Week 5 Approaches to Organisation and Management (1)

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    Introduction to People,

    Organisations andManagement

    Approaches toOrganisation andManagement (1)

    Hermione McIntosh

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    Learning outcomes

    By the end of this session, you should be able to:

    identify the early developments in management

    and organisational behaviour

    evaluate the relevance of these approaches tothe present-day management of organisations

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    Classical approach to management

    Novatel Hotel - Darwin (NSW) Manhattan skyline

    Classical writers thought of organisations interms ofpurposeand formal structure.

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    Classical management theory

    one, best organisationstructure which would suit allorganisations

    based on key principles and

    logic of efficiency functional division of work hierarchical relationships bureaucratic forms of

    control

    narrow supervisory span closely prescribed roles

    (Huczynski and Buchanan, 2010)

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    Henri Fayol (1841-1925) and classicalmanagement theory

    Six managerial activities (Fayol, 1949)

    Controlling

    Co-ordinating

    Commanding(directing andmotivating Organising

    Forecasting

    Planning

    Authoritarian

    leadershipstyle

    His is a normative and prescriptive model: it indicates how managersshouldconduct their activity in order to achieve efficiency (Brooks, 2010,p.159).

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    Fayols 14 principles of management(Fayol, 1949 cited by Brooks, 2009, p. 160)

    Primarily structuralprinciples

    division of work

    authority and responsibility

    unity of command

    unity of direction

    centralisation

    scalar chain

    order

    Other principles

    discipline

    subordination of individualinterest to general interest

    remuneration of personnel

    equity

    stability of tenure ofpersonnel

    initiative esprit de corps

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    Common principles of theclassical approach to management

    Principle of coordinationthe need for peopleto act together with unity of action, and need fordiscipline

    The scalar principlethe hierarchy oforganisation, the grading of duties and process ofdelegation

    Functional principlespecialisation anddistinction between different kinds of duties.

    Mooney & Reiley, 1947

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    Classical ApproachSCIENTIFIC MANAGEMENT

    The use of the scientific method to define the ONE BEST WAYfor

    a job to be done.

    F.W. Taylor (1856-1915) Principles of Scientific Management1911

    Systematic soldering the conscious and deliberate restriction of

    output by operators (Buchanan and Huczynski, 2010, p. 423)

    Taylors objectives were to achieve efficiency, predictability of jobperformance and control

    There is a best machine for each job, so there is a best workingmethod by which people should undertake their jobs

    All job processes should be analysed into discrete tasks and via thismanagement find the one best way to perform each task

    Taylorism

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    Taylors Five Principles of ScientificManagement(Buchanan and Huczynski, 2010

    A clear division of tasks andresponsibilities betweenmanagement and workers

    Use of scientific methods todetermine the best way ofdoing a job

    Scientific selection of theperson to do the newlydesigned job

    The training of the selectedworker to perform the job inthe way specified

    Surveillance of workersthrough the use of hierarchiesof authority and closesupervision

    Bethlehem Steel Works

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    Development of Taylorism Time andmotion studies

    Gilbreth refinedTaylors techniquesfor measuring work

    focused on motion

    used researchtechniques to analyseand improve workersbody movements

    developed Therbligs

    ascertained a

    standard time foreach job element

    time and motionstudies - still usedtoday

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    Fordism developed out ofTaylorism

    Jobs analysed usingtime-and-motiontechniques

    Single purposemachine toolsinstalled tomanufacturestandardised parts

    Introduction of themechanised assemblyline

    Fords first moving assembly line

    The birth of mass production

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    Characteristics of mass production(Buchanan and Huczynski, 2010, p. 434)

    Mechanical pacingof work

    No choice of toolsor methods

    Repetitiveness Minute subdivision

    of product Minimum skill

    requirements Surface mental

    attention

    http://images.google.com/imgres?imgurl=http://www.pulsamerica.co.uk/wp-content/uploads/2011/01/consumerism-mass-production-coca-cola.jpg&imgrefurl=http://www.pulsamerica.co.uk/2011/01/venezuela-this-week-10/&usg=__RehVTD6LjCmFzh3YH2t7p7FS1m8=&h=574&w=711&sz=136&hl=en&start=58&zoom=1&itbs=1&tbnid=DnnVByfLJnDbxM:&tbnh=113&tbnw=140&prev=/images%3Fq%3Dmass%2Bproduction%2Bfactory%26start%3D40%26hl%3Den%26sa%3DN%26gbv%3D2%26ndsp%3D20%26tbs%3Disch:1,isz:m&ei=GehbTdmfKcqXOoTilZ4L
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    Classical ApproachBureaucracy the main features

    specialisation

    hierarchy of

    authority

    system of rules

    impersonality

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    Max Weber (1864-1920) andbureaucracy

    three ideal types of organisation charismatic traditional legal-rational (known as the bureaucratic type of

    organisation)

    a bureaucratic organisation has: written specifications for every position succession to and occupation of jobs by qualified,

    trained personnel

    continuity and impersonality The bureau which is a written record of every move

    (central files)(Weber, 1947)

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    Human relations approach

    based on the considerationof the social factors at workand the behaviour ofemployees within anorganisation

    importance is paid to theinformal organisation andthe satisfaction ofindividuals needs throughgroups at work

    Hawthorne experiments(1924-33), started by EltonMayo, acted as a turningpoint in the development ofthe Human Relationsmovement

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    Hawthorne experiments

    The Hawthorne effectthe effect of changesin the light on workersproductivity

    The Relay AssemblyTest Room study

    The Bank WiringObservation RoomStudy

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    Conclusions from the Hawthornestudies

    People are motivated by things other thanmoney.

    People need recognition and a sense of

    belonging at their workplace. A persons attitude is strongly affected by

    the group to which they belong in theorganisation.

    The informal group has a powerful effecton motivating individual members, andthis is not always in the interests of theorganisation.

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    Human relations approach the criticisms

    weak methodology of Hawthorne experiments,including failure to take sufficient account ofenvironmental factors

    sex power differential

    adoption of a management approach, a unitaryframe of reference and over simplification of

    theories

    insufficiently scientific and takes too narrow aview, ignoring the role of the organisation within

    society (Mullins, 2010)

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    Neo-Human Relations

    a more psychological orientation was adopted inthe 1950s and 1960s

    a major focus of concern was the personaladjustment of the individual within the work

    organisation and the effects of grouprelationships and leadership styles (Mullins,2010, p. 56)

    best know contributors Maslow, McGregor andHerzberg

    overview now, more detailed examination ofthese and other theories of motivation in sectionA.

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    Maslows Hierarchy of Needs (1954)

    Self-

    Actualization

    Needs

    Esteem Needs

    Social Needs

    Security Needs

    Physiological Needs

    Self-

    actualization

    needs

    Esteem needs

    Social needs

    Security needs

    Physiological needs

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    Hygiene Factors

    Supervisors

    Working Conditions

    Interpersonal Relations

    Pay & Security

    Company Policies &

    Administration

    Motivation Factors

    Achievement

    Recognition

    The Work Itself

    Responsibility

    Advancement & Growth

    HerzbergsTwo Factor Theory(1968)

    Dissatisfaction Satisfaction

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    McGregors Thoery X and Theory Y

    (1960)

    THEORY Xmanagers

    assume employees:

    dislike work

    are lazy

    avoid responsibility

    must be coerced toperform

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    ReferencesBrooks, I. 2009. Organisational behaviour: individuals,groups and organisation. 3rded. Harlow: Pearson/FTPrentice Hall.Buchanan, D. and Huczynski, A. 2010. Organizationalbehaviour. 7thed. Harlow: Pearson/FT Prentice Hall.Fayol, H. 1949. Administration industrielle et gnrale.Paris: Dunot et Pinot.Mooney, J.D. and Reiley, A.C. 1947. The principles oforganization. New York: Harper Row.Mullins, L. 2010. Management and organisational behaviour.9thed. Harlow: Pearson/FT Prentice Hall.

    Taylor F.W. 1911. Principles of Scientific Management. NewYork: Harper.Weber, M. 1947. The theory of social and economicorganization. Oxford: Oxford University Press.