Chapter 2: Learning from the History of Management Thought
Don Hellriegel
Susan E. Jackson
John W. Slocum, Jr.
MANAGING: A COMPETENCY BASED APPROACH
11th Edition
Prepared by
Argie ButlerTexas A&M University
Chapter 2: PowerPoint 2.1
Learning from the History ofManagement Thought
Learning Goals
1. Describe the three branches of the traditional viewpoint of management:
2. Explain the behavioral viewpoint’s contribution to management
Bureaucratic, Scientific, andAdministrative
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Learning Goals (cont’d)
3. Describe how managers can use systems and quantitative techniques to improve employee performance
4. State the two major components of thecontingency viewpoint
5. Explain the impact of the need for quality on management practices
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Goals:Efficiency
Consistency
Administrative Management
Bureaucratic Management
ScientificManagement
Chapter 2: PowerPoint 2.4 (Adapted from Figure 2.1)
Traditional ViewpointTraditional Viewpoint
Behavioral ViewpointBehavioral Viewpoint
Systems ViewpointSystems Viewpoint
Contingency ViewpointContingency Viewpoint
Quality ViewpointQuality Viewpoint
18901890 19001900 19101910 19201920 19301930 19401940 19501950 19601960 19701970 19801980 19901990 20002000
Chapter 2: PowerPoint 2.5
Bureaucratic Management Use of rules, hierarchy, a clear division of labor,
and detailed procedures to guide employees’ behaviors
Seven characteristics Rules—formal guidelines for the behavior of
employees on the job Impersonality—employees are evaluated
according to rules and objective data
Division of Labor—splitting work into specialized positions
Chapter 2: PowerPoint 2.6
Hierarchical Structure—ranks jobs according to the amount of authority in each job
Authority—who has the right to make decisions of varying importance at different organizational levels
Traditional authorityCharismatic authorityRational, legal authority
Lifelong Career Commitment—both the employee and the organization view themselves committed to each other over the working life of the employee
Rationality—the use of the most efficient means available to accomplish a goal
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“Each job has a policy manual detailing the rules that a person needs to follow to ensure efficiency. Drivers are told to walk to a customer’s door at a brisk pace of 3 feet per second, carrying the package in the right hand and clipboard in the left. They should knock on the door so as not to lose valuable seconds searching for a doorbell.”
Michael EskewChairman and CEO, UPS
Snapshot
Chapter 2: PowerPoint 2.8 (Adapted from Figure 2.3)
LOW MIDRANGE HIGH
DreamWorks Sony IRS
R&D Thinktank 7-11 McDonalds
MP3 PepsiCo State MotorVehicle
Registration
Bureaucratic Continuum
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Potential Benefits of Bureaucracy Efficiency Consistency Functions best when routine tasks are performed Performance based on objective criteria Most effective when
Large amounts of standard information have to be processed The needs of the customer are known and are unlikely to
change The technology is routine and stable (e.g., mass production) The organization has to coordinate the activities of employees
in order to deliver a standardized service/product to the customer
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Potential Costs of Bureaucracy
Rigid rulesand
red tape
Protection of authority Slow decision making
Incompatible withchanging
technology
Incompatible with21st century workers’
values for freedom and participative
management
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Scientific Management A philosophy and set of management practices that
are based on fact and observation, not on hearsay or guesswork
Frederick W. Taylor
Believed increased productivity depended on finding ways to make workers more efficient
Used time-and-motion studies to analyze work flows, supervisory techniques, and worker fatigue
Used functional foremanship, a division of labor that assigned eight foremen to each work area
Assumed workers motivated by money
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Scientific Management
The Gilbreths Frank Gilbreth used motion pictures
to analyze workers’ motions Lillian Gilbreth championed protecting
workers from unsafe working conditions
Henry Gantt Focused on control systems for
production scheduling (Gantt Chart)
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Insights from Scientific Management
Many companies have used scientific management principles to improve efficiency, employee selection and training
Scientific management failed to recognize the social needs of workers and the importance of working conditions and job satisfaction
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David BerbauerCEO, Walgreens
“Walgreens is constantly pushing to drive costs down. It pioneered the application of satellite communications and computer technology and linked these to increase store efficiency. By using tried-and-proven management concepts, each of its 6,100 stores [is] able to process around 280 prescriptions a day and beat Wal-Mart by 27 cents and CVS by 94 cents on each prescription.”
Snapshot
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Administrative Management: Overview
Focuses on the manager and basic managerial functions of planning, organizing, controlling and leading
Unity of Command Principle: an employee should report to only one manager
Authority Principle: managers have the right to give orders to get things done
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Behavioral Viewpoint: OverviewFocuses on dealing effectively with the
human aspects of organizations
Started in the 1930’s
Emphasis on working conditions
Workers wanted respect
Workers formed unions to bargain with management
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Mary Parker Follett’s Contributions
Managers need to communicate with
workers Workers should
participate in solving
problems
Managers need to establish good working relationships with employees
Goal:Improve
Coordination
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“Managers need to have a common touch and to be a team leader and not adrill sergeant. When their people shine,
they shine.”
Vickie Yoke, Senior Vice President, Alcatel
Snapshot
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Chester Barnard’s Contributions
People should continuously communicateand cooperate with one another
Acceptance theory of authority holds that employees have free wills and, thus, choose whether to follow management’s orders. Employees will follow orders if they:
Understand what is required Believe the orders are consistent with
organization goals See positive benefits to themselves in
carrying out the orders
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Informal work groups control productivity
Peer pressure to conform to norms is
important
Hawthorne effect: when employees are
given special attention, productivity changes
Productivity increases occur when managers
recognize employee feelings
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Employees are motivated by social
needs and association with others
Employees’ performance is more a result of peer
pressure than management’s incentives
and rules
Managers need to involve subordinates in coordinating their
work to improve efficiency
Employees want to participate in decisions
that affect them
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Snapshot
“Teamwork is one of the most beautifulexperiences in life. Teamwork is ourcore value and a primary way that theContainer Store enriches the quality
of employees’ work life.”
Kip Tindell, President, The Container Store
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System: an association of interrelated and interdependent parts
Systems viewpoint: an approach to solving problems by diagnosing them within a framework of transformation processes, outputs, and feedback
Chapter 2: PowerPoint 2.24 (Adapted from Figure 2.4)
InputsHuman, physical,
financial, and information
resources
TransformationProcess
OutputsProducts
andservices
Feedback Loops
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Closed system: limits its interactions with the environment (e.g., stamping department in GM assembly plant)
Open system: interacts with the external environment (e.g., marketing department)
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Mathematical models are used
to simulate changes
Computers are essential
Primary focus is on decision
making
Alternatives are based on
economic criteria
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Lead to creation of
blogs
Enables managers to
simulate conditions
Emphasis on objective criteria
for decision making
Focus on planning
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Management practices should be consistent with the requirements of the external environment, the technology used to make a product or provide a service, and capabilities of the people who work for the organization
Uses concepts of the traditional, behavioral and system viewpoints
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External environment—stable or changing
Technology—simple or complex
People—ways they are similar and different from each other
Chapter 2: PowerPoint 2.30 (Adapted from Figure 2.5)
Behavioral ViewpointHow managers influence others; Informal group Cooperation among employees Employee’s social needs
Systems ViewpointHow the parts fit together.
Inputs Transformations Outputs
Traditional ViewpointWhat managers do:
Plan Organize Lead Control
Contingency ViewpointManagers’ use of other viewpoints to solve problems involving:
External environment Technology Individuals
Chapter 2: PowerPoint 2.31
Quality: how well a product or service does what it is supposed to do—how closely and reliably it satisfies the specifications to which it is built or provided
Total Quality Management (TQM): a philosophy that makes quality values the driving force behind leadership, design, planning, and improvement initiatives
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Inputs or raw materials
Operations
Outputs
Measuring by variable or a product’s characteristicsMeasuring by attribute or a product’s acceptable/
unacceptable characteristics
Statistical process controlQuality of a process (e.g., sigma)
Chapter 2: PowerPoint 2.33 (Adapted from Figure 2.6)
Lower Costs and Higher
Market Share
DecreasedProductLiability Quality
PositiveCompany
Image
