1. course overview - principles of management2
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Principles of Management
Prof A.K. Koźmiński, Dr P. Korzyński
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Class schedule
• 10:15 – 11:30
• 11:30 – 11:45
•
11:45 – 12:45
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Course Reguirements
• Participate actively in the class sessions: take
part in discussions
(it will enable you to prepare to an oral exam)
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Course Reguirements
• Read carefully assigned book after each class
session
• Andrzej K. Kozminski, Dariusz Jemielniak The
New Principles of Management Peter Lang:
Frankfurt am Main 2013
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Course Reguirements
• Prepare to oral exam (you will receive a list of
questions at the end of December 2015)
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Course Requirements – to read
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Course Requirements – to read
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Course Requirements – to read
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Course Requirements – to read
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Grading System
• oral exam at the end of semester- 100%
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Course Program
• Organization and management theory and
practice in historical perspective.
• Management functions, roles of managers and
leaders.
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Course Program
• Formalization: mechanisms, merits and
pitfalls. Bureaucracy.
• Structures and structuring of organizations.
•
Resources and processes.
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Course program
• External and internal, material and social
equilibrium
• People and motivation.
•
Information, knowledge and wisdom.
• Organizational culture.
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Course program
• Change, development and strategy.
•
Innovation and entrepreneurship
• Organizational life cycle
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Management and Organization
Theory as scientific discipline
• is characterized by two fundamental features:
practical and interdisciplinary character.
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Practical character
• consecutive management theories
• schools of thought,
•
concepts and ideaswere driven predominantly by changing needs
and problems of business practice.
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Practical character
• They are not "true" or "false" in logical sense
of the word.
• They are more or less appropriate in different
situations and environments in which
businesses and other organizations are
operating.
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Practical character
• Management practice is eclectic and draws
simultaneously from different Management
and Organization theories.
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Interdisciplinary character
Management draws among others on the work
of:
• sociologists, anthropologists, psychologists,
• economists,
• engineers,
•
lawyers,• mathematicians, statisticians,
• political scientists and others.
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Interdisciplinary character
• In this class we will be studying contemporary
approach to management but on the occasion
of this introductory lecture some historical
background will be provided.
• Old theories are not useless in contemporary
world. Different fragments of them are still
applicable in different sets of circumstances.
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History of modern management
thought – 5 chapters
• Classical
• Human relations
•
Management science• Systems
• Contingency
• Resources dependences
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Classical
Scientific management initiated by Frederic
Winslow Taylor (1856-1915) based on six key
ideas:
• observation,
• experiment,
• specialisation and stadardization,
• selection and training,
• payment by results,
•cooperation.
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Classical
• Glibreth (1868-1924) basic
motions called therbligs
using film.
• A basic motion element is
one of a set of fundamental
motions required for a
worker to perform a
manual operation or task.
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Classical
• Gantt bar graphs used to plan and sequence
events along a time line.
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Classical
Max Weber (1864-1920) ideal-typical
bureaucracy. Principles:
• division of labour,
• organization of positions into hierarchy,
• people assigned to positions according to qualifications,
• decisions and actions recorded in writing,
•management and ownership separated,
• all are subject to rules and regulations
• procedures applied impersonally and equally to all to
ensure predictability.
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Classical
Henri Fayol (1841-1925) 14 principles ofmanagement:
• division of work, authority and responsibility,
discipline, unity of command, unity of direction,
subordination of individual to group interest,
remuneration, centralization, scalar chain and
horizontal links Fayol's path, order, equity,
stability of tenure, business strength initiative
and entrepreneurship, esprit de corps.
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Classical•
Rebel Mary Parker Follet (1868-1933) conflict,power, leadership.
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Human Relations
• Roots: rising influence and power of trade
unions, industrial humanism
• B.Seebohm Rowntreer (1871-1954),
• social research Hawthorne Plant of Western
Electric (1924-1933); Relay Assembly Test
Room.
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Human Relations
D. McGregor (1906-64)
• theory x: the average person dislikes works
and will avoid it if possible, most people must
be coerced, directed or threatened, the
average person in unambiguous, prefers
direction, avoids responsibility and desires
security.
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Human Relations
D. McGregor (1906-64)
• Theory Y: expenditure of effort physical and
mental is natural, person will exercise self
control and self direction when committed to
task, is prepared to seek and accept
responsibility,
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Management science
• Application of science physics, mathematics,
statistics. Born in the WWII and transfer to the
civilian life.
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Management science
• Requires expression of problem in
mathematical terms (set of equations) and
optimization, enhanced by development of IT.
• Military consultants such as Lyndale Urwick
(1891-1983) moved to business consultancy.
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Systems
• Unity of science and integrating approach to
organizations. Bertalanffy (50s) Common
patterns in different kinds of system ex.
• Organization as machine or living organism.
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Systems
• Features of systems thinking: holism and
synergy effect, open systems in search of
equilibrium, hierarchy (systems subsystems),
significance.
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Systems
• Sociotechnical systems (people, objectives
goals, structures, physical plant and
equipment).
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Systems
• System and control cybernetics (Beer)
• feedback loops, self regulating systems, law of
requiste variety (Ashby)
• Chaos theory (Gleick)
•
muddling through (Lindblom),• thriving on chaos (Tom Peters)
• chaos uncertainty as opportunity.
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Contingency
• No one best way, case by case.
• Links between organizational structure and
other variables such as: technology, strategy,
conflict.
• Search for excellence Peters and Waterman.
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Contingency
• Excellence characteristics: bias for action,
close to customer, autonomy and
entrepreneurship, productivity through
people, hands on value driven managementstyle, simple form lean staff, simultaneous
loose tight properties.
• No quick fix management recipes like cookbook proof is in eating.
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Resources and dependeces
• Unique configuration of resources decides
about competetive advantage
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• the most important element for the
functioning of organizations is not so much
processing resources, but rather acquiring
them
Pfeffer & Salancik
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The ones who have external control oforganizations:
• possess the necessary resources;
• are the owners of the necessary resources
• can control the accessibility of the resources;
• can control the ongoing utilization of the
resources (e.g. air traffic controllers);• create the rules based on which the access to the
resources is regulated.
Pfeffer and Salancik
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• Organizations that operate in a volatile and
unstable environment more often adapt an
organic-adaptive strategic management style
(they dynamically adjust to changes)
• organizations that function in a relatively
stable environment, where changes occur
slowly, rather adapt a mechanistic model(formalized, bureaucratic, centralized).
Burns and Stalker