PowerPoint Presentation
to Accompany Chapter 2 of
Management Fundamentals
Canadian Edition
Schermerhorn  Wright
Prepared by: Michael K. McCuddy
Adapted by: Lynda Anstett & Lorie Guest
Published by: John Wiley & Sons Canada, Ltd.
Planning Ahead — Chapter 2 Study Questions
 What can be learned from classical management
thinking?
 What ideas were introduced by the human
resource approaches?
 What is the role of quantitative analysis in
management?
 What is unique about the systems view and
contingency thinking?
 What are the continuing management themes of
the 21st century?
Management Fundamentals - Chapter 2
2
Study Question 1: What can be learned from
classical management thinking?
 Classical approaches to management
include:
– Scientific management
– Administrative principles
– Bureaucratic organization
Management Fundamentals - Chapter 2
3
Figure 2.1 Major branches in the classical
approach to management.
Management Fundamentals - Chapter 2
4
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.
Management Fundamentals - Chapter 2
5
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.
Management Fundamentals - Chapter 2
6
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.
Management Fundamentals - Chapter 2
7
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.
Management Fundamentals - Chapter 2
8
Study Question 1: What can be learned from
classical management thinking?
 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.
Management Fundamentals - Chapter 2
9
Study Question 1: What can be learned from
classical management thinking?
 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 gain-sharing)
• Business problems involve a variety of inter-related
factors (precursor of systems thinking)
• Private profits relative to public good (precursor of
managerial ethics and social responsibility)
Management Fundamentals - Chapter 2
10
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.
Management Fundamentals - Chapter 2
11
Study Question 1: What can be learned from
classical management thinking?
 Characteristics of
bureaucratic
organizations:
– Clear division of labor
– 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
Management Fundamentals - Chapter 2
12
Study Question 2: What ideas were introduced
by the human resource approaches?
 Human resource approaches include:
– Hawthorne studies
– Maslow’s theory of human needs
– McGregor’s Theory X and Theory Y
– Argyris’s theory of adult personality
Management Fundamentals - Chapter 2
13
Figure 2.2 Foundations in the behavioral or human resource
approaches to management.
Management Fundamentals - Chapter 2
14
Study Question 2: What ideas were introduced
by the human resource approaches?
 Hawthorne studies
– Initial study examined how economic
incentives and physical conditions affected
worker output.
– No consistent relationship found.
– “Psychological factors” influenced results.
Management Fundamentals - Chapter 2
15
Study Question 2: What ideas were introduced
by the human resource 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
Management Fundamentals - Chapter 2
16
Study Question 2: What ideas were introduced
by the human resource 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.
Management Fundamentals - Chapter 2
17
Study Question 2: What ideas were introduced
by the human resource 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
Management Fundamentals - Chapter 2
18
Figure 2.3 Maslow’s hierarchy of human
needs.
Management Fundamentals - Chapter 2
19
Study Question 2: What ideas were introduced
by the human resource 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.
Management Fundamentals - Chapter 2
20
Study Question 2: What ideas were introduced
by the human resource 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 selfdirection
Management Fundamentals - Chapter 2
21
Study Question 2: What ideas were introduced
by the human resource 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.
Management Fundamentals - Chapter 2
22
Study Question 2: What ideas were introduced
by the human resource 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
Management Fundamentals - Chapter 2
23
Study Question 3: What is the role of
quantitative analysis in management?
 Management science (operations research)
foundations
– Scientific application of mathematical techniques to
management problems
– Techniques and applications include:
•
•
•
•
•
•
Mathematical forecasting
Inventory modeling
Linear programming
Queuing theory
Network models
Simulations
Management Fundamentals - Chapter 2
24
Study Question 3: What is the role of
quantitative analysis in management?
 Quantitative analysis today
– Use of staff specialists to help managers apply
techniques.
– Software and hardware developments have
expanded potential quantitative applications to
managerial problems.
– Good judgment and appreciation for human
factors must accompany use of quantitative
analysis.
Management Fundamentals - Chapter 2
25
Study Question 4: What is unique about the
systems view and contingency thinking?
 Systems thinking
– 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.
Management Fundamentals - Chapter 2
26
Figure 2.4 Organizations as complex
networks of interacting subsystems.
Management Fundamentals - Chapter 2
27
Study Question 4: What is unique about the
systems view and contingency 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.
Management Fundamentals - Chapter 2
28
Study Question 5: What are continuing
management themes of the 21st century?
 Quality and performance excellence
– 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.
Management Fundamentals - Chapter 2
29
Study Question 5: What are continuing
management themes of the 21st century?
 Eight attributes of performance excellence:
– A bias toward action
– Closeness to the customer
– Autonomy and entrepreneurship
– Productivity through people
– Hands-on and value-driven
– Sticking to the knitting
– Simple form and lean staff
– Simultaneous loose-tight properties
Management Fundamentals - Chapter 2
30
Figure 2.5 The organizational value chain.
Management Fundamentals - Chapter 2
31
Study Question 5: What are continuing
management themes of the 21st century?
 Global awareness
– Pressure for quality and performance excellence is
created by a highly competitive global economy.
– Has promoted increasing interest in new management
concepts.
•
•
•
•
Process engineering
Virtual organizations
Agile factories
Network firms
– Adoption of Theory Z management practices.
Management Fundamentals - Chapter 2
32
Study Question 5: What are continuing
management themes of the 21st century?
 Contemporary businesses must learn to become
learning organizations.
 Core ingredients of learning organizations:
– Mental models
– Personal mastery
– Systems thinking
– Shared vision
– Team learning
Management Fundamentals - Chapter 2
33
Study Question 5: What are continuing
management themes of the 21st century?
 In the 21st century, managers must be:
– Global strategists
– Masters of technology
– Inspiring leaders
– Models of ethical behavior
Management Fundamentals - Chapter 2
34
COPYRIGHT
Copyright © 2007 John Wiley & Sons Canada, Ltd. All rights
reserved. Reproduction or translation of this work beyond that
permitted by Access Copyright (The Canadian Copyright Licensing
Agency) is unlawful. Requests for further information should be
addressed to the Permissions Department, John Wiley & Sons
Canada, Ltd. The purchaser may make back-up copies for his or her
own use only and not for distribution or resale. The author and the
publisher assume no responsibility for errors, omissions, or damages
caused by the use of these programs or from the use of the
information contained herein.