1 approaches to the organisation
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1. Approaches to the Organisation
Management and Strategy
Types of OrganisationCompany Voluntary
OrganisationPublic
Service
Goals Maximum Profit to owners
Help members or help others. Promote ideas
Serve society / The public / public good
Ownership Investors / Shareholders
Members The State or Society
Workforce Employers and employees
Members and employees
Employees
Financing Sales Subscription,Public funding
Public funding – Tax / PRSI / EU
Examples Tesco, Bank of Ireland, Builder
Credit Union, Greenpeace, Sports Club
Garda Siochana,Schools, Hospitals
Organisation in a Business ContextPeople working
together to achieve a goal
Organisation refers to the way in which people are grouped
and the way in which they operate
to carry out the activities of the
business
Key elements of the organisationThe goals of the business and the way they are
formulated - ownership and control - size - social structure - organisational structure
Set the boundaries to the organisation and to decide whether
or not one individual is in or
out
Who wants the Company to Exist?
Company
Customers
Community
OwnersEmployees
Leaders
Suppliers
Financial institution
s
Power Model by Mintzberg
The Classic Approach to Organisation
Management and Strategy
Main Approaches to Organisation
Classical Approach to Management
Purpose an structure
The need for people to act together with unity of
action
Coordination
Hierarchy
Specialisation
Planning of work Technical requirements
Principles of management
Assumes rational and logical behaviour
Need a clear understanding of the purpose
of the organisation
Need for discipline
Scientific Management
FW Taylor
All job processes should be analysed
into discrete tasks to find the ‘one best’
way to perform each task
There is a best machine for each job and a best working method
Scientific selection, training and
development of workers
Co-operation with workers is to ensure work is carried out in
prescribed way
Division of Labour
Bureaucracy
Tasks are allocatedas official duties
Clear Division of Labour
High level ofspecialisation
Rules & regulations
Employment is based on technical qualifications
Max Webber
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
Human Relations Approach
Social factors at work and the behaviour of employees within an
organisation
Importance of the informal
organisation and the satisfaction of individuals’ needs through groups at
work
Elton MayoHawthorne
experiments
Human Relations Approach – The Criticisms
Weak methodology of Hawthorne experiments
Adoption of a management
approach
Insufficiently scientific
Ignoring the role of the organisation
within society
The Systems Approach
Attempts to reconcile the classical and human relations approaches
Examines the total work of the
organisation
Inter-relationships of structures &
behaviour Examines the range of variables within the
organisation
Viewed within its
total environment
The importance of multiple channels in
interaction is emphasised
Inputs and processes may be modified as a
result of feedback
The Systems Approach
The Contingency Approach
The structure of an organisation is
dependent on
Nature of tasks
Environmental influences
No one best way
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
Comparing Theories of OrganisationApproach to
Organisation
Scientific management
Bureaucracy
Human
relations
Systems Contingency
Nature of
solution
Rational allocation of work for efficient specialisation and authority structure
Arrangements to evoke co-operation
Minimising communications burden
Adaptation to environment to meet customers needs
Means Principles drawn from experience
Work group participation in decisions
Decision-analysis and
communication systems
Going for cost leadership and special know-how
Factors studied
Work loads, responsibility,
specialisation
Individual needs, group behaviour
Communication channels, decision-making
Analysis of key variables and strategy
Background influence
Military, engineering, classical economics
Psychology,
sociology
Mathematical economics, operational research, systems engineering
Organisation theorists:
J. Woodward
Burns & Stalker
Japanese Thinking
Japanese methods have produced: high levels of teamwork an atmosphere of innovative ideas a willingness to continually improve (Kaizen)
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
TQM JIT
Zero Defects
FIGURE 1.1
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