Management, 7e

Schermerhorn
Prepared by
Michael K. McCuddy
Valparaiso University

John Wiley & Sons, Inc

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 Chapter 4
Historical Foundations of Management
 Planning ahead—study questions
– 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?
– What are continuing management themes of the 21st
century?
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 Chapter 4
Major 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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 Chapter 4
Major 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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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
– Foresight—to complete 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, 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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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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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.
• Manager’s 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
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 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
14
What ideas were introduced by the
human resource approaches?
 Behavioral management (or 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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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 effect—people who are singled out for
special attention perform as expected.

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What ideas were introduced by the
human resource 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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What ideas were introduced by the
human resource 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.
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What ideas were introduced by the
human resource approaches?
 McGregor’s Theory X  McGregor’s Theory Y
assumes that workers: assumes that workers
– Dislike work are:
– Lack ambition – Willing to work
– Capable of self control
– Are irresponsible
– Willing to accept
– Resist change responsibility
– Prefer to be led – Imaginative and
creative
– Capable of self-
direction
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What ideas were introduced by the
human resource approaches?
 McGregor’s 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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What ideas were introduced by the
human resource approaches?

 Argyris’s 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?

 Argyris’s 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.
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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
– Closeness to the customer
– Autonomy and entrepreneurship
– Productivity through people
– Hands-on and value-driven
– Sticking to the knitting
– Simple form and lean staff
– 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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