Samenvatting
Samenvatting Economics and Management of Organisations (jaar 1 EBE VU Amsterdam)
Volledige samenvatting van het vak EMO dat wordt gegeven aan de Vrije Universiteit van Amsterdam in het eerste jaar van de studie EBE
[Meer zien]Voorbeeld 3 van de 18 pagina's
Voorbeeld 3 van de 18 pagina's
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Voorbeeld van de inhoud
Lecture 1: Introduction and growth of organisationsOrganisations come in all sorts of shapes and sizes. Whatever grouping we choose, all
organisations have certain features: people working together and cooperating in order to
reach a specific set of goals.
A definition for the term organisation is: collections of people who work together and
coordinate their actions to achieve a wide variety of goals or desired future outcomes (Jones
& George).
A definition for the term management is: the planning, organising, leading and controlling of
humans and other resources to achieve organisational goals efficiently and effectively
(Jones & George). Therefore a manager has a supporting role within an organisation.
According to Jones & George management consists of the following four tasks:
1. Planning: determining the organisation’s mission, vision and goals, formulating the
strategy, identifying a SWOT analysis.
2. Organising: grouping tasks in jobs (job design), allocating authority, incorporating
integrating mechanisms (coordination).
3. Leading: motivating, energising and enabling employees, using power, personality,
influence to coordinate people and groups
4. Controlling: monitoring the performance of individuals, departments and the
organisation as a whole, taking corrective actions.
Mintzberg identified 10 kinds of specific roles or sets of job responsibility. He grouped these
roles according to whether the responsibility was primarily. This is called Mintzberg’s
typology. The following groups have been identified:
(1) Decisional roles: are roles that are associated with methods managers use in planning
strategy in utilising resources. Mintzberg’s decisional roles consists of four roles:
1. Entrepreneur: deciding which new projects to initiate and to invest resources in
2. Disturbance handler: managing an unexpected event or crisis.
3. Resource allocator: assigning resources between functions and setting the budgets
of lower managers
4. Negotiator: reaching agreements between other managers, unions, customers, or
shareholders
(2) Interpersonal roles: refer to roles that managers are supposed to provide direction and
supervision to both employees and the organisation as a whole. Mintzberg’s decisional roles
consists of three roles:
1. Figurehead: symbolising the organisation’s mission and what it is seeking to achieve
2. Leader: training, counselling, and mentoring high employee performance
3. Liaison: linking and coordinating the activities of people and groups (building bridges
between them)
(3) Informational roles: are associated with the tasks needed to obtain and transmit
information in the process of managing the organisation. Mintzberg’s decisional roles
consists of three roles:
1. Monitor: analysing information from internal and external environment
2. Disseminator: transmitting information to influence the attitudes and behaviour
within the organisation
3. Spokesperson: using information to positively influence the way people out of the
organisation respond to it
This is the hierarchy of the company:
,When we go up the pyramid (first-line → middle → top) the amount of time spent on
planning, organising and controlling becomes greater and the amount of time spent on
leading becomes less.
Planning: we are now going to focus on the planning part. According to Henry Fayol
effective planning should have the following characteristics:
1. Unity: only one central, guiding plan is put into operation
2. Continuity: planning is an ongoing process in which managers build and refine
previous plans and continually modify plans at all levels
3. Accuracy: managers need to make every attempt to collect and use all available
information in the planning process
4. Flexibility: plans can be altered if the situation changes
Jones & George say that planning is a process managers use to identify and select
appropriate goals for an organisation: Mintzberg’s decisional role
Planning has three steps: (1) determining the organisation's mission and goals, (2)
formulating strategy, and (3) implementing strategy.
There are three levels in planning:
- Corporate: organisation’s mission and goals
- Business: long-term divisional goals
- Department: goals of each function how to support their division
Organising:
Mark Otto identified 4 stages of growth within a business:
1. New venture: the entrepreneur makes a business model
2. Early growth: here the company is still vulnerable because there are still few
customers. In this case the ‘infrastructure’ of the organisation is build
3. Rapid growth: the company is becoming increasingly complex and there is a need
for professional management
4. Continuous growth: here innovation is important
Greiner’s growth model:
We now switch from the growth model of Mark Otto to that of Greiner. This growth model is a
theoretical model. Greiner identified five steps in his model. After the fifth step he wrote a
question mark to indicate that he didn’t know what kind of a crisis would occur after these
steps.
First we have to understand what a crisis is. We define a crisis as a disruption in the
company’s business that occurs without warning and is likely to generate new coverage.
Two types of crisis can be distinguished:
(1) abrupt crisis: these crises are sudden and without warning. Company’s can’t do much
to avoid these crises → corona
(2) cumulative crisis: is a gradual crisis. The balance between a company’s organisation
and its environment deteriorates.
Greiner’s growth model states that company’s grow according to a fixed pattern. Greiner’s
model is based on the cumulative crises. Greiner stated that each phase ends with a period
of crisis and revolution. Therefore every evolution creates its own revolution. He also said
that every evolution was characterised by dominant leadership and every revolution by
dominant management.
Greiner model identifies two types of growth:
, 1. Quantitative growth: new products/services
2. Qualitative growth: professionalisation of the organisation
In the Greiner growth model the manager is a disturbance
handler: managing crises.
The figure represents the Greiner growth model. Here every
phase starts with evolution and ends with revolution.
The five steps of the Greiner’s model of growth:
1. Growth through creativity and crises leader (loose):
the crisis arises when the leader can no longer handle
management alone. Hiring management such as an
assistant director would help to solve this revolution.
2. Growth through direction and crises of autonomy
(fixed): in this stage formal control systems are introduced.
The crises that arise because there is a feeling of
dependence and a lack of creativity because of the formal control systems. This is
called the crisis of autonomy.
3. Growth through delegation (loose): this phase is characterised by empowerment.
The company becomes more decentralised. In this phase there is a distance
between top management and the rest of the organisation. Only some important
cases are handled by top management → ‘management by exception’. The crisis is
formed because there is too much distance between top management and the rest of
the organisation. The top management no longer has control and there is no unity in
direction.
4. Growth through coordination and crises of red tape (fixed): here there is more
introduction of formal systems (like phase 2) for better coordination. When there is
more focus on the procedure than on the customer we speak of a red tape
(bureaucratie crisis).
5. Growth through collaboration and ? (loose): here meetings and talks become
more important than rules. Cooperation is more important than working against each
other on the basis of rules. The crisis that arises from this is called the conference
culture or as Greiner stated “?”.
The table here summarises the similarities and
differences between the growth models of Otto
versus Greiner.
Lecture 2: Evolution of management thought
In this lecture we are going to talk about the different management theories.
Scientific management theory: According to George & Jones Scientific management
theory started in the beginning of the 20th century. The emphasis of this theory was on the
amplification of technological improvements within manufactured processes. The basis for
the Scientific management theory was laid by Adam Smith. Smith introduced the job
specialisation → pin factory.
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