PowerPoint Presentation
to Accompany
Management
Third Canadian Edition
John R. Schermerhorn, Jr.
Barry Wright
Prepared by: Jim LoPresti
University of Colorado, Boulder
Revised by: Dr. Shavin Malhotra
Ryerson University, Toronto, Ontario
Chapter 2:
Management Learning:
Past to Present
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Chapter 2 Learning Objectives
• 2.1 List the characteristics and
principles of each of the three classical
management approaches.
• 2.2 Describe the principles of the
various behavioural management
approaches.
• 2.3 Explain the foundations of modern
management thinking.
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Classical Management Approaches
 Classical approaches to management
include:
• Scientific management
• Administrative principles
• Bureaucratic organization
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Classical Management Approaches
Figure 2.1 Major branches in the classical approach to
management.
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Classical Management Approaches
 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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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 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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Classical Management Approaches
 Administrative principles (Henri Fayol) —
1. Division of labour
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of
individual interests
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Personnel tenure
13. Initiative
14. Espirit de corps
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Classical Management Approaches
 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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Classical Management Approaches
 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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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 labour
• 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
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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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Behavioural Management Approaches
Figure 2.2 Foundations in the behavioural or human
resource approaches to management
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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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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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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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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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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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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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Behavioural Management Approaches
Figure 2.4 Maslow’s hierarchy of human needs.
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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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Behavioural Management Approaches
McGregor’s Theory X
assumes that workers:
•
•
•
•
•
Dislike work
Lack ambition
Are irresponsible
Resist change
Prefer to be led
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
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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 selfmanagement.
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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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Modern Management Foundations
 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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Modern Management Foundations
 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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Modern Management Foundations
 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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Modern Management Foundations
 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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Modern Management Foundations
Figure 2.6 Organizations as complex networks of interacting
subsystems.
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Modern Management Foundations
 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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Modern Management Foundations
 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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Modern Management Foundations
 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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Modern Management Foundations
 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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Modern Management Foundations

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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Modern Management Foundations

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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Modern Management Foundations

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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Modern Management Foundations
 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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Modern Management Foundations
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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