1. Management Fundamentals - Schermerhorn & Wright
HISTORY OF MANAGEMENT
Classical
Frederick Taylor
Henri Fayol
Max Weber
Behavioral
Modern
Hawthorne
Abraham Maslow
Douglas McGregor
Chris Argyris
Systems & contingency
thinking
Performance excellence
Insights
Global awareness
Directions
Organizational
learning
Knowledge
management
Chapter 2
Management Fundamentals - Schermerhorn & Wright

2. Figure 2.1 Major branches in the classical approach to management.
Management Fundamentals - Chapter 2

3. TAYLOR’S SCIENTIFIC MANAGEMENT
Design jobs with efficient work methods
Select workers with ability to do the jobs
Train workers to best perform jobs
Train supervisors to best support workers
Link compensation to job performance
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Management Fundamentals - Schermerhorn & Wright

4. Scientific management (Gilbreths)
Motion study
Science of reducing a job or task to its basic physical motions.
Eliminating wasted motions improves performance.
Management Fundamentals - Chapter 2

5. 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.
Management Fundamentals - Chapter 2

6. 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.
Management Fundamentals - Chapter 2

7. 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.
Management Fundamentals - Chapter 2

8. 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)
Management Fundamentals - Chapter 2

9. Management Fundamentals - Schermerhorn & Wright
WEBER’S BUREAUCRACY
Clear division of labor
Strict hierarchy of authority
Staffing by technical competency
Formal rules and procedures
Impersonal approach to decision making
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Management Fundamentals - Schermerhorn & Wright

10. 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:
Excessive paperwork or “red tape”
Slowness in handling problems
Rigidity in the face of shifting needs
Resistance to change
Employee apathy
Management Fundamentals - Chapter 2

11. Classical Contributions
The Organization
Structure - Weber
The Manager
- Fayol
The Job - Taylor
Chapter 2
Management Fundamentals - Schermerhorn & Wright

12. Management Fundamentals - Schermerhorn & Wright
HISTORY OF MANAGEMENT
Classical
Frederick Taylor
Henri Fayol
Max Weber
Behavioral
Modern
Hawthorne
Abraham Maslow
Douglas McGregor
Chris Argyris
Systems & contingency
thinking
Performance excellence
Insights
Global awareness
Directions
Organizational
learning
Knowledge
management
Chapter 2
Management Fundamentals - Schermerhorn & Wright

13. Management Fundamentals - Chapter 2
Figure 2.2 Foundations in the behavioral or human resource approaches to management.
Management Fundamentals - Chapter 2

14. Human Resource Approach - Hawthorne Studies
Factors that accounted for increased productivity:
Group atmosphere
Participative supervision
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.
Hawthorne studies
Initial study examined how economic incentives and physical conditions affected worker output.
No consistent relationship found.
“Psychological factors” influenced results.
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
Employee attitudes, interpersonal relations, and group processes.
Some things satisfied some workers but not others.
People restricted output to adhere to group norms.
Management Fundamentals - Chapter 2

15. Maslow’s hierarchy of human needs.
A need is a physiological or psychological deficiency a person feels compelled to satisfy
Management Fundamentals - Chapter 2

16. Human Resource Approach - 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 self-actualization level.
Management Fundamentals - Chapter 2

17. McGREGOR’S THEORY X THEORY Y
People dislike work
People lack ambition
People resist change
People act irresponsible
People prefer to be led
People like to work
People are creative
People can change
People accept responsibility
People are capable of self-direction
Managers should give more attention to the social self-actualizing needs of people at work.

18. SELF-FULFILLING PROPHESIES
MANAGER’S
ASSUMPTIONS
INFLUENCE
REINFORCES
OTHER’S
BEHAVIOR
MANAGER’S
BEHAVIOR
INFLUENCES
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Management Fundamentals - Schermerhorn & Wright

19. Human Resource Approach – 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.
Management Fundamentals - Chapter 2

20. Human Resource Approach – 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

21. Management Fundamentals - Schermerhorn & Wright
HISTORY OF MANAGEMENT
Classical
Frederick Taylor
Henri Fayol
Max Weber
Behavioral
Modern
Hawthorne
Abraham Maslow
Douglas McGregor
Chris Argyris
Systems & contingency
thinking
Performance excellence
Insights
Global awareness
Directions
Organizational
learning
Knowledge
management
Chapter 2
Management Fundamentals - Schermerhorn & Wright

22. Quantitative Approach – Management Science
uses mathematical techniques to analyze and solve management problems
Mathematical Forecasting
Linear Programming
Queuing Theory
Network Models
Simulations
Problem Encountered
Systematically Analyzed
Mathematical Models Applied
Optimal Solution Identified
FOCUS: Rational decision making that has clear action implications
Chapter 2

23. Systems view and contingency thinking
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.

24. Organizations as complex networks of interacting subsystems.
CONTINGENCY THINKING
Flexible Structures – What works for one organization or time period will not always work for another

25. Systems and the Organizational Value Chain
Organization as a
transformation system
Management of the
value chain
Resources &
materials
flow in
Materials
received &
organized
for use
People &
technology
create
products
Finished
products
distributed
Customers
served
Total Quality Management – Build quality into all aspects of operations from beginning to end.