Slide 2.

Management Organisation, Structure and Strategy

Mike Hemmings Models of Management Room 104 Arts Building, x443 m.hemmings@lamp.ac.uk

Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.2

Exercise
M and S Anchor Trust Powys nhs Examine the organisations Explain which model would be most effective in that organisation and why? Explore the possible barriers to implementing change using the different models What might work why? What might go wrong why?
Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.3

Models of management
Why study models of management? The competing values framework
Rational goal Internal process Human relations Open systems

Models for uncertain conditions Cases and examples

i.e. New Lanark, Ford
Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.4

Why study models of management?

Models simplify reality
All areas of study use them: oceanography, astronomy, history, management

Focus on essential elements and relationships Help to understand complexity Offer a range of perspectives
Unitary, pluralist, critical

Reflect the context in which they develop

Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.5

Perspectives on managing

Figure 2.2 Competing values framework

Source: Becoming a Master Manager: a Competency Framework, third edition by Quinn et al ; Copy right 2003 John Wiley & Sons, Inc; Reprinted with permission of John Wiley & Sons, Inc. Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.6

Rational goal models

A response to the problem of organising factory production efficiently

F.W. Taylor

(1856-1915)

scientific management

Use scientific methods to find best way Select best person for the job Train them to follow defined procedures Provide financial incentives Move responsibility for planning from worker

Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.7

Evaluating scientific management

Methods greatly increased productivity and were widely adopted Aspects of the approach are still common
work measurement, bonus systems etc

Can incur high human costs:

repetitive, routine tasks alienate many people reinforces power of managers over workers focus on the individual ignores their social needs

Are the assumptions of the approach valid in context? What alternatives may work better?
Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.8

Internal process models: Weber

Principles for organising large bureaucracy fairly Rules and regulations: to guide behaviour Impersonality: to protect against favouritism Division of labour: jobs are easy to learn Hierarchy: reflecting power to make decisions Authority: structure which ties system together Rationality: managers should use most efficient methods to achieve objectives
Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.9

Internal process models: Fayol

Principles for organising the whole business Stressed these should be applied flexibly and in proportion Included (full list in text, with examples)
Division of work Unity of command and direction Find the right degree of centralisation Stability of tenure Encourage initiative
Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.10

Evaluating internal process models

Rules, regulations, impersonal procedures widely used, ensure consistency and seem fair Can seem slow and inflexible
Conditions change quicker than rules Units of an organisation face different conditions Rules may become more important than adding value: become an end in themselves

Are the assumptions of the approach valid in context? What alternatives may work better?
Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.11

Human relations models

A reaction to scientific management and bureaucratic approaches Focus on people as social beings with many needs Mary Parker Follett
Observed creativity of group processes Advocated replacing bureaucracy with group networks in which people solve problems Solving problems created integrative unity.
Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.12

Elton Mayo and Hawthorne experiments

Lighting experiment to test effects of light on output Unexpected result stimulated a fuller study of the effects of changing physical surroundings of the worker The relay assembly test room
Selected women staff, repetitive, measurable task Regular changes to working time, rest breaks, refreshments and asked for views Results (slide 2.12) led to conclusion that they had changed the social as well as the physical setting
Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.13

Output in successive periods

Figure 2.3 The relay assembly test room output by experimental period
Based on data from Roethlisberger and Dickson (1939). From Behavior in Organizations, 1997. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ. 6th Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Source: edition, Greenberg and Baron

Slide 2.14

Other Hawthorne studies

Bank Wiring Observation Room Male staff on payment by results system
Produced less that they could have done
showed the social pressures on members to comply with output levels set by group

Interview program sought employee attitudes to work and life in general

Showed close links between work and life outside
implied supervisors should pay attention to emotional needs of employees

Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.15

Evaluating human relations models

Influenced many management practices modern HRM practices stress teams, work-life balance etc Aim to integrate needs of individual with needs of organisation Critics claim these practices merely reinforce unequal power relations power is still with the organisation Effects on performance and adding value, unclear Are the assumptions of the approach valid in context? What alternatives may work better?

Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.16

Open systems models

Figure 2.4 The systems model

Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.17

Organisations as open systems

Focus on links with the outside world on which firm depends Subsystems add complexity interact with each other, and the outside world (Fig. 2.5) Socio-technical systems need to align the technical and the social systems to ensure good performance of both Contingency theories also a systems view (Chapter 12)
Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.18

Interacting subsystems

Figure 2.5 Interacting subsystems in organisations

Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.19

Linear and non-linear systems

Figure 2.6 Feedback in non-linear systems

Source: Parker and Stacey (1994). Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.20

Contrasting assumptions

Table 2.4 Contrasting assumptions in linear and non-linear systems

Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.21

Evaluating open systems models

Influenced many management practices which stress response to external demands
Market research, PR, strategic planning, alliances.

May emphasise need for change at the expense of the need for stability and efficiency Practice depends on people interpreting events
Subjective judgements as much as rational analysis

Are the assumptions of the approach valid in context? What alternatives may work better?

Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.22

Exercise
Welsh Guru visit Newtown museum/New Lanark Historical but not to be dismissed Ford Management Control Owen Fair Treatment and Co-operation Is there a conflict between Owens approach to management and the need to control workers What happens if organisations comply with Owen is there a business case for Fair Treatment and Cooperation?
Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005

Slide 2.23

In conclusion:
Competing values model offers alternative perspectives on managing Each depends on assumptions about the context in which people are managing and working Enables constructive thinking about current practices, and whether they are the best way to add value
Assumptions? Context? Alternatives?

Boddy, Management: An Introduction, 3rd Edition, Pearson Education Limited 2005