Classes 35

1
ADMN 8110Organizational Theory and Behavior

• Classes 3-5

Dr. Mickey Dunaway
2
(What Would Machiavelli Do?)
WWMD
3
Housekeeping

• Revised Assignments Schedule
• Questions related to syllabus or other
  expectations?
• Dates for
• speaker
• site visit

4
Objectives

• Assess the roles of leadership in organizational
  success
• Compare and contrast effects of leader style
• Analyze the leaders relationship to motivation,
  morale and performance
• Discuss Machiavellis classical views of
  leadership and assess appropriateness for todays
  organizational environment
• Introduce and discuss Classical Organizational
  Theory

5
Classical Organizational Theory
6
Major Players

• Adam Smith (father of economics)
• Charles Babbage (father of modern computers)
• Daniel McCallum (father of org theory)
• Henri Fayol (1st comprehensive theory)
• Frederic Taylor (father of scientific mgt)
• Max Weber (described the ideal bureaucracy

7
Adam SmithOn Division of Labor

• Most jobs can be divided into many small
  divisions
• Example of pin maker
• Increases the productive power of labor.
• Increase in dexterity by performing one job
• Time is saved in passing from one job to another
  (The habit of sauntering by every workman
  renders him slothful and lazy incapable of any
  vigorous application)
• Facilitate by machines

8
Henri FayolGeneral Principles of Mgt

• Management functions only outlet is through the
  labor force
• Fayol saw a manager's job as
• planning
• organizing
• commanding
• coordinating activities
• controlling performance

9
Henri FayolGeneral Principles of Mgt

• Specialization Of Labor. Specializing encourages
  continuous improvement in skills and the
  development of improvements in methods.
• Authority and Responsibility.
• Authority The right to give orders and the power
  to exact obedience.
• Responsibility natural counterpart of authority
• Discipline. No slacking, bending of rules.
• Obedience, application, energy
• Poor discipline result of poor leadership
• Established and maintained by good superiors,
  clear, fair agreements, and sanctions judiciously
  applied.

10
Henri FayolGeneral Principles of Mgt

• Unity of command.
• Each employee has one and only one boss.
• dual command wreaks havoc in all concerns
  large small, home or state.
• Unity of direction.
• One head and one plan for a group of activities
  having the same objection
• Function of organizing labor
• Subordination of Individual Interests. When at
  work, only work things should be pursued or
  thought about.
• Firmness and good examples from superiors
• Fair agreements (if possible)
• Constant supervision

11
Henri FayolGeneral Principles of Mgt

• Remuneration. Employees receive fair payment for
  services, not what the company can get away with.
  
• Centralization. Decisions are made from the top.
  Part of natural order
• Scalar Chain (line of authority). Formal chain of
  command running from top to bottom of the
  organization, like military
• Order.
• A place for everything
• Everything in its place
• Equity.
• Equality of treatment (but not necessarily
  identical treatment)
• Combination of kindness and justice

12
Henri FayolGeneral Principles of Mgt

• Stability of personnel.
• Limited turnover of personnel.
• a mediocre manager who stays is infinitely
  preferable to outstanding managers who come and
  go.
• Initiative. A manager must sacrifice personal
  vanity to grant initiative to others
• Esprit de corps. Harmony, cohesion among
  personnel
• Dont split up a team
• Dont abuse written communications
• Give verbal orders where possible

13
Frederic Winslow TaylorThe Principles of
Scientific Mgt

• Basic belief workers believe it is to their
  benefit to go slow
• Worker if we work twice as efficiently, half
  lose jobs
• Effect of labor-saving devices are more work not
  less
• Management is reluctant to pay higher wages for
  increased output
• Worker no benefit to produce more (soldiering)

14
Frederic Winslow TaylorThe Principles of
Scientific Mgt

• Gather data and reduce it to mathematical
  formulas about every job
• Industrial engineering
• Select workers to fit particular jobs
• Conduct ongoing study of workers abilities
• Train workers in scientific management
• Dont leave this aspect to chance
• Divide work into areas of labor and management
• Forces each to depend on the other therefore
  encouraging teamwork

15
What gets measured
Complete this phrase
gets done!

• Do you believe it?
• What are the implications?

16
Max WeberBureaucracy

• Characteristics
• Fixed and official jurisdictional areas
• Regular activities and duties
• Authority ot give orders
• Provision for fulfillment of duties
• Hierarchical office authority
• Supervision of lower levels by upper levels
• Management of office (bureau) is based on written
  documents
• Specialized/expert training for office holder
• Management of the office follows stable rules
  which can be learned

17
Max WeberBureaucracy

• Position of the Official
• Office-holding is a vocation
• The official enjoys social esteem
• The official is appointed by a superior authority
• The position is held for life
• The official receive a regular fixed salary with
  a pension
• The official is set for a career of public service

18
Neoclassical Organizational Theory
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Overview

• No precise definition
• Not a body of theory which replaces Classical
  Theory
• Contributions
• Initiated theoretical movement away from
  over-simplistic mechanical views
• Raised issues and initiated theories that became
  central to the foundations of most schools of
  thought which have followed

20
Personalities

• Herbert Simon
• First to challenge Classical theorists
• Criticized principles as being inconsistent,
  conflicting, and inapplicable to many situations
• Viewed principles as proverbs
• James March and Herbert Simon
• Attached bureaucracies as dysfunctional
• Melville Dalton
• Focused on structural frictions between line and
  staff and between central office and
  geographically dispersed units in an organization

21
Personalities

• William Whyte
• Studied human relations to understand and
  describe stresses from inter-relations and status
• R.M. Cyert and James March
• Analyzed impact of power and politics on
  organizational goals

22
Chester BernardThe Economy of Incentives

• He looked at organizations as systems of
  cooperation of human activity, and was worried
  about the fact that they are typically rather
  short-lived. Firms that last more than a century
  are rather few, and the only organization that
  can claim a substantial age is the Catholic
  Church.
• In the theory of incentives, he sees two ways of
  convincing subordinates to cooperate tangible
  incentives and persuasion.
• He gives great importance to persuasion, much
  more than to economic incentives

23
Chester BernardThe Economy of Incentives
Organization A system of consciously coordinated
personal activities or forces of two or more
persons.
Organization can exist only when it attracts and
maintains enough participations and
contributions from individuals.
Individuals contribute to and participate in an
organization because of incentives.
Organization can secure the efforts to its
existence by 1) offering incentives or 2)
changing subjective attitudes through persuasion).
The method of incentives alone cannot be
sufficient, or it is costly. The scheme of
incentives is rarely determinable in advance, it
can only evolve.
24
Robert MertonBureaucratic structure and
Personality

• An effective bureaucracy expects consistency of
  response and stringent adherence to regulations.
  (Policy over people)
• Strict adherence to rule leads to blind devotion
  which also causes little reflection on original
  purposes. (This is how we do it here.)
• Blind devotion does not allow for the need to
  change to meet changing conditions
• Therefore, the very things that were put in place
  to encourage efficiency in general, produce
  inefficiency in special instances that call for
  variation.

25
Phillip SelznickFoundation of the Theory of
Organization

• Organizations are at the same time
• Concrete system of economy
• An adaptive social system
• Maintaining the system in place requires
• Security of the organization in relation to
  social forces in the environment
• Stability of lines of communication and authority
• Stability of informal relations in the
  organization
• Continuity of policies
• Consistent view of the vision and mission of the
  organization

26
Human Resource Theory
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Basic Assumptions

• Organizations exist to serve human needs
• Organizations and people need each other. (Why?
  For What?)
• When the fit is poor, one or both suffer
• A good fit benefits both

28
Primary Influences

• Hawthorne Experiments by Elton Mayo became most
  significant event
• Wanted to determine what affected productivity
  such as light, flow of materials, wage plans
• Showed that complex variable make the difference
  such as
• attention to individuals,
• workers control of work,
• differences between workers needs,
• managements willingness to listen,
• group norms, and
• direct feedback

29
Primary Influences

• Hawthorne Experiments by Elton Mayo became most
  significant event
• Organization is not the independent variable to
  be manipulated to change behavior (dependent
  variable)
• The organization is the context in which behavior
  occurs
• The organization influences human behavior and
  behavior shapes the organization

30
Major Players

• Mary Parker-Follett
• Abraham Maslow
• Douglas McGregor
• Frederick Herzberg

31
Mary Parker FollettThe Giving Of Orders

• Argued for a participatory leadership style where
  workers and employers cooperated to assess the
  situation and decide what should be done
• Believed that orders should be depersonalized
  with a focus on the problems not the people
  involved
• Implications?

32
Abraham MaslowA Theory of Human Motivation

• All discussions of motivation begin with Maslows
  Hierarchy of Need
• All humans have needs that underlie motivations
• As lower levels are met, they no longer drive
  behavior
• Satisfied needs are not motivators
• As lower levels are met, higher order needs take
  over as motivating factors

33
Abraham MaslowA Theory of Human Motivation

• Hierarchy of Need
• Safety, physiological
• Love, affection, belongingness
• Self-esteem
• Self-actualization

According to Stephen Covey, late in life Maslow
said that the highest need was not independence
(self-actualization), but interdependence
34
Douglas McGregorThe Human Side of Enterprise

• Two kinds of managers Theory X and Theory Y
• Managerial assumptions about employees become
  self-fulfilling prophesies

35
Douglas McGregorThe Human Side of Enterprise
Theory X

• Management directs employee efforts
• Without this intervention, workers are passive or
  resistent
• Average worker works as little as possible
• Average worker lacks ambition dislikes
  responsibility prefers to be led
• Is self-centered, indifferent to the
  organizations needs
• By nature resistant to change
• Is gullible, not very bright

36
Douglas McGregorThe Human Side of Enterprise
Theory Y

• Management organizes money, people, materials,
  etc
• People are passive or resistant only as a result
  of experience in the organization not by nature
• People have motivation, potential for
  development, responsibility, and readiness to
  achieve organizational goals
• Essential task of management is to arrange
  conditions and methods so people can achieve
  their potential and the organizations as well

37
Where would you place Savage and Davenport?
38
Frederick HerzbergOne More Time How Do You
Motivate Employees?
Ask people what makes them unhappy at work, and
youll hear about an annoying boss, a low salary,
an uncomfortable work space, or stupid rules.
Managed badly, environmental work factors make
people miserable, and they can certainly be
demotivating. But even if managed brilliantly,
they dont motivate anybody to work much harder
or smarter.
Agree?
39
The Work of Frederick Herzberg

• Original studies in 1950s and 60s
• He looked at what increased job satisfaction and
  dissatisfaction.
• Discovered that
• Job Satisfaction is not the opposite of Job
  Dissatisfaction
• Hygeine factors and Motivating Factors
• The factors involved in producing job
  satisfaction (and motivation) are separate and
  distinct from the factors that lead to job
  dissatisfaction. Herzberg, 2003

40
Myths of Motivation

• Reduce Time at Work The fact is that motivated
  people seek more hours of work, not fewer
• Increase pay Have spiraling wages motivated
  people? Yes, to seek the next wage increase.
• Fringe Benefits People spend less time working
  for more money and more security than ever
  before, and the trend cannot be reversed. These
  benefits are no longer rewards they are rights.

41
Myths of Motivation

• Communication House organs, briefing sessions
  think faculty meetings, supervisory instruction
  on the importance of communication, and all sorts
  of propaganda have proliferated But no
  motivation resulted.
• 2 Way Communication Management ordered morale
  surveys, suggestion plans, and group
  participation programs. Then both management and
  employees were communicating and listening to
  each other more than ever, but without much
  improvement in motivation.

42
Myths of Motivation

• Job Participation. Though it may not have been
  the theoretical intention, job participation
  often became a give them the big picture
  approach.
• The goal was to provide a sense of achievement
  rather than a substantive achievement in the
  task.
• Real achievement, of course, requires a task that
  makes it possible. But still there was no
  motivation.

43
Motivators
Maintainers

• Achievement
• Recognition
• Work itself
• Responsibility
• Advancement
• Growth

• Company policy and administration
• Supervision
• Relationship with the supervisor
• Work conditions
• Salary
• Relationship with peers
• Personal life
• Relationship with subordinates
• Status
• Security

44
Factors Affecting Job Attitude
45
The Wisdom of Herzberg

• Forget praise.
• Forget punishment.
• Forget cash.
• You need to make
• their jobs more
• interesting.
• The opposite of job dissatisfaction is not job
  satisfaction, but no job dissatisfaction.

46
Eight Leader Behaviors That Increase Motivation,
Morale, And Performance And One That Wont

• Develop a personal leadership platform
• Be the principal-learner and the
  principal-teacher of all things leadership
• Affirm and teach the powerful roles that
  organizational beliefs, vision, and mission play
• Lead through the reciprocity of accountability

47
Eight Leader Behaviors That Increase Motivation,
Morale, And Performance And One That Wont

• Build collegiality around problems of practice
• Emulate the actions of successful coaches
• Recognize that leadership produces significant
  levels of discomfort among followers
• Develop a sense of cultural professionalism in
  pursuit of common goals.

48
Eight Leader Behaviors That Increase Motivation,
Morale, And Performance And One That Wont
Managing a school does not and cannot increase
teacher motivation no matter how much time is
spent on

• policy development
• budget management
• supervision
• principal-teacher collegiality

• work conditions
• salary
• teacher-teacher collegiality
• security

49
Irving JanisGroupthink The Desperate Drive for
Consensus at Any Cost

• Groupthink is a type of thought exhibited by
  group members who try to minimize conflict and
  reach consensus without critically testing,
  analyzing, and evaluating ideas.
• During Groupthink, members of the group avoid
  promoting viewpoints outside the comfort zone of
  consensus thinking.

50
Irving JanisGroupthink The Desperate Drive for
Consensus at Any Cost

• Illusion of invulnerability Creates excessive
  optimism that encourages taking extreme risks.
• Collective rationalization Members discount
  warnings and do not reconsider their assumptions.
  
• Belief in inherent morality Members believe in
  the rightness of their cause and therefore ignore
  the ethical or moral consequences of their
  decisions.
• Stereotyped views of out-groups Negative views
  of enemy make effective responses to conflict
  seem unnecessary.
• Direct pressure on dissenters Members are under
  pressure not to express arguments against any of
  the groups views.
• Self-censorship Doubts and deviations from the
  perceived group consensus are not expressed.
• Illusion of unanimity The majority view and
  judgments are assumed to be unanimous.
• Self-appointed mindguards Members protect the
  group and the leader from information that is
  problematic or contradictory to the groups
  cohesiveness, view, and/or decisions.

51
Have you ever experienced groupthink?
52
Modern Structural Theory
53
Basic Assumptions

• Organizations are rational institutions with
  primary purpose to accomplish established
  objectives
• Rational behavior best achieved through system of
  defined rules and formal authority
• Control and coordinaiton are keys for maintaining
  organizational rationality

54
Basic Assumptions

• There is a best structure for any organization
  or at least a most appropriate structure based on
• Organizational objectives
• Environmental conditions
• Nature of product or service
• Technology of production process

• Specialization and division of labor increase
  quality and quantity especially in highly skilled
  professions
• Most problems result from structural flaws and
  can be solved by changing the structure

55
Basic Assumptions

• Specialization and division of labor increase
  quality and quantituy especially in highly
  skilled professions
• Most problems result from structural flaws and
  can be solved by changing the structure

56
Burns and StalkerMechanistic and Organic Systems

• The mechanistic (traditional) management is
  appropriate to stable conditions
• Organic forms (less rigidity, more participation
  from workers) more appropriate to changing
  conditions (fresh problems, unforeseen
  requirement for action

57
MintzbergFive Basic Part of an Organization

• The Operating Core
• Those members who perform the basic work
  directly related to the product or service of the
  organization
• Strategic Apex
• Those people charged with overall responsibility
  for the organization

58
MintzbergFive Basic Part of an Organization

• The Middle Line
• Connects strategic apex to operating core
• Middle management
• The Technostructure
• Analysts and their clerical support
• Support Staff
• Provides support outside the operating core

59
MintzbergFive Basic Part of an Organization
Strategic Apex
Middle Line
Operating Core
How well does Mintzbergs work apply to your
experiences?
60
Elliot JaquesIn Praise of Heirarchy

• Hierarchy is the most efficient, hardiest, most
  natural structure devised for large organizations
• Theorists propose changes
• It ought look like an orchestra or hospital
• It ought function by semiautonomous work teams
• It should be organic and entrepreneurial
• It should hinge on skunk works or MBWA

A small, loosely structured corporate research
and development unit or subsidiary formed to
foster innovation
61
Elliot JaquesIn Praise of Hierarchy

• Problem is not in hierarchy but in gimmicks and
  fads which have been added on to the system
• No need for flatter organizations, but better
  understanding of how the hierarchy should work
• Complaints
• Too many rungs on the ladder
• Few managers add real value
• Hierarchies bring out worst in people

62
Elliot JaquesIn Praise of Hierarchy

• False group solutions fail to acknowledge nature
  of employment systems
• People are employed individually
• Employment contracts are individual
• While theorists focus on group authority,
  responsibility, decisions, and consensus, none of
  them address group accountability
• Group authority without group accountability is
  dysfunctional
• Group authority with group accountability is
  unnacceptable

Any Jaques ideas resonate with you?
63
Burton and ObelTechnology as a Contingency Factor

• Effects formalization
• Based on need to process information
• Effects centralization
• Smaller organizations more centralized
• Effects on complexity
• The more complex the work, the fewer people a
  manger can supervise and control
• Effects on configuration
• If you understand this one, help me!
• Effects on coordination and control mechanisms
• Routine technology does not change much and
  require less control and coordination

64
Organizational Economics Theory
65
Basic Ideas

• Economic tools are used to study internal
  organizational processes
• Key Questions asked over the years
• Contractual nature of organizations
• Bounded rationality
• The idea of bounded rationality is that
  individuals strive to be rational having first
  greatly simplified the choices availablethey
  accept a satisfactory solution which is good
  enough for their purposes rather than finding the
  optimum answer Answers.com
• Significance of investment in specific assets
• Specific rights and residual rights
• The effects of imperfect information

66
Power and Politics Theory
67
Basic Assumptions

• The neatest thing about power is that we
  understand it
• Coalitions continuously compete for scarce
  resources
• Conflict is inevitable
• Influence is the primary weapon of competition
  and conflicts
• Coalitions shift with issues often cross
  organizational boundaries

Can you cite scarce resource examples? Is
conflict inevitable? Where do fall on the
influence continuum?
68
Basic Assumptions

• Organizational goals change with shifts in
  balance of power
• Organizational goals are important because they
  provide the official rationale and legitimacy
  for resource allocation
• Power is a function of structure
• More critical units have more power

69
Basic Assumptions

• Sources of organizational power
• Downward influence (authority)
• Lateral influence
• Upward influence
• Other forms of power
• Control of scarce resources
• Easy access to others perceived with power
• Central place in a potent coalition
• Knowing how to get things done
• Credibility

If you are leader, which of these do your
employees value most in you?
70
Definition of Power

• The ability to get things done the way one wants
  them done it is the latent ability to influence
  people
• Power is relative to the relationship
• It is used to determine methods, means,
  approaches, and/or turf

Who an you identify with who has power? Can you
identify one situation in which you had
significant power and another where you had no
power?
71
Jeffrey PfefferUnderstanding the Role of Power
in Decision Making

• To measure and operationalize power, one must
  estimate
• What would have happened in its absence
• What were the actors intentions in attempting to
  exercise power?
• The effect of the actions by the actor on the
  probability that what was desired would be likely
  to occur

72
Jeffrey PfefferUnderstanding the Role of Power
in Decision Making

• Distinguishing Power and Authority
• When power is legitimized, it is authority
• Exercise of Power in a social context has costs
  and is used only with very important issues
• Exercise of Authority is both expected and
  desired and the use may enhance the amount of
  authority possessed
• In spite of considerable power of lower level
  employees, they seldom exercise it because
• The authority of the manager to direct work is so
  legitimized
• Subordinates obey because they expect such
  directions will be given and followed

73
Jeffrey PfefferUnderstanding the Role of Power
in Decision Making

• Organizational politics are those activities
  taken within an organization to
• Acquire, develop, and use power and other
  resources to obtain ones preferred outcomes in a
  situation of uncertainty or dissent about choices
• Power is a property of the system at rest
• Politics is the study of power in action
• Political activity is an activity which is
  undertaken to overcome some resistance or
  opposition
• Politics are not by their nature immoral or
  unethical, but are a fact of life

74
Jeffrey PfefferUnderstanding the Role of Power
in Decision Making

• Where have you seen power used appropriately and
  inappropriately?
• Have you ever played politics?
• Have you ever used your influence for a good
  outcome?
• How well do you think the average person
  understands about the nature of power?
• Has your power ever been assumed to be greater
  than it actually was?

75
Rosabeth Moss KanerPower Failure in Management
Circuits

• People tend to prefer bosses with clout
• Employee status is enhanced by an influential
  manager and they generally have high morale and
  feel less critical or resistant to their boss.
• Powerlessness often creates ineffective petty,
  dictatorial management styles.
• Power can/should follow efficacy and capacity
• Powerful leaders are more likely to
• Delegate
• Reward talent
• Build a team that places subordinates in
  significant positions

76
Rosabeth Moss KanerPower Failure in Management
Circuits

• Sources of power
• Lines of supply influence over the environment
• Lines of information knowledge and expertise
• Lines of support able to exercise discretion
• Positions of Powerlessness
• First line supervisor
• People in the middle
• Often at a dead end in careers
• Administer programs or policies they had little
  to do to create
• Often lack resources to reward people

77
Rosabeth Moss KanerPower Failure in Management
Circuits

• Positions of Powerlessness
• First line supervisor
• Demonstrate symptoms of powerlessness
• Overly close supervision
• Rules-mindedness
• Tendency to do the job themselves
• Staff Professionals
• Must sell programs with few favors to exchange
  for compliance
• Without line experience may have limited career
  options
• Effectiveness/contributions are hard to measure
• Act out powerlessness by becoming turf-minded

78
Rosabeth Moss KanerPower Failure in Management
Circuits

• Positions of Powerlessness
• Top Executives
• Credibility comes from dramatic actions
• But routine problems trap them with small
  solutions and rewards
• People at the top should insulate themselves from
  routine operations in order to develop and
  exercise power
• Life at the top is characterized by real
  loneliness
• Leaders may create closed inner circles of people
  like themselves who are their principal sources
  of information

79
Rosabeth Moss KanerPower Failure in Management
Circuits

• To expand power, share it
• Delegation does not mean abdication
• Powerless people are the ones whose behavior is
  most likely to change with shared power
• Spreading power means educating people to the
  nature of shared power

• What are your experiences with powerless people?
  With shared power?
• Why is shared decision-making not shared power?

80
The Exam
81
For March 21-22