Approaches to Organisation and Management Management and Organisational Behaviour 7th Edition CHAPTER 3 Approaches to Organisation and Management

The importance of management theory What leading writers say is an important part of the study of management The relationships between the development of theory, behaviour in organisations & management practice are explored Knowledge of the development of management thinking helps in understanding the principles that underlie the process of management Knowledge of history helps in understanding the nature of management and OB Many earlier ideas are of continuing importance

Main approaches to organisation, structure, & management Figure 3.1 Main approaches to organisation, structure, & management

Classical approach to management Classical writers thought of organisations in terms of purpose & formal structure Emphasis was placed on the planning of work, technical requirements of the organisation, principles of management, and the assumption of rational and logical behaviour A clear understanding of the purpose of the organisation was essential to understand how the organisation works and how its working methods can be improved

Common principles to the classical approach to management Principle of coordination – the need for people to act together with unity of action, and need for discipline The scalar principle – the hierarchy of organisation, the grading of duties and process of delegation Functional principle – specialisation & distinction between different kinds of duties Mooney & Reiley

Criticisms of the classical approach Insufficient account taken of personality factors Creates organisational structures where people can exercise only limited control over their work environment Out-of-date approach

Scientific management There is a best machine for each job, so there is a best working method by which people should undertake their jobs All job processes should be analysed into discrete tasks & via this management find the ‘one best’ way to perform each task Taylor

Principles of scientific management The development of a true science for each person’s work The scientific selection, training and development of workers Co-operation with workers to ensure work is carried out in prescribed way The division of work and responsibility between management and workers

Bureaucracy – the main characteristics Tasks are allocated as official duties among the various positions An implied clear-cut division of labour and a high level of specialisation Uniformity of decisions and actions achieved through formally established systems of rules & regulations An impersonal orientation expected from officials in their dealing with clients Employment is based on technical qualifications

Bureaucracy – the main features Specialisation Hierarchy of authority System of rules Impersonality Stewart

Criticism of bureaucracy Over-emphasis on rules and procedures, record keeping and paperwork Lack of flexibility and stifling of initiative Position and responsibilities can lead to officious bureaucratic behaviour Impersonal relations can lead to stereotyped behaviour and lack of responsiveness to individual incidents or problems Weber

Human relations approach Is based on the consideration of the social factors at work and the behaviour of employees within an organisation Particular importance is paid to the informal organisation and the satisfaction of individuals’ needs through groups at work Hawthorne experiments acted as a turning point in the development of the Human Relations movement

Human relations approach – the criticisms Weak methodology of Hawthorne experiments, including failure to take sufficient account of environmental factors Adoption of a management approach, a ‘unitary frame of reference’ and over simplification of theories Insufficiently scientific and takes too narrow a view, ignoring the role of the organisation within society

The systems approach Attempts to reconcile the classical and human relations approaches Attention is focused on: the total work of the organisation the inter-relationships of structures & behaviour the range of variables within the organisation The organisation is viewed within its total environment and the importance of multiple channels in interaction is emphasised

The contingency approach Views the structure of an organisation and its success as dependent on: the nature of tasks that are undertaken the nature of environmental influences There is no one best way to structure or manage organisations - it is dependent on the contingencies of the situation

A more recent view of organisations and management Post modernism A more recent view of organisations and management Rejects a rational, systems approach and accepted explanations of society and behaviour Places greater emphasis on the use of language and attempts to portray a particular set of assumptions or versions of the truth

Advantages of different approaches / categorisations Provides a setting in which to view the field of management Traces the major lines of argument developed by different writers Provides a framework in which principles can be set and comparisons of management practice made Helps in organisational analysis and identification of problem areas Enables managers to select those ideas which best suit the requirements of their job

Not all writers can be neatly categorised Caveats The various approaches represent a progression of ideas and a pattern of complementary studies Not all writers can be neatly categorised Whilst there may be acceptance of the need for a framework there is no agreement on its shape The distinction between certain ‘schools’ of thought are not clear cut

Management theory – comparing Western & Japanese thinking 1960s – Western management lacked curiosity about competition from Japan, with British and European managers obsessed by American examples 1970 & 80s - many sought to emulate the characteristics of Japanese management Japanese methods have produced: high levels of teamwork an atmosphere of innovative ideas a willingness to continually improve (Kaizen)