PowerPoint Presentation to Accompany Management, 10/e John R. Schermerhorn, Jr .

1. PowerPoint Presentation to AccompanyManagement, 10/eJohn R. Schermerhorn, Jr. Chapter 2: Management Learning Past to Present Prepared by: Jim LoPresti University of Colorado, Boulder Published by: John Wiley & Sons, Inc.

2. Planning Ahead — Chapter 2 Study Questions • What can be learned from classical management thinking? • What insights come from behavioral management approaches? • What are the foundations of modern management thinking? Management 10/e - Chapter 2

3. Study Question 1: What can be learned from classical management thinking? • Classical approaches to management include: • Scientific management • Administrative principles • Bureaucratic organization Management 10/e - Chapter 2

4. Figure 2.1Major branches in the classical approach to management. Management 10/e - Chapter 2

5. 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. Management 10/e - Chapter 2

6. 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 Management 10/e - Chapter 2

7. 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 — 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. Management 10/e - Chapter 2

8. 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. Management 10/e - Chapter 2

9. 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 Study Question 1: What can be learned from classical management thinking? Management 10/e - Chapter 2

10. Figure 2.2Foundations in the behavioral or human resource approaches to management Management 10/e - Chapter 2

11. Study Question 2: What insights come from the behavioral management approaches? • Behavioral Management - human resource approaches include: • Hawthorne studies • Maslow’s theory of human needs • McGregor’s Theory X and Theory Y Management 10/e - Chapter 2

12. 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. Management 10/e - Chapter 2

13. Study Question 2: What insights come from the behavioral management approaches? • Lessons from the Hawthorne Studies: • Some things satisfied some workers but not others. • People restricted output to adhere to group norms. • Social and human concerns are keys to productivity. • Hawthorne effect — people who are singled out for special attention perform as expected. Management 10/e - Chapter 2

14. Study Question 2: What insights come from the behavioral management 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 Management 10/e - Chapter 2

15. Figure 2.3Maslow’s hierarchy of human needs. Management 10/e - Chapter 2

16. Study Question 2: What insights come from the behavioral management 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. • Both principles cease to operate at self-actualization level. • Needs create tension that influences work attitudes and behaviors. Management 10/e - Chapter 2

17. 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 self-direction Study Question 2: What insights come from the behavioral management approaches? Management 10/e - Chapter 2

18. Study Question 2: What insights come from the behavioral management approaches? • Implications of Theory X and Theory Y: • 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. Management 10/e - Chapter 2

19. Study Question 3: What are the foundations of modern management thinking? • Foundations for continuing developments in management • Systems view of organizations (open system) • Contingency thinking • Commitment to quality and performance • Learning organizations Management 10/e - Chapter 2

20. Study Question 3: What are the foundations of modern management thinking? • Management science • The scientific applications of mathematical techniques to take decisions about management problems (software) • Mathematical forecasting makes future projections useful for planning • Inventory modeling controls inventories mathematically • Linear programming calculates how to allocate scarce resources among competing uses Management 10/e - Chapter 2

21. Study Question 3: What are the foundations of modern management thinking? • Management science • 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 • Operations management is the study of how organizations produce goods and services Management 10/e - Chapter 2

22. 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. Management 10/e - Chapter 2

23. Figure 2.4 Organizations as complex networks of interacting subsystems. Management 10/e - Chapter 2

24. 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. Management 10/e - Chapter 2

25. 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. Management 10/e - Chapter 2

26. 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 on Management 10/e - Chapter 2

27. 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: • Systems thinking • Shared vision • Team learning Management 10/e - Chapter 2