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MT113 Managing Organisations. The Changing Face of Organisations - an Introduction to Management Theory. 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’
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MT113 Managing Organisations The Changing Face of Organisations - an Introduction to Management Theory
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
What is Management? Planning - vision, direction, goals Organising - tasks, resources, processes Leading - motivation, environment, communication Control - Performance v. targets (move toward self-control)
What is Management? Senior managers Middle managers Project managers First line managers Nb of Direction, Communication, Control
Management Skills & Roles Skills Conceptual Human Technical Roles Information, figurehead, leader, liaison, decision-maker, negotiator, conflict resolver, change manager, resource allocator...
New Competencies Needed? Boundaryless organisation - collaboration & co-opetition The Networked Organisation - relationships & teams The Virtual Organisation - empowerment, trust, development
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
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.
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
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
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.
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
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
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.
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
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
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 Stability, efficiency Change, flexibility Mgt Competencies Focus Profits & Custs, emps Leadership Autocratic Distributed, empower Approach to work Individualistic Team Relationships Competitive, conflict Collaboration