Mgmt 1001 Study Notes - Organisations and Management
By: Justin Zhong • August 19, 2018 • Course Note • 11,339 Words (46 Pages) • 1,043 Views
MGMT1001 Study Notes
TOPICS 1 AND 2: Organisations and Management
Organisations
Definitions
- Social entities that are:
- Goal-directed
- Designed as deliberately structures & coordinated activity systems
- Linked to the external environment.
Has:
- Purpose, objective, goals
- Structure, rules & boundaries
- People
- Action designed to achieve the goals.
Is:
- Future oriented
- Part of an open system.
Exists:
- Independently of the people within them – they ‘go on’ while members change.
- It is an open system that cannot ignore its relevance to internal/external stakeholders.
Characteristics
- Size
- Small (<20)
- Medium (20-199)
- Large (>200)
- Industry (e.g. telecomm, mining, finance)
- Ownership type (e.g. sole trader, company, not-for-profit)
- Owner domicile (e.g. local biz, Aus, Multi-national)
- Location (e.g. city, suburban, regional)
- Physical environment (e.g. open plan, personal office)
- Remuneration & benefits (yearly bonus, share options, employee discount, other benefits).
Context of Organisations and Management Today
- Technological change – new products, new ways of doing things, outsourcing and off-shoring.
- International division of labour
- Changing conception of time and space
- Changing demographics.
Manager: someone who coordinates and oversees the work of other people so that organizational goals can be accomplished
- First-line managers: lowest level → non-managerial employees → directly involved with the production or creation of the organization’s products eg. Supervisors
- Middle managers: btwn 1st line and top level of organisations → regional manager, department head, project leader, store manager
- Top managers: who are responsible for making organization-wide decisions and establishing the goals and plans that affect the entire organization eg. Managing director, chief executive officer, chairman of the board
Aims of management:
1. Efficiency: doing things right → getting most output from the least amount of inputs (means)
2. Effectiveness: doing the right things, or completing activities so that organizational goals are attained (ends)
Management functions:
Principles – Henri Fayol (1841-1925)
- Fayol developed 14 principles he believed were essential to increasing efficiency in mgmt. process.
- Also well-known for articulating the 5 (now 4) managerial functions (what managers must do to create a high-performing organisation)
- Planning: choosing appropriate goals for the org.
- Organising: designing processes & systems to achieve those goals
- Command/leading: selecting the right employees for the job, evaluating work performance, motivating individual employees etc.
- Coordinating: putting together relos/work teams to ensure that production runs smoothly.
Controlling: measuring & monitoring to evaluate how the system is working
Management roles: specific categories of managerial behavior expected of and exhibited by a manager
Mintzberg’s managerial roles – what they actually do:
- Decisional
- Entreprenuer
- Disturbance handler
- Resource allocator
- Negotiator.
- Informational
- Monitor → seeks and receives internal and external info to develop understanding of organization (reports)
- Disseminator → transmits info received from outsiders or from subordinates to members of the organization (holding informational meetings)
- Spokesperson → transmits info to outsiders on organization’s plans (holding board meetings, info to media)
- Interpersonal
- Figurehead → routine duties of a legal or social nature (greeting ppl, signing documents)
- Leader → motivation of subordinates
- Liaison → maintains self developed network of outside contacts and informers who provide favours and info (mail)
Managing is about influencing action
Management skills: Robert Katz
- Technical skills – knowledge and proficiency in a certain specialized field
- Human skills – interpersonal. Ability to work well with other people individually or in a group
- Conceptual skills – ability to think and conceptualize about abstract and complex situations
Demands on Modern Managers
- Required to work ‘smarter and harder’ – increased working hrs, doing more with less staff/resources, globalisation of biz environment.
- Pressures of conflicting demands – delivering ‘shareholder value’ while being ethically and environmentally responsible/ sustainability (integrating environmental and social opportunities to achieve biz goals)
- Empowerment efforts of 1990s → increased demands for flexibility ‘work life balance’ and ‘learning opportunities’ by staff.
- Importance of social media to the job
- Importance of innovation to the manager’s job
Evolution of management theory
- Importance came about due to division of labour/ job specialization and Industrial Revolution
- Rise of factory system of production
- Growth in no. of employees
- Increasing use of technology in production
- Rise of ‘corporation’ meaning owners did not necessarily work in the org.
- Key features/developments
- Specialization of labour & the ‘production line’
- Systematic study of work tasks to create rules or ‘one best way’ of performing each task.
- Classical approach → first studies of management which emphasized rationality and making organisations and workers as efficient as possible
Frederick W. Taylor (1856-1915) – 4 Principles of Scientific Management
- Develop a science for each element of the job, which replaces the old ‘rule of thumb’ method.
- Managers should scientifically select, train, teach & develop workers.
- Managers should actively cooperate with workers to ensure all work is completed in accordance with principles of the science developed.
- An almost equal division of work & responsibility should be between mgmt. & workers.
Frank & Lillian Gilbreth – Time & Motion Studies
- Used film & stop watches to determine new ‘quicker’ ways to produce tasks.
- General administrative theory → focuses on describing what managers do and what constituted good management practice
Henry Ford – Production Line
- Took idea of production line from abattoirs – where carcasses were moved through factory on chain/pulley systems, then introduced it into his car manufacturing plants.
Innovations in Administrative Management
Bureaucracy – Max Weber (1864-1920)
- Specialisation of labour
- Formal rules & procedures
- Impersonality
- Well-defined hierarchy
- Career advancement based on merit
- Quantitative approach → use of quantitative techniques to improve decision making eg. Modern day budgeting
- Organisational behavior approach →
- Developed in response to Scientific mgmt. approaches.
- Focuses on motivation & behaviour as a mechanism to improve organisational performance.
- Includes:
- Hawthorne Studies of the 1920s: workers increase productivity when they know they’re being watched
- Maslow’s Hierarchy of Needs: once basic needs are met, people will look for ego status role
- McGregor’s Theory X & Theory Y.
McGregor’s Theory X & Theory Y
Theory X
- employee is lazy, dislikes work & will try to do as little as possible.
- Managers must closely supervise employees for them to work hard.
- Managers should be strict & implement well-defined system of rewards & punishment to control employees.
Theory Y
- Employees are not inherently lazy – they will do what’s good for the org.
- Managers must create work setting that provides opportunities for workers to exercise initiative & self-direction.
- Managers should decentralise authority & make sure they have the resources necessary to achieve org. goals.
- Contemporary approaches
- Systems theory: actions taken in one organizational area will affect others → are not self-contained and rely on environments for essential inputs
- Contingency theory: organizations are diff and face diff situations that require diff ways of managing ie. Organizational size (increase size = increase problems), routineness of task theory, environmental uncertainty, individual differences
21st Century Understandings of Management
- Globalisation!
- Ethics
- Workforce diversity
- Entrepreneurship
- Learning organisations: developed capacity to learn, adapt and change continuously
- knowledge management: org members systematically gather knowledge and share it with others in the organization so as to achieve better performance
- Sustainable management: ensure that their operations and capital required by future generations is maintained
- Increasing emphasis on motivation, leadership and relos.
- Key skill is communication – both oral/verbal, but also the ability to develop & effectively communicate a vision/position to different audiences – the mgmt. of ‘meaning’.
- Less ‘overt control’ as orgs take adv of technology e.g. swipe cards for building access, PC login, keystroke monitoring.
- Access to covert control is extremely important.
TOPIC 3: Attitudes, perceptions and personality: Individual behavior
Individuals in Organisations
Understanding Individual Behaviour
Organisational Behaviour (OB)
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