Organisational Theories


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Organisational Theories

  1. 1. 1. Organisational theories: scientific management, human relations, bureaucracy, current trends: 1.1. Scientific management: 1.1.1. The US - scientific management. 1.1.2. Scientific management of Frederic Taylor (1920). 1.1.3. Short work cycles, task sequences, division of labour, selection and training, surveillance 1.1.4. Disregarded groups, piecework, money as reward, uniform and interchangeable workforce 1.1.5. Industrialisation in the US - new work systems for uneducated, migrant workforce 1.2. Human relations: 1.2.1. The US - human relations. 1.2.2. ‘Human relations’ of Follett and Mayo (1920) 1.2.3. Features: better working conditions improved productivity ‘ Hawthorne experiment’ of electric light and short breaks, importance of informal groups 1.2.4. ‘soft’ approach in design of work systems 1.3. Bureaucracy 1.3.1. Germany: Weber’s (1910) bureaucracy 1.3.2. Based on legitimate authority of roles, continuity of employment and career development, rules and procedures 1.3.3. Chain of command structure, multilayered management 1.3.4. Industrialisation in Germany and France - focus on non-manufacturing 1.4. Current trends 1.4.1. Systems - use of technology, processes adapted to people 1.4.2. Japanese management concepts - teamwork, JIT, TQM, kaizen, producer-supplier networks 1.4.3. Contingency -mix of management ideas, but economic approach dominates with people following processes 2. Individual behaviour in organisation: perception, attributions, attitudes; personality and stress: 2.1. Perception: 2.1.1. A psychological process of interpreting sensory data. a) Selective attention - cannot pay attention to all data b) Perceptual organisation - looking for order in data c) Interpretation - giving the data meaning d) Behavioural response - outcome of behavior. 2.2. Attributions: 2.2.1. Attribution - assumption about cause and effect 2.2.2. Assumption - leads to belief, is based on attribution 2.3. Attitudes: Since the 1930s, industrial psychologists have attempted to link employee attitudes with performance. Despite complicated theories and refined measures, the relationship between attitudes and performance was, at best, very weak. The stimulus for this work stemmed from the Human Relations School that put forward the proposition that ‘a happy worker is a productive one’ (that is, there is a relationship between individual attitudes – in this case, job satisfaction – and how well an individual performed). However, the empirical evidence did not support such a link.
  2. 2. 2.4. Personality & Stress: 2.4.1. Personality - a set of personal characteristics 2.4.2. Personality clusters traits (Eysenck 1990) - based on 2 dimensions: relationship with others and emotional responses to the environment :( Introvert/extravert - Stable/unstable ) 2.4.3. A and B personality (Friedman & Rosenman 1974) - resistance to episodic and chronic stress 2.4.4. ‘Big 5 personality traits’(Costa & McRae 1992): 2.4.5. Introvert/extravert 2.4.6. Agreeableness/hostility 2.4.7. Conscientiousness/heedlessness 2.4.8. Emotional stability/instability 2.4.9. Openness/close-mindedness to learning 3. Motivation theories: Maslow, Herzberg, McClelland: 3.1. Maslow: 3.1.1. Maslow- Need hierarchy. a) Self-actualisation b) Freedom c) Transcendence - spiritual d) Knowledge e) Aesthetic - order, beauty f) Esteem - attention g) Affiliation -relationships h) Safety i) Biological 3.2. Herzberg: 3.2.1. Hygiene factor - organisational context: a) Pay b) Status c) Security d) Working conditions 3.2.2. Motivator - job content a) Work b) Responsibility c) Achievement 3.2.3. Job can be designed to provide: 3.2.4. Intrinsic (job satisfaction ) and 3.2.5. Extrinsic awards (controlled by others) 3.2.6. Unskilled workers depend on hygiene factor 3.3. McClelland: 3.3.1. based on drives and motives, in dimensions of high and low need for: a) Interest - work as challenge b) achievement - ambition to achieve recognition c) variety - gets bored d) power - wants to control environment e) social contact - likes socialising f) money - priority
  3. 3. g) physical conditions - comfort h) structure - job security 4. Groups and teams: formation, development and behaviours: 4.1. Formation: 4.1.1. Is developing the norm 4.1.2. The group is not yet a group but a set of individuals. This stage is characterised by talk about the purpose of the group, the definition and the title of the group, its composition, leadership pattern, and life- span. 4.2. Development: 4.2.1. Group socialisation process occurs in stages: 4.2.2. forming- norms develop: a) High dependence on leader for guidance and direction. Little agreement on team aims other than received from leader. Individual roles and responsibilities are unclear. 4.2.3. storming- conflict emerges: a) Decisions don't come easily within group. Team members vie for position as they attempt to establish themselves in relation to other team members and the leader, who might receive challenges from team members. 4.2.4. norming- leader emerges: a) Agreement and consensus is largely forms among team, who respond well to facilitation by leader. Roles and responsibilities are clear and accepted. Big decisions are made by group agreement. 4.2.5. performing-teamwork is norm: a) The team is more strategically aware; the team knows clearly why it is doing what it is doing. The team has a shared vision and is able to stand on its own feet with no interference or participation from the leader. 4.3. Behaviours: 4.3.1. Group behavior emanates from the causes that contribute to the group’s effectiveness. 4.3.2. As groups function and interact with other groups, they develop their own unique set of characteristics including structure, cohesiveness, roles, norms and processes. As a result, groups may cooperate or compete with other groups, and intergroup competition can lead to conflict. 4.3.3. Modern organisational structures - lean organisation (Womack 1970) and flat firm (Atkinson 1984) are based on teamwork; 5. Decision-making models: Vroom & Yetton; Simon, March & Cyert: 5.1. Vroom & Yetton: 5.1.1. Effective decision is influenced by 3 factors: 5.1.2. Quality, acceptance, time, and vary from authoritative to participative. 5.2. Simon: 5.2.1. Rationality of decision making is restricted by environmental and personal limitations 5.2.2. Outcome: ‘satisficing’: (Limited information processing Heuristic devices biases ) 5.3. March & Cyert: 5.4. EXHAUSTIVE VARIABLE CATEGORIES for analysis of decision-making 5.4.1. Variables that affect ORGANIZATIONAL GOALS a) variables that influence ( DIMENSIONS of goals & ASPIRATION LEVELS on any dimension ) 5.4.2. Variables that affect ORGANIZATIONAL EXPECTATIONS a) variables that affect the process: (of DRAWING INFERENCES from given information, by which INFORMATION is made available to the organization )
  4. 4. b) affecting: ( the intensity and success of search & the direction of search ) 5.4.3. Variables that affect ORGANIZATIONAL CHOICE a) variables that ( affect the definition of the problem, influence the standard decision rules, affect the order of consideration ) 6. Conflict management: resolution and stimulation: 6.1. Resolution: 6.1.1. Conflict resolution (Thomas Kilmann 1976) a) Forcing/competing - for emergencies, causes resentment b) Avoiding - for trivial problems, temporary solution c) Compromising - for complex problems, as a backup, inconclusive d) Accommodating - emphasises a common ground, temporary solution e) The chapter emphasized the long-term benefits of collaboration, concluding that 'on the whole, collaboration is a desirable state of affairs' for individuals and organizations. 6.2. stimulation: 6.2.1. Conflict is needed to stimulate organisational change with techniques: 6.2.2. Bring in consultants 6.2.3. Restructure company 6.2.4. Bring in new leadership and new management style 6.2.5. Set unachievable targets 7. Power and authority: 7.1. The capacity of an individual or social group to exert their will over the others and produce the results consistent with their objectives 7.1.1. 5 basis of power a) Are interralated and dynamic b) Reward- money, praise c) Coersion -implied sanctions, penalties d) Referent - charisma-based e) Expert - knowledge-based f) Legitimate - authority of position 7.1.2. Legitimate Authority: In government, authority is often used interchangeably with the term "power". However, their meanings differ: while "power" is defined as "the ability to influence somebody to do something that he/she would not have done", "authority" refers to a claim of legitimacy, the justification and right to exercise that power. 7.1.3. Legitimate power comes from the ability to influence because of position. People at higher levels have power over the people below. However, each person with legitimate power applies their own individual style. 8. Leadership (theory X and Y, and Z); entrepreneurship: 8.1. Theory X and Y ( McGregor 1960) : 8.1.1. Belief about subordinates determines choice of management style: 8.1.2. Theory X - negative assumptions about workers, e.g. no ambitions, lowest needs only - leads to authoritarian management 8.1.3. Theory Y- positive assumptions about workers, can be motivated on many levels - leads to autonomy, integrated goals 8.1.4. Theory Z (Ouchi 1981 ): a) Based on Japanese-style organisation, features: b) Long-term employment, welfare of workers of major concern to organisation c) Informal control d) Participative and collective decision-making
  5. 5. e) Individual responsibility f) Lead to high performance systems: kaizen,JIT,TQM, loyalty of workforce 8.1.5. Entrepreneurship: a) Different personality traits required: b) Inspiring others, creating vision and purpose c) Need for achievement and control, risk-taking,independence, innovation 8.1.6. Leadership style: a) Leadership style is the manner and approach of providing direction, implementing plans, and motivating people. Kurt Lewin (1939) led a group of researchers to identify different styles of leadership. This early study has been very influential and established three major leadership styles. 8.1.6.a.1. Authoritarian or autocratic 8.1.6.a.2. Participative or democratic 8.1.6.a.3. Delegative or Free Reign 9. Organisational culture v. national culture: 9.1. Old, New: 9.1.1. Old: Cultures merge into global culture New: global culture is a surface layer 9.1.2. Old: ethnocentrism - Western civilisation superior to other civilisations, others must takes Western cultural values 9.1.3. New: many cultures exist alongside, values compared, exchanges and negotiated 9.2. National culture: culture is learned, based on tradition, expresses self-identity, is dynamic in open societies 9.3. Different societal values: 9.3.1. West (low context) vs. non-West (high context) 9.3.2. Individualism v. collectivism 9.3.3. Monochromic (linear, measured) v. poly-chromic (cycle) time concept 9.3.4. Directness v. diplomacy 9.4. Different business values: 9.5. West v. non-West 9.5.1. performance v. relationship 9.5.2. Contract v. trust 9.5.3. Status- relaxed v. status conscious 9.5.4. Efficient v. ritualistic negotiations 9.5.5. Democratic v. autocratic management style 10. Communication process and barriers; verbal and non-verbal communication; communication styles: 10.1. Communication process and barriers: 10.1.1. Encoding 10.1.2. Channelling 10.1.3. Decoding 10.1.4. Feedback 10.2. can appear at any stage of communication and include: 10.3. conflict of context (meaning, assumption, belief) 10.4. conflict of data ( language, culture) 10.5. distraction (noise, volume, attention) 10.6. distance (status, geographical) 10.7. Verbal and non-verbal communication: 10.7.1. Verbal: a) direct and unambiguous language b) no attributions or evaluations of other’s behaviour c) use of ‘I’ statements and cooperative ‘We’ 10.7.2. Non-verbal: a) direct eye contact b) comfortable but firm posture
  6. 6. c) strong, steady voice d) facial expression matched to message e) appropriately serious tone f) selective interruptions to ensure understanding 10.8. communication styles: a) Assertive- e.g. objective, polite b) communicating what you think, feel, want with mutual respect, needs strong intra-personal skills c) creates effective relationships 11. Learning organisation; knowledge management: 11.1. Learning organisation: 11.1.1. is a company that creates and diffuses intellectual capital, then changes on the basis of it 11.1.2. Structure: (Structure is temporary) a) Strategy- experiments used b) Looking in- employees are customers c) Looking out- feedback from customers d) Learning opportunities- managers create support and feedback 11.2. Knowledge Management: a) Comprises a range of strategies and practices used in an organization to identify, create, represent, distribute, and enable adoption of insights and experiences. Such insights and experiences comprise knowledge, either embodied in individuals or embedded in organizational processes or practice. 12. Managing change; change theories. 12.1. Managing change: 12.1.1. Acknowledged role of leadership in managing organisational change process 12.1.2. Developed 8 steps for leading organisational change to make it successful 12.2. Change theories: 12.2.1. Uses action research and group dynamics collective approach to facilitate change process and outcome. Is based on a belief that the will of the subject of the change will make it effective. The stages are: a) Unfreezing - compares to other, superior organisations (benchmarking) b) Changing - involves learning, uses confrontation and re-education, role models, experts, mentors c) Re-freezing - adds coaching and modelling, new attitudes and behaviours exhibited and assessed, provides organisational culture to maintain change. 12.2.2. The process is driven by a strategic vision of company, translated into its current mission, which requires change for a competitive advantage. 12.2.3. High failure rate of organisational change makes the process only partly effective.