Chapter 2Management Fundamentals - Schermerhorn & Wright1 HISTORY OF MANAGEMENT Insights Classical Frederick Taylor Henri Fayol Max Weber Behavioral Hawthorne.

Chapter 2 Management Fundamentals - Schermerhorn & Wright 1

HISTORY OF MANAGEMENT

Insights

Classical• Frederick Taylor• Henri Fayol• Max Weber

Behavioral• Hawthorne• Abraham Maslow• Douglas McGregor• Chris Argyris

Modern• Systems & contingency thinking• Performance excellence

Directions• Organizational learning• Knowledge management

• Global awareness

Management Fundamentals - Chapter 22

Figure 2.1 Major branches in the classical approach to management.


TAYLOR’S SCIENTIFIC MANAGEMENT

• Design jobs with efficient work methods

• Select workers with ability to do the jobs

• Train workers to best perform jobs

• Train supervisors to best support workers

• Link compensation to job performance


Scientific management (Gilbreths)

– Motion study

• Science of reducing a job or task to its basic

physical motions.

– Eliminating wasted motions improves

performance.


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.


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.


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.

• 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)


WEBER’S BUREAUCRACY

• Clear division of labor

• Strict hierarchy of authority

• Staffing by technical competency

• Formal rules and procedures

• Impersonal approach to decision making


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


Classical Contributions

The Job - Taylor

The Manager- Fayol

The OrganizationStructure - Weber



Insights







Figure 2.2 Foundations in the behavioral or human resource approaches to management.


Human Resource Approach- Hawthorne Studies

• Factors that accounted for increased productivity:– Group atmosphere– Participative supervision

• 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 hierarchy of human needs.

A need is a physiological or

psychological deficiency a person feels compelled to

satisfy


Human Resource Approach - 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.

17

McGREGOR’STHEORY X THEORY Y

• People dislike work• People lack ambition• People resist change• People act

irresponsible • People prefer to be

led

• People like to work• People are creative• People can change• People accept

responsibility• People are capable of

self-direction

Managers should give more attention to the social self-actualizing needs of people at work.


SELF-FULFILLINGPROPHESIES

MANAGER’SASSUMPTIONS

MANAGER’SBEHAVIOR

OTHER’SBEHAVIOR

INFLUENCEREINFORCES

INFLUENCES


Human Resource Approach – 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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Human Resource Approach – Argyris’s theory of adult personality

• Classical 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



Insights






Chapter 2 22

Quantitative Approach – Management Science

•uses mathematical techniques to analyze and solve management problems

• Mathematical Forecasting

• Linear Programming• Queuing Theory• Network Models• Simulations

FOCUS: Rational decision making

that has clear action implications

23

Systems view and contingency 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.

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Organizations as complex networks of interacting subsystems.

Flexible Structures – What works for one organization or time period will not always work for another

CONTINGENCY THINKING

25

Organization as atransformation system

Management of thevalue chain

Customersserved

Finishedproducts

distributed

People &technology

createproducts

Materialsreceived &organized

for use

Resources &materialsflow in

Systems and the Organizational Value Chain

Total Quality Management – Build quality into all aspects of operations from beginning to end.

Chapter 2Management Fundamentals - Schermerhorn & Wright1 HISTORY OF MANAGEMENT Insights Classical Frederick Taylor Henri Fayol Max Weber Behavioral Hawthorne.

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