Management Approaches
Overview
Human resources approach to management
Quantitative approach to management
How social events shape management
approaches
Management approaches today
Chapter 2 Lesson 2
Quick Write
Do you have an optimistic or pessimistic view of
human nature? How does this view affect your
thinking about organizations?
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Human Resources Approach to
Management
Chapter 2 Lesson 2
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Robert Owen
 Successful Scottish Businessman
 Early Industrial Revolution
 Saw practices that repulsed him
 Children working in factories
 Workers not making living wage
 Sought to reduce suffering of
workers
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Hugo Munsterberg
 Founder of Industrial Psychology
 Called for psychological tests to better
match people with jobs
 Today’s knowledge built on his ideas
 Choosing, training, and motivating
employees
 Designing jobs
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Mary Parker Follett
 One of first to consider organizations in terms
of individual and group behavior
 Believed that the manager’s job was to
coordinate group efforts
 Stressed the manager’s power with
employees, rather than power over them
 Her ideas about motivation, leadership,
power, and authority remain current today
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Chester Barnard
 President of the New Jersey Bell
Telephone Company
 Saw organizations as social systems that
needed human cooperation to work
rather than being impersonal
 A company, in Barnard’s view, was a set
of people with interacting social
relationships
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Chester Barnard
 Suggested that the manager’s job was to
communicate and to get workers to put
out top effort
 Realized that a successful business has
to win and keep the support of
investors, suppliers, customers, and
other outside stakeholders
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The Hawthorne Studies
 A series of studies during the 1920s and
1930s that provided new insights into
group norms and behaviors
 Researchers studied the influence of
factors such as lighting intensity, job
redesign, length of the work day and
work week, rest periods, and pay
systems on productivity
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The Hawthorne Studies
 Discovered that group influences, group
standards, and group acceptance and security
affect behavior more than other factors
 Brought renewed attention to human factors
 Helped business owners get away from the
idea that workers were just like machines
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The Human Relations Movement
 Members of this group felt that a satisfied
worker would be a productive worker
 Dale Carnegie, Abraham Maslow, and
Douglas McGregor were three people
leading the human relations movement
 Views were rooted more in their personal
philosophies than in objective research
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Carnegie’s Four Points
 Make others feel important by sincerely
appreciating their efforts
 Make a good first impression
 Win people over to your way of thinking
by letting them do the talking, being
sympathetic, and never telling a man that
he is wrong
 Change people by praising their good
traits and letting offenders save face
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Maslow’s Hierarchy of Needs
Selfactualization
Esteem
Social
Safety
Physiological
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McGregor on Human Nature
 Theory X is a negative view that assumes
people have little ambition, dislike work, shun
responsibility, and need close supervision to
get anything done
 Theory Y, on the other hand, assumes human
beings like to work and can accept
responsibility and direct themselves
Chapter 2 Lesson 2
Role Play ~ Theory X or Y?
Your employee has just arrived late to
work for the third time in two weeks.
Role play how you will confront his or
her tardiness as a “Theory X” manager.
Role play how you will confront his or
her tardiness as a “Theory Y” manager.
Chapter 2 Lesson 2
Role Play ~ Theory X or Y?
Your employee grew frustrated with a rude
customer and walked away from him or her.
Role play how you will confront his or her
frustrated behavior as a “Theory X” manager.
Role play how you will confront his or her
frustrated behavior as a “Theory Y” manager.
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Behavioral Science Theorists
 Used the scientific method to study
organizational behavior
 Tried to keep their personal beliefs out
of their work
 Tried to do research others could
replicate
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Human Resources Approach Today
 Hundreds of different approaches
 Researchers have generated a wealth of
studies that fairly accurately predict
behavior in organizations
 Work affects the current understanding of
issues such as leadership, motivation, job
design, organizational culture, and
performance appraisal
Chapter 2 Lesson 2
Quantitative Approach
to Management
Chapter 2 Lesson 2
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Management by the Numbers
 Began during World War II
 Efforts to find mathematical and statistical
solutions to military problems
 After the war, businesses began to use these
number-crunching techniques on their own
problems
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Quantitative Techniques
 Computer simulation ~ analyze the effect on a
company’s payroll if everyone receives a 10 percent
pay increase every year for 10 years
 Optimization model ~ analyze the best price the
company can charge for its new product, to maximize
profit but not scare away potential customers
 Critical path analysis ~ examine how long it will
really take to get a new product to market, with
separate teams working on different parts of the
project all at the same time
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How Social Events Shape
Management Approaches
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What Stimulated the
Classical Approach

Industrial revolution created a need to improve productivity
by making work places more efficient

Developing efficiencies reduced the cost of making products
~ allowed prices to go down and sales to go up

Selling more products allowed markets to grow and
companies to hire more people

As more people were earning a living wage and product
prices went down more people could afford to purchase
products like stoves and refrigerators

Scientific management raised the entire country’s standard
of living
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What Stimulated the
Human Resources Approach
 The classical view of workers as
machines and the Great Depression
stimulated the human resources
approach
 The human resource approach
encouraged employers to treat
people like people, not machines
 Encouraging workers was very
important during the tough times of
the Depression
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What Stimulated the
Quantitative Approach
 World War II was the force behind the
quantitative approach
 There was a need to develop mathematical
and statistical tools to apply to military
problems
 When these efforts scored some
impressive successes, they soon found
applications in civilian life
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Management Approaches Today
Chapter 2 Lesson 2
Taken from Fundamentals of Management, 5th Ed.
By Robbins/DeCenzo, p. 42
Pearson Prentice Hall, 2005
The Process Approach
Process approach considers the performance of
planning, organizing, leading, and controlling
as circular and continuous
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The Systems Approach
The systems approach defines a system as
a set of related and interdependent parts
arranged in a manner that produces a
unified whole
An organization, with its management, is a
system that interacts with and depends on
its environment
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The Systems Approach
Managers deal with an organization’s
stakeholders who are any group affected by
the organization’s decisions and policies
Government agencies, labor unions,
competing companies, employees,
suppliers, customers and clients, local
community leaders, and public interest
groups can all be stakeholders in the system
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The Systems Approach
 The manager’s job is to coordinate all these parts
(stakeholders) to achieve the organization’s goals
 In the global economy, “environment” has a
broader meaning than ever, including broad labormarket trends (e.g., Asian workers receiving more
education and competing against American
workers), new technologies, changes in energy
and oil prices, and political developments are all
part of the global environment
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What Do You Think?
How does the principal of the school
“coordinate all the parts to achieve the school’s
goals?” What are the parts the principal
coordinates?
Who are the stakeholders?
Is the government a stakeholder?
Are there labor unions?
Competing companies?
Employees? Suppliers?
Community Leaders?
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A Contingency Approach
 The contingency approach replaces
simpler principles of management and
integrates much of management theory
 In management theory, contingency means
something like “variable”
 How a manager manages depends (is
contingent) on the “variables” in a
particular organizational environment
Chapter 2 Lesson 2
Review
 Owen, Munsterberg, Follett, and Barnard were
major historical contributors to the human
resource approach to management
 The Hawthorne studies were a series of studies
during the 1920s and ’30s that provided new
insights into group norms and behaviors and
brought renewed attention to human factors of
production
 Carnegie, Maslow, McGregor, and the behaviorists
were all key contributors to the human relations
movement
Chapter 2 Lesson 2
Review
 The quantitative approach is management by the
numbers that seeks to find mathematical and
statistical solutions to problems
 After the war, businesses began to use these numbercrunching techniques on their own problems
 Quantitative techniques include computer
simulations, optimization models, and critical path
analysis
Chapter 2 Lesson 2
Review
 The industrial revolution stimulated the classical
approach because of a need to improve
productivity by making work places more efficient
 The classical view of workers as machines and the
Great Depression stimulated the human resources
approach
 The need to find solutions to military problems
during World War II stimulated the quantitative
approach
Chapter 2 Lesson 2
Review
 The process approach considers the performance
of planning, organizing, leading, and controlling
as circular and continuous
 The systems approach defines a system as a set
of related and interdependent parts arranged in a
manner that produces a unified whole
 The contingency approach suggests that how a
manager should manage depends (is contingent)
on the “variables” in a particular organizational
environment
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Summary
Human resources approach to management
Quantitative approach to management
How social events shape management
approaches
Management approaches today
Chapter 2 Lesson 2
What’s Next…
Management and
the Economy
Chapter 2 Lesson 2
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