Slide 2 1 Chapter 2 MODELS OF MANAGEMENT

Slide 2. 1 Chapter 2 MODELS OF MANAGEMENT Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 2 • Why study models of management? • The competing values framework – – Rational goal Internal process Human relations Open systems • Integrating themes • Cases and examples – innocent drinks, IMI, TCL China, Ford’s Highland Park plant Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 3 Why study models of management? • Managers act in accordance with their mental model of the situation • Models simplify complex reality, so need to recognise and use several (see Figure 2. 1) • Models: – – Identify variables Suggest relationships Illuminate the manager’s context Offer a range of perspectives • Unitary, pluralist, critical • Thinking critically improves the ability to use them. Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 4 Many variables, many models Figure 2. 1 Some variables within the internal context of management Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 5 Rational goal models A response to the problem of organising factory production efficiently F. W. Taylor (1856– 1915) ‘scientific management’ • • • Use scientific methods to find the best way Select best person for the job Train the worker to follow defined procedures Provide financial incentives Move responsibility for planning from worker. Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 6 Evaluating scientific management • Methods greatly increased productivity and were widely adopted. • Aspects of the approach are still common – work measurement, bonus systems, etc. • Can incur high human costs: – repetitive tasks alienate many people – reinforces power of managers over workers – focus on the individual ignores their social needs. • Are the assumptions valid in context? What alternatives? What are their limitations? Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 7 Internal process models: Weber Principles for organising large bureaucracy fairly • Rules and regulations: to guide behaviour • Impersonality: to protect against favouritism • Division of labour: jobs are easy to learn • Hierarchy: reflecting power to make decisions • Authority: structure that ties system together • Rationality: managers should use most efficient methods to achieve objectives. Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 8 Internal process models: Fayol Principles for organising the whole business • Stressed that these should be applied flexibly and in proportion • Included (see Key ideas on p. 50) – – – Division of work Unity of command direction Find the right degree of centralisation Stability of tenure Encourage initiative. Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 9 Evaluating internal process models • Rules, regulations, impersonal procedures widely used, ensure consistency and seem fair. • Can be slow and inflexible – Conditions change more quickly than rules – Units of an organisation face different conditions – Rules may become more important than adding value: become an end in themselves. • Are the assumptions of the approach valid in context? What alternatives? What limitations? Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 10 Human relations models A reaction to scientific management and bureaucratic approaches • Focus on people as social beings with many needs • Mary Parker Follett – Observed creativity of group processes – Advocated replacing bureaucracy with group networks in which people solve problems – Solving problems created integrative unity. Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 11 Elton Mayo and Hawthorne experiments • Lighting experiment to test effects of light on output. • Unexpected result stimulated a fuller study of the effects of changing physical surroundings. • The relay assembly test room – Selected women staff, repetitive, measurable task – Regular changes to working time, rest breaks, refreshments – and asked for views – Results (next chart) led to the conclusion that they had changed the social as well as the physical setting. Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 12 Output in successive periods The relay assembly test room – average hourly output per week (as percentage of standard) in successive experimental periods Figure 2. 3 Source: Based on data from Roethlisberger and Dickson (1939). From Behavior in Organisations, 6 th edn, Greenberg and Baron, © 1997. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ. Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 13 Other Hawthorne studies • Bank wiring observation room • Male staff on payment by results system – Produced less than they could have done • showed the social pressures on members to comply with output levels set by group • Interview programme – sought employees attitudes to work and life in general – Showed close links between work and life outside • implied supervisors should pay attention to emotional needs of employees. Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 14 Evaluating human relations models • Influenced many management practices – HRM practices stress teams and work-life balance. • Aim to integrate needs of individual with needs of the organisation. • Critics claim that these practices reinforce unequal power relations – power is still with the organisation. • Effects on performance unclear – other variables. • Assumptions? Context? Alternatives? Limitations? Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 15 Open systems models Figure 2. 4 The systems model Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 16 Organisations as open systems Focus on links with the outside world on which firm depends • Subsystems add complexity – interact with each other and the outside world (Figure 2. 5) • Socio-technical systems – need to align technical and social systems (Figure 2. 6) • Contingency theories also a systems view (Chapter 10). Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 17 Interacting subsystems Figure 2. 5 Interacting subsystems in organisations Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 18 Socio-technical systems Figure 2. 6 The organisation as a socio-technical system Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 19 Linear and non-linear systems Figure 2. 7 Feedback in non-linear systems Source: Parker and Stacey (1994). Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 20 Evaluating open systems models • Influenced many management practices which stress response to external conditions – market research, PR, strategic planning, alliances, etc. • May emphasise need for change at the expense of the need for stability and efficiency. • Practice depends on people interpreting events – subjective judgements as much as rational analysis. • Assumptions? Context? Alternatives? Limitations? Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 21 Integrating themes Entrepreneurship • Entrepreneurs starting a new business will take an open systems view, though later they will need to introduce others (internal process) to ensure control. Sustainability • Promoting sustainability is an example of open systems values; achieving it may need internal process values. Internationalisation • Values that shape practice in one country may not do so in another country. Governance • Pfeffer and Sutton’s ideas on evidence-based management offer a disciplined way to reduce risk. Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014

Slide 2. 22 Summary • Competing values model offers alternative perspectives on managing, and you can see examples of each approach being put into practice. • Each depends on assumptions about the context in which people are managing and working. • Enables constructive thinking about alternatives to, and limitations of, current practice. • Encourages informed consideration of which approach may be the best way to add value in a given situation. Boddy, Management: An Introduction Power. Points on the Web , 6 th edition © Pearson Education Limited 2014