Scientific Management Organizational Structure Lecture 2: Scientific Management and Organizational Structure

Scientific Management: Taylorism Scientific Management: Fordism PLAN FOR TODAY: Scientific Management: Taylorism Scientific Management: Fordism Exercise What do we mean by organizational structure? Contingency theory Mintzberg: Structures in 5’s

The beginnings of modern management and modern ideas about organizational structure: SCIENTIFIC MANAGEMENT TAYLORISM – Frederick Winslow Taylor (1856-1915) FORDISM – Henry Ford (1863-1947)

Scientific Management - Taylorism Taylor’s principles: ‘Scientific methods’/time and motion studies Clear division of task and responsibilities (little or no discretion) Rigid hierarchy Scientific selection Precise training Surveillance ‘One best way’

Scientific management - Fordism Implementation of Taylorist principles Efficient mass production Deskilling Assembly line Increased speed of production Total vertical integration

Discuss whether you think scientific IN GROUPS: Discuss whether you think scientific management is still influential, and, if so, where, and in what ways? (approx 5 minutes)

WHAT DO WE MEAN BY ORGANIZATIONAL STRUCTURE?

DEFINITION OF ORGANIZATIONAL STRUCTURE: THE SUM TOTAL OF THE WAYS IN WHICH LABOUR IS DIVIDED INTO DISTINCT ACTIVITIES AND THEN IS INTEGRATED TO ACHIEVE THE ORGANIZATION’S PURPOSE/TASK/OBJECTIVES

SCIENTIFIC MANAGEMENT APPROACH TO STRUCTURE: Clear division of task and responsibilities (little or no discretion) Rigid hierarchy ‘One best way’ (modelled on Ford)

CONTINGENCY THEORY (post Second World War): Burns and Stalker; Woodward; Lawrence and Lorsch No ‘one best way’ ‘It all depends ….’ (it is all contingent on….) Effective organisation depends on: Technology Environment (degree of change/uncertainty) Size Diversification Internationalisation

5 BASIC PARTS OF AN ORGANIZATION 5 TYPES OF ORGANIZATIONAL STRUCTURE MINTZBERG: 5 BASIC PARTS OF AN ORGANIZATION 5 TYPES OF ORGANIZATIONAL STRUCTURE

MINTZBERG – 5 BASIC PARTS OF AN ORGANIZATION

ORGANIZATION CHART/ ORGANOGRAM

MINTZBERG: 5 BASIC PARTS OF AN ORGANIZATION: OPERATING CORE: directly concerned with production of goods or delivery of services MIDDLE LINE: managers in direct line between Strategic Apex and Operating Core STRATEGIC APEX: top general managers (and support staff) TECHNOSTRUCTURE: analysts not in the ‘line’ (accountants, work schedulers; long-range planners) SUPPORT STAFF: indirectly support organization; not in the ‘line’ (personnel/human resources; legal; payroll; cafeteria)

MINTZBERG: 5 TYPES OF ORGANIZATION STRUCTURE SIMPLE STRUCTURE MACHINE BUREAUCRACY PROFESSIONAL BUREAUCRACY DIVISIONALIZED FORM ADHOCRACY

MINTZBERG TYPE 1: THE SIMPLE STRUCTURE

MINTZBERG TYPE 2: THE MACHINE BUREAUCRACY

MINTZBERG TYPE 3: THE PROFESSIONAL BUREAUCRACY

MINTZBERG TYPE 4: THE DIVISIONALIZED FORM

MINTZBERG TYPE 5: THE ADHOCRACY

Next week: Groups and teams Essay topics … see you then…