PowerPoint Presentation
to Accompany
Management, 10/e
John R. Schermerhorn, Jr.
Chapter 2:
Management Learning Past to Present
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?
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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.
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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:





Clear division of labor
Clear hierarchy of
authority
Formal rules and
procedures
Impersonality
Careers based on
merit

Possible
disadvantages of
bureaucracy:





Management 10/e - Chapter 2
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.
 Manager’s 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
 Maslow’s theory of human needs
 McGregor’s Theory X and Theory Y
 Argyris’s 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?

Maslow’s 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 Maslow’s hierarchy of human needs.
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Study Question 2: What insights come from the
behavioral management approaches?

Maslow’s 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?

McGregor’s
Theory X
assumes that
workers:





Dislike work
Lack ambition
Are irresponsible
Resist change
Prefer to be led

McGregor’s
Theory Y
assumes that
workers are:





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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?
 Argyris’s 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


Subsystem


Collection of interrelated parts that function
together to achieve a common purpose.
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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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.
Total quality management (TQM)


Comprehensive approach to continuous
quality improvement for a total
organization.
Creates context for the value chain.
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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
Continuous improvement


Continual search for new ways to improve
quality
Something always can and should be
improved on
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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
 Learning
oriented – operates with
internal culture that respects and
facilitates 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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