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PowerPoint Presentation
to Accompany Chapter 2 of
Management, 8/eJohn R. Schermerhorn, Jr.
Prepared by: Michael K. McCuddy
Valparaiso University
Published by: John Wiley & Sons, Inc.
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Management 8/e - Chapter 2 2
Planning Ahead Chapter 2 Study
Questions
What can be learned from classical managementthinking?
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 andcontingency thinking?
What are the continuing management themes ofthe 21st century?
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Management 8/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
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Management 8/e - Chapter 2 4
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 everyjob.
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.
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Management 8/e - Chapter 2 5
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.
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Management 8/e - Chapter 2 6
Study Question 1: What can be learned from
classical management thinking?
Administrative principles (Henri Fayol) rulesof management: Foresight to complete a plan of action for the future.
Organization to provide and mobilize resources toimplement the plan.
Command to lead, select, and evaluate workers toget the best work toward the plan.
Coordination to fit diverse efforts together andensure information is shared and problems solved.
Control to make sure things happen according toplan and to take necessary corrective action.
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Management 8/e - Chapter 2 7
Study Question 1: What can be learned from
classical management thinking?
Administrative principles (Henri Fayol) key
principles of management:
Scalar chain there should be a clear and unbrokenline 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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Management 8/e - Chapter 2 8
Study Question 1: What can be learned from
classical management thinking?
Administrative principles (Mary Parker
Follett)
Groups and human cooperation: Groups are mechanisms through which individuals
can combine their talents for a greater good.
Organizations are 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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Management 8/e - Chapter 2 9
Study Question 1: What can be learned from
classical management thinking?
Administrative principles (Mary ParkerFollett)
Forward-looking management insights: Making every employee an owner creates a sense ofcollective responsibility (precursor of employeeownership, profit sharing, and gain-sharing)
Business problems involve a 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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Management 8/e - Chapter 2 10
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.
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Management 8/e - Chapter 2 11
Study Question 1: What can be learned from
classical management thinking?
Characteristics ofbureaucraticorganizations:
Clear division of labor Clear hierarchy of
authority
Formal rules and
procedures Impersonality
Careers based on merit
Possible disadvantagesof 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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Management 8/e - Chapter 2 12
Study Question 2: What ideas were
introduced by the human resource
approaches?
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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Management 8/e - Chapter 2 13
Study Question 2: What ideas were
introduced by the human resource
approaches?
Hawthorne studies
Initial study examined how economicincentives and physical conditions affected
worker output.
No consistent relationship found.
Psychological factors influenced results.
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Management 8/e - Chapter 2 14
Study Question 2: What ideas were
introduced by the human resource
approaches?Hawthorne studies (cont.)
Relay assembly test-room studies
Manipulated physical work conditions to assessimpact 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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Management 8/e - Chapter 2 15
Study Question 2: What ideas were
introduced by the human resource
approaches?Hawthorne studies (cont.)
Employee attitudes, interpersonal relations andgroup processes.
Some things satisfied some workers but not others.
People restricted output to adhere to group norms.
Lessons from the Hawthorne Studies:
Social and human concerns are keys to productivity. Hawthorne effect people who are singled out forspecial attention perform as expected.
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Management 8/e - Chapter 2 16
Study Question 2: What ideas were
introduced by the human resource
approaches?Maslows theory of human needs
A need is a physiological or psychologicaldeficiency a person feels compelled to satisfy.
Need levels: Physiological
Safety
Social Esteem
Self-actualization
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Management 8/e - Chapter 2 17
Study Question 2: 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.
Both principles cease to operate at self-actualization
level.
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Management 8/e - Chapter 2 18
Study Question 2: 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 acceptresponsibility
Imaginative andcreative Capable of self-
direction
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Management 8/e - Chapter 2 19
Study Question 2: What ideas were
introduced by the human resource
approaches? Implications of Theory X and Theory Y:
Managers create self-fulfilling prophecies.
Theory X managers create situations whereworkers become dependent and reluctant.
Theory Y managers create situations whereworkers respond with initiative and high
performance. Central to notions of empowerment and self-
management.
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Management 8/e - Chapter 2 20
Study Question 2: 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 matureadult personality.
Management practices should accommodate the mature
personality by:
Increasing task responsibility
Increasing task variety
Using participative decision making
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Management 8/e - Chapter 2 21
Study Question 3: 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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Management 8/e - Chapter 2 22
Study Question 3: 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 tomanagerial problems.
Good judgment and appreciation for humanfactors must accompany use of quantitativeanalysis.
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Management 8/e - Chapter 2 23
Study Question 4: 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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Management 8/e - Chapter 2 24
Study Question 4: What is unique about the
systems view and contingency thinking?
Contingency thinking
Tries to match managerial responses with
problems and opportunities unique to differentsituations.
Especially individual or environmental differences.
No one best way to manage.Appropriate way to manage depends on the
situation.
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Management 8/e - Chapter 2 25
Study Question 5: What are continuing
management themes of the 21st century?
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 qualityimprovement for a total organization.
Creates context for the value chain.
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Management 8/e - Chapter 2 26
Study Question 5: 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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Management 8/e - Chapter 2 27
Study Question 5: 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 promoted increasing interest in new management
concepts.
Process engineering
Virtual organizations
Agile factories Network firms
Adoption of Theory Z management practices.
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Management 8/e - Chapter 2 28
Study Question 5: What are continuing
management themes of the 21st century?
Contemporary businesses must learn to become
learning organizations.
Core ingredients of learning organizations:
Mental models
Personal mastery
Systems thinking
Shared vision
Team learning
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Management 8/e - Chapter 2 29
Study Question 5: What are continuing
management themes of the 21st century?
In the 21st century, managers must be:
Global strategists
Masters of technology
Inspiring leaders
Models of ethical behavior
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