Management and Organisational Behaviour 7th Edition

3. Purpose of organisations Organisations exist in order to achieve their aims & objectives and to provide satisfaction for their members Organisations are structures of people Organisations are an integral part of society operating in both public & private sectors

4. Defining organisations Farnham & Horton define organisations as: ..social constructs created by groups in society to achieve specific purposes by means of planned & co-ordinated activities. These activities involve using human resources to act in association with other inanimate resources in order to achieve the aims of the organisation.

6. Common factors in organisations There are at least three common factors in any organisation: People Objectives Structure

8. Management Key Concepts Organization: A structure whereby people are working together and coordinating their actions to achieve specific goals. Goal: A desired future condition that the organization seeks to achieve. Management: The process of using organizational resources to achieve the organization’s goals by… Planning, Organizing, Directing/Leading, and Controlling (Ref: Henri Fayol)

9. 3 ELEMENTS OF AN ORGANIZATION

10. The nature of organisations

11. Approach to organisation theory that stresses the common aspects of organisational life (Watson) The importance of the creative, critical & situation-defining characteristics of the individuals within the organisation. The varieties of interest and goal among the individuals & groups in the organisation, & the emphasis on conflict & political behaviour. The interactions between the organisation & general environment.

12. Formal organisations Schein defines a formal organisation as…. … the planned, co-ordination of the activities of a number of people for the achievement of some common, explicit purpose or goal, through the division of labour & function, & through a hierarchy of authority & responsibility

13. Formal organisations Formal organisations are: Deliberately planned and created Concerned with the co-ordination of activities Hierarchically structured with stated objectives Based on certain principles such as the specification of tasks and defined relationships of authority & responsibility

14. Basic components of an organisation

15. Basic components of an organisation Operational core – the direct performance of the technical or productive operations and the carrying out of actual task activities Operational support – concerned indirectly with the technical or productive process but closely related to the actual flow of operational work

16. Basic components of an organisation Organisational support – the provision of services for the whole organisation, including the operational core but usually outside the actual flow of operational work Top management – concerned with the broad objectives and policy & strategic decision making Middle management – concerned with the co-ordination & integration of activities & providing links with operational support staff

17. Private enterprise & public sector organisations Private Owned & financed by individuals, partners, or shareholders accountable to their owners or members. Main aim is of a commercial nature such as profit, return on capital employed, market standing or sales levels Public sector Created by government Do not generally have profit as their goal but have a political purpose

18. Characteristic features of service organisations The consumer is a participant in the service process Services cannot be stored, they are time-perishable & if they are not used they are likely to be wasted Services are less tangible & more difficult to explain or communicate  Fitzsimmons & Sullivan

19. Characteristic features of service organisations Benefits derived from services tend to be associated with feelings or emotions Work activities are people-oriented Measurement of output is difficult & there is unlikely to be a single, important criterion by which to measure effective performance Fitzsimmons & Sullivan

20. Differences between products & services

21. Differences between products & services

22. Types of organisational authority Traditional organisations - legitimised by custom and long-standing beliefs in the natural right to rule Charismatic organisations – legitimised by belief in the personal qualities of the leader Bureaucratic organisations – authority is based on the law of formal rules & procedures and on impersonal principles

23. Classifying organisations by major purpose Economic Protective Associative Public service Religious Political Educational Military Voluntary

24. Classifying organisations according to main beneficiaries Mutual-benefit associations – the membership Business concerns – owners Service organisations – client group Commonwealth organisations – public at large

25. Alternative classification – genotypic function Productive  Maintenance Adaptive Managerial or political Katz & Khan

26. The open systems model of organisations

27. Inputs Company products Factored products Staff Technology Management/sales/ technical expertise Finance Subcontractors Customers

28. Transformation process Comfortable & safe environment for customer businesses Design of systems Selling of systems expertise Provision of quality service

29. Transformation process Project management of customer order Site presence Innovation Internal & external communication

30. Outputs Invoiced sales Satisfied and committed staff Reputation for excellence Installations that are fit for purpose Satisfied customers

31. Organisational goals Market leadership Growth Profitability To be the best in field To invest in our people To be professional

33. The Value Chain Concept Identifies the separate activities and business processes performed to design, produce, market, deliver, and support a product / service Consists of two types of activities Primary activities Support activities

34. A Typical Company Value Chain(Internal)

35. The Value Chain System (External)

36. Measures of achievement Repeat business Customer feedback Budgets Margin performance Staff appraisal Free of charge work Volume of work Relationship with stakeholders

37. Environmental influences on organisations

39. Organisations as socio technical systems The sub systems of these organisations include: Goals and values Technical Psychological Structure Managerial Kast & Rosenzweig

40. Alternative sub systems Human / social Administrative / structural Informational / decision making Economic / technological  Hersey & Blanchard

41. Contingency models of organisations Adopts an if–then approach A number of situational factors influence organisational performance If certain situational factors exist, then certain organisational and managerial variables are most appropriate

42. Technology The physical aspects of machines, equipment, processes & work layout (machine technology) involved in the transformation or conversion process The actual methods, systems & procedures involved (knowledge technology) in carrying out the work of the organisation & transforming or converting inputs into outputs

43. Information technology Has prompted more procedures of work Has demanded new patterns of work organisation Affects the nature of individual jobs, formation & structure or work groups Led a move away from large-scale, centralised organisations to smaller working units Allows people to work more on their own Requires changes in the nature of supervision

44. The informal organisation The informal organisation arises from: the interaction of people working in the organisation their psychological and social needs the development of groups with their own relationships and norms of behaviour, irrespective of those defined within the formal structure

45. The formal & informal organisation

46. The formal organisation Organisation charts Spans of control Job definitions & descriptions Production efficiency Policies & procedures

47. The informal organisation Personal animosities & friendships Grapevines Group norms & sentiments Informal leaders Prestige & power structures Emotional feelings, needs & desires Effective relationships Personal & group goals

48. Comparing formal & informal organisations

49. Comparing formal & informal organisations

50. Comparing formal & informal organisations

51. Organisations of the future Organisations are living organisms that are constantly evolving. Ulrich suggests that with the changing and dynamic contextual factors - … the essence of organisations has shifted and will continue to shift from focusing on structure to capability.

52. Rise of organisational democracy There is a demand for alternative organisational practices and a far reaching transformation has already begun based on the idea that management as a system fails to open the heart or free the spirit  The age of management is coming to an end and the real push for the future is for more authentic human relationships and the humanisation of organisations as crucibles for personal growth and development Cloke & Goldsmith

54. The following group assignment will be evaluated

60. Submit your group report to the instructor by end of week 6