1. Management, 7e Schermerhorn
Prepared by
Michael K. McCuddy
Valparaiso University
John Wiley & Sons, Inc

2. COPYRIGHT
Copyright 2002 © John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that named in Section 117 of the United States Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.

3. 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?
Schermerhorn - Chapter 4

4. 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.
Schermerhorn - Chapter 4

5. 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.
Schermerhorn - Chapter 4

6. What can be learned from classical management thinking?
Classical approaches to management include:
Scientific management
Administrative principles
Bureaucratic organization
Schermerhorn - Chapter 4

7. 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.
Schermerhorn - Chapter 4

8. 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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9. 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.
Schermerhorn - Chapter 4

10. 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.
Schermerhorn - Chapter 4

11. 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.
Schermerhorn - Chapter 4

12. 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)
Schermerhorn - Chapter 4

13. 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.
Schermerhorn - Chapter 4

14. 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
Schermerhorn - Chapter 4

15. 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
Schermerhorn - Chapter 4

16. 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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17. 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
Schermerhorn - Chapter 4

18. 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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19. 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
Schermerhorn - Chapter 4

20. 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.
Schermerhorn - Chapter 4

21. What ideas were introduced by the human resource approaches?
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
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22. 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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23. 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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24. 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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25. 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
Schermerhorn - Chapter 4

26. 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.
Schermerhorn - Chapter 4

27. 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.
Schermerhorn - Chapter 4

28. What is unique about the systems view and 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.
Schermerhorn - Chapter 4

29. 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.
Schermerhorn - Chapter 4

30. 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
Schermerhorn - Chapter 4

31. 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.
Schermerhorn - Chapter 4

32. 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.
Schermerhorn - Chapter 4

33. 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
Schermerhorn - Chapter 4