CHAPTER 2: MANAGEMENT
LEARNING –
PAST TO PRESENT
Business Leadership: Management Fundamentals
John R. Schermerhorn, Jr., Barry Wright, and Lorie Guest
© John Wiley & Sons Canada, Ltd.
PLANNING
AHEAD —
CHAPTER 2
LEARNING
GOALS
o Understand what can be
learned from traditional
management thinking
o Understand the insights of the
behavioural management
approaches
o Understand the foundations of
modern management thinking
CLASSICAL MANAGEMENT
APPROACHES P 42-46
CLASSICAL APPROACHES TO
MANAGEMENT INCLUDE:
1. Scientific management
2. Administrative principles
3. Bureaucratic organization
FIGURE 2.1 MAJOR BRANCHES IN THE
CLASSICAL APPROACH TO
MANAGEMENT
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SCIENTIFIC MANAGEMENT
(FREDERICK TAYLOR)
• “The principal object of management should be to secure maximum prosperity for
the employer, coupled with the maximum prosperity for the employee” – F. Taylor
Four guiding principles:
1. Develop 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 and provide proper incentives.
4. Support workers by carefully planning their work and
removing obstacles.
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CLASS ACTIVITY
THE PUZZLE
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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VIDEO: BRICKLAYING ERGONOMICS
Bricklaying ergonomics
(external link)
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VIDEO: HOW UPS WORKS
How UPS Works
(external link)
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VIDEO: EXPANSION OF WORLDPORT
Expansion of Worldport
(external link)
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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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• End here (up to page 44 in text)
Answer questions on page
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Administrative Principles
and
Bureaucratic Organization
Pages 46 - 52
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ADMINISTRATIVE PRINCIPLES
(HENRI FAVOL)
1. Division of labour
8. Centralization
2.
Authority
9.
3.
Discipline
10. Order
Scalar chain
4. Unity of command
11. Equity
5. Unity of direction
12. Personnel tenure
6. Subordination of
individual interest
13. Initiative
7.
14. Esprit de corps
Remuneration
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ADMINISTRATIVE PRINCIPLES
(CONT’D)
• 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
ADMINISTRATIVE PRINCIPLES
(CONT’D)
• 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
BUREAUCRATIC ORGANIZATION
(MAX WEBER)
• Bureaucracy:
– An ideal, intentionally rational, and very efficient form
of organization
– Based on principles of logic, order, and legitimate
authority
FIGURE 2.2 CHARACTERISTICS OF
CLASSIC BUREAUCRACY
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CHARACTERISTICS AND
DISADVANTAGES OF BUREAUCRACY
• 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 P 46-52
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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
FIGURE 2.3 FOUNDATIONS IN THE
BEHAVIOURAL OR HUMAN RESOURCES
APPROACH TO MANAGEMENT
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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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ADMINISTRATIVE PRINCIPLES
(MARY PARKER FOLLETT) (CONT’D)
• 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).
HOW TO TIE A TIE
ACTIVITY
HAWTHORNE STUDIES
• Initial study examined how economic incentives
and physical conditions affected worker output
• No consistent relationship found
• “Psychological factors” influenced results
HAWTHORNE STUDIES
(CONT’D)
• 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
HAWTHORNE STUDIES
(CONT’D)
• 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
VIDEO: TESTING THE HAWTHORNE
EFFECT
Testing the Hawthorne Effect
(external link)
© John Wiley & Sons Canada Ltd.
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
FIGURE 2.4 MASLOW’S HIERARCHY
OF HUMAN NEEDS
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MASLOW’S THEORY OF HUMAN NEEDS
(CONT’D)
• 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.
APPLICATION: MASLOW
• What parts of a job satisfy each level of the
pyramid?
–
–
–
–
–
Physical?
Safety?
Social?
Esteem?
Self-Actualization?
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MCGREGOR’S THEORY X AND Y
• 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
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.
– This is central to notions of empowerment and selfmanagement.
ARGYRIS’S THEORY OF ADULT
PERSONALITY
• Traditional 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
MODERN MANAGEMENT
FOUNDATIONS P 53-60
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MODERN MANAGEMENT
FOUNDATIONS
• Foundations for furthering 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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QUANTITATIVE ANALYSIS AND
TOOLS
• Management science or operations research:
– The scientific applications of mathematical
techniques to management problems
• Mathematical forecasting makes future
projections useful for planning
• Network model such as a Gantt chart breaks
large tasks into smaller components
FIGURE 2.6 GANTT CHART
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QUANTITATIVE ANALYSIS AND
TOOLS (CONT’D)
• Management science or operations research (cont’d):
– Inventory analysis controls inventories mathematically
determining how much to automatically order and when
– Queuing theory allocates service personnel/workstations
to minimize service cost and customer waiting time
– Linear programming calculates how to allocate scarce
resources among competing uses
• Operations management is the study of how organizations
produce goods and services
ORGANIZATIONS AS SYSTEMS
“Organizations are co-operative systems that achieve great things by
integrating the contributions of many individuals to achieve a
common purpose” – Chester Barnard
• 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.
FIGURE 2.7 ORGANIZATIONS AS
COMPLEX NETWORKS OF INTERACTING
SUBSYSTEMS
© John Wiley & Sons Canada Ltd.
CONTINGENCY THINKING
• Tries to match managerial responses with
problems and opportunities unique to each
situations
– Especially in terms of individual or
environmental differences
• No “one best way” to manage
• Appropriate way to manage depends on the
situation
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
QUALITY MANAGEMENT
(CONT’D)
“80% of the problems are caused by 20% of the operations” - Deming’s 80/20 rule
• 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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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.
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
EVIDENCE-BASED MANAGEMENT
• Organizations that consistently achieve
excellence while creating a high quality work
environment
• Involves making decisions based on hard facets
about what really works
COMMON CHARACTERISTICS OF HIGH
PERFORMANCE ORGANIZATIONS
• People oriented – value people as human assets
• Team oriented – achieve synergy through teamwork
• Information oriented – mobilizes the latest
information technology
• 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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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
21ST CENTURY LEADERSHIP
• The 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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