Management Organisational Behaviour 2 e Chapter 1 Introduction

Management & Organisational Behaviour 2 e Chapter 1 Introduction to Management and Organisational Behaviour ©The Mc. Graw-Hill Companies, 2005

Learning Outcomes By the end of this chapter you will be able to: - • Understand the historical foundations of management. • Identify the different schools of management theory. • Compare and contrast the different schools of management theory. • Understand the need for management and organisational research and the methodologies used. • Recognise that international competition, quality, diversity and ethical behaviour are major management issues. ©The Mc. Graw-Hill Companies, 2005

The Main Schools of Management Thought ©The Mc. Graw-Hill Companies, 2005

Scientific Management • • Attributed to Frederick Taylor An early 1900 s movement Emphasis placed on the task Systematic analysis revealed “one best way” ©The Mc. Graw-Hill Companies, 2005

Evaluation of Scientific Management • Scientific management has been regarded as too preoccupied with productivity. • Taylor believed in careful selection and training and that they should be suitable for the work. • Taylor had an idealistic view that workers, managers and owners could work together in harmony and profit from it. ©The Mc. Graw-Hill Companies, 2005

Henri Fayol’s Functions of Management ©The Mc. Graw-Hill Companies, 2005

Fayol’s Fourteen Principles • Division of work • Authority and responsibility • Discipline • Unity of command • Unity of direction • Subordination of the individual to the general interest • • Remuneration Centralisation Scaler chain Order Equity Stability of tenure Initiative Esprit de corps ©The Mc. Graw-Hill Companies, 2005

Bureaucracy Theory • • • Attributed to Max Weber A hierarchy of command Specialisation and division of labour Explicit system of rules and policies Promotion based competence Impersonal treatment of people ©The Mc. Graw-Hill Companies, 2005

The Behavioural Approaches • Resulted in the shift in focus away from the rational economic picture to a social behavioural perspective. • Elton Mayo and the Hawthorne Studies tried to determine the relationship between physical working conditions and worker productivity ©The Mc. Graw-Hill Companies, 2005

Illumination Studies Impact of research • Serious flaws with the method and logic of the studies • Mayo claimed changes in productivity were caused by attitudes of employees and management practices influenced this. • Managers were taught that people were more important than productivity ©The Mc. Graw-Hill Companies, 2005

Evaluation of the Hawthorne Studies • Stimulated many new ideas, but they did not have a solid scientific foundation. • The studies showed many flaws in their method and logic. • The research that followed on from these studies were the opposite to what the researchers claimed. • No link found between motivation and piece rates ©The Mc. Graw-Hill Companies, 2005

The Systems Approach • Chester Barnard – 1938 – The Functions of the Executive. • Cooperation and responsible leadership important • A social systems approach, concentrating on major elements of a manager’s job ©The Mc. Graw-Hill Companies, 2005

Systems Theory • systems theory holds that the whole is greater than the sum of the parts, and that the parts or subsystems are related to one another and to the whole. ©The Mc. Graw-Hill Companies, 2005

Contingency Theories • contingency theories identify the circumstances in which a particular practice is more likely to obtain desired results. ©The Mc. Graw-Hill Companies, 2005

The Scientific Method ©The Mc. Graw-Hill Companies, 2005

Hypothesis • A statement about the proposed relationship between independent and dependent variables. ©The Mc. Graw-Hill Companies, 2005

Independent variable • The variable thought to affect one or more dependent variables. ©The Mc. Graw-Hill Companies, 2005

Dependent variable • The outcome studied through research and believed to be caused or influenced by an independent variable. ©The Mc. Graw-Hill Companies, 2005

Moderating variable • A variable believed to influence the effects of the independent variable on the dependent variable. ©The Mc. Graw-Hill Companies, 2005

Reliability • The consistency of the data obtained from a particular research method. ©The Mc. Graw-Hill Companies, 2005

Validity • The degree to which a research method actually measures what it is supposed to measure. ©The Mc. Graw-Hill Companies, 2005

Research designs for studying behaviour • • Case study Field Survey Field Experiment Laboratory Experiment ©The Mc. Graw-Hill Companies, 2005

Current issues in the organisational context and challenges the for managers • • The acceleration of technology The tenacity of competing interests. The swings in social behaviours The uncertainties of geopolitical and economic forces ©The Mc. Graw-Hill Companies, 2005

Impacts on Management • Technology • Knowledge Management • Globalisation • Ethics • Diversity ©The Mc. Graw-Hill Companies, 2005

Knowledge Management ©The Mc. Graw-Hill Companies, 2005

Why Trade Globally? • Countries with open markets tend to grow faster. • Can help developing countries raise standards in education and health care. ©The Mc. Graw-Hill Companies, 2005

Concerns for Developing Countries • the skills and health of their citizens need strengthening – not just for international trade, • but to improve productivity across the economy; • they need improved trade-related capacity, such as efficient customs, trade infrastructure, • including roads and ports, to enable them to bring goods to market competitively; • they need the capacity to cope with economic change, such as opportunities to re-skill, and • a flexible dynamic economy that continually creates new jobs; and • institutions need to be put in place to safeguard people through change. ©The Mc. Graw-Hill Companies, 2005

Issues for Sub-Saharan Africa • Poor levels of education mean it is hard to compete globally with knowledge economies. • HIV and AIDS mean that many workers are either absent from work as they need to care for their sick families, or are themselves dying and in need of medical care. • Political conflict, weak governments and corruption undermine economic development. • Low levels of investment make it difficult for organisations to develop and expand. • Poor infrastructure means that there are difficulties with transport and communication networks. • Entrepreneurs are not given access to financial services, market information and technical expertise • Over reliance on primary commodities such as tea, cocoa etc, which are subject to volatile prices. • Tariffs imposed by developed nations on the importation of products from developing nations. • Subsidies provided to producers in developed nations such as with EU farmers. ©The Mc. Graw-Hill Companies, 2005

Off-Shoring • Off-shoring of business is when organisation decides to move some of its operation to another country to save on operating costs. • The most well known examples of offshoring are the call centres. ©The Mc. Graw-Hill Companies, 2005

Considerations for Organisations • consider their long term interests and gain a better understanding of the risks. • consult their workers properly in decisions on offshoring. • address the concern that offshored work may be carried out in conditions that do not satisfy core labour standards. • How this will improve their competitiveness and productivity. • Help home country employees to improve their skill levels; and • help people to find new employment as quickly as possible if they lose their jobs as a result of offshoring. ©The Mc. Graw-Hill Companies, 2005

Human Resource Management and OB • Human resource management is about choosing and developing people to ensure that strategies are implemented and organisations can grow. • Many people who work in human resource departments would be expected to have a basic understanding of organisational behaviour. ©The Mc. Graw-Hill Companies, 2005