Management
Fourth Canadian Edition
John R. Schermerhorn, Jr.
Barry Wright
Chapter 2
Management Learning
Past to Present
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.
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Chapter 2 Outline (1 of 3)
1. Classical Management Approaches
• Scientific management
• Administrative principles
• Bureaucratic organization
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Chapter 2 Outline (2 of 3)
2. Behavioural Management Approaches
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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
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Chapter 2 Outline (3 of 3)
3. Modern Management Foundations
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Quantitative analysis and tools
Organizations as systems
Contingency thinking
Quality management
Evidence-based management
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Major Classical Approach Branches to
Management
Major branches in the classical approach to management
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Classical Management Approaches (1 of 9)
Four guiding principles of scientific management
(Frederick Taylor)
1. Develop a “science” that includes rules of motion,
standardized work implements, and proper working
conditions for every job.
2. Carefully select workers with the right abilities for
the job.
3. Carefully train workers to do the job and give them
incentives to cooperate with the job “science.”
4. Support workers by carefully planning their work
and by smoothing the way as they do their work.
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Classical Management Approaches (2 of 9)
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 (3 of 9)
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
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Classical Management Approaches (4 of 9)
Practical insights from scientific management
(cont.)
• 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 (5 of 9)
Administrative principles (Henri Fayol) – rules/
duties 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
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Classical Management Approaches (6 of 9)
Administrative principles (Henri Fayol) – rules/
duties of management (cont.):
• 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 (7 of 9)
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 (8 of 9)
Characteristics of bureaucratic organizations:
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Clear division of labour
Clear hierarchy of authority
Formal rules and procedures
Impersonality
Careers based on merit
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Classical Management Approaches (9 of 9)
Possible disadvantages of bureaucracy
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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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Behavioural Management Approaches (1 of 16)
Foundations in the behavioural or human resources approaches to
management
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Behavioural Management Approaches (2 of 16)
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 goals and interests
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Behavioural Management Approaches (3 of 16)
Organizations as communities
• Forward-looking management insights:
• Making every employee an owner creates a sense
of collective responsibility
• precursor of employee ownership, profit sharing,
and gain-sharing
• 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 (4 of 16)
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 (5 of 16)
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:
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New “social setting” led workers to do good
job
Good “human relations” = higher productivity
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Behavioural Management Approaches (6 of 16)
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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Behavioural Management Approaches (7 of 16)
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 (8 of 16)
Maslow’s theory of human needs
• A need is a physiological or psychological
deficiency a person feels compelled to satisfy
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Physiological
Safety
Social
Esteem
Self-actualization
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Behavioural Management Approaches (9 of 16)
Maslow’s hierarchy of human needs
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Behavioural Management Approaches (10 of 16)
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 selfactualization level
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Behavioural Management Approaches (11 of 16)
McGregor’s Theory X assumes that workers:
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Dislike worker
Lack ambition
Are irresponsible
Resist change
Prefer to be led
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Behavioural Management Approaches (12 of 16)
McGregor’s Theory Y assumes that workers are:
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Willing to work
Willing to accept responsibility
Capable of self control
Capable of self-direction
Imaginative and creative
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Environment and Value Creation
Environmental uncertainty
• a lack of complete information regarding what
exists and what developments may occur in the
external environment
Two dimensions of the environmental uncertainty
• Degree of complexity
• Rate of change
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Behavioural Management Approaches (13 of 16)
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 (14 of 16)
Argyris’s theory of adult personality
• Classical management principles and practices
inhibit worker maturation and are inconsistent
with the mature adult personality
• Psychological success occurs when people
define own goals
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Behavioural Management Approaches (15 of 16)
Argyris’s theory of adult personality (cont.)
• Management practices should accommodate
the mature personality by:
• Increasing task responsibility
• Increasing task variety
• Using participative decision making
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Behavioural Management Approaches (16 of 16)
Foundations for continuing developments in
management
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Quantitative analysis and tools
Organizations as systems
Contingency thinking
Quality management
Evidence-based management
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Modern Management Foundations (1 of 8)
Quantitative Analysis and Tools
• Analytics – the use of large data bases and
mathematics to solve problems and make
informed decisions using systematic analysis
• Typical quantitative approach to managerial
problem-solving
• Problem encountered, it is systematically
analyzed, appropriate mathematical models
and computations applied, optimal solution
identified
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Modern Management Foundations (2 of 8)
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 (3 of 8)
Organizations as complex networks of interacting subsystems
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Modern Management Foundations (4 of 8)
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
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Modern Management Foundations (5 of 8)
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
improvement for the total organization
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Modern Management Foundations (6 of 8)
Quality management (cont.)
• Continuous improvement
• Continual search for new ways to improve
quality
• Something always can and should be improved
• ISO certification
• Global quality management standards
• Refine and upgrade quality to meet ISO
requirements
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Modern Management Foundations (7 of 8)
Evidence-Based Management
• Making management decisions on “hard facts”
about what really works
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Modern Management Foundations (8 of 8)
Evidence-Based Positive Human Resource
Management Practices
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Employment security
Selective hiring
Self-managing teams
High pay based on merit
Training and development
Reduced status distinctions
Shared information
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Copyright
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information contained herein.
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