Elyana Mahardhika - 2206041171

CHAPTER 2
MANAGEMENT LEARNING PAST TO PRESENT

2.1 CLASSICAL MANAGEMENT APPROACHES

2.1.1 Scientific Management

Four guiding principles of scientific management (according to The Principles of
Scientific Management by Frederick W. Taylor) are:
1. Develop a science that includes rules of motion, standardized work implements, and
proper working conditions for every job.
2. Carefully select workers for the job.
3. Carefully train workers and give incentives to cooperate with the science.
4. Support workers → plan their work and smooth the way
The Gilbreths pioneered the use of motion studies (science of reducing a job or task to
its basic physical motions) and show that eliminating wasted motions improves performance.

2.1.2 Administrative Principles

Five rules or duties of management (according to Administration Industrielle et
Generale by Henri Fayol) are:
1. Foresight : to complete a plan in the future.
2. Organization : to provide and mobilize resources.
3. Command : to lead, select, and evaluate workers.
4. Coordination : to fit diverse effort together, ensure information is shared, and
problems solved.
5. Control : to make sure things happen according to plan and take necessary
corrective actions.
Administrative principles according to Henri Fayol:
1. Scalar chain : clear and unbroken line of communication (top to bottom).
2. Unity of command : only one boss give orders.
3. Unity of direction : one person in charge of all activities with the same performance
objecive.

2.1.3 Bureaucratic organization

Bureaucracy is an intentionally rational and very efficient form of organization. The
characteristics of a bureaucratic organization are:
1. Division of labor 4. Impersonality (equal treatmen)
2. Hierarchy of authority 5. Careers based on merit
3. Formal rules & procedures
Possible disadvantages of bureaucracy:
1. Excessive paperwork or “red tape” 4. Resistance to change
2. Slowness in handling problems 5. Employee apathy
3. Rigidity in the face of shifting needs

2.2 BEHAVIORAL MANAGEMENT APPROACHES

2.2.1 Organizations ad Communities

Charles Clinton Spaulding in published articles about what he called eight
necessities of management:
1. Cooperation & teamwork 5. Adequate capital
2. Authority & responsibility 6. Feasibility analysis
3. Division of labor 7. Advertising budget
4. Adequate manpower 8. Conflict resolution
 Mary Parker Follet thought of organization as “communities” where managers and
workers should labor in harmony and combine talents for a greater good. Forward-looking
management insights:
1. Making every employee an owener creates a sense of collective responsibility
2. Business problems involve a variety of inter-related factors
3. Private profits relative to public good

2.2.2 The Hawthorne Studies

The Hawthorne studies is an initial study examined how economic incentives and
physical condition affected worker output. The first conduct found no consistent relationship
and showed that psychological factors influenced results.
On the second conduct (social setting and human relation), they manipulated
physical work conditions to assess impact on output and minimize the psychological factors
of previous experiment. Conclusion:
1. New “social setting” led workers to do good job
2. Good “human relations” led to higher productivity
Hawthorne effect: people who are singled out for special attention perform as expected.

2.2.3 Maslow’s Theory of Human Needs

A need is a physiological or psychological deficiency a person feels compelled to
satisfy. High-to-low order of needs:
Self-actualization → Esteem → Social → Safety → Physiological
1. Deficit principle : a satisfied need is not a motivator of behavior.
2. Progression principle : a need becomes a motivator once the preceding lower-
level need is satisfied.

2.2.4 McGregor’s Theory X and Theory Y

Each theory assumes that workers are:
X Dislike Lack Are Resist change Prefer to be
work ambition irresponsible led
Y Willing to Capable of Willing to Imaginative Capable of
work self control accept and creative self-direction
responsibility
 These assumptions create self-fulfilling prophecies. When managers behave
consistently with the assumptions they end up encouraging employees to act according to
managers’ original expectations.

2.2.5 Argyris’ Theory of Adult Personality

1. Classical management principles and practices inhibit worker maturation and are
inconsistent with the mature adult personality.
2. Psychological success occurs when people define own goals
3. Management practices should accommodate the mature personality by
- increasing task responsibility
- increasing task variety
- using participative decision making

2.3 MODERN MANAGEMENT FOUNDATIONS

2.3.1 Quantitative Tools and Data Analytics
Data analytics : systematic anaalysis of large data bases (= big data) to solve
problems and make informed decisions.
Quantitative approach to managerial problem-solving:
1. Problem encountered;
2. It is systematically analyzed;
3. Appropriate mathematical models and computation applied;
4. Optimal solution identified.

2.3.2 Organizations as Systems

A system is a collection of interrelated parts working together for a purpose, while a
subsystem is a smaller component of a larger system. Organizations funtion as an interacting
network of subsystems.
2.3.3 Contingency Thinking
Contingency thinking matches actions with problems and opportunities specific to
different pople and setting because there is no “one best way” to manage all circumstances.

2.3.4 Quality Management

Total quality management (TQM) is an organization-wide commitment to continous
improvement, product quality, and customer needs. Management needs continous
improvement because everything always can and should be improved. ISO certification is a
global quality-management certification.

2.3.5 Evidence-based Management

Evidence-based management involves making decisions based on hard facts about
what really works. The following criteria determines whether or not good scientific methods
have been used.
1. A research question or problem is clearly identified.
2. One or more hypotheses is stated to describe possible explanations.
3. The research design provides a good test of the hypotheses.
4. Data are rigolously gathered, analyzed, and interpreted.
5. Hypotheses are accepted or rejected and conclusions made based on the evidence.
Evidence-based positive human resource management practices:
1. Employment security 5. Training and development
2. Selective hiring 6. Reduced status distinctions
3. Self-managing teams 7. Shared information
4. High pay based on merit