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Introduction to Management 11e
John Schermerhorn
Chapter 2Chapter 2
History of ManagementHistory of Management
ThoughtThought
1
Planning Ahead — Chapter 2 Study Questions
1. What can be learned from classical
management thinking?
2. What insights come from behavioral
management approaches?
3. What are the foundations of modern
management thinking?
Figure 2.1 Major branches in the classical approach to
management
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
4
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
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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History of Management Thought

  • 1. Introduction to Management 11e John Schermerhorn Chapter 2Chapter 2 History of ManagementHistory of Management ThoughtThought 1
  • 2. Planning Ahead — Chapter 2 Study Questions 1. What can be learned from classical management thinking? 2. What insights come from behavioral management approaches? 3. What are the foundations of modern management thinking?
  • 3. Figure 2.1 Major branches in the classical approach to management
  • 4. 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 4
  • 5. 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. 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. Study Question 1: What can be learned from classical management thinking?  Administrative principles (Henri Fayol) — rules of management:
  • 8. 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. 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. 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 10
  • 11. 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 11
  • 12. Figure 2.2 Foundations in the behavioral or human resource approaches to management
  • 13. 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. 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. Study Question 1: What can be learned from classical management thinking?  Organizations as communities  Forward-looking management insights:
  • 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. 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. 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. 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. 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. 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. 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. 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. 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  Classical management principles and practices inhibit worker maturation and are inconsistent with the mature adult personality Study Question 2: What insights come from the behavioral management approaches?
  • 27. 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. Study Question 3: What are the foundations of modern management thinking?  Foundations for continuing developments in management
  • 29. Study Question 3: What are the foundations of modern management thinking?  Management science or operations research
  • 30. 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. 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.  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 Study Question 3: What are the foundations of modern management thinking?
  • 35. 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. 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. 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. 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:
  • 39. 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. 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. Chapter 2 Case  Zara International: Fashion at the speed of light