PowerPoint Presentation to Accompany Management, 9/e John R. Schermerhorn, Jr. Prepared by: Jim LoPresti University of Colorado, Boulder Published by: John Wiley & Sons, Inc. Chapter 3: Management – Historical Perspectives

Management 9/e - Chapter 32 Study Question 1: What can be learned from classical management thinking?  Classical approaches to management include: Scientific management Administrative principles Bureaucratic organization

Management 9/e - Chapter 33 Figure 3.1 Major branches in the classical approach to management.

Management 9/e - Chapter 34 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.

Management 9/e - Chapter 35 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.

Management 9/e - Chapter 36 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

Management 9/e - Chapter 37 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.

Management 9/e - Chapter 38 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.

Management 9/e - Chapter 39 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.

Management 9/e - Chapter 310 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 inter- related factors (precursor of systems thinking)  Private profits relative to public good (precursor of managerial ethics and social responsibility)

Management 9/e - Chapter 311 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.

Management 9/e - Chapter 312 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: Excessive paperwork or “red tape” Slowness in handling problems Rigidity in the face of shifting needs Resistance to change Employee apathy

Management 9/e - Chapter 313 Study Question 2: What insights come from the behavioral management approaches?  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

Management 9/e - Chapter 314 Figure 3.2 Foundations in the behavioral or human resource approaches to management

Management 9/e - Chapter 315 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.

Management 9/e - Chapter 316 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

Management 9/e - Chapter 317 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.

Management 9/e - Chapter 318 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

Management 9/e - Chapter 319 Figure 3.3 Maslow’s hierarchy of human needs.

Management 9/e - Chapter 320 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 self- actualization level.

Management 9/e - Chapter 321 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: Willing to work Capable of self control Willing to accept responsibility Imaginative and creative Capable of self- direction

Management 9/e - Chapter 322 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 self- management.

Management 9/e - Chapter 323 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

Management 9/e - Chapter 324 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

Management 9/e - Chapter 325 Study Question 3: What are the foundations of modern management thinking?  Systems 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.

Management 9/e - Chapter 326 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.

Management 9/e - Chapter 327 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.

Management 9/e - Chapter 328 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

Management 9/e - Chapter 329 Study Question 3: What are the foundations of modern management thinking?  Quality and performance excellence Quality circle  Small groups of workers meeting regularly to discuss quality improvement  “Circle” assumes responsibility for quality  Can result in cost savings and improved quality, customer satisfaction, and morale

Management 9/e - Chapter 330 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