1. Introduction to Management 11e John Schermerhorn
Chapter 2
History of Management Thought

2. Planning Ahead — Chapter 2 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?

3. Figure 2.1 Major branches in the classical approach to management

4. Scientific management (Frederick Taylor)
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

5. Scientific management (the Gilbreths)
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

6. Practical lessons from scientific management
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

7. Administrative principles (Henri Fayol) — rules of management:
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

8. Administrative principles (Henri Fayol)
Study Question 1: What can be learned from classical management thinking?
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

9. Bureaucratic organization (Max Weber)
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

10. Characteristics of bureaucratic organizations:
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

11. Possible disadvantages of bureaucracy:
Study Question 1: What can be learned from classical management thinking?
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
Chapter 2

12. 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

13. Behavioral Management - human resource approaches include:
Study Question 2: What insights come from the behavioral management approaches?
Behavioral Management - human resource approaches include:
Hawthorne studies
Maslow’s theory of human needs
Mary Parker Follett’s Organizations as communities
McGregor’s Theory X and Theory Y
Argyris’s theory of adult personality

14. Organizations as communities – Mary Parker Follett
Study Question 2: What insights come from the behavioral management approaches?
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

15. Organizations as communities
Study Question 1: What can be learned from classical management thinking?
Organizations as communities
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

16. 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

17. Hawthorne studies (cont.)
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

18. Hawthorne studies (cont.)
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

19. Lessons from the Hawthorne Studies:
Study Question 2: What insights come from the 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

20. Maslow’s theory of human needs
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

21. Figure 2.3 Maslow’s hierarchy of human needs

22. Maslow’s theory of human needs
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

23. McGregor’s Theory X assumes that workers:
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

24. McGregor’s Theory Y assumes that workers are:
Study Question 2: What insights come from the 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

25. Implications of Theory X and Theory Y:
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

26. Argyris’s theory of adult personality
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

27. Argyris’s theory of adult personality
Study Question 2: What insights come from the 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

28. Foundations for continuing developments in management
Study Question 3: What are the foundations of modern management thinking?
Foundations for continuing developments in management
Quantitative analysis and tools
Systems view of organizations
Contingency thinking
Commitment to quality and performance
Knowledge management and learning organizations
Evidence-based management

29. Supply chain management
Study Question 3: What are the foundations of modern management thinking?
Management science or operations research
The scientific applications of mathematical techniques to management problems
Value chain analysis
Supply chain management
Inventory management
Quality control
Queuing theory
Linear programming
Network models

30. Management science or operations research
Study Question 3: What are the foundations of modern management thinking?
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 for better coordination
Simulations create problem models to test different solutions

31. Study Question 3: What are the foundations of modern management thinking?
Operations management is the study of how organizations produce goods and services

32. Organizations as Systems
Study Question 3: What are the foundations of modern management thinking?
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

33. Figure 2.4 Organizations as complex networks of interacting subsystems

34. 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
No “one best way” to manage
Appropriate way to manage depends on the situation

35. Quality and performance excellence
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

36. Quality and performance excellence
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

37. Knowledge Management and Organizational Learning
Study Question 3: What are the foundations of modern management thinking?
Knowledge Management and Organizational Learning
Knowledge management is the process of using intellectual capital for competitive advantage
Portfolio of intellectual assets include patents, intellectual property rights, trade secrets, and accumulated knowledge of the entire workforce

38. Learning organizations
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

39. Evidence-Based Management
Study Question 3: What are the foundations of modern management thinking?
Evidence-Based Management
Making management decisions on “hard facts” about what really works

40. Evidence-Based Positive Human Resource Management Practices
Study Question 3: What are the foundations of modern management thinking?
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

41. Zara International: Fashion at the speed of light
Chapter 2 Case
Zara International: Fashion at the speed of light