Management

Fourteenth Edition
John R. Schermerhorn, Jr. Daniel G. Bachrach

Chapter 2

Management Learning Past to Present

Copyright ©2020 John Wiley & Sons, Inc.

Planning Ahead — Learning Objectives

LO 2.1 Describe the principal insights of classical management

thinking.
LO 2.2 Identify key insights of the behavioral management
approaches.
LO 2.3 Explain the core foundations of modern management
theory and practice.

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Chapter 2 Outline (1 of 2)

Classical Management Approaches

• Scientific management
• Administrative principles
• Bureaucratic organization
Behavioral Management Approaches
• Organizations as communities
• The 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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Chapter 2 Outline (2 of 2)

Modern Management Foundations

• Quantitative tools and data analytics
• Organizations as systems
• Contingency thinking
• Quality management
• Evidence-based management

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Figure 2.1 Major branches in the classical
approach to management

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Classical Management Approaches (1 of 9)

Four guiding principles of scientific management (Frederick Taylor)

1. Develop a “science” that includes 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 to do the job and give them incentives
to cooperate with the job “science.”
4. Support workers by carefully planning their work and by
smoothing the way as they do their work.

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Classical Management Approaches (2 of 9)

Scientific management (the Gilbreths)

• Motion study
o Science of reducing a job or task to its basic physical motions
• Eliminating wasted motions improves performance

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Classical Management Approaches (3 of 9)

Practical insights 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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Classical Management Approaches (4 of 9)

• Administrative principles (Henri Fayol) — rules/duties of

management:
• Foresight
o to complete a plan of action for the future
• Organization
o to provide and mobilize resources to implement the plan
• Command
o to lead, select, and evaluate workers to get the best work toward the
plan

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Classical Management Approaches (5 of 9)

• Coordination
o to fit diverse efforts together and ensure information is shared and
problems solved
• Control
o to make sure things happen according to plan and to take necessary
corrective action

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Classical Management Approaches (6 of 9)

Administrative principles (Henri Fayol)

• Scalar chain
o there should be a clear and unbroken line of communication from the
top to the bottom of the organization
• Unity of command
o each person should receive orders from only one boss
• Unity of direction
o one person should be in charge of all activities with the same
performance objective

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Classical Management Approaches (7 of 9)

Bureaucratic organization (Max Weber)

• Bureaucracy
o An ideal, intentionally rational, and very efficient form of
organization
o Based on principles of logic, order, and legitimate authority

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Classical Management Approaches (8 of 9)

Characteristics of bureaucratic organizations:

• Clear division of labor
• Clear hierarchy of authority
• Formal rules and procedures
• Impersonality
• Careers based on merit

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Classical Management Approaches (9 of 9)

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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Figure 2.2 Foundations in the behavioral or human
resource approaches to management

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Behavioral Management Approaches (1 of 13)

• Organizations as communities
o Spaulding’s “eight necessities” of management:
1. Cooperation and teamwork
2. Authority and responsibility
3. Division of labor
4. Adequate manpower
5. Adequate capital
6. Feasibility analysis
7. Advertising budget
8. Conflict resolution

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Behavioral Management Approaches (2 of 13)

• Organizations as communities
o Managers and workers should labor in harmony without one party
dominating the other, and with the freedom to talk over and truly
reconcile conflicts and differences.
o Groups were a way for individuals to combine talents toward a greater
good.
o The job of managers was to help workers cooperate with one another
and to integrate their goals and interests.

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Behavioral Management Approaches (3 of 13)

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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Behavioral Management Approaches (4 of 13)

Hawthorne studies
• Social setting and human relations
o Manipulated physical work conditions to assess impact on
output
o Designed to minimize the “psychological factors” of previous
experiment
o Mayo and colleagues concluded:
• New “social setting” led workers to do good job
• Good “human relations” = higher productivity

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Behavioral Management Approaches (5 of 13)

Hawthorne studies
• Employee attitudes and group processes
o Some things satisfied some workers but not others
o People restricted output to adhere to group norms

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Behavioral Management Approaches (6 of 13)

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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Behavioral Management Approaches (7 of 13)

• Maslow’s theory of human needs

o A need is a physiological or psychological deficiency a person feels
compelled to satisfy
o Need levels:
• Physiological
• Safety
• Social
• Esteem
• Self-actualization

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Figure 2.3 Maslow’s hierarchy of human needs

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Behavioral Management Approaches (8 of 13)

Maslow’s theory of human needs

• Deficit principle
o A satisfied need is not a motivator of behavior
• Progression principle
o A need becomes a motivator once the preceding lower-level
need is satisfied
• Both principles cease to operate at self-actualization level

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Behavioral Management Approaches (9 of 13)

McGregor’s Theory X assumes that workers:

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

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Behavioral Management Approaches (10 of 13)

McGregor’s 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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Behavioral Management Approaches (11 of 13)

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
o Central to notions of empowerment and self-management

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Behavioral Management Approaches (12 of 13)

Argyris’s theory of adult personality

• Classical management principles and practices inhibit
worker maturation and are inconsistent with the mature
adult personality
• Psychological success occurs when people define own goals

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Behavioral Management Approaches (13 of 13)

Argyris’s Theory of Adult Personality

• Contrasts management practices found in traditional,
bureaucratic organizations with the needs and capabilities of
mature adults.
• Believed that problems, such as absenteeism, turnover, apathy,
alienation, and low morale may be signs of a mismatch.
• Argued that managers who treat employees as responsible
adults will achieve the highest productivity.

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Modern Management Foundations (1 of 8)

• Quantitative analysis and tools

• Organizations as systems
• Contingency thinking
• Quality management
• Evidence-based management

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Modern Management Foundations (2 of 8)

Quantitative Tools and Data Analytics

• Data analytics is the systematic analysis of large databases to
solve problems and make informed decisions.
• The typical quantitative approach to management works like
this:
1. A problem is encountered
2. It is systematically analyzed
3. Mathematical techniques are applied
4. Optimum solution is identified

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Modern Management Foundations (3 of 8)

Organizations as Systems
• System
o Collection of interrelated parts that function together to achieve a
common purpose
• Subsystem
o A smaller component of a larger system
• Open systems
o Organizations that interact with their environments in the
continual process of transforming resource inputs into outputs

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Figure 2.4 Organizations as complex networks of
interacting subsystems

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Modern Management Foundations (4 of 8)

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

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Modern Management Foundations (5 of 8)

Quality management
• Managers and workers in progressive organizations are
quality conscious
o Quality and competitive advantage are linked
• Total quality management (TQM)
o Comprehensive approach to continuous improvement for a
total organization

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Modern Management Foundations (6 of 8)

• Continuous improvement
o Continual search for new ways to improve quality
o Something always can and should be improved

• ISO certification
o Global quality management
o Refine and upgrade quality to meet ISO standards

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Modern Management Foundations (7 of 8)

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

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Modern Management Foundations (8 of 8)

• Evidence-Based Positive Human Resource Management Practices

o Employment security
o Selective hiring
o Self-managing teams
o High pay based on merit
o Training and development
o Reduced status distinctions
o Shared information

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Copyright

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