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

2. Planning Ahead — Chapter 3 Study Questions
What can be learned from classical management thinking?
What insights come from behavioral management approaches?
What are the foundations of modern management thinking?
Management 9/e - Chapter 3

3. Management 9/e - Chapter 3
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 3

4. Figure 3.1 Major branches in the classical approach to management.
Management 9/e - Chapter 3

5. Management 9/e - Chapter 3
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 3

6. Management 9/e - Chapter 3
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 3

7. Management 9/e - Chapter 3
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 3

8. Management 9/e - Chapter 3
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 3

9. Management 9/e - Chapter 3
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 3

10. Management 9/e - Chapter 3
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 3

11. Management 9/e - Chapter 3
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 3

12. Management 9/e - Chapter 3
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 3

13. Management 9/e - Chapter 3
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 3

14. Management 9/e - Chapter 3
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 3

15. Management 9/e - Chapter 3
Figure 3.2 Foundations in the behavioral or human resource approaches to management
Management 9/e - Chapter 3

16. Management 9/e - Chapter 3
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 3

17. Management 9/e - Chapter 3
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 3

18. Management 9/e - Chapter 3
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 3

19. Management 9/e - Chapter 3
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 3

20. Figure 3.3 Maslow’s hierarchy of human needs.
Management 9/e - Chapter 3

21. Management 9/e - Chapter 3
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 3

22. Management 9/e - Chapter 3
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 3

23. Management 9/e - Chapter 3
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 3

24. Management 9/e - Chapter 3
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
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25. Management 9/e - Chapter 3
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 3

26. Management 9/e - Chapter 3
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.
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27. Management 9/e - Chapter 3
Figure 3.4 Organizations as complex networks of interacting subsystems.
Management 9/e - Chapter 3

28. Management 9/e - Chapter 3
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 3

29. Management 9/e - Chapter 3
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 3

30. Management 9/e - Chapter 3
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 3

31. Management 9/e - Chapter 3
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 3

32. Management 9/e - Chapter 3
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
Management 9/e - Chapter 3

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