Introduction to Management 11e

John Schermerhorn

Chapter 2
History of Management
Thought

Planning Ahead Chapter 2 Study Questions

1. What can be learned from classical

management thinking?
2. What insights come from behavioral
management approaches?
3. What are the foundations of modern
management thinking?

Figure 2.1 Major branches in the classical approach to

management

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
4

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

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

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

Coordination

Control

to lead,
select, and
evaluate
workers to
get the best
work toward
the plan

to fit diverse
efforts
together and
ensure
information
is shared
and
problems
solved

to make
sure things
happen
according to
plan and to
take
necessary
corrective
action

Study Question 1: What can be learned from classical management

thinking?

Administrative principles (Henri Fayol)

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

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

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

10

Study Question 1: What can be learned from classical management

thinking?

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

Chapter 2

11

Figure 2.2 Foundations in the behavioral or human resource

approaches to management

Hawthorne
studies
Elton Mayo

Theory of
human needs
Abraham
Maslow

Organizations
as
communities
Mary Parker
Follett

Human
resource
approaches
Assumption:
People are
social and selfactualizing

Theory X and
Theory Y
Douglas
McGregor

Personality
and
organization
Chris Argyris

Study Question 2: What insights come from the behavioral management

approaches?

Behavioral Management - human

resource approaches include:
Hawthorne studies
Maslows theory of human needs
Mary Parker Folletts Organizations as
communities
McGregors Theory X and Theory Y
Argyriss theory of adult personality

Study Question 2: What insights come from the behavioral

management approaches?

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
Managers job is to help
people cooperate and
achieve an integration of
interests

Study Question 1: What can be learned from classical management

thinking?

Organizations as communities
Forward-looking management insights:
Making every employee
an owner creates a
sense of collective
responsibility

Business problems
involve a variety of
inter-related factors

Private profits relative to

public good

precursor of employee ownership,

profit sharing, and gain-sharing

precursor of systems thinking

precursor of managerial ethics and

social responsibility

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

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

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

Study Question 2: What insights come from the behavioral management

approaches?

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

Study Question 2: What insights come from the behavioral

management approaches?

Maslows 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 2.3 Maslows hierarchy of human needs

Study Question 2: What insights come from the behavioral

management approaches?

Maslows 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

Study Question 2: What insights come from the behavioral

management approaches?

McGregors Theory X assumes that

workers:

Dislike work
Lack ambition
Are irresponsible
Resist change
Prefer to be led

Study Question 2: What insights come from the behavioral

management approaches?

McGregors Theory Y assumes that

workers are:
Willing to work
Capable of self control
Willing to accept
responsibility
Imaginative and creative
Capable of self-direction

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

Study Question 2: What insights come from the behavioral

management approaches?

Argyriss theory of adult personality

Classical management principles and
practices inhibit worker maturation and are
inconsistent with the mature adult personality

Study Question 2: What insights come from the behavioral

management approaches?

Argyriss theory of adult personality

Management practices should accommodate
the mature personality by:
Increasing task responsibility
Increasing task variety
Using participative
decision making

Study Question 3: What are the foundations of modern management

thinking?

Foundations for continuing developments

in management
Quantitative analysis and tools
Systems view of organizations

Contingency thinking
Commitment to quality and performance
Knowledge management and learning organizations
Evidence-based management

Study Question 3: What are the foundations of modern management

thinking?

Management science or operations research

Quality
control
Inventory
management

Queuing
theory

Supply chain
management

Value chain
analysis

Linear
programming

The scientific
applications of
mathematical
techniques to
management
problems

Network
models

Study Question 3: What are the foundations of modern management

thinking?

Management science or operations

research
Queuing theory allocates service
personnel/workstations to minimize service cost
and customer waiting time
Network models break large tasks into smaller
components for for better coordination
Simulations create problem models to test
different solutions

Study Question 3: What are the foundations of modern management

thinking?

Operations management is the study of

how organizations produce goods and
services

Study Question 3: What are the foundations of modern management

thinking?

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

Figure 2.4 Organizations as complex networks of interacting

subsystems

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
No one best way to manage
Appropriate way to manage
depends on the situation

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

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

Study Question 3: What are the foundations of modern management

thinking?

Knowledge Management and

Organizational Learning
Knowledge management is the process of
using intellectual capital for competitive
advantage
Portfolio of intellectual assets include
patents, intellectual property rights, trade
secrets, and accumulated knowledge of the
entire workforce

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

Study Question 3: What are the foundations of modern management

thinking?

Evidence-Based Management
Making management decisions on hard
facts about what really works

Study Question 3: What are the foundations of modern management

thinking?

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

Chapter 2 Case

Zara International: Fashion at the speed

of light