Slide 2.1 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Chapter 2 MODELS OF MANAGEMENT

Slide 2.2 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Why study models of management? The competing values framework –Rational goal –Internal process –Human relations –Open systems Integrating themes Cases and examples –innocent drinks, IMI, TCL China, Ford’s Highland Park plant

Slide 2.3 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Why study models of management? Managers act in accordance with their mental model of the situation Models simplify complex reality, so need to recognise and use several (see Figure 2.1) Models: –Identify variables –Suggest relationships –Illuminate the manager’s context –Offer a range of perspectives Unitary, pluralist, critical Thinking critically improves the ability to use them.

Slide 2.4 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Many variables, many models Figure 2.1 Some variables within the internal context of management

Slide 2.5 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Rational goal models A response to the problem of organising factory production efficiently F.W. Taylor (1856–1915) ‘scientific management’ Use scientific methods to find the best way Select best person for the job Train the worker to follow defined procedures Provide financial incentives Move responsibility for planning from worker.

Slide 2.6 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Evaluating scientific management Methods greatly increased productivity and were widely adopted. Aspects of the approach are still common –work measurement, bonus systems, etc. Can incur high human costs: –repetitive tasks alienate many people –reinforces power of managers over workers –focus on the individual ignores their social needs. Are the assumptions valid in context? What alternatives? What are their limitations?

Slide 2.7 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Internal process models: Weber Principles for organising large bureaucracy fairly Rules and regulations: to guide behaviour Impersonality: to protect against favouritism Division of labour: jobs are easy to learn Hierarchy: reflecting power to make decisions Authority: structure that ties system together Rationality: managers should use most efficient methods to achieve objectives.

Slide 2.8 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Internal process models: Fayol Principles for organising the whole business Stressed that these should be applied flexibly and in proportion Included (see Key ideas on p.50) –Division of work –Unity of command and direction –Find the right degree of centralisation –Stability of tenure –Encourage initiative.

Slide 2.9 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Evaluating internal process models Rules, regulations, impersonal procedures widely used, ensure consistency and seem fair. Can be slow and inflexible –Conditions change more quickly than rules –Units of an organisation face different conditions –Rules may become more important than adding value: become an end in themselves. Are the assumptions of the approach valid in context? What alternatives? What limitations?

Slide 2.10 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Human relations models A reaction to scientific management and bureaucratic approaches Focus on people as social beings with many needs Mary Parker Follett –Observed creativity of group processes –Advocated replacing bureaucracy with group networks in which people solve problems –Solving problems created integrative unity.

Slide 2.11 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Elton Mayo and Hawthorne experiments Lighting experiment to test effects of light on output. Unexpected result stimulated a fuller study of the effects of changing physical surroundings. The relay assembly test room –Selected women staff, repetitive, measurable task –Regular changes to working time, rest breaks, refreshments – and asked for views –Results (next chart) led to the conclusion that they had changed the social as well as the physical setting.

Slide 2.12 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Output in successive periods Figure 2.3 The relay assembly test room – average hourly output per week (as percentage of standard) in successive experimental periods Source: Based on data from Roethlisberger and Dickson (1939). From Behavior in Organisations, 6th edn, Greenberg and Baron, © Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ.

Slide 2.13 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Other Hawthorne studies Bank wiring observation room Male staff on payment by results system –Produced less than they could have done showed the social pressures on members to comply with output levels set by group Interview programme – sought employees attitudes to work and life in general –Showed close links between work and life outside implied supervisors should pay attention to emotional needs of employees.

Slide 2.14 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Evaluating human relations models Influenced many management practices – HRM practices stress teams and work-life balance. Aim to integrate needs of individual with needs of the organisation. Critics claim that these practices reinforce unequal power relations – power is still with the organisation. Effects on performance unclear – other variables. Assumptions? Context? Alternatives? Limitations?

Slide 2.15 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Open systems models Figure 2.4 The systems model

Slide 2.16 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Organisations as open systems Focus on links with the outside world on which firm depends Subsystems add complexity – interact with each other and the outside world (Figure 2.5) Socio-technical systems – need to align technical and social systems (Figure 2.6) Contingency theories also a systems view (Chapter 10).

Slide 2.17 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Interacting subsystems Figure 2.5 Interacting subsystems in organisations

Slide 2.18 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Socio-technical systems Figure 2.6 The organisation as a socio-technical system

Slide 2.19 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Linear and non-linear systems Figure 2.7 Feedback in non-linear systems Source: Parker and Stacey (1994).

Slide 2.20 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Evaluating open systems models Influenced many management practices which stress response to external conditions –market research, PR, strategic planning, alliances, etc. May emphasise need for change at the expense of the need for stability and efficiency. Practice depends on people interpreting events –subjective judgements as much as rational analysis. Assumptions? Context? Alternatives? Limitations?

Slide 2.21 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Integrating themes Entrepreneurship Entrepreneurs starting a new business will take an open systems view, though later they will need to introduce others (internal process) to ensure control. Sustainability Promoting sustainability is an example of open systems values; achieving it may need internal process values. Internationalisation Values that shape practice in one country may not do so in another country. Governance Pfeffer and Sutton’s ideas on evidence-based management offer a disciplined way to reduce risk.

Slide 2.22 Boddy, Management: An Introduction PowerPoints on the Web, 6 th edition © Pearson Education Limited 2014 Summary Competing values model offers alternative perspectives on managing, and you can see examples of each approach being put into practice. Each depends on assumptions about the context in which people are managing and working. Enables constructive thinking about alternatives to, and limitations of, current practice. Encourages informed consideration of which approach may be the best way to add value in a given situation.