Leadership and Administrative Dynamics Eckerd Fall 2010

Agenda Myers Briggs exercise Read memos in class. Memo writing Bureaucracy Scientific Management Universal Management Principles Classical Theories in modern organizations Human Relations approaches Human Resources Model Open Systems Contemporary Developments Contingency Theories Organization theories

Judging Perceiving Thinking Feeling Sensing Information Introvert Extrovert Where do I get energy? How do I take in information? How do I organize my world? How do I make decisions?

Judging Perceiving Thinking Feeling Sensing Information Introvert Extrovert Work in groups or Work alone Facts or 30,000 feet in the air Solve the problem or prefer processing and flexibility Business decision or People decision EXTREMES

Pre-Scientific Management (Pre-1800s) Classical Management ( ) Administrative Theory/Universalism (Henri Fayol) Scientific Management (Federick Taylor, Frank and Lillian Gilbreth, Henry Gantt-“Gantt Chart”) Structuralist School (Max Weber-“bureaucracy”) Neoclassical Management and Organization Theory ( s) Human Relations School (Human Relations/Hawthorne Experiments) Behavioral School (Abraham Maslow, Douglas McGregor, Rensis Likert, Chris Argyris, Frederick Herzberg, David McClelland) Modern Management and Organization Theory ( s) Management Science (OM, MRP, JIT, CI, TQM) Systems Theory (Peter Senge)(Subsystems, Open/Closed) Contingency Theory (Open Systems Planning, Organizational Design, Leadership)

CLASSICAL Context: factory work, under-educated workers. (assembly lines) People can be organized through measured steps to deliver the best outcome. Staff do not participate in decision making (to varying degrees). Hierarchical. Informal peer leaders. Routine jobs. Division of labor. Functional departments. Hierarchical supervision. Management by control. Administrative setting, well-educated professionals. People need to be challenged, work together, trust each other. Staff participates in decision making (to varying degrees). Flatter organizational structure Formal teams. Complex jobs. Continuous learning. Ecosystem is world-wide MODERN Theories compared

CLASSICAL MANAGEMENT

Early 20 th Century thinking FayolWeberTaylor Refined at the turn of the century, by Frederick Taylor (scientific management), Henri Fayol (principles and elements of management), and Max Weber (bureaucracy), this is the management philosophy that still dominates our organizational landscape.

Bureaucracy and Max Weber (I ) Formalized, hierarchical, specialized with a clear functional division of labor and demarcation of jurisdiction, standardized, rule based, and impersonal. Professional, full-time administrative staff with lifelong employment, organized careers, salaries, and pensions, appointed to office and rewarded on the basis of formal education, merit, and tenure. Normative structure where government is founded on authority, that is, the belief in a legitimate, rational-legal political order.

In 1847, a professor in political science at Heidelberg, Robert von Mohl, observed that: "the privileged classes complained of loss of privileges, the commercial classes of interference in commerce, artisans of paperwork, scientists of ignorance, statesmen of delay."

Weber Legal guarantees against arbitrariness Recruitment based on merit Social and Economic differences can be mitigated through the law

Changes in human services decision making Public administration is a “supermarket” of services Citizens/clients are “customers” Flatter decision making, power sharing internally and externally Privatization

What are rules? Rules can assist with interpretation of ambiguous worlds. Rules define the world. roles, rights, obligations, interests, values, worldviews, and memory Rules can mean change. Rules can fulfill the “invisible veil” Principle. Rules need flexibility and discretion. Rules are not inflexible, people are inflexible.

Scientific Management Taylor ( ) mass production low cost, acceptable quality organizing large numbers of under-educated and/or non- English speaking immigrants non-technical rural workers for urban technical work.

Fayol ( ) Planning Organizing Staffing Budgeting Coordinating Controlling Fayol considered the need for staff to participate in decision making. What do managers do? What do companies do? Production, Selling/marketing Finance Security Accounting Management

Fayol continued 1. division of labor 2. the establishment of authority 3. the enforcement of discipline 4. unified command, one employee reports to only one supervisor 5. unity of direction 6. subordination of individual interests to the interest of the organization 7. fair salaries 8. Centralized authority 9. Scalar hierarchy, in which each employee is aware of his or her place and duties 10. a sense of order and purpose 11. Equity and fairness in dealings between staff and managers 12. stability of jobs and positions 13. development of individual initiative 14. esprit de corps

HUMAN RELATIONS

Mary Parker Follet ( )

Elton Mayo Western Electric experiments Conclusions Group activity, collaboration and the role of informal teams. Social world of adults Belonging Complaining Social demands Human Relations Approaches

BEHAVIORAL APPROACH Abraham Maslow, Douglas McGregor, Rensis Likert, Chris Argyris, Frederick Herzberg, David McClelland

McGregor Theory X and Theory Y Buying a pair of hands Building people

Douglas McGregor Human Resources Approach Theory Y Theory X Work is Natural Self- Direction Self- Direction Seek Responsibility Seek Responsibility Good Decisions Widely Dispersed Good Decisions Widely Dispersed Avoid Work Avoid Work Must be Controlled Must be Controlled Avoid Responsibility Avoid Responsibility Seek Security

Chris Argyris – classical organization structures lead to immature, dependent staff Assumptions (values)ActionActual Results Results Gap Desired Outcome DOUBLE LOOP SINGLE LOOP

Argyris

Teams COMMUNICATE more than individuals operating alone. Leadership is key element to implementing and sustaining a learning environment. Leaders are responsible for promoting an atmosphere conducive to learning CREATIVE TENSION - Represents difference between the “vision” of where the organization could be and the reality of the current organizational situation. Open Systems Peter Senge

Senge Systems Theory is NOT a prescriptive management theory Attempts to widen lens through which we examine and understand organizational behavior The Learning Organization Synergy Nonsummativity Interdependence Equifinality Requisite Variety Emphasizes COMMUNICATION in the Learning Process Organizations cannot separate from their environment Organizational teams or subsystems cannot operate in isolation

Professional Bureaucracies (hospitals, universities)Community-Based Organizations (small non-profits)Total Quality ManagementThe Excellence Movement (In Search of Excellence)Business Process Reengineering Contemporary Developments

Taylor to TQM Customer is always rightUpstream quality, not downstream fixingConsistency in productionPeople work within systems not “how I think it is best to do it”Continuous improvements of processesStaff participateCommitment from the top to the bottom

BPR (downsizing) Addresses silo “thinking” between functions. Eliminates what is not needed.

Contingency Theory There is no one best way to structure and manage organizations. Structure and management are contingent on the nature of the environment in which the organization is situated. Argues for “finding the best communication structure under a given set of environmental circumstances.”

Memos