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CONTACT DETAILS
y Matt Stewart
y E‐mail: sm267@gre.ac.uk
y Director of a specialist house‐building and
BUSI 1442
consultancy company
y Specialising in energy efficient homes
y Heritage restoration projects
LECTURE TIMETABLE
PRINCIPLES OF MANAGEMENT WEEK DATE LECTURE TOPIC
y Tutorial groups Leadership
11 6th December
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10/12/2010
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10/12/2010
LEARNING OUTCOMES
y What IS management?
y The development of management thinking
y Different approaches to management
ORGANISATIONS AND
y Hence need to study organisations and management
MANAGEMENT y Provides the foundations for all other topic areas in
y Organisations are a systematic arrangement of people
O i i i f l
management
brought together to accomplish some specific purpose
y Organisations in one form or another are a necessary
y Organisations have existed as long as humans
part of society y Management has also existed for thousands of years
y Serve many important needs but formal studies only since 1850’s
y The decisions and actions of managers in y Organisations and management cannot be separated
g g p
organisations have increasing impact on:
y Individuals and groups within the organisation
y Other organisations
y The community and environment
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MANAGEMENT AS AN
WHAT IS MANAGEMENT?
INTEGRATING ACTIVITY
y Process of management coordinates activities of members of the
P f t di t ti iti f b f th y ‘The process of achieving goals effectively and
The process of achieving goals effectively and
organisation efficiently through and with other people’
y Directed/guided towards achievement of organisational goals
y Management is cornerstone of effectiveness
y Efficiency = doing things correctly
y People are an essential resource but NOT a physical resource
y The relationship between inputs and outputs
y People are individuals with their own perception, feelings and y Minimise resources
attitudes
ttit d
y Effectiveness = doing the right things
y Management has to integrate each individual in to organisation
and hence needs to: y Goal attainment
y Understand human behaviour and personality
y Understand work organisations
ORGANISATIONAL REVOLUTIONS HISTORICAL PERSPECTIVE
y Implications are very far reaching: y Traditional structure of organisations in 20th century
y way organisations do business y based on military principle
y way they are structured y command and control
y relationship between management and workers y management style followed
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TRADITIONAL STRUCTURE DISMANTLING COMMAND AND
TOP MANAGEMENT AT HQ Set strategy C CONTROL
andd implement
i l o
procedures/tactics m y Developments since industrial revolution
m
SENIOR SUBORDINATES/MANAGERS y size and complexity of organisations
u
Translate in to n y cost of many management tiers
I y competition: slow response: 1960s vs 1990s +
operations
c
DIRECT REPORTS: a y information technology; effect on jobs; communications
gy j
FUNCTIONS/DEPARTMENTS t y horizontal structures; cross functional boundaries:
I
o y economic recession: national, international
n y the global company
FRONT LINE s
Carry out the work
OPERATIVES
MAIN APPROACHES TO ORGANISATIONS,
PEOPLE AND THE REVOLUTION STRUCTURE AND MANAGEMENT
y Changing relationships with crucial stakeholders e.g.
employees 1880s to 1940s 1926 – 1936 1950 – 1960s 1960s +
y leadership vs management Classical
Human
Systems Contingency
relations
y motivation vs insecurity and fear
Emphasis on purpose, Attention to social Integration of classical No one best design;
y involvement and participation vs command formal structure, factors, groups, and human relations structure, management
hierarchy of management leadership, approaches; socio- and success depend on
y Team work
y The psychological contract
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PRE‐MODERN ERA INDUSTRIAL REVOLUTION
y Organisational activities and management have existed for a y 1780+ in Great Britain
long time:
l i
y Egyptian pyramids y Crossed to USA by end of Civil War
y Great Wall of China
y Machine power rapidly substituted for human power
y ADAM SMITH: mostly associated with economics: Wealth of y Made it economical to manufacture goods in factories
Nations 1776.
y Economic advantages from division of labour y Mass production
y Used pin manufacturing as an example y Reduced transport costs [rapid expansion of railways]
y Increased productivity
y Improved workers’ dexterity and skill y Formation of large organisations e.g.
y Labour saving inventions/machinery y Carnegie [steel] & Rockefeller [oil]
y Application visible today; job specialisation y Also lack of government regulation
CLASSICISTS TAYLOR
y Taylor [1856
Taylor [1856 ‐ 1917], Fayol, Mooney & Reiley, Brech and y Principles of Scientific Management (1911):
p g (9 )
Weber y Development of true science for each person’s work
y Scientific selection, training and development of
y Emphasis on: workers
y Planning of work y Co‐operation with workers to ensure work carried out in
y Technical requirements of the organisation prescribed way
y Division of work between management and workers
y Principles (or rules!) of management
y Offer incentives
y Assumption of rational and logical behaviour y Use rest pauses to combat fatigue
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TAYLOR FAYOL
y Fears and reactions to theories y Industrial and General Administration 1916
y ‘Simple tasks for simple people’ y Identified five components of management6
y Management only ones with brains y Planning
y Legacies of his approach: y Organising
y Work study y Co‐ordinating
y Organisation of work
g y Commanding
y Payment by results [piece work] y Controlling
y Development of mass assembly lines y Also Gilbreth and Gantt
y Major impetus to management thinking
BUREAUCRACY CRITICISMS
y Weber, 1947
, 947 y Means [bureaucracy] becomes more important i.e.
[ y] p
y Main study in to power/authority paperwork
y ‘side issue’ bureaucracy y Dependence upon symbols, rules
y Hierarchy of authority [top – down] y Initiative may be stifled if ideas not in rule book
y Rights and duties attached to position; people know what is
expected of them
y Officious bureaucratic behaviour
y Division of labour y Impersonal relations and lack of responsiveness
y Rules and procedures
R l d d
y Documentation
y Technical competence and right qualifications
y Separation of ownership from control/management
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UK: EARLY INDUSTRIAL PSYCHOLOGY HUMAN RELATIONS APPROACH
y 1920s: great depression
y More advanced than in USA y attention to social factors at work and the behaviour of
y 1915: Health of Munitions Workers Committee employees: human relations
y Poor conditions y Hawthorne experiments 1924‐32, Western Electric
y Low productivity, increased accidents, high absenteeism Company (USA)
y Recommendations to reduce hours of work
y Illumination experiments
y Improvements in heating and ventilation
y Relay assembly test room
y More canteen, washing facilities
More canteen washing facilities
y Interviewing Programme
y Better health and welfare provision
y Bank wiring observation room
y “Builder’s Tea”: An opportunity for tea is regarded as
beneficial both to health and output. y Increasing productivity by humanising the work
organisation
FINDINGS NEO‐HUMAN RELATIONS
y Showed importance of y Hawthorne studies led to psychological approach
y work groups and leadership y Major focus
y communications
y Adjustment of individual in organisation
y output restrictions
y motivation
y Effect of group relationships
y job design y Effects of leadership styles
y importance of personnel management y Maslow: Hierarchy of Needs
y
y recognised as one of most important studies
y people’s psychological/social needs
y improving process of management
y complex needs not just money
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MASLOW: Hierarchy of Needs OTHER CONTRIBUTORS
y Herzberg
Self y Hygiene factors; absence = discontent
yg ;
actualisation y Job environment
y Motivators; Present = content
esteem
y McGregor
social
y Management style adopted depends on attitude to
human nature and behaviour at work
y Theory X: Assumes people are lazy, dislike work and must be
safety coerced through a central system of organization and
authority
y Theory Y: Assumes people enjoy work, are creative, can
Physiological exercise self direction and want to accept responsibility.
SYSTEMS APPROACH SYSTEMS THEORY
y Attempts to reconcile scientific and human relations y An organisation is an open system
approaches y continual interaction with external environment
y Focuses on: y multiple channels of interaction
y total work organisation y socio‐technical system: effect of changes
y interrelationships of structure and behaviour
y range of variables within the organisation y Longwall
g coal mining study
g y
y contrasts with the view of organisations as being
formed of separate, unconnected parts
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SYSTEMS VIEW CONTINGENCY APPROACH
INPUTS y Classical approach
Classical approach = structure
structure
people, raw materials,
components, cash; y human relations = people
information; management,
strategy
y contingency all is important
FEEDBACK PROCESSES y extension of systems approach
Sales turnover Production;
Financial results Marketing; y no one optimum state
Customer surveys Recruitment training
St ff turnover
Staff t R&D y structure dependent on nature of tasks and
Legal actions environment
OUTPUTS
Product; services
Employment, Revenue
Profits; taxes; waste
RELEVANCE of different theories CAUTION!!!
y Underline discursive nature of subject
y Iterative process and complimentary NOT competitive
y brings together different ideas for consideration
y division into approaches is rather arbitrary
y assists in organisation analysis e.g. are problems
y agreed that framework necessary but form is different
structure, people etc
depending on view
y selective to suit situation
y approaches rather than schools i.e. divisions can be
blurred
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