Management 11e John Schermerhorn Chapter 2 Management Learning Past to Present 1.

Management 11e John Schermerhorn

Chapter 2Chapter 2

Management Learning Management Learning Past to PresentPast 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?

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) 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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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


Administrative principles (Henri Fayol) — rules of management:


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


Bureaucratic organization (Max Weber) Bureaucracy

An ideal, intentionally rational, and very efficient form of organization

Based on principles of logic, order, and legitimate authority


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 9

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 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


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


Organizations as communities Forward-looking management insights:


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


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


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


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


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


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

Argyris’s theory of adult personality Classical management principles and practices inhibit

worker maturation and are inconsistent with the mature adult personality

Argyris’s theory of adult personality Management practices should accommodate the

mature personality by: Increasing task responsibility Increasing task variety Using participative

decision making


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

Foundations for continuing developments in management


Management science or operations research


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


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

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



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


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


Learning organizations Organizations that are able to continually

learn and adapt to new circumstances Core ingredients include:


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

Chapter 2 Case

Zara International: Fashion at the speed of light

Management 11e John Schermerhorn Chapter 2 Management Learning Past to Present 1.

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