Don Hellriegel Susan E. Jackson John . Slocum! Jr.

M"#"$%#$: " C&M'ETE#C( )"SED "''*&"CH

++th E,ition
Chapter 2: Learning from the History of Management Thought
'repare, -y "rgie )utler Te.as "/M 0ni1ersity

Learning from the History of Management Thought

Learning $oals
+. Descri-e the three -ranches of the tra,itional 1ie2point of management:
)ureaucratic! Scientific! an, ",ministrati1e

2. E.plain the -eha1ioral 1ie2point3s contri-ution to management

Chapter 2: 'o2er'oint 2.+

Learning $oals 4cont3,5

6. Descri-e ho2 managers can use systems an, 7uantitati1e techni7ues to impro1e employee performance 8. State the t2o ma9or components of the contingency 1ie2point :. E.plain the impact of the nee, for 7uality on management practices
Chapter 2: 'o2er'oint 2.2

 ",ministrati1e Management )ureaucratic Management

$oals: Efficiency Consistency

Scientific Management

Chapter 2: 'o2er'oint 2.6

=uality <ie2point Contingency <ie2point Systems <ie2point )eha1ioral <ie2point Tra,itional <ie2point
+>?@ +?@@ +?+@ +?2@ +?6@ +?8@ +?:@ +?A@ +?B@ +?>@ +??@ 2@@@

Chapter 2: 'o2er'oint 2.8 4",apte, from ;igure 2.+5

)ureaucratic Management
0se of rules! hierarchy! a clear ,i1ision of la-or! an, ,etaile, proce,ures to gui,e employees3 -eha1iors Se1en characteristics
*ulesCformal gui,elines for the -eha1ior of employees on the 9o %mpersonalityCemployees are e1aluate, accor,ing to rules an, o-9ecti1e ,ata Di1ision of La-orCsplitting 2ork into specialiDe, positions
Chapter 2: 'o2er'oint 2.:

 Hierarchical StructureCranks 9o-s accor,ing to the amount of authority in each 9o "uthorityC2ho has the right to make ,ecisions of 1arying importance at ,ifferent organiDational le1els Tra,itional authority Charismatic authority *ational! legal authority Lifelong Career CommitmentC-oth the employee an, the organiDation 1ie2 themsel1es committe, to each other o1er the 2orking life of the employee *ationalityCthe use of the most efficient means a1aila-le to accomplish a goal
Chapter 2: 'o2er'oint 2.A

Snapshot
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 customers door at a brisk pace of 3 feet per second, carrying the package in the right hand and clipboard in the left. hey should knock on the door so as not to lose valuable seconds searching for a doorbell.!

Michael Eske2 Chairman an, CE&! 0'S

Chapter 2: 'o2er'oint 2.B

)ureaucratic Continuum
L&
DreamWorks MP3

M%D*"#$E
Sony PepsiCo

H%$H
IRS State Motor ehicle Re!istration McDonalds

R&D Thinktank

7-11

Chapter 2: 'o2er'oint 2.> 4",apte, from ;igure 2.65

'otential )enefits of )ureaucracy

Efficiency Consistency ;unctions -est 2hen routine tasks are performe, 'erformance -ase, on o-9ecti1e criteria Most effecti1e 2hen Large amounts of stan,ar, information ha1e to -e processe, The nee,s of the customer are kno2n an, are unlikely to change The technology is routine an, sta-le 4e.g.! mass pro,uction5 The organiDation has to coor,inate the acti1ities of employees in or,er to ,eli1er a stan,ar,iDe, ser1iceEpro,uct to the customer
Chapter 2: 'o2er'oint 2.?

'otential Costs of )ureaucracy

'rotection of authority Slo2 ,ecision making

*igi, rules an, %ncompati-le 2ith re, tape %ncompati-le 2ith changing 2+st century 2orkers3 technology 1alues for free,om an, participati1e management
Chapter 2: 'o2er'oint 2.+@

Scientific Management
" philosophy an, set of management practices that are -ase, on fact an, o-ser1ation! not on hearsay or guess2ork ;re,erick . Taylor )elie1e, increase, pro,ucti1ity ,epen,e, on fin,ing 2ays to make 2orkers more efficient 0se, timeFan,Fmotion stu,ies to analyDe 2ork flo2s! super1isory techni7ues! an, 2orker fatigue 0se, functional foremanship! a ,i1ision of la-or that assigne, eight foremen to each 2ork area "ssume, 2orkers moti1ate, -y money
Chapter 2: 'o2er'oint 2.++

Scientific Management The $il-reths

;rank $il-reth use, motion pictures to analyDe 2orkers3 motions Lillian $il-reth champione, protecting 2orkers from unsafe 2orking con,itions

Henry $antt
;ocuse, on control systems for pro,uction sche,uling 4$antt Chart5
Chapter 2: 'o2er'oint 2.+2

%nsights from Scientific Management

Many companies ha1e use, scientific management principles to impro1e efficiency! employee selection an, training Scientific management faile, to recogniDe the social nee,s of 2orkers an, the importance of 2orking con,itions an, 9o- satisfaction

Chapter 2: 'o2er'oint 2.+6

Snapshot
"algreens is constantly pushing to drive costs down. #t pioneered the application of satellite communications and computer technology and linked these to increase store efficiency. $y using tried%and%proven management concepts, each of its &,'(( stores )is* able to process around +,( prescriptions a day and beat "al%-art by +. cents and /01 by 23 cents on each prescription.!

Da1i, )er-auer CE&! algreens

Chapter 2: 'o2er'oint 2.+8

",ministrati1e Management: &1er1ie2

;ocuses on the manager an, -asic managerial functions of planning! organiDing! controlling an, lea,ing
0nity of Comman, 'rinciple: an employee shoul, report to only one manager "uthority 'rinciple: managers ha1e the right to gi1e or,ers to get things ,one
Chapter 2: 'o2er'oint 2.+:

)eha1ioral <ie2point: &1er1ie2

;ocuses on ,ealing effecti1ely 2ith the human aspects of organiDations Starte, in the +?6@3s Emphasis on 2orking con,itions orkers 2ante, respect orkers forme, unions to -argain 2ith management

Chapter 2: 'o2er'oint 2.+A

Mary 'arker ;ollett3s Contri-utions

M anag ers n com ee, mun icate to 2or kers 2ith

l, u o ng h i s 1 l s r so e k n r i o ticipate par lems $oal: pro %mpro1e Coor,ination

Managers nee, to esta-lish goo, 2orking relationships 2ith employees

Chapter 2: 'o2er'oint 2.+B

Snapshot
-anagers need to have a common touch and to be a team leader and not a drill sergeant. "hen their people shine, they shine.!

<ickie (oke! Senior <ice 'resi,ent! "lcatel

Chapter 2: 'o2er'oint 2.+>

Chester )arnar,3s Contri-utions

'eople shoul, continuously communicate an, cooperate 2ith one another "cceptance theory of authority hol,s that employees ha1e free 2ills an,! thus! choose 2hether to follo2 management3s or,ers. Employees 2ill follo2 or,ers if they:
0n,erstan, 2hat is re7uire, )elie1e the or,ers are consistent 2ith organiDation goals See positi1e -enefits to themsel1es in carrying out the or,ers
Chapter 2: 'o2er'oint 2.+?

'ro,ucti1ity increases occur 2hen managers recogniDe employee feelings Ha2thorne effect: 2hen employees are gi1en special attention! pro,ucti1ity changes
Chapter 2: 'o2er'oint 2.2@

%nformal 2ork groups control pro,ucti1ity

'eer pressure to conform to norms is important

Employees are moti1ate, -y social nee,s an, association 2ith others Employees 2ant to participate in ,ecisions that affect them

Employees3 performance is more a result of peer pressure than management3s incenti1es an, rules Managers nee, to in1ol1e su-or,inates in coor,inating their 2ork to impro1e efficiency

Chapter 2: 'o2er'oint 2.2+

Snapshot
eamwork is one of the most beautiful e4periences in life. eamwork is our core value and a primary way that the /ontainer 1tore enriches the 5uality of employees work life.!

Gip Tin,ell! 'resi,ent! The Container Store

Chapter 2: 'o2er'oint 2.22

 System: an association of interrelate, an, inter,epen,ent parts Systems 1ie2point: an approach to sol1ing pro-lems -y ,iagnosing them 2ithin a frame2ork of transformation processes! outputs! an, fee,-ack
Chapter 2: 'o2er'oint 2.26

%nputs
Human! physical! financial! an, information resources

Transformation 'rocess

&utputs
'ro,ucts an, ser1ices

;ee,-ack Loops
Chapter 2: 'o2er'oint 2.28 4",apte, from ;igure 2.85

 Close, system: limits its interactions 2ith the en1ironment 4e.g.! stamping ,epartment in $M assem-ly plant5 &pen system: interacts 2ith the e.ternal en1ironment 4e.g.! marketing ,epartment5

Chapter 2: 'o2er'oint 2.2:

'rimary focus is on ,ecision making

"lternati1es are -ase, on economic criteria

Mathematical mo,els are use, to simulate changes

Chapter 2: 'o2er'oint 2.2A

Computers are essential

Emphasis on o-9ecti1e criteria for ,ecision making Lea, to creation of -logs

;ocus on planning

Ena-les managers to simulate con,itions

Chapter 2: 'o2er'oint 2.2B

 Management practices shoul, -e consistent 2ith the re7uirements of the e.ternal en1ironment! the technology use, to make a pro,uct or pro1i,e a ser1ice! an, capa-ilities of the people 2ho 2ork for the organiDation

0ses concepts of the tra,itional! -eha1ioral an, system 1ie2points

Chapter 2: 'o2er'oint 2.2>

 E.ternal en1ironmentCsta-le or changing TechnologyCsimple or comple. 'eopleC2ays they are similar an, ,ifferent from each other

Chapter 2: 'o2er'oint 2.2?

)eha1ioral <ie2point "o# mana!ers in$l%ence others& In$ormal !ro%p Cooperation amon! employees Tra,itional <ie2point 'mployee(s social needs What mana!ers do+ Plan Systems <ie2point *r!ani,e "o# the parts $it to!ether) -ead Inp%ts Control Trans$ormations *%tp%ts Contingency <ie2point Mana!ers( %se o$ other .ie#points to sol.e pro/lems in.ol.in!+ '0ternal en.ironment Technolo!y Indi.id%als
Chapter 2: 'o2er'oint 2.6@ 4",apte, from ;igure 2.:5

 =uality: ho2 2ell a pro,uct or ser1ice

,oes 2hat it is suppose, to ,oCho2 closely an, relia-ly it satisfies the specifications to 2hich it is -uilt or pro1i,e,

Total =uality Management 4T=M5: a

philosophy that makes 7uality 1alues the ,ri1ing force -ehin, lea,ership! ,esign! planning! an, impro1ement initiati1es
Chapter 2: 'o2er'oint 2.6+

 %nputs or ra2 materials &perations

Statistical process control =uality of a process 4e.g.! sigma5

&utputs
Measuring -y 1aria-le or a pro,uct3s characteristics Measuring -y attri-ute or a pro,uct3s accepta-leE unaccepta-le characteristics
Chapter 2: 'o2er'oint 2.62

'ositi1e Company %mage

Lo2er Costs an, Higher Market Share

Decrease, 'ro,uct Lia-ility

=uality

Chapter 2: 'o2er'oint 2.66 4",apte, from ;igure 2.A5