1. PowerPoint Presentation to Accompany Management Third Canadian Edition John R. Schermerhorn, Jr. Barry Wright
Prepared by: Jim LoPresti
University of Colorado, Boulder
Revised by: Dr. Shavin Malhotra
Ryerson University, Toronto, Ontario

2. Chapter 2: Management Learning: Past to Present
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3. Chapter 2 Learning Objectives
2.1 List the characteristics and principles of each of the three classical management approaches.
2.2 Describe the principles of the various behavioural management approaches.
2.3 Explain the foundations of modern management thinking.
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4. Classical Management Approaches
Classical approaches to management include:
Scientific management
Administrative principles
Bureaucratic organization
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5. Figure 2.1 Major branches in the classical approach to management.
Classical Management Approaches
Figure 2.1 Major branches in the classical approach to management.
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6. Classical Management Approaches
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.
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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 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
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9. Classical Management Approaches
Administrative principles (Henri Fayol) —
1. Division of labour
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interests
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Personnel tenure
13. Initiative
14. Espirit de corps
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10. Classical Management Approaches
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.
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11. Classical Management Approaches
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.
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12. 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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13. Classical Management Approaches
Characteristics of bureaucratic organizations:
Clear division of labour
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
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14. Behavioural Management Approaches
Behavioural Management - human resource approaches include:
Follett’s notion of organizations as communities
Hawthorne studies
Maslow’s theory of human needs
McGregor’s Theory X and Theory Y
Argyris’s theory of adult personality
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15. Behavioural Management Approaches
Figure 2.2 Foundations in the behavioural or human resource approaches to management
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16. Behavioural Management Approaches
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.
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17. Behavioural Management Approaches
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)
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18. Behavioural 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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19. Behavioural 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
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20. Behavioural 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.
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21. Behavioural 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 2.4 Maslow’s hierarchy of human needs.
Behavioural Management Approaches
Figure 2.4 Maslow’s hierarchy of human needs.
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23. Behavioural Management Approaches
Maslow’s theory of human needs
Deficit principle
A satisfied need is not a motivator of behaviour.
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. Behavioural 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
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25. Behavioural 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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26. Behavioural 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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27. Modern Management Foundations
Foundations for continuing developments in management
Quantitative analysis and tools
Systems view of organizations
Contingency thinking
Commitment to quality
Learning organizations
Evidence-based management
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28. Modern Management Foundations
Management science or operations research
The scientific applications of mathematical techniques to management problems
Mathematical forecasting makes future projections useful for planning
Inventory modeling controls inventories mathematically
Linear programming calculates how to allocate scarce resources among competing uses
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29. Modern Management Foundations
Management science or operations research
Queuing theory allocates service personnel/workstations to minimize service cost and customer waiting time
Network models break large tasks into smaller components for better coordination
Operations management is the study of how organizations produce goods and services
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30. 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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31. Modern Management Foundations
Figure 2.6 Organizations as complex networks of interacting subsystems.
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32. Modern Management Foundations
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.
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33. 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 quality improvement for a total organization.
Creates context for the value chain.
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34. Modern Management Foundations
Quality management
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
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35. Modern Management Foundations
Knowledge Management and Organizational Learning
Knowledge management is the process of using information technology to achieve performance success
Portfolio of intellectual assets include patents, intellectual property rights, trade secrets, and accumulated knowledge of the entire workforce.
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36. Modern Management Foundations
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
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37. Modern Management Foundations
High Performance Organizations
Organizations that consistently achieve excellence while creating a high quality work environment.
Common characteristics of high performance organizations include:
People oriented – value people as human assets
Team oriented – achieve synergy through teamwork
Information oriented – mobilizes the latest information technology
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38. Modern Management Foundations
High Performance Organizations
Achievement oriented – focuses on the needs of customers and stakeholders
Learning oriented – operates with internal culture that respects and facilitates learning
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39. Modern Management Foundations
Evidence-Based Management
Making management decisions on “hard facts” about what really works
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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40. Modern Management Foundations
21st Century Manager
Managers have to excel as never before to meet the expectations held of them and of the organization they lead.
Attributes of a 21st Century Manager
Global strategist – understanding the interconnections among nations, cultures and economies
Master of technology – comfortable with information technology
Inspiring leader – attracting and motivating workers to achieve high-performance culture
Model of ethical behaviour – acting ethically in all ways
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41. COPYRIGHT
Copyright © 2014 John Wiley & Sons Canada, Ltd. All rights reserved. Reproduction or translation of this work beyond that permitted by Access Copyright (The Canadian Copyright Licensing Agency) is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons Canada, Ltd. The purchaser may make back-up copies for his or her own use only and not for distribution or resale. The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information contained herein.