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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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    COPYRIGHT

    Copyright 2004 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

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    Department, John Wiley & Sons, Inc. The purchaser may make back-

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    damages, caused by the use of these programs or from the use of the

    information contained herein.