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1. Introduction to Management

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?
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3. Study Question 1: What can be learned from classical
management thinking?
 Classical approaches to management
include:
– Scientific management
– Administrative principles
– Bureaucratic organization
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4. Figure 2.1 Major branches in the classical approach to
management.
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5. Study Question 1: What can be learned from classical
management thinking?
 Scientific management (Frederick W. Taylor)
– Frederick Taylor is known as the “father” of scientific
management, which emphasizes careful selection and
training of workers and supervisory support.
– He advocated the following four principles of scientific
management :
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6. 1. Develop for every job a “science” that includes rules of motion,
standardized work implements, and proper working conditions.
2. Carefully select workers with the right abilities for the job.
3. Carefully train workers to do the job and give them the proper
incentives to cooperate with the job “science.”
4. Support workers by carefully planning their work and by smoothing
the way as they go about their jobs.
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7. Study Question 1: What can be learned from classical
management thinking?
 Scientific management (the Gilbreths)
– Frank and Lillian Gilbreth pioneered motion study – the science
of reducing a job or task to its basic physical motions.
– Wasted motions are eliminated to improve performance.
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8. 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
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9. Study Question 1: What can be learned from classical
management thinking?
• Administrative principles (Henri Fayol) Henri Fayol,
developed a set of 14 principles:
1. Division of work: Specialization increases output by making
employees more efficient.
2. Authority: Managers must be able to give orders and authority
gives them this right.
3. Discipline: Employees must obey and respect the rules that
govern the organization.
4. Unity of command: Every employees should receive orders
from only one superior.
5. Unity of direction: The organization should have a single plan
of action to guide managers and workers.
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10. 6. Subordination of individual interests to the general interest:
The interests of any one employee or group of employees
should not take precedence over the interests of the
organization of the whole.
7. Remuneration: Workers must be paid a fair wage for their
services.
8. Centralization: The degree to which subordinates are
involved in decision making.
9. Scalar chain: The line of authority from top management to
the lowest ranks.
10. Order: People and materials should be in the right place at
the right time.
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11. 11. Equity: Managers should be kind and fair to their
subordinates.
12. Stability of tenure of personnel: Management should
provide orderly personnel planning and ensure that
replacements are available to fill vacancies.
13. Initiative: Employees who are allowed to originate and
carry out plan will exert high levels of effort.
14. Esprit de corps: Promoting team spirit will build harmony
and unity within the organization.
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12. Study Question 1: What can be learned from classical
management thinking?
 Bureaucratic organization (Max Weber)
• Max Weber, a German intellectual, introduced bureaucracy as an
organizational structure that promotes efficiency and fairness.
• Weber viewed a bureaucracy as an ideal, intentionally rational, and
very efficient form of organization founded on principles of logic,
order, and legitimate authority.
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13.  Characteristics of bureaucratic organizations:
1. Clear division of labor: Jobs are well defined and workers become
highly skilled at performing them.
2. Clear hierarchy of authority: Authority and responsibility are well
defined for each position and each position reports to a higher-level
one.
3. Formal rules and procedures: Written guidelines direct behavior
and decisions in jobs and written files are kept for historical record.
4. Impersonality: Rules and procedures are impartially and uniformly
applied, with no one receiving preferential treatment.
5. Careers based on merit: Workers are selected and promoted on
ability and performance and managers are career employees of the
organization.
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14. 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
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15. 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
– McGregor’s Theory X and Theory Y
– Follett’s organizations as communities
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16. Figure 2.2 Foundations in the behavioral or human
resource approaches to management
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17. 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.
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18. 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
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19. 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.
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20. 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
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21. Figure 2.3 Maslow’s hierarchy of human needs.
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22. 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.
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23. Study Question 2: What insights come from the behavioral
management approaches?
 McGregor’s Theory X  McGregor’s Theory Y
assumes that assumes that
workers: workers are:
– Willing to work
– Dislike work – Capable of self control
– Lack ambition – Willing to accept
responsibility
– Are irresponsible – Imaginative and creative
– Resist change – Capable of self-direction
– Prefer to be led
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24. 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.
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25. Study Question 1: What can be learned from classical
management thinking?
 Organizations as communities (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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26. Study Question 1: What can be learned from classical
management thinking?
– 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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27. Study Question 1: What is the external environment of organizations?
 The general environment — all of the background conditions
in the external environment of the organization including:
– Economic – health of the economy
 The economic conditions of the general environment details the
health of the economy in terms of inflation, income levels, gross
domestic product, unemployment, and job out-look.
– Legal-political – norms, customs, social values
 By staying abreast of the legal-political conditions of the general
environment, managers are aware of the prevailing philosophy and
objectives of the political party or parties running the government,
as well as laws and government regulations.
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28. – Socio-cultural – philosophy/objectives of political party
running the government
 Changes in the norms, customs, and social values on such
matters as human rights, ethics, gender roles, and life styles,
along with environmental trends in education and related social
institutions, as well as demographic patterns all will affect how
organizations are managed.
– Technological – development and availability of technology
With the development and availability of new
technologies in the general environment, managers need
to constantly monitor how these advances affect the
work being done by employees.
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29. – Natural environment – nature and conditions of environment
 With organizations “going green,” how a firm becomes a
sustainable business that meets the needs of its customers while
advancing the well-being of the natural environment is a
management concern. The public will judge a business on how it
operates to protect and preserve this natural environment.
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