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Summary Management and Organisation IBS Year 1
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Summary of Chapters 1, 2, 10 and 11 of the book: Handbook Management and Organisation
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Summary Management & Organisation 11. Organisation and management more widely Organisational Behaviour
‘An interdisciplinary science concerned with the study of the behaviour of organisations, as
well as with the factors that determine this behaviour, and the manner in which
organisations can be directed with maximum effectiveness.’
obtaining an overall picture of an organisation, an organizational problem or a project.
Organisational behaviour is oriented towards practical application and pragmatism.
giving direction to the processes occurring within an organisation (in advance)
4. Most significant contributors in the history of organizational behaviour.
Figure 0.1
6. Frederick Taylor (scientific management) was the first to suggest a systematic, coherent
approach to determining the manner in which factories should be organised (c. 1900).
rather than having managers fulfil the role of slave drivers, adopt a broader view of their
tasks within the organisation: planning, coordinating, overseeing and verifying results.
Key elements of the theory of management and control or organisations:
1. Scientific analysis of the activities that should be carried out, and the time and
motion studies to be used.
2. Extensive division of labour and workforce training, with each task and operation
clearly prescribed. worker routine improved production standards.
3. Close and friendly working relationships between managers and workers.
4. Managers are held responsible for seeking and analysing appropriate working
methods and for creating optimum conditions for production.
5. Use of careful selection processes to obtain the best person for the job.
6. Financial rewards for adhering to prescribed methods and targets in order to reduce
production costs.
,Division of front-line supervisory responsibilities within the production department:
1. time and costing;
2. task instructions;
3. processes and their order;
4. work preparation and allocation;
5. maintenance;
6. quality control;
7. technical guidance;
8. personnel management.
eight-bosses system (system failed to become widely adopted elsewhere (than under
Taylor’s leadership))
Nevertheless, his influence was enormous. Wherever his principles were applied,
productivity shot up.
7. Henri Fayol (general management-theory) developed a coherent set of guidelines
regarding the way organisations should manage their operations as a whole (c. 1900).
Six independent management activities:
1. technical;
2. commercial;
3. financial;
4. security;
5. accounting;
6. direction.
Direction ensures the coordination between the other activities. It consists of five tasks:
1. Planning or anticipating
2. Organising
3. Commanding
4. Coordinating
5. Controlling
Unity of command is the most important aspect of Fayol’s theory.
Each employee should report to one immediate superior.
9. Elton Mayo and the human relations movement (c. 1945)
This movement refers to the researchers of organisational development who study the
behaviour of people in groups, particularly in workplace groups. working conditions
The movement is based on the assumption that happy, satisfied people tend to perform to
the peak of their productive ability. This means that company management should cultivate
good interpersonal relationships in relatively small groups.
10. Around 1950, criticism of the ideas of the human relations movement began to appear.
(An overly idealistic view of organisations).
Need for a revision of the human relations approach neo-human relations.
,Rensis Likert looked specifically at the organisational structure and internal communication
and developed the so-called ‘linking ping model’, with the organisation consisting of a
number of overlapping groups, whose leaders are also the members of a higher group
(linking pin).
Leaders should, lead the group, but also ensure proper communication with the higher
group.
Frederick Herzberg based his theory on Maslow’s
hierarchy of needs.
1. Psychological needs (food, drink, sleep)
2. Security and safety needs (protection, stability,
order)
3. Love or relationship needs (friendship, group
membership)
4. Recognition needs (prestige, success)
5. Self-actualisation needs (responsibility, personal development opportunities,
creativity)
Herzberg looked for factors that would amplify people’s motivation in an organisation, as
well as for factors that would lead to dissatisfaction.
Douglas McGregor (c. 1960):
Theory X = describes how most organisations worked at the time and is strongly reminiscent
of Scientific Management.
Theory Y = McGregor’s own vision of how people in organisations should cooperate.
The X and Y theories relate to the human, not the organisational, perspective.
12. Paul Lawrence and Jay Lorsch and the contingency approach (c. 1965)
Joan Woodward’s study showed that there was no connection between the extent to which
an enterprise is organised according to the rules of scientific management and whether it is
economically successful.
Lawrence and Lorsch performed additional studies and concluded that, to optimise
performance, different circumstances require different structures, task divisions and working
methods.
The art is in discovering which circumstances require the application of which techniques.
Relationship between an organisation and its surroundings is important in contingency.
, 1.1 Introduction
Organisations are part of society.
consist of parties or stakeholders (like buyers, suppliers,
competitors and financiers).
Organisations and individuals/parties exert a certain influence
on each other.
1.2 Stakeholders
The most significant direct influence on organisations is exerted by stakeholders and
surroundings.
- buyers;
- suppliers;
- competitors;
- capital providers;
- employees;
- special interest groups;
- government and local authority institutions;
- media.
Buyers (clients, consumers or customers)
The one demanding products and services.
these demands often change and organisations must take these changes into account
when determining the composition and features of their product range.
If an organisation pays insufficient attention to changing consumer needs, the existing
available products may become less popular and, as a consequence, the organisation may
lose customers.
Suppliers
An organisation demands on its suppliers, with respect to quality, price level and delivery
time. An organisation’s own products and services are, after all, dependent on these aspects.
Nowadays, buyers want to reduce their stock held and demand ‘just-in-time’ delivery from
their suppliers.
Competitors
Almost every organisation has to deal with competition. This determines more or less the
amount of flexibility organisations have with respect to product features, pricing, quality,
distribution channels, R&D activities, advertising budgets and so on. Analysing their relative
market positions is therefore of vital importance.
Capital providers (shareholders, financial institutions, government, etc.)
Organisations must maintain good relationships with financiers or capital providers. An
organisation is dependent on finance to maintain its activities, expand operations and
sometimes even remain in its existing form.
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