Management, 8e Schermerhorn Chapter 2

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Management, 8eSchermerhornChapter 2

• Instructor Dr. Robert Kenmore
• Zarb School of Business
• Hofstra University

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Organization of the Text Management (8th
Edition) by Schermerhorn
PART 1 PART 2 PART 3 PART 4 PART 5
Introducing Management Context Mission Organi
zation Leadership

• The Dynamic New Workplace
• Management Past to Present
• Ethical Behavior Social Responsibility

• Environment, Organizational Culture, and
  Diversity
• Global Dimensions of Management
• Entrepreneur-ship Small Business

• Information Decision Making
• Planning Controlling
• Strategic Management

• Organizing
• Organizational Design Processes
• Human Resource Management

• Leading
• Motivation Theory Practice
• Individual Behavior Performance
• Teams Teamwork
• Communi-cation Interpersonal Skills
• Change Leadership

Exam 2
Exam 1
Exam 3
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Reflections

• What are the universal and timeless principles of
  business, organization, and management?

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Chapter 2Management Past to Present

• What are continuing management themes of the 21st
  century?
• 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?

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Chapter 2Major Schools of Management Thought

• Classical management approaches
• Developing universal principles for use in
  various management situations.
• Behavioral management (or human resources)
  approaches
• Human needs, the work group, and social factors
  in the workplace.

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Instructor Note All about finding meaning in work
Schermerhorn/Management, 7e Chapter 2, Figure
04-03
Figure 2-3 Maslows hierarchy of human needs.
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Chapter 2Major Schools of Management Thought

• Quantitative management approaches
• Use of mathematical techniques for management
  problem solving.
• Modern approaches
• Systems and contingency views of organizations.

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Schermerhorn/Management, 7e Chapter 2, Figure
04-05
Figure 2-5 The organizational value chain.
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Schermerhorn/Management, 7e Chapter 2, Figure
04-04
Figure 2-4 Organizations as complex networks
of interacting subsystems.
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What are continuing management themes of the 21st
century?

• Quality and performance excellence
• Managers and workers in progressive organizations
  are quality conscious.
• Quality provides competitive advantage.
• Total quality management (TQM)
• Comprehensive approach to continuous quality
  improvement for a total organization.
• Creates context for the value chain.

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What are continuing management themes of the 21st
century?

• Eight attributes of performance excellence
• A bias toward action not a good idea should
  allow and encourage time to think about what one
  is doing
• Closeness to the customer
• Autonomy and entrepreneurship
• Productivity through people
• Hands-on and value-driven
• Sticking to the knitting (core competencies)
• Simple form and lean staff (flat organization)
• Simultaneous loose-tight properties

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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 fostered increasing interest in new
  management concepts.
• Process engineering
• Virtual organizations
• Agile factories
• Network firms
• Adoption of Theory Z management practices.

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What are continuing management themes of the 21st
century?

• Contemporary businesses must learn to become
  learning organizations.
• Learning organization success depends on
• Culture that emphasizes information, teamwork,
  empowerment, participation, and leadership.
• Leadership that emphasizes motivation and
  rewards, communication, conflict and negotiation,
  teamwork, and change management.

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What are continuing management themes of the 21st
century?

• In the 21st century managers must be
• A global strategist
• A master of technology
• A consummate politician
• A leader/motivator

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HISTORY OF MANAGEMENT
Classical

• Frederick Taylor
• Henri Fayol
• Max Weber

Modern
Behavioral

• Systems contingency
• thinking
• Performance excellence

• Hawthorne
• Abraham Maslow
• Douglas McGregor
• Chris Argyris

Insights

• Global awareness

Directions

• Organizational
• learning
• Knowledge
• management

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What can be learned from classical management
thinking?

• Classical approaches to management include
• Scientific management
• Administrative principles
• Bureaucratic organization

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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 to do the job and provide
  proper incentives.
• Support workers by carefully planning their work
  and removing obstacles.

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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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What can be learned from classical management
thinking?

• Administrative principles (Henri Fayol)rules of
  management
• Foresightto complete plan of action for the
  future.
• Organizationto provide and mobilize resources to
  implement the plan.
• Commandto lead, select, and evaluate workers to
  get the best work toward the plan.
• Coordinationto fit diverse efforts together,
  ensure information is shared and problems solved.
• Controlto make sure things happen according to
  plan and to take necessary corrective action.

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What can be learned from classical management
thinking?

• Administrative principles (Henri Fayol)key
  principles of management
• Scalar chainthere should be a clear and unbroken
  line of communication from the top to the bottom
  of the organization.
• Unity of commandeach person should receive
  orders from only one boss.
• Unity of directionone person should be in charge
  of all activities with the same performance
  objective.

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What can be learned from classical management
thinking?

• Administrative principles (Mary Parker Follett)
• Groups and human cooperation
• Groups are mechanisms through which individuals
  could combine their talents for a greater good.
• Organizations as cooperating communities of
  managers and workers.
• Managers job is to help people in the
  organization cooperate and achieve an integration
  of interests.

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What can be learned from classical management
thinking?

• Administrative principles (Mary Parker Follett)
• Forward-looking management insights
• Employee ownership creates sense of collective
  responsibility (precursor of employee ownership,
  profit sharing, and gain-sharing)
• Business problems involve variety of
  inter-related factors (precursor of systems
  thinking)
• Private profits relative to public good
  (precursor of managerial ethics and social
  responsibility)

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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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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

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What ideas were introduced by the human resource
approaches?

• Behavioral management (or human resource)
  approaches include
• Hawthorne studies
• Maslows theory of human needs
• McGregors Theory X and Theory Y
• Argyriss theory of adult personality

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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.

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What ideas were introduced by the human resource
approaches?

• Hawthorne studies
• 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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What ideas were introduced by the human resource
approaches?

• Hawthorne studies
• Employee attitudes, interpersonal relations and
  group processes
• Some things satisfied some workers but not
  others.
• People restricted output to adhere to group
  norms.
• Lessons
• Social and human concerns as keys to
  productivity.
• Hawthorne effectpeople who are singled out for
  special attention perform as expected.

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What ideas were introduced by the human resource
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

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What ideas were introduced by the human resource
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.

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What ideas were introduced by the human resource
approaches?

• McGregors Theory X assumes that workers
• Dislike work
• Lack ambition
• Are irresponsible
• Resist change
• Prefer to be led

• 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

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McGREGORSTHEORY X ..THEORY Y

• People dislike work
• People lack ambition
• People resist change
• People act irresponsible
• People prefer to be led

• People like to work
• People are creative
• People can change
• People accept responsibility
• People are capable of self-direction

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What ideas were introduced by the human resource
approaches?

• McGregors Theory X and Theory Y
• Managers create self-fulfilling prophesies.
• 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
  self-management.

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SELF-FULFILLINGPROPHESIES
MANAGERS ASSUMPTIONS
INFLUENCE
REINFORCES
MANAGERS BEHAVIOR
OTHERS BEHAVIOR
INFLUENCES
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What ideas were introduced by the human resource
approaches?

• Argyriss theory of adult personality
• Classical management principles and practices
  inhibit worker maturation and are inconsistent
  with the mature adult personality.
• Management should accommodate the mature
  personality.

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What ideas were introduced by the human resource
approaches?

• Argyriss theory of adult personality
• Management practices consistent with the mature
  adult personality
• Increasing task responsibility
• Increasing task variety
• Using participative decision making

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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

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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.

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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.

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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.