191 B Week 2 slides


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191 B Week 2 slides

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191 B Week 2 slides

  1. 1. 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
  2. 2. 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)
  3. 3. Goal and values Technical Managerial Structural subsystem Psychosocial Structural
  4. 4. 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
  5. 5. 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
  6. 6. 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
  7. 7. 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?
  8. 8. 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???
  9. 9. 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?
  10. 10. The Management Process PlanningControlling Organising Leading
  11. 11. 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…….
  12. 12. 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
  13. 13. 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
  14. 14. 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…..
  15. 15. 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.
  16. 16. 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
  17. 17. (Challenges cont) Ethical issues Globalisation Managing knowledge Diversity in the workplace Speed of change & innovation
  18. 18. 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
  19. 19. 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)
  20. 20. 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
  21. 21. 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,
  22. 22. 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%
  23. 23. Managing in the 1970s and early80s Industries protected by tariffs Agricultural protection and subsidies Highly regulated economy Inefficient government departments Time for change
  24. 24. 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.’
  25. 25. 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
  26. 26. 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
  27. 27. (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
  28. 28. 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