The Changing Paradigm of Management

1. The Changing Paradigm of Management

2. Classical Perspective of Management Understanding the classical perspectives of management is important because many if not most companies today are still being managed using these principles. This is the paradigm through which most managers still see their work world. Lets paint our glasses so we can see the paradigm.

3. The environment Small firms producing single products or products with long runs Environment outside the firm is slow to change Employees obtain skills and then use those skills over a lifetime Specialization

4. The Mechanistic Organization Treat organizations as if they were machines A logical conclusion of the industrial revolution Organizations support the needs of machines Three themes Scientific Management-the production philosophy of Frederic Taylor Bureaucracy-the organizational philosophy of Max Weber Principles of Management-the administrative philosophy of Henri Fayol

5. The Production Philosophy Frederick Taylor

6. Scientific Management Each task has one best method It is management�s responsibility to find that method It is management's responsibility to train the worker in using that method It is the workers responsibility to perform the task using that method and to be paid extraordinarily well for his efforts.

7. General Approach Develop a standard method for performing each job Select the worker with the most appropriate abilities Train the worker in the standard method Provide the worker with everything needed to do the job Eliminate wasted motions and steps Provide wages based on performance against the standard

8. Assumptions The production environment is a closed system mechanistic-employees, machines etc. are pieces of a machine and are homogeneous. If a part breaks, replace it with an identical one. Maximum efficiency

9. Problems Closed systems focus inward People aren�t machines, they are social animals

10. The Organizational Philosophy Max Weber

11. Bureaucracy Organization based on a hierarchy Clearly defined authority and responsibility Promotions and selections based on qualifications Anticipate problems and devise solutions in advance Separation of management and ownership Rules are uniformly applied to all

12. Assumptions Information flows up and decisions flow down The Peter principle

13. Problems Inefficient way of making decisions in an environment that changes rapidly.- Working on yesterdays problem. Inefficient way of utilizing intellectual capital � not the best but the highest.

14. The Administrative Philosophy Henri Fayol

15. Principles of Management Unity of Command-everyone has only one boss Division of Work-specialization is most efficient Unity of Direction-Group similar activities together under one manager. Chain of Command- a single chain of command from the top to the bottom Five basic management functions-planning, organizing, commanding, coordinating and controlling.

16. The Changing Paradigm of Management Is there a new paradigm and what does it look like?

17. What is the new paradigm Greater emphasis on internal customers Leadership is dispersed Team orientation Relationships are crucial

18. If it is changing, are the management functions obsolete? Four functions still are being performed but the approach is changing The paradigm is not changing-companies are paying lip service to the concept but not changing at all.

19. What is a learning organization? Why is it needed? A new paradigm is needed because in rapidly changing environments, hierarchical, mechanistic organizations don�t work. Environment is changing rapidly because of Globalization Information technology

20. What is a learning organization based on? Based on Systems Theory and double loop learning. Single and Double loop learning (effectiveness)

21. Single Loop Learning

22. Double loop learning

23. What is a learning organization based on? Based on Systems Theory and double loop learning. Single and Double loop learning (effectiveness) Organization functions like a brain � a web Information is ubiquitous Employees are empowered to use double loop learning to make decisions Leadership is based on developing shared vision and providing the resources necessary Strategic decision making is decentralized

24. What are the purposes? Scan and anticipate changes in the environment Develop an ability to question, challenge and change operating norms Allow appropriate strategic direction and patterns of organizations to emerge Avoid getting trapped in single loop learning

25. Answer the video questions