md4003 lecture

7/22/2019 MD4003 Lecture

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MD4003MANAGEMENT,

THEORY & PRACTICE

David Forrest

[email protected]

7/22/2019 MD4003 Lecture


Introduction

• Introduction to Management & Organisations

•Pre-scientific management

• Scientific management

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What is Management?

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Is Management Leadership?

• Ricky Gervais The Office 2001• (Start at 19 minutes in. )

• “Doing things right rather than doing the right

thing.”

http://www.youtube.com/watch?v=Y7UrvGg65Lw

http://www.youtube.com/watch?v=Y7UrvGg65Lw

7/22/2019 MD4003 Lecture


What is an Organisation?

• A group of people sharing a common goal

(strategy?)

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History of Organisations

• Until the end of the Victorian era the only

large organisations were the Catholic church

and National armies. (Grant.)

• Only large commercial organisations were

Trading Companies such as Dutch East India

Company and the British East India Company

(Grant.)

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The Size Problem

• Size introduces specialization and division of

labour (e.g. Adam Smith’s pin factory.)

• But this increases the need for coordination

and control – a hierarchy. Management?

• Hierarchy then develops Bureaucracy (Weber

and Fayol.)

• Bureaucracy?

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The rise of the modern corporation

• Span of control (Concept originally came from

the military.)

– How many people report to the person above

them.

– 1:3 originally

– Now 1:10 ?? (Flatter organisations, Use of IT)

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Developments in Management Science

• Military Influence (Still there.)

•

The rise of scientific management

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Pre-Scientific Management – A

Victorian Work Scene!

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Scientific Management – Frederick

Taylor

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Scientific Management – Frederick

Taylor

• Very influential (even today, work study, time

control in call centres.)

• Negative aspects:

•

Charlie Chaplin "Modern Times." (1936)

http://www.youtube.com/watch?v=QyHy023gAnY&feature=related

http://www.youtube.com/watch?v=QyHy023gAnY&feature=related

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Scientific Management – Henri Fayol

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Scientific Management – Henri Fayol(Handy)

Henri Fayol

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Scientific Management – Thomas

Watson - IBM

Scientific Management – Frederick Taylor

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Week 2 Developments in Management

“Science”

• Note the inverted commas!

• (Classical/Scientific, 1900's -)

•

Human Relations, 1920's – • Systems, 1940's -

• Contingency, 1970 -

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Victorian Work Scene!

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Crimean War Scene (1850’s) !

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Classical/Scientific, 1900's -

• Key Factors: Organisation , Division of labour

• Work Study, Productivity, Span of Control

•

Key Workers: Frederick Taylor (BethlehemSteel, work study approach), Henri Fayol

(French, Fayol's wheel)

• Influences: Military, Scientific

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Human Relations, 1920's -

• Key Factors: Encourage cooperation, Work groupparticipation

• Individual wants and needs, Work group behaviour.

•

Key workers: Elton Mayo (Hawthorneexperiment- founder of HR school), Maslow(Psychologist, Hierarchy of Needs), Hertzberg (2 factortheory, 1959 (Motivational factors and hygienefactors)) McGregor,1960, (Theory X and Y);

• Key Influences: Social psychology, sociology

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Maslow

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Herzberg’s Two Factor Theory


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• Hygiene or maintenance factors – presence

prevents dissatisfaction but does not

motivate.

• Motivational factors – motivate!

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Systems, 1940's

• Key Factors: Combines Classical and HRschools , People + task + technology,organisation as a socio-technical system.

• Key workers: Burns (UK, Scottish companies.)Trist (UK, Tavistock Institute, coal mine studiesetc)); Joan Woodward ( UK, Studies of smallmanufacturing organisations,

• Key influences: Mathematics, operationsresearch, systems engineering

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Contingency, 1970 -

• Key Factors: No one right-way. Adjust

management style to suit situation.

• Key workers: Fiedler; span of control,

technology etc.); Blake & Mouton (Managerial

Grid) (Concern for people versus Concern for

results.)

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Blake & Mouton Managerial Gridhttp://www.coachingcosmos.com

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Observation of managers

• Henry Mintzberg - Management roles,1973.

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(Continued – Some extra concepts)

• Bureaucracy

• Middle Management

•

Post modernist management

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Bureaucracy (Max Weber)

• Common in large organisations and can be

very effective.

• Clear cut division of duties and high degree of

specialisation.

• Rules and regulations give uniformity of

outcomes.

• Staff are lifelong employees, selected on

technical ability with an impersonal approach.

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Bureaucracy

• Problems:

• Initiative stifled

• Inward looking and not “customer” focussed.

• Weber’s “Iron Cage.” (Impersonal organisation

ruled by a small oligarchy.)

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Middle Managers (Floyd & Wooldridge,1996)

• Often seen as “a problem”.

– “Gatekeepers” i.e. Resistant to change

• More recent view sees them as:

– Translators of strategy

– Important bridging role as advisors for senior

management.

– Key agent s for change

• (Often now retained rather than dismissed!)

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Post modernism (Mullins)

• A somewhat, ill-defined and over used term!

• Rejection of rational approaches. Free flowing,

flexible structures to cope with changing

business structures. (Clegg and Watson quoted in

Mullins)

• E.g Tom Peters “Thriving on Chaos.”

• Is it a useful, understandable concept?

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Week 4 Business & Corporate level

strategy - CULTURE

• Culture - Internal factor, important in

understanding history and culture which can

help or hinder strategy.

• Fits in with Resource Based View (RBV) of

corporate strategy as opposed to the

Positioning view e.g. Porter’s 5 forces.

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The Boiled Frog (Handy, I think!)

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Exhibit 5.2 Strategic Drift (Johnson & Scholes)

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(J & S)

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Exhibit 5.4 Cultural frames of reference

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Culture

• Basic assumptions and beliefs, shared by

members of an organisation. (Schein)

• “The way we do things round here!”

• Culture is difficult to manage BECAUSE it is

“taken for granted”

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Culture (Definitions)

• In German (& Finnish) – kultur – the intellectual side

of civilisation but without English connotations of

snobbery.

• Chinese (& Japanese) – bunka – the skilled

production of artefacts after a master of the craft.(from Holden . N, 2002)

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International Cultures (Hofstede)

• Hofstede studied International employees of IBM.

• Identified 4 key characteristics:

– Power Distance – measure of equality

– Uncertainty avoidance – need to control the future.

– Individualism – as opposed to collectivism.

– Masculinity/Femininity –

(Masculinity=ambition,quantity,money.)(Feminity = personal relationships,environment,quality.)

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ORGANISATIONAL CULTURE. (Handy)

• Power culture (Spider web) – e.g.

entrepreneurial & small

• Role culture (Greek Temple) – e.g. large co.,

bureaucracy

• Task Culture (Matrix) – e.g. software project

• Person culture (Galaxy of stars – large &

small!) – e.g. University.

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Exhibit 5.5 Culture in four layers

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PARADIGM - meaning

• PARADIGM A set of assumptions, concepts,

values, and practices that constitutes a way of

viewing reality for the community that shares

them, especially in an intellectual discipline.

• But also note PARADIGM SHIFT

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Exhibit 5.7 The cultural web of an organisation

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Cultural Web

• Routines – daily way we do things round here

• Rituals – Birthdays, submarine “Perisher” course,Friday drinks session, initiation rites

• Stories- what so and so would have done.

• Symbols – cars, titles. Medical consultants

described patients as “Clinical Material” • Power structures – often informal -who lunches,

who socialises

• Org. structure – the organogram (e.g. line versusmatrix.)

• Control systems – power and rewards

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