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The Organisation Society
Organisational Behaviour
Developed by Professor Martin Wood
RMIT University©2012 BUSM1100: 3 2
Last Week: Recap and Glossary
• Modern industrial capitalism arose from the inherent
inefficiencies in traditional and customary models;
• The emerging rationality of the labour process of capitalist
production that combines new technical knowledge with
increased scale of efficiency and exploitation
• Growth of industrial capitalist production built around the
notion of
bureaucracy
Today
• Overview and analysis of attempts to theorise the ongoing
managerial problem of the structure of enterprise
RMIT University©2012 BUSM1100: 3 3
The Appliance of Science
• Decline in Protestant Ethic
• Rise in interest in reform of society through
discoverable scientific methods
• „More than ever, the world‟s greatest need is a
science of human relationships and an art of
human engineering based upon the laws of …
science‟ (Whyte, 1956: 24, added emphasis).
RMIT University©2012 BUSM1100: 3 4
Scientific Management
„the American system of “scientific management” enjoys the
greatest triumphs in the rational conditioning and training of
work
performances. The final consequences are drawn from the
mechanization and discipline of the plant, and the psycho-
physical apparatus of man is completely adjusted to the
demands of the outer world, the tools, the machines, in short to
an individual “function”. The individual is shorn of his natural
rhythm as determined by the structure of his organism: his
psycho-physical apparatus is attuned to a new rhythm through a
methodical specialisation of separately functioning muscles,
and an optimal economy of forces is established corresponding
to the conditions of work‟
(Clegg and Dunkerley, 1980: 82, added emphasis)
RMIT University©2012 BUSM1100: 3 5
Frederick Winslow Taylor
• aka Freddy „Speedy‟ Taylor
• How do you control and coordinate work in large scale
(industrial) bureaucracies?
• Produced accurate and scientific study of unit
production times The Principles of Scientific
Management (1911)
• Led to division of labour
RMIT University©2012 BUSM1100: 3 6
Principle Aims
Aims:
1. To point out the loss through inefficiency
2. Scientific management
3. Emphasis on measurement, control and
predictability
RMIT University©2012 BUSM1100: 3 7
Among Taylor‟s Recommendations
1.Division of labour
2.Work measurement
3.Individual task prescriptions Motivation through
incentive schemes
4.Role of management
5.Development of management thinking
RMIT University©2012 BUSM1100: 3 8
Scientific Management Associates
Henri Fayol
• First comprehensive application of rationalisation principles at
the
level of management
Gulick and Urwick
• Early U.S. based (Urwick was English) management
consultants
who adapted Fayol‟s principles to rationalise work processes in
large conglomerates;
• More sophisticated approaches to enhancing worker
performance
Henry Ford
• All encompassing Fordism widened the scope of Taylorism
RMIT University©2012 BUSM1100: 3 9
Some Notable Dissociates
• Antonio Gramsci – Italian formal theorist of (and for)
labour and resolutely against Taylorism:
• Braverman – another Marxist who argues scientific
management deskills though separation of mental and
physical.
• Durkheimian – further erodes social solidarity at the level
of the firm
• Weberian – Iron cage
RMIT University©2012 BUSM1100: 3 10
• Rarely implemented fully
• Develops to serve and benefit bureaucrats
• Privileges past decisions and status quo
• Unimaginative and non-entrepreneurial
• Wasted talent / knowledge of workers
• No promotion (if good at role)
• Intrinsic value? More than just economic animals?
• Turnover, absenteeism
• Quantity not quality
Final Analysis: Efficiency and
Effectiveness?
RMIT University©2012 BUSM1100: 3 11
New VISA Paywave
• Aimed at mass adoption by consumers
• Transaction times are crucial to the consumer
experience and the retailer business
• Marketed as a new and exciting consumer
experience
• Continuing emphasis on measurement, control
and predictability
RMIT University©2012 BUSM1100: 3 12
McDonaldization Rationalization
and Mass Production
• McDonaldization is “The process by which the principles of
the fast-
food restaurant are coming to dominate more and more sectors
of
American society as well as of the rest of the World.” (George
Ritzer
The McDonaldization of Society p1)
• The processes are those of Rationality
– Bureaucracy – of organization
– Taylorism – of work design
– Fordism – of mass production
• The principles are
– Efficiency – the shortest distance
– Calculability – measure everything
– Predictability – time-space compression
– Control – non-human for human substitution
RMIT University©2012 BUSM1100: 3 13
Elton Mayo and the Human
Relations Movement
• Human Relations School = a form of neo-Durkheimian
intervention to repair social solidarity at the level of the
firm
• Aimed at reducing likelihood of workplace unrest
through the study of the informal social relationships
• Contrasted the doctrine of possessive individualism
with that of the function of groups
• The famous „Hawthorne Studies‟ (1924-32)
RMIT University©2012 BUSM1100: 3 14
Development of Human
Relations Theories
• Distinction between formal/informal organisation
• Formal and informal prescriptions need not (and often do
not) cohere: consensus as a myth?
• The worker does not always behave as the formal
organisational logic would prescribe Management training in
human relations techniques to address the question of the
control and coordination of work
• Psychological bias
RMIT University©2012 BUSM1100: 3 15
Human Relations as Crusade?
„[The Human Relations School] may neglect the fact that
many problems of organization are in fact only problems
of and for management, and that these problems cannot
be spirited away through a change of supervisory style or
the learning of social skills. They are in fact structural
contradictions inherent in the hierarchical organization of
work in terms of distinct levels of mental and manual
labour, for the private appropriation of the fruits of the
collective product, and the inegalitarian treatment and
reward of organization members in the process‟
(Clegg and Dunkerley, 1980: 134, added emphasis)
References
Whyte, W. (1956) The Organization Man. Philadelphia:
University of
Pennsylvania.
Wright Mills, C. (1951) White Collar. London: Oxford
University
Press.
RMIT University©2012 BUSM1100: 3 16
Organisations and Leadership
Organisational Behaviour
Developed by Dr. Ruth Barton
&
Dr. Margaret Heffernan, OAM
RMIT University©2013 2
This lecture is the
core topic
for
Assignment 1.
Aims of the lecture
What is leadership?
Define leadership
Approaches to leadership
Mainstream and emerging theories
Leadership styles and behaviours
Competencies of leadership
RMIT University©2013 3
What is Leadership?
• ‘A social process in which one individual
influences the behaviour of others without the
use or threat of violence’ (Buchanan & Huczynsci,
1985 in Thompson & McHugh, 2009)
• ‘The acid test of leadership must be its ability to
improve organisational leadership’
(Fiedler, 1967, in Thompson and McHugh, 2009)
Leadership
• Leadership is broadly distributed,
rather than assigned to one person,
such that people in the tram and
organisation lead each other.
• (McShane et al. 2013: 382)
Shared
leadership
RMIT University©2013 4
Approaches to Leadership
LEADERSHIP
Individualism
Essence of
leadership
Dualistic
views of
power and
influence
Untheorised /
exaggerated
agency
RMIT University©2013 5
Fairhurst (2007)
Competency (Trait) Perspective of Leadership
Competency
Drive
Emotional
intelligence
Cognitive
ability
Knowledge
of the
business
Self-
concept
Integrity
Personality
RMIT University©2013 6
Skills, knowledge,
aptitudes
and other
personal
characteristics
that lead
to superior
performance
RMIT University©2013
Traits and Characteristics
eg Stodgill (1974), Handy (1980)
Limitations:
personal characteristics that are equallyimportant in all
situations.
ive combinations of competencies may be
equally successful
performance
7
Leadership Styles and Behaviours
• McGregor (1960)
• Theory X
• Theory Y
RMIT University©2013 8
Types and Roles
Lewin, Lippitt and White (1939)
–faire
Benne and Sheats (1948)
RMIT University©2013 9
Types and Styles
Blake and Mouton’s (1978) Leadership Grid
RMIT University©2013 10
Authentic leadership
Develop
own
style
Receive
feed-back
Being
yourself
Reflect
RMIT University©2013
Emotional
intelligence
Effective
leaders need to act
consistently
with their values,
personality, and
self-concept
Source: McShane et al 2013: 384-385
11
Contingency (Situational) Perspective of Leadership
Path-goal
theory
Servant
leadership
Situational
leadership
Fiedler’s
Contingency
model
Leadership
substitutes
RMIT University©2013 12
The most
appropriate
leadership style
depends
on the
situation.
Leaders
must be
insightful and
flexible,
and adapt
behaviours and
styles
to the
immediate situation.
Contingent Leadership
Fiedler’s (1974) Contingency Model
RMIT University©2013
Favourable Unfavourable
13
Charismatic Leadership
Applied to a certain quality of an individual
considered extraordinary
treated as endowed with supernatural, superhuman,
specifically exceptional powers or qualities.
qualities are not accessible to the ordinary person
regarded as of divine origin or as exemplary , and the
individual concerned is treated as a “leader”’
(Weber,1968: 241)
RMIT University©2013 14
Transformational Leadership
corporate future
vision
vision
Popular in 1980s and 1990s
(Dunphy and Stace,
1990)
Elements
Create a
strategic
vision
Communicate
the vision
Model the
vision
Build
commitment
towards the
vision
RMIT University©2013
Source: McShane et al. 2013: 393
15
Paternal Leadership Style
Paternalism
Dependence
on the leader
Personal
relationships
Moral
leadership
Harmony
building
Conflict
diffusion
Social
distance
Didactic
leadership
Subtle,
dialogue
RMIT University©2013 Source: Fulop, L and Linstead, S
(2009) : 525 16
Paternal Leadership Tactics
Paternalism Centralisation
Non-specific
intentions
Secrecy
Protect
authority
Selective
favours
Non-emotional
ties
Differential
treatment
Reputation
building
RMIT University©2013 Source: Fulop, L and Linstead, S
(2009) : 526 17
Narcissistic Leader
Narcissism
image they project
validation narcissists need
RMIT University©2013 Source: Fulop and Linstead, 2009 18
Post Heroic Leadership
with a greater emphasis on developing
subordinates
(Bradford and Cohen, 1984)
Heifetz and Laurie (1997)
RMIT University©2013 19
Followership
• Followership is the role of the group
member in supporting (or not) the
leadership role
• Leadership prototypicality
(Hogg, 2001)
• Social identity and leadership
(Haslam , 2001)
RMIT University©2013 20
Implicit Leadership Perspective
RMIT University©2013
how well that person fits preconceived beliefs about
the features and behaviours of effective leaders
(leadership prototypes)
organisational events
influence of people they call leaders
Source: McShane et al. 2013: 395- 396
21
The Three Levels of Leadership
Public
Private
Personal
RMIT University©2013 Source: Scouller, J. (2011) 22
RMIT University©2013 Source: Fulop and Linstead, 2009: 530
Leadership is very much a relational product of the societies
in which organisations operate.
ural variables will affect how leaders from different
cultural backgrounds manage in foreign cultures and with
culturally diverse groups.
23
RMIT University©2013
References
• Fulop, L and Linstead, S (2009) ‘Leadership and Leading’
[Ch. 10], in
Linstead, S, Fulop, L and Lilley, S 9eds) Management and
Organization: A critical text, 2nd ed, Palgrave, Houndmills.
• McShane, S Olekalns, M and Travaglione, T (2013)
Organisational
Behaviour: Emerging knowledge. Global insights. McGraw Hill,
Sydney
• Rollinson, D (2005) Organisational Behaviour and Analysis:
An
integrated approach, Prentice Hall, Harlow .
• Scouller, J. (2011). The Three Levels of Leadership: How to
Develop
Your Leadership Presence, Knowhow and Skill, Management
Books
• Cirencester: Thompson, P and McHugh, D (2009) Work
Organisations: A critical approach, Palgrave, Houndmills.
24

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The Organisation Society Organisational Behaviour Deve.docx

  • 1. The Organisation Society Organisational Behaviour Developed by Professor Martin Wood RMIT University©2012 BUSM1100: 3 2 Last Week: Recap and Glossary • Modern industrial capitalism arose from the inherent inefficiencies in traditional and customary models; • The emerging rationality of the labour process of capitalist production that combines new technical knowledge with increased scale of efficiency and exploitation • Growth of industrial capitalist production built around the notion of bureaucracy Today • Overview and analysis of attempts to theorise the ongoing
  • 2. managerial problem of the structure of enterprise RMIT University©2012 BUSM1100: 3 3 The Appliance of Science • Decline in Protestant Ethic • Rise in interest in reform of society through discoverable scientific methods • „More than ever, the world‟s greatest need is a science of human relationships and an art of human engineering based upon the laws of … science‟ (Whyte, 1956: 24, added emphasis). RMIT University©2012 BUSM1100: 3 4 Scientific Management „the American system of “scientific management” enjoys the greatest triumphs in the rational conditioning and training of work performances. The final consequences are drawn from the mechanization and discipline of the plant, and the psycho- physical apparatus of man is completely adjusted to the
  • 3. demands of the outer world, the tools, the machines, in short to an individual “function”. The individual is shorn of his natural rhythm as determined by the structure of his organism: his psycho-physical apparatus is attuned to a new rhythm through a methodical specialisation of separately functioning muscles, and an optimal economy of forces is established corresponding to the conditions of work‟ (Clegg and Dunkerley, 1980: 82, added emphasis) RMIT University©2012 BUSM1100: 3 5 Frederick Winslow Taylor • aka Freddy „Speedy‟ Taylor • How do you control and coordinate work in large scale (industrial) bureaucracies? • Produced accurate and scientific study of unit production times The Principles of Scientific Management (1911) • Led to division of labour
  • 4. RMIT University©2012 BUSM1100: 3 6 Principle Aims Aims: 1. To point out the loss through inefficiency 2. Scientific management 3. Emphasis on measurement, control and predictability RMIT University©2012 BUSM1100: 3 7 Among Taylor‟s Recommendations 1.Division of labour 2.Work measurement 3.Individual task prescriptions Motivation through incentive schemes 4.Role of management
  • 5. 5.Development of management thinking RMIT University©2012 BUSM1100: 3 8 Scientific Management Associates Henri Fayol • First comprehensive application of rationalisation principles at the level of management Gulick and Urwick • Early U.S. based (Urwick was English) management consultants who adapted Fayol‟s principles to rationalise work processes in large conglomerates; • More sophisticated approaches to enhancing worker performance Henry Ford • All encompassing Fordism widened the scope of Taylorism
  • 6. RMIT University©2012 BUSM1100: 3 9 Some Notable Dissociates • Antonio Gramsci – Italian formal theorist of (and for) labour and resolutely against Taylorism: • Braverman – another Marxist who argues scientific management deskills though separation of mental and physical. • Durkheimian – further erodes social solidarity at the level of the firm • Weberian – Iron cage RMIT University©2012 BUSM1100: 3 10 • Rarely implemented fully • Develops to serve and benefit bureaucrats • Privileges past decisions and status quo
  • 7. • Unimaginative and non-entrepreneurial • Wasted talent / knowledge of workers • No promotion (if good at role) • Intrinsic value? More than just economic animals? • Turnover, absenteeism • Quantity not quality Final Analysis: Efficiency and Effectiveness? RMIT University©2012 BUSM1100: 3 11 New VISA Paywave • Aimed at mass adoption by consumers • Transaction times are crucial to the consumer experience and the retailer business • Marketed as a new and exciting consumer experience • Continuing emphasis on measurement, control and predictability
  • 8. RMIT University©2012 BUSM1100: 3 12 McDonaldization Rationalization and Mass Production • McDonaldization is “The process by which the principles of the fast- food restaurant are coming to dominate more and more sectors of American society as well as of the rest of the World.” (George Ritzer The McDonaldization of Society p1) • The processes are those of Rationality – Bureaucracy – of organization – Taylorism – of work design – Fordism – of mass production • The principles are – Efficiency – the shortest distance – Calculability – measure everything – Predictability – time-space compression – Control – non-human for human substitution
  • 9. RMIT University©2012 BUSM1100: 3 13 Elton Mayo and the Human Relations Movement • Human Relations School = a form of neo-Durkheimian intervention to repair social solidarity at the level of the firm • Aimed at reducing likelihood of workplace unrest through the study of the informal social relationships • Contrasted the doctrine of possessive individualism with that of the function of groups • The famous „Hawthorne Studies‟ (1924-32) RMIT University©2012 BUSM1100: 3 14 Development of Human Relations Theories • Distinction between formal/informal organisation • Formal and informal prescriptions need not (and often do
  • 10. not) cohere: consensus as a myth? • The worker does not always behave as the formal organisational logic would prescribe Management training in human relations techniques to address the question of the control and coordination of work • Psychological bias RMIT University©2012 BUSM1100: 3 15 Human Relations as Crusade? „[The Human Relations School] may neglect the fact that many problems of organization are in fact only problems of and for management, and that these problems cannot be spirited away through a change of supervisory style or the learning of social skills. They are in fact structural contradictions inherent in the hierarchical organization of work in terms of distinct levels of mental and manual labour, for the private appropriation of the fruits of the collective product, and the inegalitarian treatment and reward of organization members in the process‟ (Clegg and Dunkerley, 1980: 134, added emphasis) References Whyte, W. (1956) The Organization Man. Philadelphia: University of Pennsylvania.
  • 11. Wright Mills, C. (1951) White Collar. London: Oxford University Press. RMIT University©2012 BUSM1100: 3 16 Organisations and Leadership Organisational Behaviour Developed by Dr. Ruth Barton & Dr. Margaret Heffernan, OAM RMIT University©2013 2 This lecture is the core topic for Assignment 1.
  • 12. Aims of the lecture What is leadership? Define leadership Approaches to leadership Mainstream and emerging theories Leadership styles and behaviours Competencies of leadership RMIT University©2013 3 What is Leadership? • ‘A social process in which one individual influences the behaviour of others without the use or threat of violence’ (Buchanan & Huczynsci, 1985 in Thompson & McHugh, 2009) • ‘The acid test of leadership must be its ability to improve organisational leadership’ (Fiedler, 1967, in Thompson and McHugh, 2009) Leadership
  • 13. • Leadership is broadly distributed, rather than assigned to one person, such that people in the tram and organisation lead each other. • (McShane et al. 2013: 382) Shared leadership RMIT University©2013 4 Approaches to Leadership LEADERSHIP Individualism Essence of leadership Dualistic views of power and influence Untheorised / exaggerated agency RMIT University©2013 5
  • 14. Fairhurst (2007) Competency (Trait) Perspective of Leadership Competency Drive Emotional intelligence Cognitive ability Knowledge of the business Self- concept Integrity Personality RMIT University©2013 6 Skills, knowledge, aptitudes
  • 15. and other personal characteristics that lead to superior performance RMIT University©2013 Traits and Characteristics eg Stodgill (1974), Handy (1980) Limitations: personal characteristics that are equallyimportant in all situations. ive combinations of competencies may be equally successful
  • 16. performance 7 Leadership Styles and Behaviours • McGregor (1960) • Theory X • Theory Y RMIT University©2013 8 Types and Roles Lewin, Lippitt and White (1939) –faire Benne and Sheats (1948)
  • 17. RMIT University©2013 9 Types and Styles Blake and Mouton’s (1978) Leadership Grid RMIT University©2013 10 Authentic leadership Develop own style Receive feed-back Being yourself Reflect RMIT University©2013 Emotional intelligence
  • 18. Effective leaders need to act consistently with their values, personality, and self-concept Source: McShane et al 2013: 384-385 11 Contingency (Situational) Perspective of Leadership Path-goal theory Servant leadership Situational leadership Fiedler’s Contingency model Leadership substitutes
  • 19. RMIT University©2013 12 The most appropriate leadership style depends on the situation. Leaders must be insightful and flexible, and adapt behaviours and styles to the immediate situation.
  • 20. Contingent Leadership Fiedler’s (1974) Contingency Model RMIT University©2013 Favourable Unfavourable 13 Charismatic Leadership Applied to a certain quality of an individual considered extraordinary treated as endowed with supernatural, superhuman, specifically exceptional powers or qualities. qualities are not accessible to the ordinary person regarded as of divine origin or as exemplary , and the individual concerned is treated as a “leader”’ (Weber,1968: 241) RMIT University©2013 14 Transformational Leadership
  • 21. corporate future vision vision Popular in 1980s and 1990s (Dunphy and Stace, 1990) Elements Create a strategic vision Communicate the vision Model the vision Build commitment towards the
  • 22. vision RMIT University©2013 Source: McShane et al. 2013: 393 15 Paternal Leadership Style Paternalism Dependence on the leader Personal relationships Moral leadership Harmony building Conflict diffusion Social distance Didactic leadership Subtle, dialogue
  • 23. RMIT University©2013 Source: Fulop, L and Linstead, S (2009) : 525 16 Paternal Leadership Tactics Paternalism Centralisation Non-specific intentions Secrecy Protect authority Selective favours Non-emotional ties Differential treatment Reputation building RMIT University©2013 Source: Fulop, L and Linstead, S (2009) : 526 17 Narcissistic Leader
  • 24. Narcissism image they project validation narcissists need RMIT University©2013 Source: Fulop and Linstead, 2009 18 Post Heroic Leadership with a greater emphasis on developing subordinates (Bradford and Cohen, 1984) Heifetz and Laurie (1997)
  • 25. RMIT University©2013 19 Followership • Followership is the role of the group member in supporting (or not) the leadership role • Leadership prototypicality (Hogg, 2001) • Social identity and leadership (Haslam , 2001) RMIT University©2013 20 Implicit Leadership Perspective RMIT University©2013 how well that person fits preconceived beliefs about the features and behaviours of effective leaders
  • 26. (leadership prototypes) organisational events influence of people they call leaders Source: McShane et al. 2013: 395- 396 21 The Three Levels of Leadership Public Private Personal RMIT University©2013 Source: Scouller, J. (2011) 22 RMIT University©2013 Source: Fulop and Linstead, 2009: 530 Leadership is very much a relational product of the societies in which organisations operate.
  • 27. ural variables will affect how leaders from different cultural backgrounds manage in foreign cultures and with culturally diverse groups. 23 RMIT University©2013 References • Fulop, L and Linstead, S (2009) ‘Leadership and Leading’ [Ch. 10], in Linstead, S, Fulop, L and Lilley, S 9eds) Management and Organization: A critical text, 2nd ed, Palgrave, Houndmills. • McShane, S Olekalns, M and Travaglione, T (2013) Organisational Behaviour: Emerging knowledge. Global insights. McGraw Hill, Sydney • Rollinson, D (2005) Organisational Behaviour and Analysis: An integrated approach, Prentice Hall, Harlow . • Scouller, J. (2011). The Three Levels of Leadership: How to
  • 28. Develop Your Leadership Presence, Knowhow and Skill, Management Books • Cirencester: Thompson, P and McHugh, D (2009) Work Organisations: A critical approach, Palgrave, Houndmills. 24