Hawthorne studies (cont.)


Employee attitudes and group
processes
Some things satisfied some workers but not
others
People restricted output to adhere to group
norms

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Behavioral Management
Approaches
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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2: 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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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 self-
actualization level

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Takeaway 2:Title Text Here
Behavioral Management
Approaches

McGregors Theory X assumes that


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

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Behavioral Management
Approaches

McGregors Theory Y assumes that


workers are:
Willing to work
Capable of self control
Willing to accept responsibility
Imaginative and creative
Capable of self-direction

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2: 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
self-management
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2: Behavioral Management Approaches

Argyriss theory of adult personality


Classical management principles and
practices inhibit worker maturation and
are inconsistent with the mature adult
personality
Psychological success occurs when
people define own goals

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2: Behavioral Management Approaches

Argyriss theory of adult personality


Management practices should
accommodate the mature personality
by:
Increasing task responsibility
Increasing task variety
Using participative decision making

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Takeaway Text Management
Modern Here Foundations

Foundations for continuing


developments in management

Quantitative analysis and tools

Systems view of organizations

Contingency thinking

Commitment to quality and performance


Knowledge management and learning
organizations
Evidence-based management
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Takeaway Text Management
Modern Here Foundations

Management science or operations


research
Quality
Inventory control
Queuing
managem
theory
ent

Supply
Linear
chain
program
managem
ming
ent The scientific
applications
of
mathematica
Value
chain
l techniques Network
to models
analysis
management
problems

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Takeaway Text Management
Modern Here Foundations

Quantitative Analysis and Tools


Analytics the use of large data bases and
mathematics to solve problems and make
informed decisions using systematic
analysis
Typical quantitative approach to managerial
problem-solving
Problem encountered, it is systematically
analyzed, appropriate mathematical models and
computations applied, optimal solution identified

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Takeaway Text Management
Modern Here Foundations

Organizations as Systems
System
Collection of interrelated parts that function
together to achieve a common purpose
Subsystem
A smaller component of a larger system
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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Takeaway 3: Title
ModernTextManagement
Here Foundations

Contingency thinking
Tries to match managerial responses
with problems and opportunities
unique to different situations
No one best way to manage
Appropriate way to manage
depends on the situation

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Takeaway Text Management
Modern Here Foundations

Quality management
Managers and workers in progressive
organizations are quality conscious
Quality and competitive advantage are
linked
Total quality management (TQM)
Comprehensive approach to continuous
quality improvement for a total
organization
Creates context for the value chain

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Takeaway Text Management
Modern Here Foundations

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

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Takeaway Text Management
Modern Here Foundations

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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Takeaway Text Management
Modern Here Foundations

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

Encourage Information Empowerm Participatio


Teamwork
learning sharing ent n

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Takeaway 3: Modern
Place Slide Title TextManagement
Here Foundations

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

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Takeaway Text Management
Modern Here Foundations

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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