Introduction to Management 11e

John Schermerhorn

History of Management
Thought

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Planning Ahead — Chapter 2 Study Questions

1. What is management?
2. The functions of management.
3. What can be learned from classical
management thinking?
4. What insights come from behavioral
management approaches?
5. What are the foundations of modern
management thinking?
 What is Management?

 Management is coordinating work activities so

that they are completed efficiently and
effectively with and through other people.

 Effectiveness – achievement of goals.

 Efficiency – meeting goals at a low cost.
 Management Functions
PLANNING
Defining goals, establishing strategy,
and developing plans to integrate
and coordinate activities.
LEADING
Directing and motivating all involved
parties and resolving conflicts
ORGANIZING
Determining what tasks are to be
done, who is to do them, how the
tasks are to be grouped, who reports
to whom, and where decisions are to
be made
CONTROLLING
Monitoring activities to ensure that
they are accomplished as planned
Stage 1:
Classical 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)

 Father of scientific management.
 He noticed that many workers did their jobs their own ways and
without a clear and consistent approach
which caused inefficiency and low
performance.
 Taylor’s goal was to improve the
productivity of people at work.
 He used the concept of “time study" to
analyze the motions and tasks required in
any job and to develop the most efficient
ways to perform them.
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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
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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
 The Gilbreth’s work led to later
advances in the areas of job
simplification, work standards,
and incentive wage plans.
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
Study Question 1: What can be learned from classical management
thinking?

 Administrative principles (Henri Fayol) —

rules of management:
 Henri Fayol 1841-1925
14 General Principles of Management

 Division of labor  Centralization

 Authority  Scalar chain
 Discipline  Order
 Unity of command  Equity
 Unity of direction  Stability and
 Subordination of tenure of staff
individual interest  Initiative
 Remuneration  Esprit de corps
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 Fayol’s 14 Principles of
Management

1. Division of labor
 Specialization increases output by making employees more
efficient.
2. Authority
 Managers must be able to give orders.
3. Discipline
 Employees must obey and respect the rules that govern the
organization.
4. Unity of Command
 Every employee should receive orders from only one superior.

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 Fayol’s 14 Principles of
Management

5. Unity of direction
 Each group of organizational activities that have the same
objective should be directed by one manager using one plan.
6. Subordination of individual interests
 The interests of any one employee or group of employees
should not take precedence over the interests of the
organization as a whole.
7. Remuneration
 Workers must be paid a fair wage for their services.

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 Fayol’s 14 Principles of
Management

8. Centralization
 The degree to which subordinates are involved in decision
making.
 Whether the decision making is centralized (to management) or
decentralized (to subordinates).
9. Scalar chain
 The line of authority from top management to the lowest ranks.
 Communications should follow this chain.
10. Order
 People and materials should be in the right place at the right
time.
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 Fayol’s 14 Principles of
Management

11. Equity
 Managers should be kind and fair to their subordinates.
12. Stability and tenure of personnel
 High turnover is inefficient.
 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 plans will
exert high levels of effort.

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 Fayol’s 14 Principles of
Management

14. Esprit de corps

 Promoting team spirit will build harmony and unity within the
organization.

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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
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

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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 20
Stage 2:
Behavioral management
approaches

Chapter 2
Figure 2.2 Foundations in the behavioral or human resource
approaches to management
Study Question 2: What insights come from the behavioral management approaches?

 Behavioral Management - human

resource approaches include:
 Hawthorne studies by Elton Mayo
 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
Study Question 2: What insights come from the behavioral management approaches?

 Elton Mayo: Hawthorne studies

 Started study due to high number of turnover rate
 Initial study manipulating length of rest and lunch
periods and piecework payment plan towards
employees’ productivity.
 Result: No consistent result found on payment plan.
 However, the informal social patterns (psychological
factors) of interaction in the work group influenced
results
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
 Results: Factors that accounted for increased
productivity are:
 Group atmosphere
 Participative supervision
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
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
Figure 2.3 Maslow’s hierarchy 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
Study Question 2: What insights come from the behavioral
management approaches?

 Mary Parker Follett: Organizations as

communities
 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
Study Question 1: What can be learned from classical management
thinking?

 Organizations as communities
 Forward-looking management insights:
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
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
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
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
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
Stage 3:
Modern Management Thinking
Study Question 3: What are the foundations of modern management
thinking?

 Foundations for continuing developments

in management
Study Question 3: What are the foundations of modern management
thinking?

 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
Study Question 3: What are the foundations of modern management
thinking?

 Operations management is the study of

how organizations produce goods and
services
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
Figure 2.4 Organizations as complex networks of interacting
subsystems
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
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
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
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
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:
Thank you
Q&A