PowerPoint Presentation to Accompany Chapter 2 of Management, 8/eJohn R. Schermerhorn, Jr.

Prepared by:Michael K. McCuddyValparaiso UniversityPublished by: John Wiley & Sons, Inc.

Management 8/e - Chapter 2

Planning Ahead Chapter 2 Study QuestionsWhat can be learned from classical management thinking? What ideas were introduced by the human resource approaches?What is the role of quantitative analysis in management?What is unique about the systems view and contingency thinking?What are the continuing management themes of the 21st century?

Management 8/e - Chapter 2

Study Question 1: What can be learned from classical management thinking?Classical approaches to management include:Scientific managementAdministrative principlesBureaucratic organization

Management 8/e - Chapter 2

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.

Management 8/e - Chapter 2

Study Question 1: What can be learned from classical management thinking?Scientific management (the Gilbreths)Motion studyScience of reducing a job or task to its basic physical motions.Eliminating wasted motions improves performance.

Management 8/e - Chapter 2

Study Question 1: What can be learned from classical management thinking?Administrative principles (Henri Fayol) rules of management:Foresight to complete a plan of action for the future.Organization to provide and mobilize resources to implement the plan.Command to lead, select, and evaluate workers to get the best work toward the plan.Coordination 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.

Management 8/e - Chapter 2

Study Question 1: What can be learned from classical management thinking?Administrative principles (Henri Fayol) key principles of management: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.

Management 8/e - Chapter 2

Study Question 1: What can be learned from classical management thinking?Administrative principles (Mary Parker Follett)Groups and human cooperation:Groups are mechanisms through which individuals can combine their talents for a greater good.Organizations are cooperating communities of managers and workers.Managers job is to help people in the organization cooperate and achieve an integration of interests.

Management 8/e - Chapter 2

Study Question 1: What can be learned from classical management thinking?Administrative principles (Mary Parker Follett)Forward-looking management insights:Making every employee an owner creates a sense of collective responsibility (precursor of employee ownership, profit sharing, and gain-sharing)Business problems involve a variety of inter-related factors (precursor of systems thinking)Private profits relative to public good (precursor of managerial ethics and social responsibility)

Management 8/e - Chapter 2

Study Question 1: What can be learned from classical management thinking?Bureaucratic organization (Max Weber)BureaucracyAn ideal, intentionally rational, and very efficient form of organization.Based on principles of logic, order, and legitimate authority.

Management 8/e - Chapter 2

Study Question 1: What can be learned from classical management thinking?Characteristics of bureaucratic organizations:Clear division of laborClear hierarchy of authorityFormal rules and proceduresImpersonalityCareers based on merit

Possible disadvantages of bureaucracy:Excessive paperwork or red tapeSlowness in handling problemsRigidity in the face of shifting needsResistance to changeEmployee apathy

Management 8/e - Chapter 2

Study Question 2: What ideas were introduced by the human resource approaches?Human resource approaches include:Hawthorne studiesMaslows theory of human needsMcGregors Theory X and Theory YArgyriss theory of adult personality

Management 8/e - Chapter 2

Study Question 2: What ideas were introduced by the human resource approaches?Hawthorne studiesInitial study examined how economic incentives and physical conditions affected worker output.No consistent relationship found.Psychological factors influenced results.

Management 8/e - Chapter 2

Study Question 2: What ideas were introduced by the human resource approaches?Hawthorne studies (cont.)Relay assembly test-room studiesManipulated physical work conditions to assess impact on output.Designed to minimize the psychological factors of previous experiment.Factors that accounted for increased productivity:Group atmosphereParticipative supervision

Management 8/e - Chapter 2

Study Question 2: What ideas were introduced by the human resource 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.

Management 8/e - Chapter 2

Study Question 2: What ideas were introduced by the human resource approaches?Maslows theory of human needsA need is a physiological or psychological deficiency a person feels compelled to satisfy.Need levels:PhysiologicalSafetySocialEsteemSelf-actualization

Management 8/e - Chapter 2

Study Question 2: What ideas were introduced by the human resource approaches?Maslows theory of human needsDeficit principleA satisfied need is not a motivator of behavior.Progression principleA need becomes a motivator once the preceding lower-level need is satisfied.Both principles cease to operate at self-actualization level.

Management 8/e - Chapter 2

Study Question 2: What ideas were introduced by the human resource approaches?McGregors Theory X assumes that workers:Dislike workLack ambitionAre irresponsibleResist changePrefer to be led

McGregors Theory Y assumes that workers are:Willing to workCapable of self controlWilling to accept responsibilityImaginative and creativeCapable of self-direction

Management 8/e - Chapter 2

Study Question 2: What ideas were introduced by the human resource 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.

Management 8/e - Chapter 2

Study Question 2: What ideas were introduced by the human resource approaches?Argyriss theory of adult personalityClassical management principles and practices inhibit worker maturation and are inconsistent with the mature adult personality.Management practices should accommodate the mature personality by: Increasing task responsibilityIncreasing task varietyUsing participative decision making

Management 8/e - Chapter 2

Study Question 3: What is the role of quantitative analysis in management?Management science (operations research) foundationsScientific application of mathematical techniques to management problemsTechniques and applications include:Mathematical forecastingInventory modelingLinear programmingQueuing theoryNetwork modelsSimulations

Management 8/e - Chapter 2

Study Question 3: What is the role of quantitative analysis in management?Quantitative analysis todayUse of staff specialists to help managers apply techniques.Software and hardware developments have expanded potential quantitative applications to managerial problems.Good judgment and appreciation for human factors must accompany use of quantitative analysis.

Management 8/e - Chapter 2

Study Question 4: What is unique about the systems view and contingency thinking?Systems thinkingSystemCollection of interrelated parts that function together to achieve a common purpose.SubsystemA smaller component of a larger system.Open systemsOrganizations that interact with their environments in the continual process of transforming resource inputs into outputs.

Management 8/e - Chapter 2

Study Question 4: What is unique about the systems view and contingency thinking?Contingency thinkingTries to match managerial responses with problems and opportunities unique to different situations.Especially individual or environmental differences.No one best way to manage.Appropriate way to manage depends on the situation.

Management 8/e - Chapter 2

Study Question 5: What are continuing management themes of the 21st century?Quality and performance excellenceManagers 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.

Management 8/e - Chapter 2

Study Question 5: What are continuing management themes of the 21st century?Eight attributes of performance excellence:A bias toward actionCloseness to the customerAutonomy and entrepreneurshipProductivity through peopleHands-on and value-drivenSticking to the knittingSimple form and lean staffSimultaneous loose-tight properties

Management 8/e - Chapter 2

Study Question 5: What are continuing management themes of the 21st century?Global awarenessPressure for quality and performance excellence is created by a highly competitive global economy.Has promoted increasing interest in new management concepts.Process engineeringVirtual organizationsAgile factoriesNetwork firmsAdoption of Theory Z management practices.

Management 8/e - Chapter 2

Study Question 5: What are continuing management themes of the 21st century?Contemporary businesses must learn to become learning organizations.Core ingredients of learning organizations:Mental modelsPersonal masterySystems thinkingShared visionTeam learning

Management 8/e - Chapter 2

Study Question 5: What are continuing management themes of the 21st century?In the 21st century, managers must be:Global strategistsMasters of technologyInspiring leadersModels of ethical behavior

Management 8/e - Chapter 2

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Management 8/e - Chapter 2