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MANAGEMENT

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Ricky W. Griffin

TWELFTH EDITION

Part One: Introducing Management

Chapter Two: Traditional and Contemporary Management Perspectives

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Learning Outcomes

Justify the importance of history and theory to management, and discuss precursors to modern management theory.

Summarize and evaluate the classical perspective on management, including scientific and administrative management, and note its relevance to contemporary managers.

Summarize and evaluate the behavioral perspective on management, including the Hawthorne studies, the human relations movement, and organizational behavior, and note its relevance to contemporary managers.

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Learning Outcomes

Summarize and evaluate the quantitative perspective on management, including management science and operations management, and note its relevance to contemporary managers.

Discuss the systems and contingency approaches to management, and explain their potential for integrating the other areas of management.

Identify and describe contemporary management issues and challenges.

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Importance of Theory and History

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Theory

A conceptual framework for organizing knowledge and providing a blueprint for action.

Importance of Theory and History

Management theories are grounded in reality.

Theories are used to build organizations and guide them toward their goals.

Understanding the historical context provides a sense of heritage and helps managers avoid mistakes of others.

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Figure 2.1

Management in Antiquity

This simple time line shows a few of the most important management breakthroughs and practices over the last 4,000 years.

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Early Management Pioneers

Robert Owen

One of the first managers to recognize the importance of human resources.

He raised working age for children, reduced hours, and supplied meals.

Charles Babbage

Mathematically focused on efficiency of production.

Believed in division of labor.

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Classical Management Perspective

Consists of two branches – scientific management and administrative management.

Focuses on ways to improve the production of individual workers.

Focuses on managing the total organization.

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Early twentieth century the preliminary ideas and writing of other managers and theorists converged with the emergence and evolution of large-scale business and management practices to create interest and focus attention on how business should be operated.

The first important ideas to emerge are now called the classical management perspective.

Includes two different branches: scientific management and administrative management

Classical Management Perspective

Scientific Management

Administrative Management

Figure 2.2

Steps in Scientific Management

Frederick Taylor saw workers soldiering, or deliberately working below their potential. He devised this four step method to overcome the problem.

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Productivity was a serious business challenge in early 1900s

Business was expanding and capital was readily available but labor was in short supply

Managers looked for ways to use labor in more efficient ways

How to improve the performance of individual workers – this work lead to the scientific management

Taylor – studied and timed each element of the steelworkers jobs. Determined what each worker should be producing and designed the most efficient way of doing each part of the overall task.

He introduced rest periods to reduce the fatigue

Implemented piecework pay system – higher quality and quantity of output and improved moral

Studied efficient ways of loading and unloading railcars and applied his conclusions.

Through his observations he developed the scientific management – led to more efficient workers

Implemented a piecework pay system –

Scientific Management

Frank and Lillian Gilbreth

They developed numerous techniques and strategies for eliminating inefficiency.

Henry Gantt

Introduced the Gantt chart for scheduling work.

Harrington Emerson

An advocate for specialized management roles.

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Gilbreth – bricklaying – specified standard materials and techniques, including positioning of the bricklayer, the bricks, and mortar at different levels – results were deduction of 18 separate movements to 5, increased output by 200%

His wife – helped shape industrial psychology, personnel management

Gantt – developed the Gantt chart – scheduling work and can be generated for each worker or for an entire complex project.

Emerson -

Administrative Management

Henri Fayol

First to identify the four management functions.

Lyndall Urwick

Integrated scientific and administrative management.

Max Weber

Studied efficient organizational structure.

Chester Barnard

Wrote about acceptance of authority.

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Classical Management Today

Contributions

Laid the foundation for management theory.

Identified key processes, functions, and skills.

Made management a valid subject of study.

Limitations

Best used in simple, stable organizations.

Universal procedures may not be appropriate in some settings.

Employees not viewed as resources.

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The framework from which later theories evolved, and many of its insights still hold true today

Table 2.1

Classical Management Perspective

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Hugo Munsterberg applied psychology to the industrial setting, founding the field of industrial psychology.

Mary Parker Follett was an early pioneer of this theory.

Behavioral Management Perspective

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Early advocates of the classical management perspective viewed organizations and jobs from an essentially mechanistic point of view; that is, they essentially sought to conceptualize organizations as machines and workers as cogs within those machines.

Early focus was on how managers control and standardize the behavior of their employees

Behavior management perspective places more emphasis on individual attitudes and behaviors and on group processes, recognized the importance of behavior process in the workplace.

Behavioral management perspective

Emphasizes individual attitudes and behaviors and group processes.

Behavioral Management Perspective

Conducted the Hawthorne Studies

Found increased productivity in both control and experimental group.

Later attributed to heightened employee morale due to extra attention.

Later studies identified:

“rate busters” (overproducers) and “chiselers” (underproducers).

Their conclusion:

Human behavior was much more important in the workplace than previously believed.

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Conducted by Elton Mayo and associates - Hawthorne Studies were a series of early experiments that focused on behavior in the workplace. In one experiment researchers monitored how productivity changes as a result of changes in working conditions. The Hawthorne studies and subsequent experiments led scientists to the conclusion that the human element is very important in the workplace

One experiment – changes lighting in one control group. Productivity increased more in the changed lighting group – when light was changed to moon light, productivity decreased

Another - Piecework incentive pay plan for one group – thought each individual would increase – but group established an acceptable level of output and any worker who over produced was branded “rate busters” under producers were labeled ‘chiselers” – as they approached the acceptable level of output they slacked off to avoid over producing

Determined human behavior was much more important in the workplace than has been previously believed.

Human Relations Movement

Stemmed from the Hawthorne studies.

A basic assumption is that a manager’s concern for workers will lead to increased satisfaction and improved performance.

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Human relations movement

Argued that workers respond primarily to the social context of the workplace.

Includes Maslow’s Hierarchy of Needs and Douglas McGregor’s Theory X and Theory Y.

Human Relations Movement

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Theory X

A pessimistic and negative view of workers consistent with the views of scientific management.

Theory Y

A positive view of workers; it represents the assumptions that human relations advocates make.

Theory X and Theory Y

Source: D. McGregor and W. Bennis, The Human Side Enterprise: 25th Anniversary Printing, 1985.

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Maslow’s Hierarchy of Needs

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Organizational behavior takes a holistic view of behavior and addresses individual, group, and organization processes.

Emergence of Organizational Behavior

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Current behavioral perspectives on management acknowledge that human behavior in organizations is much more complex than the human relationists realized

Brought about the perspective of organizational behavior

Organizational behavior

Contemporary field focusing on behavioral perspectives on management.

Behavioral Management Today

Contributions

Gave insights into interpersonal processes.

Such as motivation and group dynamics.

Focused managerial attention on these processes.

Viewed employees as resources.

Limitations

Behavior is difficult to predict.

Managers are reluctant to adopt concepts.

Research ineffectively communicated to managers.

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Table 2.3

Behavioral Management Perspective

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Quantitative Management Perspective

Concerned with helping the organization more efficiently produce its products or services.

Focuses specifically on the development of mathematical models.

Applies quantitative techniques to management.

Focuses on decision-making, economic effectiveness, mathematical models, and the use of computers.

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Quantitative management perspective

Management science

Operations management

Quantitative Management Today

Contributions

Sophisticated techniques assist decision-making.

Particularly useful in planning and controlling.

Increased awareness of complex processes.

Limitations

Cannot fully explain or predict behavior.

Mathematical sophistication may come at the expense of other important skills.

Models may require unrealistic assumptions.

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Table 2.4

Quantitative Management Perspective

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Integrating Perspectives for Managers

Systems Perspective

A system is an interrelated set of elements functioning as a whole.

An open system is one that interacts with its environment.

A closed system does not interact with its environment.

A subsystem is a system within another system.

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Important to recognize that classical, behavioral, and quantitative approaches to management are not necessarily contradictory or mutually exclusive. Each perspective can make different assumptions and predictions, each can also complement the others.

A complete understanding of management requires an appreciation of all three perspectives

A system is an interrelated set of elements functioning as a whole

Subsystem – Mattel

Marketing, production, and finance functions are systems in their own rights but also subsystems of overall organization

If productions makes a decision (lower quality of toys)

Affects finance – improved cash flow in the short run owing to lower costs

Affects Marketing – decreased sales in the long term du to customer dissatisfaction

Figure 2.3

Systems Perspective of Organizations

Synergy is two or more subsystems working together to produce more than the total of what they might produce working alone.

Entropy is a normal process leading to system decline.

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Viewing an organization as a system, we can identify four basic elements: inputs, transformation processes, outputs, and feedback.

Inputs are the material, human, financial, and information resources organization gets from environment

Through technological and managerial processes, inputs are transformed into outputs.

Outputs include products, services, or both; profits, losses, or both; employee behaviors; and information

Finally environment reacts to these outputs and provides feedback to the system.

Synergy – Disney – movies, theme parks, television programs, merchandising-licensing programs all benefit each other

Contingency Perspective

A universal perspective tries to identify the “one best way” to do something.

Includes the classical, behavioral, and quantitative approaches.

The contingency perspective suggests that appropriate managerial behavior in a given situation depends on, or is contingent on, a wide variety of elements.

Believes each organization is unique.

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Figure 2.4

An Integrating Framework of Management Perspectives

Managers should include portions of each perspective relevant to their situation and apply them using systems and contingency approaches.

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Figure 2.5

Emergence of Modern Management Perspectives

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Contemporary Applied Perspectives

Major impacts include:

Theory Z

In Search of Excellence

Biographies of successful business leaders.

Authors such as Peter Senge, Stephen Covey, Tom Peters, Michael Porter, John Kotter, and Gary Hamel.

Malcolm Gladwell’s books.

Even Dilbert cartoons had an impact.

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Contemporary Management Challenges

An unpredictable economy, limiting growth.

Globalization presents many challenges.

Ethics and social responsibility in relation to corporate governance.

Quality as the basis for competition, increased productivity, and lower costs.

The shift toward a service economy.

The role and impact of social media.

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Summary

Chapter two

established the historical context of management.

discussed the three traditional management perspectives:

classical, behavioral, and quantitative.

described the systems and contingency perspectives as approaches to integrate the three traditional perspectives.

identified contemporary issues and challenges.

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