Kia Ora• Welcome to new class members• Please make an effort to meet new students in

each discussion• If you are new please have a look at week 0ne

material on Moodle, as well as the Course documents.

• New week we will be finalising our groups

Please bring your answers on one page• Group : Class by shortest to tallest. Then every fourth

person in group• Ethical Challenge p74 prepare two questions for class

(for later in class)• Explain the four management functions and how

they are interconnected.• Summarise one relevant news story (100words)

and bring to class, with article or link- Discuss• Your news?

The evolution of management thinking: Ch 2Lecture overview

• Management and organisation• Classical perspective• Humanistic perspective• Recent historical trends• Sustainable development

Management and organisation• Social forces– The aspects of a culture that guide and influence

relationships among people – their values, needs and standards of behaviour.

• Political forces–The influence of political and legal institutions on people and organisations.

Management and organisation• Economic forces– Forces that affect the availability, production and

distribution of a society’s resources among competing users.

Classical perspective‘The classical perspective … emphasised a rational, scientific approach to the study of management and sought to make organisations efficient operating machines’

(Samson, Catley, Cathro and Daft 2012, p. 54).

Classical perspective• Scientific management• Bureaucratic organisations• Administrative principles

Classical perspective• Scientific management:

(Fredrick Winslow Taylor 1856–1915)– Improve labour productivity through

scientifically determined changes in management practices.

– Develop standard method for performing each job.

– Select workers with appropriate abilities for each job.

Classical perspective (cont.)• Scientific management:

(Fredrick Winslow Taylor 1856–1915)– Train workers in standard method.

– Support workers by planning their work (eliminate interruptions).

– Provide wage incentives to workers for increased output.

Classical perspective • Scientific management

(The Gilbreths)– Time and motion study.

– From bricklaying to surgery.– Cheaper by the dozen latest films give clues but…

http://youtu.be/hjEpwRBDaj8

Classical perspective

• Bureaucratic organisations:‘Emphasised management on an impersonal, rational basis through such elements as clearly defined authority and responsibility, formal record keeping, and separation of management and ownership’

(Samson, Catley, Cathro and Daft, 2012, p. 56).

Classical perspective

• Bureaucratic organisations: (Max Weber - 1864–1920)– Rational authority, not personal/family/religious.– Rational authority based on structure and

positions.– Therefore, rules and written records provide

continuity.– Working Holiday example, (automatic updates)http://www.immigration.govt.nz/migrant/stream/work/workingholiday/

Classical perspective• Bureaucratic organisations:

Classical perspective• Administrative principles:

‘Focused on the total organisation rather than the individual worker, delineating the management functions of planning, organising, commanding, coordinating and controlling’

(Samson, Catley, Cathro and Daft, 2012, p. 58).

Classical perspective• Administrative principles:– Henri Fayol (1841–1925) • Unity of command• Division of work• Unity of direction• Scalar chain

– Mary Parker Follett (1868-1933)• Superordinate goals, people-focused leadership,

empowerment– Chester I. Barnard (1886–1961) • Informal organisation (cliques and natural social

groupings)• Acceptance theory of authority

Humanistic perspective

‘Emphasised understanding human behaviour, needs and attitudes in the workplace, as well as social interactions and group processes.’

(Samson, Catley, Cathro and Daft, 2012, p. 59)

Humanistic perspective: 4 views• The human relations movement• The human resources perspective• The behavioural sciences approach• Management science perspective

Humanistic perspective• The human relations movement:– Effective control comes from within individual– Enlightened treatment of employees– Hawthorne studies (Mayo and Roethlisberger)• The impact of illumination on productivity.• Relay Assembly Test Room (6-year study).• Productivity increased with positive employee

relations/treatment (social grouping, breaks, shorter hours, meals).• Also increased when some treatments removed

with careful Some disagreement among scholars on the role of money as a primary driver of productivity.

Humanistic perspective

Maslow’s hierarchy of needsSelf-actualisation

EsteemBelongingness

SafetyPhysiological

• Human resources perspective:• Jobs should be designed to meet higher-

level needs (not dehumanising or demeaning).

Humanistic perspective

• Human resources perspective:– McGregor’s Theory X and Theory Y

• Theory X workers: – Dislike work.–Must be controlled and coerced.– Prefer to be directed; avoid responsibility; has

relatively little ambition.

Humanistic perspective

• Human resources perspective:– McGregor’s Theory X and Theory Y

• Theory Y workers: – Use of physical or mental effort in work is natural.– Will use self-direction and self-control when

committed.– Learn not only to accept, but seek, responsibility.– Will use a high degree of imagination, ingenuity

and creativity.– Only partly utilise intellectual potential.

Exercise:• You have been asked to lead a team that

comprises equal numbers of theory ‘X’ and theory “Y” colleagues.

• What steps could you take to be an effective team leader?

• Choice by Height? Or Mix nationalities: • - class members you have not worked with before

– Introduce yourselves!

• We will discuss again later in semester

Humanistic perspective• Behavioural sciences approach:– Applies social science in an organisational

context.– Draws on sociology and economics-

influencing strategy and structure.– Draws on psychology-influenced motivation,

communication, leadership and human resource management.

– Organisations draw upon this approach(e.g. selection, motivation).

Humanistic perspective

• Management science perspective:– The application of mathematics, statistics and

other quantitative techniques to managerial problems.

– Operations research• Mathematical model building

– Operations management• Solve manufacturing problems

(e.g. scheduling)

Humanistic perspective• Management science perspective:

– Management information systems• Provide information to managers

(e.g. logistics)– Queuing theory• Provide services to minimise customer waiting (e.g.

traffic)

Recent historical trends

Extensions to the humanistic perspective• Systems theory• Contingency view• Total quality management• Managing the technology-driven workplace• The shifting world of e-business• The learning organisation

Recent historical trends• System– A set of interrelated parts that function as a whole

to achieve a common purpose.• Systems theory– Describes organisations as open systems that are

characterised by entropy, synergy and subsystem interdependence.

Recent historical trends• Systems theory:– Five components of a system• Inputs• Transformation• Outputs• Feedback• Environment: Ken’s work in Tourism/ Travel fits

– Closed system• Does not interact with the external environment• Recall classical perspective

Recent historical trends• Systems theory:

• Open system – Interacts with the external environment.

• Entropy – Organisations will die without fresh inputs from the

environment.

• Synergy – The whole is greater than the sum of the parts.

• Subsystems – Parts of the system depend upon on one another.

Recent historical trends

Recent historical trends

• Contingency view:– The successful resolution of organisational

problems depends on managers’ identification of key variables in the situation at hand.

– Classical perspective = universalist– Contingency view = each situation is unique• e.g. industry, technology, the environment and

international cultures.

Recent historical trends

• Total quality management •What can you tell us about TQM?– A concept that focuses on managing the total organisation to deliver quality to customers.

• Four significant elements– Employee involvement – Focus on the customer– Benchmarking– Continuous improvement

Recent historical trends• Managing the technology-driven workplace– The shifting world of e-business• electronic linkage of customers, partners, suppliers,

employees and others.• E-commerce: Electronic business exchange or

transactions.– Innovative technology.• ERP: Enterprise resource planning.

– Knowledge management– Customer relationship management (CRM)– Outsourcing

The learning organisation• An organisation in which everyone is engaged

in identifying and solving problems.

– Enables an organisation to continuously experiment, change, and improve

– Increases the capacity of an organisation to grow, learn, and achieve its purpose

Can be a source of competitive advantage

Discussion Groups by birthday / age• Choose group letter a, b, c, d, e, f, g, h, I, j, k, l,• Discussion any two questions from hand-out

p.75 at end of chapter 2 • Choose a spokesperson to respond to class.• Read response to Management Challenge

Cemex on p.72

• Note: Library has copy of text on 2 hour loan

Next week• If you have purchased text Go into the Course mate website

access from text book code and look at additional material Chapter 1 and 2

• ALL: Read chapter 18 / • Consider who you would like in your group• Turnitin.com = Are you registered? BSNS5390 Managing in

Organisations s1 2015• Class ID ??? Ngaire to advise • Enrolment password BSNS5390s1 case sensitive

• Wednesday 05 August “Effective Communication”• When: Wednesday 5 August 1-3pm

Where: Building 76-1084 rsvp http:bit.ly/UnitecPPD41

Assignment 3: Read Chapter 18 and then bring your answer on one page

1 How to conduct a meeting what suggestions can you make? AND2 Orpheus Orchestra p.674. What are two advantages of self directed teamsOR • Transport Corporation of India p.677. How

successful are teams in various cultural settings?

10 marks