John R. Schermerhorn, Jr.
2
Daniel G. Bachrach
Introduction to Management
th
13 edition
Chapter 2
History of Management Thought
Planning Ahead — Key Takeaways
Identify what can be learned from the classical management approaches.
Identify what can be learned from the behavioral management approaches.
Identify what can be learned from the modern management approaches.
Copyright ©2015 John Wiley & Sons, Inc.
Chapter 2 Outline
Classical Management Approaches
•
Scientific management
•
Administrative principles
•
Bureaucratic organization
Behavioral Management Approaches
•
Follett’s organizations as communities
•
The Hawthorne studies
•
Maslow’s theory of human needs
•
McGregor’s Theory X and Theory Y
•
Argyris’s personality and organization
Copyright ©2015 John Wiley & Sons, Inc.
Chapter 2 Outline
Modern Management Foundations
•
Quantitative analysis and tools
•
Organization as systems
•
Contingency thinking
•
Quality management
•
Evidence-based management
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Figure 2.1 Major branches in the classical approach to
management
Copyright ©2015 John Wiley & Sons, Inc.
Classical Management Approaches
Four guiding principles of scientific management (Frederick Taylor)
1.
2.
3.
4.
Develop a “science” that includes 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 to do the job and give them incentives to cooperate with the job
“science.”
Support workers by carefully planning their work and by smoothing the way as they do
their work.
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Classical Management Approaches
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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Classical Management Approaches
Practical insights 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
Copyright ©2015 John Wiley & Sons, Inc.
Classical Management Approaches
Administrative principles (Henri Fayol) — rules/duties of management:
Foresight
Organization
to
to provide
provide and
and
to
to lead,
lead, select,
select, and
and
Command
to
to fit
fit diverse
diverse efforts
efforts
Coordination
to
to complete
complete a
a plan
plan of
of
mobilize
mobilize resources
resources
evaluate
evaluate workers
workers to
to
together
together and
and ensure
ensure
action
action for
for the
the future
future
to
to implement
implement the
the
get
get the
the best
best work
work
information
information is
is shared
shared
plan
plan
toward
toward the
the plan
plan
and
and problems
problems solved
solved
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Control
to
sure
to make
make
sure things
things
happen
happen according
according to
to
plan
plan and
and to
to take
take
necessary
necessary corrective
corrective
action
action
Classical Management Approaches
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
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Classical Management Approaches
Bureaucratic organization (Max Weber)
Bureaucracy
An ideal, intentionally rational, and very efficient form of organization
Based on principles of logic,
order, and legitimate
authority
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Classical Management Approaches
Characteristics of bureaucratic organizations:
Clear division of labor
Clear hierarchy of authority
Formal rules and procedures
Impersonality
Careers based on merit
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Classical Management Approaches
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
Copyright ©2015 John Wiley & Sons, Inc.
Figure 2.2 Foundations in the behavioral or human resource
approaches to management
Organizations as
communities
Mary Parker Follett
Hawthorne studies
Theory X and Theory Y
Elton Mayo
Douglas McGregor
Human resource
Theory of human needs
approaches
Abraham Maslow
Assumption:
Personality and
organization
Chris Argyris
People are social and
self-actualizing
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Behavioral Management Approaches
Follett’s 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
Copyright ©2015 John Wiley & Sons, Inc.
Behavioral Management Approaches
Organizations as communities
Forward-looking management insights:
sharing
precursor of employee ownership, profit sharing, and gain-
•
precursor of systems thinking
•
precursor of managerial ethics and social responsibility
•
Making every employee an owner
creates a sense of collective
responsibility
Business problems involve a variety of
inter-related factors
Private profits relative to public good
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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
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Behavioral Management Approaches
Hawthorne studies (cont.)
Social setting and human relations
Manipulated physical work conditions to assess impact on output
Designed to minimize the “psychological factors” of previous experiment
Mayo and colleagues concluded:
New “social setting” led workers to do good job
Good “human relations” = higher productivity
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Behavioral Management Approaches
Hawthorne studies (cont.)
Employee attitudes and group processes
Some things satisfied some workers but not others
People restricted output to adhere to group norms
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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
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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
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Figure 2.3 Maslow’s hierarchy of human needs
Copyright ©2015 John Wiley & Sons, Inc.
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
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Behavioral Management approaches
McGregor’s Theory X assumes that workers:
Dislike work
Lack ambition
Are irresponsible
Resist change
Prefer to be led
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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
Copyright ©2015 John Wiley & Sons, Inc.