1. Exploring Management
Chapter 2
Management Learning

2. Chapter 2 What are the lessons of the classical management approaches?
What are the contributions of the behavioral management approaches?
What are the foundations of modern management thinking.

3. Taylor’s scientific management sought efficiency in job performance.
2.1 Classical Management
Taylor’s scientific management sought efficiency in job performance.
Weber’s bureaucratic organization is supposed to be efficient and fair.
Fayol’s administrative principles describe managerial duties and practices.
Classical Management began in the late 1800’s. It has three subfields; Scientific Management, Bureaucratic Organizations and Administrative Principals.

4. Please insert the classical approaches graphic from page 32 here.
Classical Management
Please insert the classical approaches graphic from page 32 here.

5. CLASSICAL MANAGEMENT Scientific Management
Frederick Taylor
Wrote The Principles of Scientific Management in 1911.
Believed in finding “maximum prosperity for the employer…and the employee” by identifying the most efficient way to perform tasks.
Frederick Taylor was the first to apply scientific methods such as standard times to the management process.

6. CLASSICAL MANAGEMENT Scientific Management
There is one “best” way to perform any task.
Develop a science for each job. Example: Bricklayers were studied
Hire workers with the right abilities
Train and motivate workers
Support workers by planning and assisting with job science
Although Taylor’s approach was a major improvement, the scientific approach is often criticized for being to mechanistic.

7. CLASSICAL MANAGEMENT Bureaucracy
Bureaucratic Organizations
Defined by Max Weber in late 19th century
Focused on definitions of authority, responsibility and process
Intended to address the inefficiencies of organizations at that time
Job descriptions were uncommon
Promotions were usually based on personal connections
The intent was good. Unfortunately, bureaucratic organizations have not lived up to expectations.

8. CLASSICAL MANAGEMENT Bureaucracy
Characteristics of an Ideal Bureaucracy
Clear division of labor
Jobs are well defined, and workers become highly skilled at performing them.
Clear hierarchy of authority
Authority and responsibility are well defined, and each position reports to a higher-level one.
Formal rules and procedures
Written guidelines describe expected behavior and decisions in jobs; written files are kept for historical record.
Impersonality
Rules and procedures are impartially and uniformly applied; no one gets preferential treatment.
Careers based on merit
Workers are selected and promoted on ability and performance; managers are career employees of the organization
And the guidelines were excellent. But many bureaucratic organizations are terribly inefficient. So, what happened? The answer – poor implementation.

9. CLASSICAL MANAGEMENT Administrative Principles
Henri Fayol
Published Administration Industrielle et Générale in 1916.
Analyzed and documented the practices of successful managers.
Fayol put much responsibility for success on the manager’s abilities.

10. CLASSICAL MANAGEMENT Administrative Principles
Five Duties of Managers According to Henri Fayol
Foresight
complete a plan of action for the future.
Organization
provide and mobilize resources to implement plan.
Command
lead, select, and evaluate workers.
Coordination
fit diverse efforts together, ensure information is shared and problems solved.
Control
make sure things happen according to plan, take necessary corrective action
Henri Fayol’s five duties were very close to the modern management functions of planning, leading, organizing and controlling.

11. 2.2 Behavioral Management
Follett viewed organizations as communities of cooperative action.
The Hawthorne studies focused attention on the human side of organizations.
Maslow described a hierarchy of human needs with self-actualization at the top.
McGregor believed managerial assumptions create self-fulfilling prophesies.
Argyris suggests that workers treated as adults will be more productive.
Behavioral management theory brought the human side of employees into management considerations regarding productivity.

12. BEHAVIORAL MANAGEMENT Behavioral/Human Resource Approaches
Please insert figure 2.1 here
The Behavioral or Human Resource approaches gave employees a lot more credit for having motivation that went beyond money. Follett, Mayo, Maslow, Argyris and McGregor researched the human side of the workplace.

13. BEHAVIORAL MANAGEMENT Organizations as Communities
Mary Parker Follett – 1920’s
Believed that people liked to work in groups and organizations should be communities
Advocated managers and workers work in harmony and employees should own a share of the business
Forerunner of “managerial ethics” and “social responsibility”
Follett was a real visionary. She worked to make the workplace a place that employees felt part of a community that was accomplishing something important. Employee ownership, profit sharing, delegation, empowerment and social responsibility were main themes of her work.

14. BEHAVIORAL MANAGEMENT The Hawthorne Studies
Lead by Elton Mayo of Harvard
Studies tried to determine how economic incentives and physical environment affected productivity
Involved over 21,000 people
Concluded that human needs were an important factor in increasing productivity
Although the Hawthorne studies didn’t prove what they intended to prove and are criticized for their poor research design, the lessons are profound. Worker performance is influenced by the way they are treated by their managers.

15. BEHAVIORAL MANAGEMENT Hierarchy of Human Needs
Abraham Maslow described human needs and how we try to satisfy them
Lowest level needs are necessary for survival
Progression principle - when one need is satisfied, we proceed on to a higher level need
Deficit principle – satisfied needs don’t motivate behavior
Maslow’s research explains why we are motivated by different rewards.

16. Behavioral Management Hierarchy of Human Needs
Please insert figure 2.2 here
The highest level is Self-actualization. At that level, organizations motivate workers by allowing personal development such as offering tuition reimbursement to encourage employees to continue their education.

17. BEHAVIORAL MANAGEMENT Self-fulfilling Prophecies
Douglas McGregor
Employees react to manager expectations
Managers are separated into two beliefs / styles
Theory X Managers
Believe employees generally dislike work, lack ambition, act irresponsibly, resist change and prefer to follow.
Use classical directive “command and control” style
Theory Y Managers
Believe employees are willing to work, capable of self control and self direction, responsible and creative
Use behavioral “participative” style
Scholars often equate Theory X with Classical management theory and Theory Y with Behavioral management theory.

18. BEHAVIORAL MANAGEMENT Personality and Organization
Chris Argyris argues that employees:
want to be treated as adults
will perform better with less restrictive / defined tasks
will behave counter to Scientific & Administrative theories that argue for close supervision
Many of modern day management practices are based on Argyris’ principals.

19. 2.3 Modern Management Approaches
Managers use quantitative analysis and tools to solve complex problems.
Organizations are open systems that interact with their environments.
Contingency thinking believes there is no one best way to manage.

20. 2.3 Modern Management Approaches
continued…
Quality management focuses attention on continuous improvement.
Evidence-based management seeks hard facts about what really works.
Modern management approaches recognize that people and organization are complex and constantly changing.

21. MODERN MANAGEMENT APPROACHES Quantitative Analysis
Quantitative Analysis and Operations Research apply mathematical techniques to solve management problems such as
Forecasting sales or expenses
Establishing optimal levels of inventory
Reducing labor costs without sacrificing customer service
Organizations accumulate huge amounts of data from sales, inventory, consumer behavior, supply chain management and many other sources. Quantitative analysis takes that data and determines how to improve efficiency, reduce costs and improve service.

22. MODERN MANAGEMENT APPROACHES Quantitative Analysis
Operations Management
Producing goods and services efficiently and effectively, including
Improving processes and operations
Effective workflow designs
Project management
Inventory management
Quality control
Operations management affects many of our daily activities from deciding how many restrooms to put in a new campus building to redesigning the college website.

23. MODERN MANAGEMENT APPROACHES Open Systems
Please insert figure 2.3 here
Open systems use resources from the external environment to produce goods and services that the external environment consumes as output. Much like a college uses faculty, information technology and tuition money to produce educated management students.

24. MODERN MANAGEMENT APPROACHES Subsystems
Subsystems are a smaller part of a larger system.
Please insert figure 2.4 here
Organizations need many different tasks to complete their transformation of inputs into outputs. These tasks are often organized into subsystems.

25. MODERN MANAGEMENT APPROACHES Contingency Thinking
Contingency thinking – The best way to manage depends on the circumstances.
Environmental uncertainty
Technology
Organizational structure
Employee abilities
There is no “one best” way to manage. The tasks performed, employee talent and training, competitive environment, economy and many other factors require managers to adjust their style.

26. MODERN MANAGEMENT APPROACHES Continuous Improvement
W. Edwards Deming – early advocate of quality control
Taught quality control techniques to Japanese industry in the 1950s
Rediscovered by U.S. industry in the early 1980s
Deming’s quality techniques were important to rebuilding Japanese industry after World War II.

27. MODERN MANAGEMENT APPROACHES Continuous Improvement
Tally defects
Analyze and trace them to the source
Make corrections
Keep a record of what happened
Deming’s principles
Deming’s principles seem simple but are very effective in reducing waste and defects.

28. MODERN MANAGEMENT APPROACHES Continuous Improvement
Total quality management
Organization-wide commitment to quality products or services.
Continuous improvement
Always looking for new ways to improve.
Total Quality Management or TQM integrates quality principles into everything the organization does.

29. MODERN MANAGEMENT APPROACHES Evidence-based management
High-performance organizations
High performance operations
High quality work life
Evidence-based management
Uses data from extensive research to determine what practices really work well
Challenges conventional wisdom
Evidence-based management uses scientific methods to research a question or problem. A hypothesis is established such as “employees are more productive when they establish their own work hours”. A research design is created to test the hypothesis and data is gathered to prove or disprove the hypothesis. Students may recognize the techniques from Organizational Behavior or Sociology classes.