PowerPoint Presentation
to Accompany
Management, 9/e
John R. Schermerhorn, Jr.
Chapter 3:
Management – Historical Perspectives
Prepared by: Jim LoPresti
University of Colorado, Boulder
Published by: John Wiley & Sons, Inc.
Planning Ahead — Chapter 3 Study Questions
 What can be learned from classical
management thinking?
 What insights come from behavioral
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 3.1 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) —
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?
 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 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 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 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:





Clear division of
labor
Clear hierarchy of
authority
Formal rules and
procedures
Impersonality
Careers based on
merit

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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Study Question 2: What insights come from the
behavioral management 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
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Figure 3.2 Foundations in the behavioral or human
resource approaches to management
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Study Question 2: What insights come from the
behavioral 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
behavioral 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
behavioral 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
behavioral 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 3.3 Maslow’s hierarchy of human needs.
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Study Question 2: What insights come from the
behavioral management 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 selfactualization level.
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Study Question 2: What insights come from the
behavioral 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:





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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
behavioral 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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Study Question 2: What insights come from the
behavioral 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

Systems view of organizations

Contingency thinking

Commitment to quality and performance

Learning organizations
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Study Question 3: What are the foundations of
modern management thinking?
 Systems thinking

System


Subsystem


Collection of interrelated parts that function
together to achieve a common purpose.
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 3.4 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 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.
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Study Question 3: What are the foundations of
modern management thinking?
 Quality and performance excellence

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?
 Quality and performance excellence

Quality circle



Small groups of workers meeting
regularly to discuss quality improvement
“Circle” assumes responsibility for quality
Can result in cost savings and improved
quality, customer satisfaction, and morale
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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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