Management 11e John Schermerhorn

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Management 11e John Schermerhorn

• Chapter 2
• Management Learning Past to Present

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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?

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Figure 2.1 Major branches in the classical
approach to management
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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
• Scientific management (the Gilbreths)
• Motion study
• Science of reducing a job or task to its basic
  physical motions
• Eliminating wasted motions improves performance

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

• Administrative principles (Henri Fayol) rules
  of management

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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

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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

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

• Behavioral Management - human resource approaches
  include
• Hawthorne studies
• Maslows theory of human needs
• Mary Parker Folletts Organizations as
  communities
• McGregors Theory X and Theory Y
• Argyriss theory of adult personality

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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
• Managers job is to help people cooperate and
  achieve an integration of interests

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

• Organizations as communities
• Forward-looking management insights

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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
• 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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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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Study Question 2 What insights come from the
behavioral management approaches?

• Maslows 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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Figure 2.3 Maslows hierarchy of human needs
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Study Question 2 What insights come from the
behavioral management approaches?

• Maslows 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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Study Question 2 What insights come from the
behavioral management approaches?

• McGregors Theory X assumes that workers
• Dislike work
• Lack ambition
• Are irresponsible
• Resist change
• Prefer to be led

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Study Question 2 What insights come from the
behavioral management approaches?

• McGregors Theory Y assumes that workers are
• Willing to work
• Capable of self control
• Willing to accept responsibility
• Imaginative and creative
• Capable of self-direction

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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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Study Question 2 What insights come from the
behavioral management approaches?

• Argyriss theory of adult personality
• Classical management principles and practices
  inhibit worker maturation and are inconsistent
  with the mature adult personality
• Argyriss theory of adult personality
• Management practices should accommodate the
  mature personality by
• Increasing task responsibility
• Increasing task variety
• Using participative decision making

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

• Foundations for continuing developments in
  management

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

• Management science or operations research

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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
• Operations management is the study of how
  organizations produce goods and services

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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

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Figure 2.4 Organizations as complex networks of
interacting subsystems
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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

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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
• 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

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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

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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

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

• Evidence-Based Management
• Making management decisions on hard facts about
  what really works
• 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

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Chapter 2 Case

• Zara International Fashion at the speed of light