Theories of ion & Management-OB Lecture 3

8/3/2019 Theories of ion & Management-OB Lecture 3

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Theories of Organisation &Management

Lecture 3


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Session Objectives

By the end of this session you should be

able to:

Discuss the main tenets of the ClassicalSchool of Management, & the principles ofits main proponents - FW Taylor, HenriFayol, Leonard Urwick, and Max Weber(bureaucracy)

Identify the main tenets of the HumanRelations/Behavioural School, the work ofElton Mayo & the findings of the Hawthorne

Studies


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Session Objectives

Discuss The Systems Approach tomanagement

Speak on The Contingency theories ofmanagement (Works by Woodward,Burns & Stalker)

Identify characteristics of twocontemporary approaches tomanagement (Peters & Waterman, TheJapanese model)


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The Classical School of Management

Key tenets:

1stunderstand the organisations purpose andthen examine its structure

Move to undertake more specific purposes andresponsibilities Categorise purpose into a hierarchy of

objectives which = organisational structure Logically group functions into individual jobs,

sections, departments Co-ordinate organisational activities using

clear hierarchies which identify authority,responsibility, accountability for each job


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The Classical School of ManagementFW Taylor & Max Weber

Specialise jobs make individuals responsiblefor one task in which they would build upexpertise and greater efficiency.

Please read from page 36of study manual onFW Taylors conceptualisation of Scientific

Management.(very critical!)

Henry Gantt tried to address tense labour

relations by applying scientific managementtechniques of improved pay & production

control.

Frank Gilbreth refined time & motion studies

and introduced ergonomics into workplace.


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Administrative Management

Henri Fayol believed that the activities of workorganisations can be divided into a number ofgroups - technical, commercial, financial,security, accounting and management. Is

credited with itemising the 4 managementactivities (covered last week)

Established hierarchy, organisational chart,unity of command (one boss and one plan to

meet objectives), span of control must beestablished (number of persons supervised byanother at any one time limit to 4 or 5 forefficiency)


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Works by Lyndall Urwick and MaxWeber

Refer to page 37 of manual for condensedapproach to Scientific Management formulatedby Lyndall Urwick

Max Weber (pronounced Veber), a GermanSociologist, did extensive work on sources ofauthority & bureaucracy.

Authority can be charismatic, traditional, or

rational-legal. Weber saw bureaucracy as the ultimate

expression of organisational formcharacterised by:


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Bureaucracy Characteristics

Specialisation closely defined jobs, jobdescriptions & job specifications

Hierarchy of Authority detailed & precisestratification exists throughout the organisation

System of Rules & Procedures firm code ofrules to cover all foreseeable events ifunforeseen refer to higher authority

Impersonality impartial and equitable

treatment of all arose from stern non -involvement

Employment High job security, recruitmentbased on qualifications, salary related to posts

occupied


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Human Relations School

Review the advantages & disadvantages ofbureaucracies on page 41-42 of manual.

Human Relations Approach - Developed in the1920s & 1930s

Departed from the classical school whichviewed the worker as a machine, motivated byeconomic reasons

Began to look at understanding the worker,

his/her various needs, building workerstrengths, ensuring weaknesses are overcomeor prevented from negatively impacting theorganisation


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Elton Mayo & the Hawthorne Effect

Read carefully page 68-69 on Elton Mayoswork on Hawthorne Studies.

Showed that workers are strongly motivated bysocial needs (for social interaction, selfesteem, recognition, sense of belonging,security), and seek satisfaction of those needsabove others, inclusive of money once acertain level of remuneration was achieved

Individual workers belonged to groups at theworkplace and had their own codes ofbehaviour, leaders and group norms, whichmade up the informal organisation


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Systems Theory

Developed in the 1950s & 1960s and derivedfrom work being done on mechanical, electrical& biological systems

Built on the basic idea of viewing theorganisation as system (e.g. biologicalsystem). The organisation takes in inputs/rawmaterials such as people, labour, steel, plasticand rubber and transforms them through a

series of processes into outputs such as goodsand services. Refer to page 48 of manual for graphical

presentation in Fig. 1.1.


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Systems Theory Analyse the organisation as a system of inter-

related parts and ascertain the extent to whichit is able to achieve a balance in its internal andexternal relationships, and how far it candevelop and progress in relation to changes in

those relationships Kast, Rosenweig, Trist & Bamforth have done

work on the concept of the organisation assystem and the following categories have

emerged: The technical sub-system, thepsycho-social sub-system, the structural subsystem, the goals and values sub-system andthe managerial subsystemSee Figure 2.2

pg. 52


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Contingency Theories

State that there is no one best form oforganisation, & one needs to consider theimpact of the situation in which theorganisation finds itself - The organisation

should be conditioned by the demands placedon it.

Joan Woodward discovered that differences intechnology determined the organisational

patterns. She identified the unit or smallbatch production model, the large batchand mass production model, and theprocess production model.

See pages 54 & 55 for details.


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Contemporary Theories

Refer to Peters & Watermans work the

characteristics of excellent, innovativecompanies based on their study of 62American companies on pages 56-57 ofmanual.

Review William Ouchis theory Z and

note the adaptations to western culture.

For next week: Read unit 3 - TheIndividual & the Organisation

Theories of ion & Management-OB Lecture 3

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