CHAPTER 2: MANAGEMENT LEARNING – PAST TO PRESENT © John Wiley & Sons Canada, Ltd. Business...

CHAPTER 2: MANAGEMENT LEARNING – PAST TO PRESENT

© John Wiley & Sons Canada, Ltd.

Business Leadership: Management FundamentalsJohn R. Schermerhorn, Jr., Barry Wright, and Lorie Guest

o Understand what can be learned from traditional management thinking

o Understand the insights of the behavioural management approaches

o Understand the foundations of modern management thinking

PLANNING AHEAD —

CHAPTER 2 LEARNING

GOALS

CLASSICAL APPROACHES TO MANAGEMENT INCLUDE:

• Scientific management

• Administrative principles

• Bureaucratic organization

© John Wiley & Sons Canada Ltd.

FIGURE 2.1 MAJOR BRANCHES IN THE CLASSICAL APPROACH TO MANAGEMENT

• “The principal object of management should be to secure maximum prosperity for the employer, coupled with the maximum prosperity for the employee” – F. Taylor


SCIENTIFIC MANAGEMENT (FREDERICK TAYLOR)

Four guiding principles:

• 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.

• Motion Study:

– Science of reducing a job or task to its basic

physical motions

• Eliminating wasted motions improves

performance


SCIENTIFIC MANAGEMENT (THE GILBRETHS)


VIDEO: BRICKLAYING ERGONOMICS

Bricklaying ergonomics(external link)

http://www.youtube.com/watch?v=dVKTX_Sbwzw


VIDEO: GILBRETH TIME AND MOTION STUDY IN BRICKLAYING

• Gilbreth Time and Motion Study in Bricklaying

(external link)

http://www.youtube.com/watch?v=lDg9REgkCQk&feature=related




VIDEO: HOW UPS WORKS

How UPS Works(external link)

http://www.youtube.com/watch?v=pcsk9nEKPGM


VIDEO: EXPANSION OF WORLDPORT

Expansion of Worldport(external link)

• 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


PRACTICAL LESSONS FROM SCIENTIFIC MANAGEMENT

1. Division of labour2. Authority3. Discipline4. Unity of command5. Unity of direction6. Subordination of individual interests7. Remuneration8. Centralization9. Scalar chain10.Order11.Equity12.Personnel tenure13.Initiative14.Esprit de corps


ADMINISTRATIVE PRINCIPLES (HENRI FAVOL)

• 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


ADMINISTRATIVE PRINCIPLES (CONT’D)

• 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


ADMINISTRATIVE PRINCIPLES (CONT’D)

• Bureaucracy:– An ideal, intentionally rational, and very

efficient form of organization– Based on principles of logic, order, and

legitimate authority


BUREAUCRATIC ORGANIZATION (MAX WEBER)


FIGURE 2.2 CHARACTERISTICS OF CLASSIC BUREAUCRACY


CHARACTERISTICS AND DISADVANTAGES OF BUREAUCRACY

• Characteristics of bureaucratic organizations:– Clear division of

labour– 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

• Human Resource approaches include:

– Follett’s notion of organizations as communities

– Hawthorne studies

– Maslow’s theory of human needs

– McGregor’s Theory X and Theory Y

– Argyris’s theory of adult personality


BEHAVIOURAL MANAGEMENT


FIGURE 2.3 FOUNDATIONS IN THE BEHAVIOURAL OR HUMAN RESOURCES

APPROACH TO MANAGEMENT

• 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.

– Manager’s job is to help people in the organization cooperate and achieve an integration of interests.


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).


ADMINISTRATIVE PRINCIPLES (MARY PARKER FOLLETT) (CONT’D)

• Initial study examined how economic incentives

and physical conditions affected worker output

• No consistent relationship found

• “Psychological factors” influenced results


HAWTHORNE STUDIES

• 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


HAWTHORNE STUDIES (CONT’D)

• 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


HAWTHORNE STUDIES (CONT’D)


VIDEO: TESTING THE HAWTHORNE EFFECT

Testing the Hawthorne Effect

(external link)

http://www.youtube.com/watch?v=b_YAJtJmPLE

http://www.youtube.com/watch?v=b_YAJtJmPLE

• A need is a physiological or psychological deficiency a person feels compelled to satisfy.

• Need levels:– Physiological– Safety– Social– Esteem– Self-actualization


MASLOW’S THEORY OF HUMAN NEEDS


FIGURE 2.4 MASLOW’S HIERARCHY OF HUMAN NEEDS

• Deficit principle

– A satisfied need is not a motivator of

behaviour.

• Progression principle

– A need becomes a motivator once the

preceding lower-level need is satisfied.

• Both principles cease to operate at self-

actualization level.


MASLOW’S THEORY OF HUMAN NEEDS (CONT’D)

• What parts of a job satisfy each level of the pyramid?– Physical?– Safety?– Social?– Esteem?– Self-Actualization?


APPLICATION: MASLOW


MCGREGOR’S THEORY X AND Y

• McGregor’s Theory X assumes that workers:– Dislike work– Lack ambition– Are irresponsible– Resist change– Prefer to be led

• 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

• 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.– This is central to notions of empowerment and

self-management.


IMPLICATIONS OF THEORY X AND THEORY Y

• Traditional 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 responsibility– Increasing task variety– Using participative decision making


ARGYRIS’S THEORY OF ADULT PERSONALITY

• Foundations for furthering developments in management:

– Quantitative analysis and tools

– Systems view of organizations

– Contingency thinking

– Commitment to quality

– Learning organizations

– Evidence-based management


MODERN MANAGEMENT FOUNDATIONS

• Management science or operations research:– The scientific applications of mathematical

techniques to management problems • Mathematical forecasting makes future

projections useful for planning• Network model such as a Gantt chart breaks

large tasks into smaller components


QUANTITATIVE ANALYSIS AND TOOLS


FIGURE 2.6 GANTT CHART

• Management science or operations research (cont’d):

– Inventory analysis controls inventories mathematically

determining how much to automatically order and when

– Queuing theory allocates service personnel/workstations

to minimize service cost and customer waiting time

– Linear programming calculates how to allocate scarce

resources among competing uses

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


QUANTITATIVE ANALYSIS AND TOOLS (CONT’D)

• 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.


ORGANIZATIONS AS SYSTEMS“Organizations are co-operative systems that achieve great things by integrating the contributions of many individuals to achieve a common purpose” – Chester Barnard


FIGURE 2.7 ORGANIZATIONS AS COMPLEX NETWORKS OF INTERACTING SUBSYSTEMS

• Tries to match managerial responses with problems and opportunities unique to each situations

– Especially in terms of individual or environmental differences

• No “one best way” to manage

• Appropriate way to manage depends on the situation


CONTINGENCY THINKING

• 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 MANAGEMENT

• 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 on


QUALITY MANAGEMENT (CONT’D)

“80% of the problems are caused by 20% of the operations” - Deming’s 80/20 rule

• Knowledge management is the process of using information technology to achieve performance success

• Portfolio of intellectual assets include patents, intellectual property rights, trade secrets, and accumulated knowledge of the entire workforce.


KNOWLEDGE MANAGEMENT AND ORGANIZATIONAL LEARNING

• Organizations that are able to continually learn and adapt to new circumstances

• Core ingredients include:

– Mental models

– Personal mastery

– Systems thinking

– Shared vision

– Team learning


LEARNING ORGANIZATIONS

• Organizations that consistently achieve excellence while creating a high quality work environment

• Involves making decisions based on hard facets about what really works


EVIDENCE-BASED MANAGEMENT

• People oriented – value people as human assets

• Team oriented – achieve synergy through teamwork

• Information oriented – mobilizes the latest information technology

• Achievement oriented – focuses on the needs of customers and stakeholders

• Learning oriented – operates with internal culture that respects and facilitates learning


COMMON CHARACTERISTICS OF HIGH PERFORMANCE ORGANIZATIONS

• Employment security• Selective hiring• Self-managing teams• High pay based on merit• Training and development• Reduced status distinctions• Shared information


EVIDENCE-BASED POSITIVE HUMAN RESOURCE MANAGEMENT PRACTICES

• The 21st Century Manager:Managers have to excel as never before to meet the expectations held of them and of the organization they lead.

• Attributes of a 21st Century Manager:– Global strategist: understanding the interconnections

among nations, cultures and economies– Master of technology : comfortable with information

technology– Inspiring leader: attracting and motivating workers to

achieve high-performance culture– Model of ethical behaviour: acting ethically in all ways


21ST CENTURY LEADERSHIP


Copyright © 2013 John Wiley & Sons Canada, Ltd. All rights reserved. Reproduction or translation of this work beyond that permitted by Access Copyright (The Canadian Copyright Licensing Agency) is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons Canada, Ltd. The purchaser may make back-up copies for his or her own use only and not for distribution or resale. The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information contained herein.

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