PowerPoint Presentation
to Accompany
Management, 2/e
John R. Schermerhorn, Jr .
and Barry Wright
Chapter 2:
Management Learning Past to Present
Prepared by: Jim LoPresti
University of Colorado, Boulder
Revised by: Dr. Shavin Malhotra
Ryerson University, Toronto, Ontario
Published by: John Wiley & Sons Canada, Ltd.
Planning Ahead — Chapter 2 Study Questions
 What can be learned from classical
management thinking?
 What insights come from the behavioural
management approaches?
 What are the foundations of modern
management thinking?
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Study Question 1: What can be learned from classical
management thinking?
 Classical approaches to
management include:
• Scientific management
• Administrative principles
• Bureaucratic organization
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Figure 2.1 Major branches in the classical approach to
management.
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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.
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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.
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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
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Study Question 1: What can be learned from classical
management thinking?
 Administrative principles (Henri Fayol) —
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Division of labour
Authority
Discipline
Unity of command
Unity of direction
Subordination of individual interests
Remuneration
Centralization
Scalar chain
Order
Equity
Personnel tenure
Initiative
Espirit de corps
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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.
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Study Question 1: What can be learned from classical
management thinking?
 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.
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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.
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Study Question 1: What can be learned from classical
management thinking?
 Characteristics of
bureaucratic
organizations:
 Possible
disadvantages of
bureaucracy:
• Clear division of labour
• Clear hierarchy of
authority
• Formal rules and
procedures
• Impersonality
• Careers based on merit
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• Excessive paperwork
or “red tape”
• Slowness in handling
problems
• Rigidity in the face of
shifting needs
• Resistance to change
• Employee apathy
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Study Question 2: What insights come from the behavioural
management approaches?
 Behavioural Management - human resource
approaches include:
• Follett’s notion of organizations as communities
• Hawthorne studies
• Maslow’s theory of human needs
• McGregor’s Theory X and Theory Y
• Argyris’s theory of adult personality
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Figure 2.2 Foundations in the behavioural or
human resource approaches to management
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Study Question 2: What insights come from the
behavioural management approaches?
 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.
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Study Question 2: What insights come from the
behavioural management approaches?
 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 gainsharing)
Business problems involve a variety of interrelated factors (precursor of systems thinking)
Private profits relative to public good
(precursor of managerial ethics and social
responsibility)
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Study Question 2: What insights come from the
behavioural 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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Study Question 2: What insights come from the behavioural
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
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Study Question 2: What insights come from the behavioural
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.
• 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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Study Question 2: What insights come from the
behavioural 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.
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Study Question 2: What insights come from the
behavioural management approaches?

Maslow’s theory of human needs
• Deficit principle
• A satisfied need is not a motivator of behaviour.
• 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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Study Question 2: What insights come from the
behavioural management approaches?
 McGregor’s
Theory X assumes
that workers:
•
•
•
•
•
 McGregor’s
Theory Y assumes
that workers are:
Dislike work
Lack ambition
Are irresponsible
Resist change
Prefer to be led
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• Willing to work
• Capable of self control
• Willing to accept
responsibility
• Imaginative and
creative
• Capable of selfdirection
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Study Question 2: What insights come from the
behavioural 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.
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Study Question 2: What insights come from the
behavioural management approaches?
 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
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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
• Learning organizations
• Evidence-based management
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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
• Mathematical forecasting makes future projections
useful for planning
• Inventory modeling controls inventories mathematically
• Linear programming calculates how to allocate scarce
resources among competing uses
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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 better coordination
 Operations management is the study of how
organizations produce goods and services
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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.
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Figure 2.4 Organizations as complex networks of
interacting subsystems.
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Study Question 3: What are the foundations of modern
management thinking?
 Contingency thinking
• Tries to match managerial responses with
problems and opportunities unique to
different situations.
• Especially individual or environmental
differences.
• No “one best way” to manage.
• Appropriate way to manage depends on the
situation.
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Study Question 3: What are the foundations of modern
management thinking?
 Quality management
• 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.
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Study Question 3: What are the foundations of modern
management thinking?
 Quality management
• 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 on
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Study Question 3: What are the foundations of modern
management thinking?
 Knowledge Management and Organizational
Learning
• Knowledge management is the process of using
information technology to achieve performance
success
• Portfolio of intellectual assets include patents,
intellectual property rights, trade secrets, and
accumulated knowledge of the entire workforce.
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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
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Study Question 3: What are the foundations of modern
management thinking?

High Performance Organizations
• Organizations that consistently achieve excellence while
creating a high quality work environment.
• Common characteristics of high performance organizations
include:
• People oriented – value people as human assets
• Team oriented – achieve synergy through teamwork
• Information oriented – mobilizes the latest
information technology
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Study Question 3: What are the foundations of modern
management thinking?

High Performance Organizations
• Achievement oriented – focuses on the needs of
customers and stakeholders
• Learning oriented – operates with internal culture
that respects and facilitates learning
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Study Question 3: What are the foundations of modern
management thinking?
 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
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Study Question 3: What are the foundations of modern
management thinking?
 21st Century Manager
• Managers have to excel as never before to meet the
expectations held of them and of the organization they lead.
 Attributes of a 21st Century Manager
• Global strategist – understanding the interconnections
among nations, cultures and economies
• Master of technology – comfortable with information
technology
• Inspiring leader – attracting and motivating workers to
achieve high-performance culture
• Model of ethical behaviour – acting ethically in all ways
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