By the end of this class you will have: Gained understanding of the systems view of organisations and the implications for managers of taking a systems view The role and function of management
One way of viewing an organisation: asystems view (the value of studying snails!) A system: Is a collection of inter-related parts that function to achieve a common purpose e.g a snail Can be viewed as ‘open’ systems that interact with their environments (so does a snail) e.g comes out when it rains Transforms resource (inputs) into outputs (products, knowledge, goods and services) (a snail chews up my flowers) and leaves ‘feedback’ ie a tell-tale silver trail Feedback from the environment tells an organisation how well it is meeting the needs of customers and society (the snail? Too hot, hides in the shade too cold, hibernates under a rock, too dry (dies), danger, goes into its shell)
Goal and values Technical Managerial Structural subsystem Psychosocial Structural
Looking for the similarities and differences: Gallagher’s and the University History: Gallaghers, 1930s , University 1950s Founding ‘fathers’ (why not founding mothers?) Have stated purpose and vision Strategies Structure Resources Both have grown Both have diversified So they have similarities but major differences
What constitutes the inputs, processes and outputs of both organisations? Make a list of the inputs at the University What sort of processes do they use? How do they turn these inputs into outputs? What are the outputs? What sort of feedback does the University need? How does it use this feedback? For what purpose? But what are differences with Gallaghers? Who owns and controls each? Shareholders and stakeholders
Implications of taking a systems view Everything is dependent on everything else e.g management style and employee satisfaction Everything is related to everything else You cannot change one part (e. g technology) without affecting other sub-parts of the organisation Organisations have to overcome negative entropy to prevent themselves running down., How? Feedback is essential for system survival
Why has management become so important? Attained the status of a religion. Why? Managers often highly paid especially CEOs Students clamour to have ‘management’ in their degrees. Why? Efficient and effective management of organisations, public, private , not for profit Why did management become so important?
The history of management: three revolutions The Agricultural Revolution 16th century England The Industrial Revolution 18th century England The Knowledge Revolution 20th century, western developed nations e.g. USA The next revolution???
What do managers actually do? Is it a contextual or universal activity i.e. the same in Hamilton as Shanghai? How does culture infleunce mangement? Does managerial work differ at different levels? e.g. senior or lower levels What are the major challenges facing managers in the 21st century?
The Management Process PlanningControlling Organising Leading
Raises more questions than answers…. What do these labels actually mean e.g. planning? Do all managers engage in all of these activities or only some? Do managers at different levels engage in more or less of these activities? Can the messy world of managing be neatly compartmentalised under these headings? In attempting to simplify the complex, we need to be very careful…….
Managing is ‘results-orientated’ Managers are concerned about efficiency and effectiveness: Effectiveness (goal attainment) ◦ measure of task output or goal accomplishment ◦ direct line to ultimate customer service and satisfaction Efficiency (input/output ratio) ◦ measure of the resource cost associated with goal accomplishment ◦ measure of outputs realised compared to inputs consumed
How do managerial assumptions affectemployee behaviour: Enter Theory X and Y Manager’s beliefs about people influence their style of managing i.e people are basically good Assumptions about people as well as what makes a business successful Our beliefs have consequences for how we behave and the expectations others have of us Beware unintended consequences
McGregor’s Theory X Managements responsibility is to its shareholders, to improve the companys "bottom line." Employees are another resource to be used to meet this goal. People are basically unwilling to work in the best interests of the company, cannot handle responsibility, and must be tightly controlled, prodded, and pressured to get their work done. Managers are ‘policemen’ Sounds negative but…..
Theory Y on the other hand Management should create conditions that enable and encourage employees to attain their own goals by working toward the goals of the organization. Employees are inherently ready to accept responsibility, do a good job, and work in the best interests of the company. It is managements responsibility to create the conditions that will allow employees to develop their fullest potential.
What are the major challenges facing? No. 1: the Climate Crisis Rapidly changing business environment Rapid technological change e.g. ‘twitter’ Developing skills needed e.g. managing ‘GEN-Yers’ Time pressures Stress from pressure to achieve results
(Challenges cont) Ethical issues Globalisation Managing knowledge Diversity in the workplace Speed of change & innovation
Week Two: Summary Where have we got? What should you know? What should you be reading?Read the chapters in the textsRead the outline in preparation for your tutorial and the possibility of a quiz…soonGo back and view the videod lecture
The funnel analogy: wide at thetop, narrowing down Starting broad: what is management? how did it develop? the management process what is it that managers actually do? Is management universally the same, Birmingham or Bejing? Two paradigms: universalistic (looking for the best way) vs contextual (it all depends)
Managing in the New Zealand context Twenty five years ago major changes happened in Aotearao New Zealand; 4th Labour Government Why should we be bothered with this ‘history’? Led to twenty years of continuous change Affected all aspects of society: economic, political, social, technological and demographic Shaped management practices Read Chpts 1 & 2. in Jones Context book The first ‘quiz’ is likely to be drawn from this
The global context: globalisation and management What is meant by globalisation? What has driven globalisation? How has it affected management practices? How is it affecting management and organisations in New Zealand? What do these companies have in common: Fisher & Paykel, BNZ,
1984: Was Orwell Right? By the end of the 1970s, New Zealand’s economy was in bad shape Low economic growth High inflation Negative balance of payments Low productivity Growing overseas debt Worst performing economy in the OECD country Unemployment was 4.6% Inflation 18% Mortgage rates hit 23%
Managing in the 1970s and early80s Industries protected by tariffs Agricultural protection and subsidies Highly regulated economy Inefficient government departments Time for change
1984: Labour Government Second Labour Government 1984-7 David Lange and Roger Douglas ‘Rogernomics’ De-regulation of the economy Devaluation of the dollar Lower corporate taxes Two goals: economic growth and low inflation Rogernomics: ‘consistent application of free market doctrine to almost every aspect of New Zeland life.’
The results? Government regulations and subsidies for manufacturing and farming were abolished State and local body enterprises were to be turned into profit-making enterprises Import restrictions and quotas abolished Government subsidies to agriculture abolished Monetary policy became the guiding principle Not just theory; put into practice
The changes Floated the dollar Abolishing import restrictions (end of car assembly) Reduction in tariffs (some companies closed or went off shore) Encouraged foreign investment Restructuring of ownership of public departments e.g. Post Office into Telecom Many old established companies bought up by overseas interests e.g BNZ
(cont p. 11) Reform of the public sector Establishment of SOE e.g. NZPost Reform of the health sector (p.12) Reform of education (p.12) But one sector escaped relatively untouched; the labour market
The effects of the reforms are argued to have been A more open economy Organisations forced to become more competitive A more diverse society e.g. arrival of many Asian peoples A great deal of pain for many ordinary people e.g firm closures Emphasised the need for more effective management of organisations and the economy. ‘Accountable management’ became the catch-cry in schools, hospitals, universities, churches, voluntary organisations as well as companies Management seen as a critical competitive advantage