Chapter 2: Management -- Past and Present

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Nov 6, 2013 (3 years and 7 months ago)

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Management

11e

John Schermerhorn

Chapter 2

Management Learning

Past to Present



1

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

4

Study Question 1: What can be learned from classical management
thinking?


Scientific management (the Gilbreths)


Motion study


Science of reducing a job or task to its basic
physical motions


Eliminating wasted motions improves
performance

Study Question 1: What can be learned from classical management
thinking?


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

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

Study Question 1: What can be learned from classical management
thinking?


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

Study Question 1: What can be learned from classical management
thinking?


Bureaucratic organization (Max Weber)


Bureaucracy


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


Based on principles of logic,

order, and legitimate

authority

Study Question 1: 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



10

Study Question 1: What can be learned from classical management
thinking?


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



Chapter 2

11

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

Human
resource
approaches

Assumption
:

People are
social and self
-
actualizing

Theory of
human needs

Abraham
Maslow

Hawthorne
studies

Elton Mayo

Organizations
as
communities

Mary Parker
Follett

Theory X and
Theory Y

Douglas
McGregor

Personality
and
organization

Chris
Argyris

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

Study Question 2: What insights come from the behavioral
management approaches?


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

Study Question 1: What can be learned from classical management
thinking?


Organizations as communities


Forward
-
looking management insights:


precursor of employee ownership,
profit sharing, and gain
-
sharing

Making every employee
an owner creates a
sense of collective
responsibility


precursor of systems thinking

Business problems
involve a variety of
inter
-
related factors


precursor of managerial ethics and
social responsibility

Private profits relative to
public good

Study Question 2: What insights come from the behavioral management
approaches?



Hawthorne studies


Initial study examined how economic
incentives and physical conditions affected
worker output


No consistent relationship found


“Psychological factors” influenced results

Study Question 2: What insights come from the behavioral management
approaches?



Hawthorne studies (cont.)


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

Study Question 2: What insights come from the behavioral management
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

Study Question 2: What insights come from the behavioral management
approaches?



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

Study Question 2: What insights come from the behavioral
management approaches?


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

Study Question 2: What insights come from the behavioral
management approaches?


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

Study Question 2: What insights come from the behavioral
management approaches?


McGregor’s Theory X assumes that
workers:


Dislike work


Lack ambition


Are irresponsible


Resist change


Prefer to be led


Study Question 2: What insights come from the behavioral
management approaches?


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


Study Question 2: What insights come from the behavioral
management 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


Argyris’s theory of adult personality


Classical management principles and
practices inhibit worker maturation and are
inconsistent with the mature adult personality


Study Question 2: What insights come from the behavioral
management approaches?

Study Question 2: What insights come from the behavioral
management approaches?


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


Quantitative analysis and tools

Systems view of organizations

Contingency thinking

Commitment to quality and performance

Knowledge management and learning organizations

Evidence
-
based management

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


Management science or operations research


The scientific
applications of
mathematical
techniques to
management
problems

Value chain
analysis

Supply chain
management

Inventory
management

Quality
control

Queuing
theory

Linear
programming

Network
models

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


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

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


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

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


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


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

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


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

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


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


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


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

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


Learning organizations


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

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


Evidence
-
Based Management


Making management decisions on “hard
facts” about what really works

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


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

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www.wiley.com/college/schermerhorn