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

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

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 Chapter 2 Management Fundamentals - Schermerhorn & Wright

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

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

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

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

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

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 Chapter 2 Management Fundamentals - Schermerhorn & Wright

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

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

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

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

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

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

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

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.

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

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

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

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

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

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.

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

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.