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Chapter 2Management Fundamentals - Schermerhorn & Wright1 HISTORY OF MANAGEMENT Insights Classical Frederick Taylor Henri Fayol Max Weber Behavioral Hawthorne.

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Presentation on theme: "Chapter 2Management Fundamentals - Schermerhorn & Wright1 HISTORY OF MANAGEMENT Insights Classical Frederick Taylor Henri Fayol Max Weber Behavioral Hawthorne."— Presentation transcript:

1 Chapter 2Management Fundamentals - Schermerhorn & Wright1 HISTORY OF MANAGEMENT Insights Classical Frederick Taylor Henri Fayol Max Weber Behavioral Hawthorne Abraham Maslow Douglas McGregor Chris Argyris Modern Systems & contingency thinking Performance excellence Directions Organizational learning Knowledge management Global awareness

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

3 Chapter 2Management Fundamentals - Schermerhorn & Wright3 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

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

5 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.

6 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.

7 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.

8 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)

9 Chapter 2Management Fundamentals - Schermerhorn & Wright9 WEBER’S BUREAUCRACY Clear division of labor Strict hierarchy of authority Staffing by technical competency Formal rules and procedures Impersonal approach to decision making

10 Management Fundamentals - Chapter 2 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

11 Chapter 2Management Fundamentals - Schermerhorn & Wright11 Classical Contributions The Job - Taylor The Manager - Fayol The Organization Structure - Weber

12 Chapter 2Management Fundamentals - Schermerhorn & Wright12 HISTORY OF MANAGEMENT Insights Classical Frederick Taylor Henri Fayol Max Weber Behavioral Hawthorne Abraham Maslow Douglas McGregor Chris Argyris Modern Systems & contingency thinking Performance excellence Directions Organizational learning Knowledge management Global awareness

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

14 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.

15 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

16 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.

17 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 Chapter 2Management Fundamentals - Schermerhorn & Wright18 SELF-FULFILLING PROPHESIES MANAGER’S ASSUMPTIONS MANAGER’S BEHAVIOR OTHER’S BEHAVIOR INFLUENCE REINFORCES INFLUENCES

19 Management Fundamentals - Chapter 2 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.

20 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 Chapter 2Management Fundamentals - Schermerhorn & Wright21 HISTORY OF MANAGEMENT Insights Classical Frederick Taylor Henri Fayol Max Weber Behavioral Hawthorne Abraham Maslow Douglas McGregor Chris Argyris Modern Systems & contingency thinking Performance excellence Directions Organizational learning Knowledge management Global awareness

22 Chapter 222 Quantitative Approach – Management Science uses mathematical techniques to analyze and solve management problems Problem Encountered Systematically Analyzed Mathematical Models Applied Optimal Solution Identified Mathematical Forecasting Linear Programming Queuing Theory Network Models Simulations FOCUS: Rational decision making that has clear action implications

23 23 Systems view and contingency thinking 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.

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

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


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