Models of Management: Understanding Different Approaches and Theories, Lecture notes of Management Theory

Various models and theories of management, including why managers use them, the impact of personal experience and research, different frames of reference, and the role of metaphors in understanding organizations. Topics covered include scientific management, bureaucratic management, human relations models, and open system models. Key figures discussed are daniel schenk, pfeffer and sutton, alan fox, gareth morgan, quinn, frederick taylor, frank and lillian gilbreth, henri fayol, mary parker follett, elton mayo, peters and waterman, trist and bamforth, and woordward, burns, staler, lawrence, and lorsch.

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Daniel Schenk Maastricht University 10th October 2015
Management an Introduction
Chapter 2 – Models of Management
Why study models of management?
A model or theory represents complex phenomenon by identifying main elements and
relationships. Managers act in accordance with their model of the task. Models help to identify
the variables in a situation and their relationship to confidently and save time and effort.
Pfeffer and Sutton
Why managers ignore evidence:
Trust personal experience more than research
Prefer methods which worked previously
Susceptible to vigorous consultants
Rely on dogma and myth
Copy practices that have worked well for famous companies
Alan Fox
Manager’s frame of reference:
Unitary perspective believe that organisations develop rational ways of achieving
common interests
Pluralist perspective believe that the division of labour leads to groups with different
interests
Radical perspective believe that horizontal and vertical division unequal the social
relations within capitalist society.
Gareth Morgan
Image of organisation uses metaphors to represent an organisation.
Machines – Mechanical thinking and bureaucracies
Organisms – Recognising how the environment affects health
Brains – Information processing, learning perspective
Cultures – Focus on beliefs and values
Political systems – View on conflicts and power
Psychic prisons – People become trapped by habitual thinking
Flux and transformation – Focus on change and renewal
Instruments of domination – Over members, nations and environments
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Management an Introduction

Chapter 2 – Models of Management

Why study models of management?

A model or theory represents complex phenomenon by identifying main elements and relationships. Managers act in accordance with their model of the task. Models help to identify the variables in a situation and their relationship to confidently and save time and effort.

Pfeffer and Sutton

Why managers ignore evidence:  Trust personal experience more than research  Prefer methods which worked previously  Susceptible to vigorous consultants  Rely on dogma and myth  Copy practices that have worked well for famous companies

Alan Fox

Manager’s frame of reference:  Unitary perspective believe that organisations develop rational ways of achieving common interests  Pluralist perspective believe that the division of labour leads to groups with different interests  Radical perspective believe that horizontal and vertical division unequal the social relations within capitalist society.

Gareth Morgan

Image of organisation uses metaphors to represent an organisation.  Machines – Mechanical thinking and bureaucracies  Organisms – Recognising how the environment affects health  Brains – Information processing, learning perspective  Cultures – Focus on beliefs and values  Political systems – View on conflicts and power  Psychic prisons – People become trapped by habitual thinking  Flux and transformation – Focus on change and renewal  Instruments of domination – Over members, nations and environments 1

Quinn

...believe that successive models of management complement, rather than contradict, each other.

Rational goal models

Frederick Taylor

Scientific management – attempted to create a science of factory production. Wanted to secure the maximum prosperity for the employer, which was supposed to be coupled with maximum prosperity for the employee. The way to achieve this was to ensure that workers reached their state of maximum efficiency. Five principles:  Determine the one best way of doing task  Select the best person to do the job  Train, teach and develop workers  Provide financial incentives  Centralise the responsibility to manager

Frank and Lillian Gilbreth

Implementing scientific management  How to reduce unnecessary action and fatigue  Specified what employers should provide  Scientific management properly applied enables individuals to reach their potential

Operational research

…is a scientific method of providing a quantitative basis for decisions regarding the operations under control. Vertical axis represents tension between flexibility and control. Horizontal axis distinguishes internal from external focus.

Peters and Waterman

‘Search of excellence’ managed US companies. They had a distinctive set of philosophies about human nature and the way people act in organisations. Regarded people as emotional, intuitive and creative social beings who value self-control, but also need security and meaning of achieving goals.

Open system models

Organisation as an open system : A system that interacts with its environment. There are links between the internal and external parts. Organisations depend on their environment for resources. To ensure this, the environment needs to be satisfied. System boundary separates system from its environment. Feedback – provision of information about effects of an activity. Subsystems are separate but related parts that make up the system. Socio-technical system – outcome depends on interaction between technical and social subsystems. Seeing a work system as combining material technology and social organisation. (Trist and Bamforth) Contingency management – adapt structure of organisation to match external conditions. Approach based on idea that performance of an organisation depends on having a structure that is appropriate to its environment. (Woordward, Burns, Staler, Lawrence, Lorsch) Complexity theory – Complex systems can arrange and organise themselves spontaneously. Systems learn and adapt from their internal experiences and from their interactions with similar systems. Complexity arises from feedback between the parts of linked systems. E.g.: Individual organisation discovers and responds/acts to things happening in the environment. Organisation’s action has consequences for the environment that responds to organisation’s action. This has consequences for the organisation that responds to the environment’s action. – Process continues infinite. Complexity Linear systems – actions lead to a predictable outcome Non-linear systems – actions lead to less predictable/unpredictable outcomes