MT113 Managing Organisations

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MT113 Managing Organisations

• The Changing Face of Organisations -
• an Introduction to Management Theory

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What is Management?

• The art of getting things done through people
  Mary Parker Follet
• Managers give direction, provide leadership
  decide how to use resources to accomplish goals
• Peter Drucker
• Mgt is the attainment of organisation goals in
  an effective and efficient manner through
  planning, organising, leading and controlling
  organisation resources
• Daft

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What is Management?

• Planning - vision, direction, goals
• Organising - tasks, resources, processes
• Leading - motivation, environment, communication
• Control - Performance v. targets
• (move toward self-control)

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What is Management?

• Senior managers
• Middle managers Project managers
• First line managers

Nb of Direction, Communication, Control
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Management Skills Roles

• Skills
• Conceptual
• Human
• Technical
• Roles
• Information, figurehead, leader, liaison,
  decision-maker, negotiator, conflict resolver,
  change manager, resource allocator...

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New Competencies Needed?

• Boundaryless organisation - collaboration
  co-opetition
• The Networked Organisation -
• relationships teams
• The Virtual Organisation -
• empowerment, trust, development

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Organisation Theory - Evolution of Thought

• Hunter gatherer...Egyptian Pharaohs..Roman
  Empire...
• Industrialisation
• The Classical Theorists
• The Humanistic Perspective
• The Modernists - Organisations as Systems
• - The Contingency School
• Postmodernism

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Organisation Theory - Evolution of
ThoughtIndustrialisation

• Modern Organisations and the systematic study of
  them began with industrialisation.
• Adam Smith - Division of Labour
• Movement away from family business to industrial
  era.

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Organisation Theory - Evolution of ThoughtThe
Classical Theorists
1. Scientific Management School 2.
Administrative Theorists 3. Bureaucratic School

• Focus on efficiency and control
• One best way - Universalistic
• Employee as tool/instrument
• Assumed environment was stable

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Organisation Theory - Evolution of ThoughtThe
Humanistic Perspective

• Human relations movement - The Hawthorne Studies
• Group interaction social climate important to
  job performance (Mayo)
• Human resources perspective - job design,
  motivation, belief in potential
• Maslow McGregor

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The ModernistsOrganisations as Systems

• Open Systems - Organisations, like organisms, are
  open to their environment and must interact with
  it to survive.
• Inter-relatedness - The whole is worth more than
  the sum of the parts (subsystems).
• Closed systems are unsustainable.

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5 Functions of Subsystems

• Boundary spanning - input/output transactions eg.
  purchasing marketing
• Production - change inputs into outputs eg.
  teacher training
• Maintenance - smooth operations upkeep of
  services people eg. HR janitors

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5 Functions of Subsystems ctd

• Adaptation - organisation change - scanning
  environment for opportunities/threats eg. Market
  Research and IT
• Management - sets goals and direction for all
  subsystems
• 5 subsystems are usually interconnected

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The ModernistsContingency School of Thought

• Theorists and managers must understand
  environment/context to prescribe appropriate
  structure/management technique.
• Success contingent on more than one factor no
  universal solution.
• Focus on structure, environment, technology and
  size.

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Organisation Theory - Evolution of
ThoughtPostmodern Organisation Paradigm

• A paradigm is a shared mindset or way of looking
  at the world.
• Postmodern world
• increased rate of change
• global competitiveness
• information / electronic revolution
• unstable unpredictable environment

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Organisation Theory - Evolution of
ThoughtPostmodern Organisation Paradigm

• The postmodern organisation reflects the needs of
  a changing world
• moderate size
• flexible, decentralised structures
• info / knowledge as primary form of capital
• employee empowerment
• servant leadership

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The Learning Organisation
Old Paradigm New Paradigm Vertical Org. Learning
Org.
Forces on orgs Markets Local,
domestic Global Workforce Homogeneous Diverse
Technology Mechanical Electronic Values Stab
ility, efficiency Change, flexibility Mgt
Competencies Focus Profits Custs,
emps Leadership Autocratic Distributed,
empower Approach to work Individualistic Team Re
lationships Competitive, conflict Collaboration