1. The document summarizes the major viewpoints in the history of management thought, including traditional/bureaucratic, behavioral, systems, contingency, and quality viewpoints. 2. The behavioral viewpoint emphasized the human aspects of organizations and that workers are motivated by social and psychological factors more than incentives. 3. The contingency viewpoint is that there is no one best way to manage and the optimal approach depends on factors like the external environment and individual capabilities within the organization.

1. Chapter 2: Learning from the History
of Management Thought
Don Hellriegel
Susan E. Jackson
John W. Slocum, Jr.
MANAGING: A COMPETENCY
BASED APPROACH
11th Edition
Prepared by
Argie Butler
Texas A&M University

2. Chapter 2: PowerPoint 2.1
Learning from the History of
Management Thought
Learning Goals
1. Describe the three branches of the traditional
viewpoint of management:
2. Explain the behavioral viewpoint’s contribution
to management
Bureaucratic, Scientific, and
Administrative

3. Chapter 2: PowerPoint 2.2
Learning Goals (cont’d)
3. Describe how managers can use systems and
quantitative techniques to improve employee
performance
4. State the two major components of the
contingency viewpoint
5. Explain the impact of the need for quality on
management practices

4. Chapter 2: PowerPoint 2.3
Goals:
Efficiency
Consistency
 Administrative
Management
 Bureaucratic
Management
 Scientific
Management

5. Chapter 2: PowerPoint 2.4 (Adapted from Figure 2.1)
Traditional Viewpoint
Behavioral Viewpoint
Systems Viewpoint
Contingency Viewpoint
Quality Viewpoint
1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

6. Chapter 2: PowerPoint 2.5
Bureaucratic Management
 Use of rules, hierarchy, a clear division of labor,
and detailed procedures to guide employees’
behaviors
 Seven characteristics
 Rules—formal guidelines for the behavior of
employees on the job
 Impersonality—employees are evaluated
according to rules and objective data
 Division of Labor—splitting work into
specialized positions

7. Chapter 2: PowerPoint 2.6
 Hierarchical Structure—ranks jobs according
to the amount of authority in each job
 Authority—who has the right to make
decisions of varying importance at different
organizational levels
 Traditional authority
Charismatic authority
Rational, legal authority
 Lifelong Career Commitment—both the employee
and the organization view themselves committed to
each other over the working life of the employee
 Rationality—the use of the most efficient
means available to accomplish a goal

8. Chapter 2: PowerPoint 2.7
“Each job has a policy manual detailing the rules
that a person needs to follow to ensure efficiency.
Drivers are told to walk to a customer’s door at a
brisk pace of 3 feet per second, carrying the
package in the right hand and clipboard in the
left. They should knock on the door so as not to
lose valuable seconds searching for a doorbell.”
Michael Eskew
Chairman and CEO, UPS
Snapshot

9. Chapter 2: PowerPoint 2.8 (Adapted from Figure 2.3)
LOW MIDRANGE HIGH
DreamWorks Sony IRS
R&D Thinktank 7-11 McDonalds
MP3 PepsiCo State Motor
Vehicle
Registration
Bureaucratic Continuum

10. Chapter 2: PowerPoint 2.9
Potential Benefits of Bureaucracy
 Efficiency
 Consistency
 Functions best when routine tasks are performed
 Performance based on objective criteria
 Most effective when
 Large amounts of standard information have to be processed
 The needs of the customer are known and are unlikely to
change
 The technology is routine and stable (e.g., mass production)
 The organization has to coordinate the activities of employees
in order to deliver a standardized service/product to the
customer

11. Chapter 2: PowerPoint 2.10
Potential Costs of Bureaucracy
Rigid rules
and
red tape
Protection of authority Slow decision making
Incompatible with
changing
technology
Incompatible with
21st century workers’
values for freedom
and participative
management

12. Chapter 2: PowerPoint 2.11
Scientific Management
 A philosophy and set of management practices that
are based on fact and observation, not on hearsay
or guesswork
 Frederick W. Taylor
 Believed increased productivity depended on
finding ways to make workers more efficient
 Used time-and-motion studies to analyze work
flows, supervisory techniques, and worker fatigue
 Used functional foremanship, a division of labor
that assigned eight foremen to each work area
 Assumed workers motivated by money

13. Chapter 2: PowerPoint 2.12
Scientific Management
 The Gilbreths
 Frank Gilbreth used motion pictures
to analyze workers’ motions
 Lillian Gilbreth championed protecting
workers from unsafe working conditions
 Henry Gantt
 Focused on control systems for
production scheduling (Gantt Chart)

14. Chapter 2: PowerPoint 2.13
Insights from Scientific Management
Many companies have used scientific management
principles to improve efficiency, employee selection
and training
Scientific management failed to recognize the
social needs of workers and the importance of
working conditions and job satisfaction

15. Chapter 2: PowerPoint 2.14
David Berbauer
CEO, Walgreens
“Walgreens is constantly pushing to drive costs down. It
pioneered the application of satellite communications and
computer technology and linked these to increase store
efficiency. By using tried-and-proven management concepts,
each of its 6,100 stores [is] able to process around 280
prescriptions a day and beat Wal-Mart by 27 cents and CVS
by 94 cents on each prescription.”
Snapshot

16. Chapter 2: PowerPoint 2.15
Administrative Management: Overview
 Focuses on the manager and basic managerial
functions of planning, organizing, controlling
and leading
 Unity of Command Principle: an
employee should report to only one
manager
 Authority Principle: managers have the
right to give orders to get things done

17. Chapter 2: PowerPoint 2.16
Behavioral Viewpoint: Overview
 Focuses on dealing effectively with the
human aspects of organizations
 Started in the 1930’s
 Emphasis on working conditions
 Workers wanted respect
 Workers formed unions to bargain
with management

18. Chapter 2: PowerPoint 2.17
Mary Parker Follett’s Contributions
 Managers need to establish
good working relationships
with employees
Goal:
Improve
Coordination

19. Chapter 2: PowerPoint 2.18
“Managers need to have a common
touch and to be a team leader and not a
drill sergeant. When their people shine,
they shine.”
Vickie Yoke, Senior Vice President, Alcatel
Snapshot

20. Chapter 2: PowerPoint 2.19
Chester Barnard’s Contributions
 People should continuously communicate
and cooperate with one another
 Acceptance theory of authority holds that employees
have free wills and, thus, choose whether to follow
management’s orders. Employees will follow orders
if they:
 Understand what is required
 Believe the orders are consistent with
organization goals
 See positive benefits to themselves in
carrying out the orders

21. Chapter 2: PowerPoint 2.20
Informal work groups
control productivity
Peer pressure to
conform to norms is
important
Hawthorne effect:
when employees are
given special attention,
productivity changes
Productivity increases
occur when managers
recognize employee
feelings

22. Chapter 2: PowerPoint 2.21
Employees are
motivated by social
needs and association
with others
Employees’ performance
is more a result of peer
pressure than
management’s incentives
and rules
Managers need to
involve subordinates
in coordinating their
work to improve
efficiency
Employees want to
participate in decisions
that affect them

23. Chapter 2: PowerPoint 2.22
Snapshot
“Teamwork is one of the most beautiful
experiences in life. Teamwork is our
core value and a primary way that the
Container Store enriches the quality
of employees’ work life.”
Kip Tindell, President, The Container Store

24. Chapter 2: PowerPoint 2.23
 System: an association of interrelated
and interdependent parts
 Systems viewpoint: an approach to solving
problems by diagnosing them within a
framework of transformation processes,
outputs, and feedback

25. Chapter 2: PowerPoint 2.24 (Adapted from Figure 2.4)
Inputs
Human, physical,
financial, and
information
resources
Transformation
Process
Outputs
Products
and
services
Feedback Loops

26. Chapter 2: PowerPoint 2.25
 Closed system: limits its interactions with
the environment (e.g., stamping department
in GM assembly plant)
 Open system: interacts with the external
environment (e.g., marketing department)

27. Chapter 2: PowerPoint 2.26
Mathematical
models are used
to simulate
changes
Computers are
essential
Primary focus is
on decision
making
Alternatives are
based on
economic criteria

28. Chapter 2: PowerPoint 2.27
Lead to
creation of
blogs
Enables
managers to
simulate
conditions
Emphasis on
objective criteria
for decision
making
Focus on
planning

29. Chapter 2: PowerPoint 2.28
 Management practices should be consistent
with the requirements of the external
environment, the technology used to make a
product or provide a service, and capabilities
of the people who work for the organization
 Uses concepts of the traditional, behavioral
and system viewpoints

30. Chapter 2: PowerPoint 2.29
 External environment—stable or
changing
 Technology—simple or complex
 People—ways they are similar and
different from each other

31. Chapter 2: PowerPoint 2.30 (Adapted from Figure 2.5)
Behavioral Viewpoint
How managers influence others;
 Informal group
 Cooperation among employees
 Employee’s social needs
Systems Viewpoint
How the parts fit together.
 Inputs
 Transformations
 Outputs
Traditional Viewpoint
What managers do:
 Plan
 Organize
 Lead
 Control
Contingency Viewpoint
Managers’ use of other viewpoints
to solve problems involving:
 External environment
 Technology
 Individuals

32. Chapter 2: PowerPoint 2.31
 Quality: how well a product or service
does what it is supposed to do—how closely
and reliably it satisfies the specifications to
which it is built or provided
 Total Quality Management (TQM): a
philosophy that makes quality values the
driving force behind leadership, design,
planning, and improvement initiatives

33. Chapter 2: PowerPoint 2.32
 Inputs or raw materials
 Operations
 Outputs
 Measuring by variable or a product’s characteristics
 Measuring by attribute or a product’s acceptable/
unacceptable characteristics
 Statistical process control
 Quality of a process (e.g., sigma)

34. Chapter 2: PowerPoint 2.33 (Adapted from Figure 2.6)
Lower Costs
and Higher
Market Share
Decreased
Product
Liability Quality
Positive
Company
Image