Introduction to management 13th schemerhorn bachrach chapter 02

CLASSICAL MANAGEMENT APPROACHES Practical insights from scientific management performance incentive these jobs abilities perform jobs to the best of their abilities... FIGURE 2.2 FOUNDA

CHAPTER 2 HISTORY OF MANAGEMENT

John R Schermerhorn, Jr

Daniel G Bachrach

Introduction to Management

13th edition

2

PLANNING AHEAD — KEY TAKEAWAYS

classical management approaches.

behavioral management approaches.

management approaches.

Behavioral Management Approaches

• Follett’s organizations as communities

• The Hawthorne studies

• Maslow’s theory of human needs

• McGregor’s Theory X and Theory Y

• Argyris’s personality and organization

CHAPTER 2 OUTLINE

Modern Management Foundations

• Quantitative analysis and tools

• Organization as systems

• Contingency thinking

• Quality management

• Evidence-based management

FIGURE 2.1 MAJOR BRANCHES IN THE CLASSICAL APPROACH TO MANAGEMENT

CLASSICAL MANAGEMENT

APPROACHES

 Four guiding principles of scientific management

(Frederick Taylor)

1. Develop a “science” that includes rules of motion,

standardized work implements, and proper working conditions for every job.

2. Carefully select workers with the right abilities for

the job.

3. Carefully train workers to do the job and give them

incentives to cooperate with the job “science.”

4. Support workers by carefully planning their work

and by smoothing the way as they do their work.

CLASSICAL MANAGEMENT

APPROACHES

Practical insights from scientific management

performance incentive

these jobs

abilities

perform jobs to the best of their abilities

to implement the plan

to provide and mobilize resources

to implement the plan

Command

to lead, select, and evaluate workers to get the best work toward the plan

to lead, select, and evaluate workers to get the best work toward the plan

Coordinatio

n

to fit diverse efforts together and ensure information

is shared and problems solved

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

to make sure things happen according

to plan and

to take necessary corrective action

CLASSICAL MANAGEMENT

APPROACHES

Administrative principles (Henri Fayol)

there should be a clear and unbroken line of

communication from the top to the bottom of the organization

Based on principles of logic,

order, and legitimate authority

CLASSICAL MANAGEMENT

APPROACHES

Characteristics of bureaucratic organizations:

CLASSICAL MANAGEMENT

APPROACHES

Possible disadvantages of bureaucracy:

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

BEHAVIORAL MANAGEMENT

APPROACHES

Follett’s 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

BEHAVIORAL MANAGEMENT

APPROACHES

Organizations as communities

Forward-looking management insights:

• precursor of employee ownership, profit sharing, and gain-sharing

Making every employee an owner creates a sense of collective responsibility

• precursor of systems thinking

Business problems involve a variety of inter-related factors

• precursor of managerial ethics and social responsibility

Private profits relative

to public good

BEHAVIORAL MANAGEMENT

APPROACHES

Hawthorne studies

incentives and physical conditions affected

worker output

BEHAVIORAL MANAGEMENT

APPROACHES

Hawthorne studies (cont.)

Social setting and human relations

Manipulated physical work conditions to assess

impact on output

Designed to minimize the “psychological factors” of previous experiment

Mayo and colleagues concluded:

New “social setting” led workers to do good job

Good “human relations” = higher productivity

BEHAVIORAL MANAGEMENT

APPROACHES

Hawthorne studies (cont.)

Some things satisfied some workers but not others

People restricted output to adhere to group norms

BEHAVIORAL MANAGEMENT

APPROACHES

Lessons from the Hawthorne Studies:

productivity

out for special attention perform as expected

BEHAVIORAL MANAGEMENT

APPROACHES

Maslow’s theory of human needs

deficiency a person feels compelled to satisfy

FIGURE 2.3 MASLOW’S HIERARCHY OF HUMAN NEEDS

A need becomes a motivator once the preceding

lower-level need is satisfied

self-actualization level

Capable of self control

Willing to accept responsibility

Imaginative and creative

Capable of self-direction

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

BEHAVIORAL MANAGEMENT APPROACHES

Argyris’s theory of adult personality

practices inhibit worker maturation and are

inconsistent with the mature adult personality

define own goals

BEHAVIORAL MANAGEMENT APPROACHES

Argyris’s theory of adult personality

the mature personality by:

Increasing task responsibility

Increasing task variety

Using participative decision making

MODERN MANAGEMENT FOUNDATIONS

Foundations for continuing

developments in management

Quantitative analysis and tools Organizations as systems

Contingency thinking Quality management

MODERN MANAGEMENT

FOUNDATIONS

Quantitative Analysis and Tools

Analytics – the use of large data bases and

mathematics to solve problems and make informed decisions using systematic analysis

Typical quantitative approach to managerial

problem-solving

Problem encountered, it is systematically analyzed, appropriate mathematical models and computations applied, optimal solution identified

MODERN MANAGEMENT

FOUNDATIONS

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

MODERN MANAGEMENT

FOUNDATIONS

Contingency thinking

problems and opportunities unique to different situations

situation

MODERN MANAGEMENT

FOUNDATIONS

Quality management

organizations are quality conscious

Quality and competitive advantage are linked

Comprehensive approach to continuous improvement for a total organization

MODERN MANAGEMENT

FOUNDATIONS

 Continuous improvement

Continual search for new ways to improve quality

Something always can and should be improved

 ISO certification

Global quality management

Refine and upgrade quality to meet ISO standards

MODERN MANAGEMENT

FOUNDATIONS

Evidence-Based Management

facts” about what really works

MODERN MANAGEMENT

FOUNDATIONS

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