introd+and+ch 1 (1)

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Managingand

OrganizationsLife must be understood backwards; but … it must be

lived forward

– Soren Kierkegaard

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Organization

A collection of people working together to achieve a common goal(Schermerhorn,2008)

A deliberate arrangement of people assembled to accomplish somespecific purpose (that individuals independently could not accomplishalone).

(Robbins and Coulter,2012 )

Organizations are systematically arranged frameworks relating people,things, knowledge, and technologies, in a design intended to achievespecific goals.

(Clegg et al., 2012)

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Manager

A person who supports and is responsible for the work of others (Schermerhorn,

2008) .

manager’s task is to steer, guide, and persuade people to pull together in acommon enterprise – an organization (Clegg et al., 2012)

Management

Is the process of planning, organizing, leading and controlling the use of resources to accomplish performance goals. (Schermerhorn, 2008)

Management is the process of communicating, coordinating, andaccomplishing action in the pursuit of organizational objectives whilemanaging relationships with stakeholders, technologies, and other artifacts, both within as well as between organizations. (Clegg et al., 2012)

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1. Planning: is the process of setting objectives and determining what should bedone to accomplish them.

2. Organizing: Is the process of assigning tasks, allocating resources, and

coordinating work activities

3. Leading: is the process of arousing enthusiasm and inspiring efforts toachieve goals.

4. Controlling: is the process of measuring performance and taking action to

ensure desired results.

Functions of Management

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Sense Making

Sensemaking – Ongoing

– Retrospective

– Plausible

– Images

–

Rationalize – People

– Doing

• Organizations involve multiple sources of sensemaking(e.g. unionism, managerialism)

– Is underpinned by ideology (beliefs, attitudes, and opinions) – Shapes what is taken to be rational

– Multiple sources = multiple rationalities

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History of Management andOrganization

• Before Industrial Revolution

• Industrial Revolution

• Scientific Management

• And Beyond

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Solution

• Limited liability Law- 1857• Control through

•Bureaucracy

• Internal Contracting

Constraints on Size of theOrganizations

• How to Finance

• How to Control

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Panoptican – Jeremy Bentham -1787

Control Through Architecture

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The prison "Presidio Modelo" on the island Isla de la Juventud (Cuba) whereFidel Castro was held prisoner in 1953.

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Inside one of the prison buildings at Presidio Modelo, Isla De la Juventud, Cuba.

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• Innovations: Steam Engine, Power Looms, MetalManufacturing

• Increased Mechanizations

• Construction of Factory

• Demise of Master – Journeymen - Apprentice trade

• Division of Labor

• Changing Control of Product and the Process

• Assembly Line of Henry Ford

After Industrial Revolution -1760 -1820/40

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Taylor’s Principles of ScientificManagement

1. To develop a science of each element of work instead of old rule of thumb

2. Scientifically select, train, teach and develop the workman instead of worker choosing his work and training himself

3. Cooperate with the worker in order to ensure that all work is beingdone according to the developed science.

4. Equal division of work and the responsibility between the worker andthe management. Whereas in past all the work and most of responsibility lied with the worker.

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Henry Ford

• Father of Modern Factory

• Model – T automobile

• Assembly Line

• Mass Production

• Low Cost

• Higher wages for employees

• Consumerism

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Henry Fayol

• A Frenchman

• Contemporary of Taylor

• An Engineer

• Concern with the top executive

• Management Training

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Elton Mayo – Management of Collaboration

• Disillusionment with engineering based solutions.

• Engineering is Part of the Problem

• The Great Depression 1930 strengthened this view

• Social Integration not Conflict is the solution to class conflict inorganizations• It must be possible for the individual to feel, as he works, that his work is socially

necessary; he must be able to see beyond his group to the society. Failure in thisrespect will make disintegration inevitable. Social unity must be conscious unity,known and recognized by every group and individual... (Mayo, 1919: 37)

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• The Hawthorne Studies 1924-1933

• Productivity increased in the control and experimental group

• Productivity increased even when the illumination was reduced

• Productivity increased in response to the value being given to the

chosen, and formation of social relations among its members.

• Real Problem is non-recognition and use of informal groups at the workplace

•

Emphasis on social relations and not technical ones

• Managers need to have social as well as technical competencies.

• Development of Human Relation School

Elton Mayo – Management of Collaboration- contd.

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Chester Bernard - 1936

• Practitioner Businessman

• President of New jersey Bell Telephone and RockefellerFoundation

• Book: The Functions of the Executive (1936)

• Leadership is the key issue

• Leaders should make follower’s self interest apparent

• Managing emotion in order to convince the followers to serveauthority

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Chester Bernard – 1936- contd.

•

Key Principles:• Individual Behavior is difficult to predict• Expand the “zone of indifference” through material and

other incentives• Importance of communication in decision making.

Everyone should have access to formal channels of communication

• Management responsibility is to harness the informalgroupings

• Authority should be accepted by the subordinates

• Real Role of Manager is to Manage Values of the organizationset by the Chief Executives.

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Mary Parker Follett (1868-1933): Management and SocialJustice

• Came from a Wealthy, Privileged Boston Family

• Firm Commitment to Democracy

• Considered Taylor’s ideas to be incomplete and undemocratic

• Division of Labor, Mass Production, Concerns with Efficiency had

started affecting Societal relations

• Book: Dynamic Administration (1941)

• Organizations are like communities

• Be Approached as Local Social Systems

• Promoted collaboration of Managers and Employees

• Management: is a responsible discharge of necessary functions, not theprivilege of elites

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• Organizations organize and create power

• Power is inevitable but can be democratized

• Promoted Power With and not Power Over

• Considered Differences as enriching

• Her 3 Principles•

Functions are specific task areas within organizations which need certain level of authority and responsibility

• Responsibility is expressed in terms of an empiricalduty

• Authority flows from an entitlement to exercise power

Mary Parker Follett (1868-1933): contd.

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introd+and+ch 1 (1)

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