1. Chapter 2: Management learning – Past to present
Business Leadership: Management Fundamentals John R. Schermerhorn, Jr., Barry Wright, and Lorie Guest
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2. Planning Ahead — Chapter 2 Learning Goals
Understand what can be learned from traditional management thinking
Understand the insights of the behavioural management approaches
Understand the foundations of modern management thinking

3. Classical management approaches p 42-46

4. Classical approaches to management include:
1. Scientific management
2. Administrative principles
3. Bureaucratic organization

5. Figure 2.1 major branches IN the classical approach to management
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6. Scientific management (frederick Taylor)
“The principal object of management should be to secure maximum prosperity for the employer, coupled with the maximum prosperity for the employee” – F. Taylor
Four guiding principles:
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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7. Class activity The puzzle

8. 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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9. Video: bricklaying ergonomics
(external link)
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10. Video: how ups works How UPS Works (external link)
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11. Video: expansion of worldport
(external link)
Link:
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12. 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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13. End here (up to page 44 in text) Answer questions on page
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14. Administrative Principles and Bureaucratic Organization Pages 46 - 52
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15. Administrative principles (henri favol)
1. Division of labour
8. Centralization
2. Authority
9. Scalar chain
3. Discipline
10. Order
4. Unity of command
11. Equity
5. Unity of direction
12. Personnel tenure
6. Subordination of individual interest
13. Initiative
7. Remuneration
14. Esprit de corps
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16. Administrative principles (cont’d)
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

17. Administrative principles (cont’d)
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

18. Bureaucratic organization (max weber)
Bureaucracy:
An ideal, intentionally rational, and very efficient form of organization
Based on principles of logic, order, and legitimate authority

19. figure 2.2 characteristics of classic bureaucracy
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20. Characteristics and disadvantages of bureaucracy
Characteristics of bureaucratic organizations:
Clear division of labour
Clear hierarchy of authority
Formal rules and procedures
Impersonality
Careers based on merit
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

21. © John Wiley & Sons Canada Ltd.

22. Behavioural management p 46-52
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23. Behavioural management
Human Resource approaches include:
Follett’s notion of organizations as communities
Hawthorne studies
Maslow’s theory of human needs
McGregor’s Theory X and Theory Y
Argyris’s theory of adult personality

24. Figure 2.3 foundations in the behavioural or human resources approach to management
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25. 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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26. Administrative principles (Mary Parker Follett) (cont’d)
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 inter-related factors (precursor of systems thinking).
Private profits relative to public good (precursor of managerial ethics and social responsibility).

27. How to tie a tie activity

28. Hawthorne studies
Initial study examined how economic incentives and physical conditions affected worker output
No consistent relationship found
“Psychological factors” influenced results

29. Hawthorne studies (cont’d)
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

30. Hawthorne studies (cont’d)
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

31. Video: Testing the Hawthorne Effect
(external link)
Link:
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32. 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

33. Figure 2.4 Maslow’s hierarchy of human needs
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34. Maslow’s theory of human needs (cont’d)
Deficit principle
A satisfied need is not a motivator of behaviour.
Progression principle
A need becomes a motivator once the preceding lower-level need is satisfied.
Both principles cease to operate at self-actualization level.

35. Application: Maslow
What parts of a job satisfy each level of the pyramid?
Physical?
Safety?
Social?
Esteem?
Self-Actualization?
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36. McGregor’s Theory X and Y
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:
Willing to work
Capable of self control
Willing to accept responsibility
Imaginative and creative
Capable of self-direction

37. 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.
This is central to notions of empowerment and self-management.

38. Argyris’s theory of adult personality
Traditional 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

39. Modern Management Foundations p 53-60
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40. Modern Management Foundations
Foundations for furthering developments in management:
Quantitative analysis and tools
Systems view of organizations
Contingency thinking
Commitment to quality
Learning organizations
Evidence-based management
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41. Quantitative Analysis and Tools
Management science or operations research:
The scientific applications of mathematical techniques to management problems
Mathematical forecasting makes future projections useful for planning
Network model such as a Gantt chart breaks large tasks into smaller components

42. figure 2.6 gantt chart
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43. Quantitative Analysis and Tools (cont’d)
Management science or operations research (cont’d):
Inventory analysis controls inventories mathematically determining how much to automatically order and when
Queuing theory allocates service personnel/workstations to minimize service cost and customer waiting time
Linear programming calculates how to allocate scarce resources among competing uses
Operations management is the study of how organizations produce goods and services

44. Organizations as Systems
“Organizations are co-operative systems that achieve great things by integrating the contributions of many individuals to achieve a common purpose” – Chester Barnard
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.

45. Figure 2.7 Organizations as complex networks of interacting subsystems
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46. Contingency thinking
Tries to match managerial responses with problems and opportunities unique to each situations
Especially in terms of individual or environmental differences
No “one best way” to manage
Appropriate way to manage depends on the situation

47. 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

48. Quality management (cont’d)
“80% of the problems are caused by 20% of the operations” - Deming’s 80/20 rule
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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49. Knowledge Management and Organizational Learning
Knowledge management is the process of using information technology to achieve performance success
Portfolio of intellectual assets include patents, intellectual property rights, trade secrets, and accumulated knowledge of the entire workforce.

50. 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

51. Evidence-Based Management
Organizations that consistently achieve excellence while creating a high quality work environment
Involves making decisions based on hard facets about what really works

52. Common characteristics of high performance organizations
People oriented – value people as human assets
Team oriented – achieve synergy through teamwork
Information oriented – mobilizes the latest information technology
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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53. 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

54. 21st Century Leadership The 21st Century Manager:
Managers have to excel as never before to meet the expectations held of them and of the organization they lead.
Attributes of a 21st Century Manager:
Global strategist: understanding the interconnections among nations, cultures and economies
Master of technology : comfortable with information technology
Inspiring leader: attracting and motivating workers to achieve high-performance culture
Model of ethical behaviour: acting ethically in all ways

55. COPYRIGHT
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