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Organisational Discourse & Innovation Exam Revision Lecture 1 Intro Evolution of management thought Mission statement- Specifies what an entity does and its purpose. E.g. Apple designs the best computers in the world. Strategies- Are used for the development of policies that ensure the mission statement is achieved. General areas to consider when developing MS and strategies is values, long term goals, plan, time management, KPI and reviews.

Webers 6 elements of bureaucracy 1. Division of Labour 2. Clearly defined hierarchy 3.Formal selection of employment based on technical ability 4.Detailed rules and regulations 5.Impersonal relations: Rules were applied to all 6.Career Orientation: Managers are professional and capable managers, not owners of a business. That is, mgt was viewed as a skill Evolution of Organisational management methods 1. Pre classical era- Experimental movements in working conditions of labour, the use of technology to increase output and the adoption of management principles. Specialisation and extensive organisation evident e.g. pyramids, great wall. 2. Classical era- Based upon scientific, administrative and bureaucratic management. E.g. assembly line, cost saving. Obsession with finding the “one best way” to undertake a task. e.g. Formalisation of scientific mgt strategies by a host of Mgt theorists (e.g. Taylor, Fayol, Weber. Time and motion studies used to find the “one best way” etc. Scientific , administrative and bureaucratic mgt 3. Behavioural perspective- Based around how managers can effect employee performance/behaviour through motivating and managing employees and becoming great leaders. Maslow's hierarchy of needs. The Hawthorne Experiments saw the creation of the Human Relations Movement where focus was placed on: The employee’s emotions, Ensuring that managers tapped into employee likes and dislikes, Early behaviourists, Hawthorne studies, human relations, behavioural sciences. 4.Quantitiatiove perspective- Quantitative methods were needed during World War 11 to create and deploy very large numbers of machines and other resources in strategic locations. Mathematics, statistics and various sources of information are used to assist in management

decisions and in achieving required performance/output. Operations research, operation mgt, and TQM. 5. Contemporary perspective- Researchers during this period attempted to find ‘the best way to manage’ a large organisation. They found that approaches to structuring were contingent upon a number of variables (Contingency theories). Systems theory, contingency theory and chaos theory

Lecture 2 Evolution of management thought continued Scientific management- Is a theory of management that analysed and synthesized workflows. Its main objective was improving economic efficiency, and especially labour productivity. It was the systematic study of relationships between people and tasks to redesign the work for higher efficiency. Taylor sought to reduce the time a worker spent on each task by optimizing the way the task was done. 4 principals to increase efficiency  Study the way the job is performed now & determine new ways to do it e.g. try different methods  Codify the new method into rules e.g. teach to all workers  Select workers whose skills match the rules set in step 2  Establish a fair level of performance and pay for higher performance SM is not designed to take into consideration ………………. SM can be used to effectively undertake something efficiently, but where ………………. need to be taken into consideration, SM needs to be supplemented

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Productivity Taylor and the Gilbreths showed how jobs could be broken down to ensure they were undertaken to achieve higher levels of output e.g. Increase productivity through Time and motion studies Use of specialisation, Use of assembly lines etc.

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Improvement of management Practices: Fayol’s functional approach to management sought to improve high level management. Taylor also noted that “Managers need to manage” and to detail fully what each employee needed to do. Weber showed the importance of selecting the best person for the job, not in hiring friends and family. Weber also showed how bureaucracies could work to increase efficient work practices.

Problems Associated with Scientific Management: As noted previously, the monotony and low skills of scientific management was associated with higher levels of:

…………….. ……………. …………….. …………….  Workers could purposely underperform, specialized jobs became very boring, management responded with increased use of machines Scientific Methods did not have answers for the following issues: ………………… (especially un relation to the highly repetitive design and deskilled process of most manufacturing jobs) …………………by employees in achieving merit levels of pay (higher levels of pay for carrying o+ut a particular job to its maximum observed level. For instance carrying large amounts of pig iron) ……………………………. Output was not constant and fixed throughout the work day …………………of workmanship …………………Employees often called in sick. (Most companies in the early part of the 20 th century did not provide paid sick leave) …………………. There was high turnover in may jobs …………………, especially when these occurred from inattention Management theory- This reflected the values, culture, research and beliefs of the era it sprang from.

Ontology - is about the nature of reality: how we see/think about reality, how we decide what is real if and how we create our social realities and is also about agency: are we cognitive, rational, active beings, do we shape or are we shaped by our environment/language? Epistemology - is about how we know what we know: how we decide what is good knowledge, how we create knowledge, how we develop theories, what those theories are about -Ontology and Epistemology has been used to classify management/organisational theories into three frameworks:

The 3 Management frameworks Modernism 1960's-70's: Objectivity important, Finding universal laws is important, Scientific management and some components of the Human relations school belong to modernism. Establishing a Roster Example: Useful vehicle to staff shifts. Let’s find the ………………… ORGANISATIONS ARE: Designed for maximum efficiency. Capable of being “well-designed”, and there are “norms of rationality”. FOCUS OF ORG THEORY: Finding universal laws, rational laws and so on. For instance, the best way to undertake a job, the best org structure for a particular product line. Symbolic Interpretation 1980's: Shared meaning and symbolism define reality, The symbols and images of an organisation’s culture define it more than rules and regulations for culture, Parts of the Human Relations School belong to this perspective, Establishing a Roster Example: What is the shared meaning of the roster? Perhaps it serves as a sociol barometer for those present at any point in time.

ORGANISATIONS ARE: “Socially constructed realities”. They reflect persona meaning (of self) and constantly change and “reconstruct” FOCUS OF ORG THEORY: Showing how people give “meaning and order to their experience” within their place Postmodernism 1990's: Language and power reflect the true elements of an organisation, Organisations inevitably have uneven power relationships, Establishing a Roster Example: The language shows the roster to be nothing more than an employee control vehicle. It could be used to exploit staff by docking their pay if they are a few minutes late for their shift. ORGANISATIONS ARE: Areas where power relationships are played out. They contain oppression, irrational behaviours. It is important to rise above these factors. FOCUS OF ORG THEORY: “revealing marginalised and oppressed viewpoints: encouraging reflexive and inclusive forms of theorising and organising. The Hawthorne experiments The Human Relations School (HRS): Grew from the Hawthorne studies which examined the effects of social relations, motivation and employee satisfaction on worker productivity. It is the deliberate inclusion of …………………, their ……………. needs and internal drives to in relation to employee output and performance. Also referred to as The Behavioural Approach, The Human Relations Movement, The Human Relations Approach/Perspective etc . Prior to Emergence of HRM: Workplaces were not all run with a regard to employee feelings. No ………………, No personal leave, No superannuation, Wages/salaries typically set by individual employers, No independent safety inspectors, Wages not set by CPI, No unemployment benefit Human relations Motivation: Motivating employees via particular reward mechanisms (other than pay, e.g. challenging work, promotions, feeling part of a team etc …),That is, pay alone is not an adequate incentive, Not everyone responds to pay. Management: Managing employees by recognising they are human beings not robots (e.g. the importance of regular breaks, ensuring work is safe, creating a comfortable environment, encouraging employees, retention of employees, Theory Y rather than Theory X, etc . . . ) Management is not simply about the “one-best-way” to work and paying for high rates of work. Factors that increase employee output: Employees are more likely to be motivated by: Economic rewards (same as Scientific Mgt) , Praise and recognition by the worker’s line manager, Employee creativity and at least some discretion over their job, Job security. Higher levels of pay may also increase output. Job Satisfaction- when workers feel fulfilled and satisfied in their job they tend to have higher levels of output (Note important in Scientific Management). As seen in Hawthorne experiments where workers where provided with breaks and food. -It is considered wrong by some authors to use the HEs as a contrast to Scientific Management (SM). SM was not only about economic rewards as its managers implemented these strategies humanely.

Study group questions 

Briefly outline Buston’s key points in relation to Social Technical Theory. What does this theory refer to?

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Define the terms “span of Control” and “formalisation”. What do they mean and how important are they? Provide examples.

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What are the differences between centralisation and decentralisation and what are the pluses and minuses of tall and flat structures? Provide examples. (Link: pages 391-393)

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Question: What are the principle differences between mechanistic and organic structures? Provide examples.

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Essay Question How can employees use the principles of delayed gratification to be successful in their careers? How the Principles of Delayed Gratification (DG) Operate, How DG can be Used to Obtain Success in a Person’s Carer

Lecture 3 Organisational Effectiveness Organisational Effectiveness - The degree to which an organisation achieves its goals, the selection of which reflects the interests of the evaluator and the life cycle stage of the organisation. The extent to which goals are met. The main aim of organisational theory is to improve the effectiveness of organisations. Effectiveness can be measured through benchmarking and TQM. What can we measure. Most things. For instance: _______________________________ ________________________________ ________________________________ ________________________________ ________________________________ Some areas are too complex or impossible to measure: How people feel about a change in policy, the production process and so forth Unexpected external factors such as climatic issues (measures are available, but less reliable) Sudden changes in consumer demand Things currently unknown to us Matters that involve breaches in ethics (e.g. Zimbardo’s prisoner/guard experiment) Attitudes, perceptions, creative skills (measurements are available, but not entirely accurate) Important questions for every organisation to measure. For instance:  Factors that enable organisational survival and to exist under govt regulation and the environment?, Creativity?, Innovation?, Emotional Intelligence?

How do we measure? We have a large number of tools _____________________________________

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Efficiency: The amount of resources needed to produce a unit of output. For example, an illegally parked car needs one parking officer/or technological device to issue a parking fine to the vehicle’s owner.

Management perspectives about Organisational effectiveness Frederick Taylor: Using scientific methods (e.g. task specialisation, division of labour etc . . . ) to achieve high productivity Max Weber: Adhering to bureaucratic requirements (rules and regulations, maintaining files, selecting new staff on merit not nepotism, etc . . . ) to achieve good performance Abraham Maslow: Using job satisfaction to achieve high performance (productivity) W. Edward Deming: Manufacturing good quality goods that do not break down within a short “shelflife” will result in effective performance Ricardo Semler (Semco): Industrial Democracy with a focus on outcomes rather than processes

Traditional Approaches to measuring Organisational Effectiveness 1.The goal attainment approachOrganisational effectiveness rests on an organisation achieving its goals, When goals are accomplished. It's a useful approach when goals are clear, measurable and have timelines. Assumptions: That organisations are: rational, goal seeking entities, that have clearly defined goals that are widely agreed upon goals. E.g. Passing exams. Problems: Rationality - not all organisations are rational Diverse goals- People who work in an organisation may have differing goals, as do customers, and shareholders etc. Competing goals - Some goals have differing requirements, Consider: Environmental vs. non environmental policies.

Value to Managers: Goal attainment can be valuable but requires several processes to reduce problems, for instance: Wide Input: _________________________________________ Easy to measure: _____________________________________ Key Results Indicators (KRIs): Customer and employee satisfaction, Net profits before tax, Return on capital employed, Profitability of customers.

Key Performance Indicators (KPIs): These often assist in achieving healthy KRIs. E.g. percentage increase in sales of important customers, Changes in demand, Inability to deliver an order on time to key customers. 2.Systems approach Organisational effectiveness rests on the successful operation of every component of the system and attention to the external environment. When resources are acquired, its useful when there is a clear connection between inputs and outputs. Assumptions: Regulated by subcomponents that interact well together, Has a steady stream of inputs, Each sub-component must be kept up to date, it is flexible and has a fast interaction with the environment, Organisations must maintain good relations with stakeholders (e.g. customers, shareholders, govt, etc., Processes are more important than goals, Goals are also important for the achievement of specific targets, however systems theorists are more interested in processes Problems: Inputs: Ensuring continual delivery of inputs. Measuring process: Some processes are difficult to measure. Focus on output rather than effectiveness: The focus is on creation via the transformation process of the systems approach, NOT on whether the output has a market Value to Managers: When managers pursue this approach their emphasis is not on immediate results, but on maintaining production of the system 3.Strategic constituencies approach The strategic constituencies approach stresses that the survival of the organisation depends upon satisfying key environmental sectors or groups e.g. customers, shareholders, community, creditors, suppliers and employees. When all groups (constituencies) are at least minimally satisfied, Important when groups have a powerful influence on the organisation, and the organisation must respond to demands. These are called strategic constituencies that are important to each organisation. For example, for a family business, succession planning is a strategic constituency, but not for other businesses. Other examples: shareholders, govt, etc . . This is a political approach to assessing effectiveness Assumptions: Groups: Important groups are identified within the environment Power of Groups: Each of the identified groups (constituencies) has a level of power over the organisation. For example, shareholders seek to maximise profit Goals and Groups: Managers will identify strategic groups and ensure goals for each group are satisfied Problems: Different Groups and Goals: Different groups may have different goals. Value to Managers: __________________________________________________________________________________ ____________________________________________________________

4. Balanced Scorecard The balanced scorecard approach to effectiveness views effectiveness as arising from the balance between the various demands upon the organisation and its capabilities. This approach measures what is important to organisations and how the selected measures are interrelated and includes preestablished measures. When areas critical to the business are identified and measured, Measures whether management is achieving desired results through translating mission and vision statements into a comprehensive set of objectives and performance measures that can be quantified and appraised. Useful for complex organisations operating in a demanding environment Assumptions of BSC: That the four identified areas are the most important areas to measure The BSC identifies four important performance perspectives that can be measured:  Financial: Measures the organisation’s profitability and return on its assets. E.g. ROI and cash flow  Customers: Assesses how customers are satisfied with the design, price and delivery of the product/service. E.g. Customer satisfaction rate.  Internal operational process: such as alignment of functions and avoiding bottlenecks. E.g. No of activities per function  Development: For instance, innovation and learning. Improvements for the product/service line to ensure continued customer demand. E.g. Job Satisfaction, employee turnover. Problems: Depends on the selection of measures. The selection and ranking of measures can be very subjective Value to Managers: __________________________________________________________________________________ ________________________

-These approaches are for an entire organisation, however KPIs, or goals, are used to measure all parts of an organisation

Non-Planned Measures- Often organisations are given information from their environment e.g. newspapers, whistleblowers. The problem is that Non-planned sources and information can often be embarrassing. E.g. reported suicide of nike workers. How Sacrificial HR Policy can be Maintained: The following factors are required to sustain this  Recruitment: HR needs to select intrinsically motivated staff (because managers are taskfocussed)  Low Level of Knowledge: Employee tasks are designed by HR to require little knowledge of the organisation (hence use of scripts and centralisation of deviations to these)  Monitoring : HR need to be able to measure staff performance to ensure targets and satisfaction levels are met.

Benchmark- A measurement selected for comparison. Typically the measure represents 'the best' and its used a 'standard' to measure against. Benchmarking- The process of measuring existing systems/goods etc . . . against a benchmark to improve performance. E.g. the best football team is. Benefits of benchmarking  Improves understanding of the current position, Improves information about other measures and practices, Provides opportunities to explore new goals, methods, products and techniques etc . Can often increase innovation, Usually accompanied by action plans Forms of benchmarking  Competition: Usually a comparison of selected items from competitors. (e.g. advertising, product design, etc).  Inte...