1. Chapter 2 History of Management Thought
John R. Schermerhorn, Jr.
Daniel G. Bachrach
Introduction to Management
13th edition 2
Chapter 2 History of Management Thought

2. Planning Ahead — Key Takeaways
Identify what can be learned from the classical management approaches.
Identify what can be learned from the behavioral management approaches.
Identify what can be learned from the modern management approaches.
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3. Chapter 2 Outline Classical Management Approaches
Scientific management
Administrative principles
Bureaucratic organization
Behavioral Management Approaches
Follett’s organizations as communities
The Hawthorne studies
Maslow’s theory of human needs
McGregor’s Theory X and Theory Y
Argyris’s personality and organization
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4. Chapter 2 Outline Modern Management Foundations
Quantitative analysis and tools
Organization as systems
Contingency thinking
Quality management
Evidence-based management
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5. Figure 2.1 Major branches in the classical approach to management
Copyright ©2015 John Wiley & Sons, Inc.

6. Classical Management Approaches
Four guiding principles of scientific management (Frederick Taylor)
Develop a “science” that includes 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 to do the job and give them incentives to cooperate with the job “science.”
Support workers by carefully planning their work and by smoothing the way as they do their work.
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7. Classical Management Approaches
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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8. Classical Management Approaches
Practical insights 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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9. Classical Management Approaches
Administrative principles (Henri Fayol) — rules/duties 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
Copyright ©2015 John Wiley & Sons, Inc.

10. Classical Management Approaches
Administrative principles (Henri Fayol)
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
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11. Classical Management Approaches
Bureaucratic organization (Max Weber)
Bureaucracy
An ideal, intentionally rational, and very efficient form of organization
Based on principles of logic, order, and legitimate authority
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12. Classical Management Approaches
Characteristics of bureaucratic organizations:
Clear division of labor
Clear hierarchy of authority
Formal rules and procedures
Impersonality
Careers based on merit
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13. Classical Management Approaches
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
Copyright ©2015 John Wiley & Sons, Inc.

14. Figure 2.2 Foundations in the behavioral or human resource approaches to management
Human resource approaches Assumption: People are social and self-actualizing
Theory of human needs Abraham Maslow
Hawthorne studies Elton Mayo
Organizations as communities Mary Parker Follett
Theory X and Theory Y Douglas McGregor
Personality and organization Chris Argyris
Copyright ©2015 John Wiley & Sons, Inc.

15. Behavioral Management Approaches
Follett’s Organizations as communities – Mary Parker Follett
Groups and human cooperation:
Groups allow individuals to combine their talents for a greater good
Organizations are cooperating “communities” of managers and workers
Manager’s job is to help people cooperate and achieve an integration of interests
Copyright ©2015 John Wiley & Sons, Inc.

16. Behavioral Management Approaches
Organizations as communities
Forward-looking management insights:
precursor of employee ownership, profit sharing, and gain-sharing
Making every employee an owner creates a sense of collective responsibility
precursor of systems thinking
Business problems involve a variety of inter-related factors
precursor of managerial ethics and social responsibility
Private profits relative to public good
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17. 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
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18. Behavioral Management Approaches
Hawthorne studies (cont.)
Social setting and human relations
Manipulated physical work conditions to assess impact on output
Designed to minimize the “psychological factors” of previous experiment
Mayo and colleagues concluded:
New “social setting” led workers to do good job
Good “human relations” = higher productivity
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19. Behavioral Management Approaches
Hawthorne studies (cont.)
Employee attitudes and group processes
Some things satisfied some workers but not others
People restricted output to adhere to group norms
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20. Behavioral Management Approaches
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
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21. 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
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22. Figure 2.3 Maslow’s hierarchy of human needs
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23. 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
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24. Behavioral Management approaches
McGregor’s Theory X assumes that workers:
Dislike work
Lack ambition
Are irresponsible
Resist change
Prefer to be led
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25. Behavioral Management approaches
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
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26. 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
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27. 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
Psychological success occurs when people define own goals
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28. Behavioral Management Approaches
Argyris’s theory of adult personality
Management practices should accommodate the mature personality by:
Increasing task responsibility
Increasing task variety
Using participative decision making
Copyright ©2015 John Wiley & Sons, Inc.

29. Modern Management Foundations
Foundations for continuing developments in management
Quantitative analysis and tools
Organizations as systems
Contingency thinking
Quality management
Evidence-based management
Copyright ©2015 John Wiley & Sons, Inc.

30. Modern Management Foundations
Quantitative Analysis and Tools
Analytics – the use of large data bases and mathematics to solve problems and make informed decisions using systematic analysis
Typical quantitative approach to managerial problem-solving
Problem encountered, it is systematically analyzed, appropriate mathematical models and computations applied, optimal solution identified
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31. Modern Management Foundations
Organizations as Systems
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
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32. Figure 2.4 Organizations as complex networks of interacting subsystems
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33. Modern Management Foundations
Contingency thinking
Tries to match managerial responses with problems and opportunities unique to different situations
No “one best way” to manage
Appropriate way to manage depends on the situation
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34. Modern Management Foundations
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 improvement for a total organization
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35. Modern Management Foundations
Continuous improvement
Continual search for new ways to improve quality
Something always can and should be improved
ISO certification
Global quality management
Refine and upgrade quality to meet ISO standards
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36. Modern Management Foundations
Evidence-Based Management
Making management decisions on “hard facts” about what really works
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37. Modern Management Foundations
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
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