Schermerhorn Mgmt9 Ch03

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Management, 9/eJohn R. Schermerhorn, Jr.

Chapter 3:

Prepared by: Jim LoPresti

University of Colorado, Boulder

Published by: John Wiley & Sons, Inc.

Chapter 3: Management – Historical Perspectives

Planning Ahead — Chapter 3 Study Questions

�What can be learned from classical management thinking?

�What insights come from behavioral management approaches?

Management 9/e - Chapter 3 2

management approaches?

�What are the foundations of modern management thinking?

Study Question 1: What can be learned from

classical management thinking?

�Classical approaches to

management include:


� Scientific management

� Administrative principles

� Bureaucratic organization

Figure 3.1 Major branches in the classical approach

to management.




� 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


� Motion study

� Science of reducing a job or task to its

basic physical motions.

� Eliminating wasted motions improves

performance.



� Practical lessons from scientific

management

� Make results-based compensation a performance incentive

Carefully design jobs with efficient work


� 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:� Foresight — to complete a plan of action for the

future.

� Organization — to provide and mobilize resources to implement the plan.


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 (Henri Fayol) —

key principles of management:

� Scalar chain — there should be a clear and

unbroken line of communication from the top


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 (Mary Parker Follett)

� Groups and human cooperation:

� Groups are mechanisms through which


� 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


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)



� Bureaucratic organization (Max

Weber)

Bureaucracy


� 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

� Possible disadvantages of bureaucracy:� Excessive

paperwork or “red


labor

� Clear hierarchy of authority

� Formal rules and procedures

� Impersonality

� Careers based on merit

paperwork or “red tape”

� Slowness in handling problems

� Rigidity in the face of shifting needs

� Resistance to change

� Employee apathy

Study Question 2: What insights come from the

behavioral management approaches?

�Human resource approaches

include:

Hawthorne studies


� Hawthorne studies

� Maslow’s theory of human needs

� McGregor’s Theory X and Theory Y

� Argyris’s theory of adult personality

Figure 3.2 Foundations in the behavioral or human

resource approaches to management




� Hawthorne studies

� Initial study examined how economic

incentives and physical conditions


incentives and physical conditions

affected worker output.

� No consistent relationship found.

� “Psychological factors” influenced

results.



�Hawthorne studies (cont.)

� Relay assembly test-room studies

� Manipulated physical work conditions to assess impact on output.


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.


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:


� Need levels:� Physiological

� Safety

� Social

� Esteem

� Self-actualization

Figure 3.3 Maslow’s hierarchy of human needs.




� Maslow’s theory of human needs

� Deficit principle

� A satisfied need is not a motivator of

behavior.


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

� McGregor’s Theory Y assumes that workers are:� Willing to work

Capable of self


� Lack ambition

� Are irresponsible

� Resist change

� Prefer to be led

� 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.


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.


with the mature 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

� Systems view of organizations

Contingency thinking


� Contingency thinking

� Commitment to quality and performance

� Learning organizations



� Systems thinking

� 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 3.4 Organizations as complex networks of

interacting subsystems.




� Contingency thinking

� Tries to match managerial responses

with problems and opportunities unique

to different situations.


to different situations.

� Especially individual or environmental

differences.

� 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


� 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.




� ISO certification

� Global quality benchmark.

Refine and upgrade quality to meet ISO


� 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 circle

� Small groups of workers meeting

regularly to discuss quality improvement


regularly to discuss quality improvement

� “Circle” assumes responsibility for quality

� Can result in cost savings and improved

quality, customer satisfaction, and morale



� Learning organizations

• Organizations that are able to continually learn

and adapt to new circumstances.

• Core ingredients include:


• Core ingredients include:

� Mental models

� Personal mastery

� Systems thinking

� Shared vision

� Team learning

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Schermerhorn Mgmt9 Ch03

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