Management Organization

Transcription

1 Management Organization 1 Contents Introduction/case discussion Chap 1 : Perspectives in Organization Theories Chap 2 : Environment Technology Working session on technology and environment Chap 3 : Organizational Structure Working session on structure Chap 4 : Culture Identity Working session on culture Chap 5 : Key Issues and Themes Working session on decision making 2 1

2 Main References : Hatch Mary Jo (1997), Organization Theory, Oxford University Press Hatch Mary Jo (2000), Théorie des organisations, De Boeck Université, Paris, Bruxelles Friedberg E. (Dir) (2001), A la recherche de l organisation, CDRom, Banlieues Media, Paris Friedberg E. (Dir) (2005), Decision-making, CDRom, Banlieues Media, Paris Strategor (1995), Stratégie, structure, décision, identité, Interéditions, Paris Stoner J.A., Freeman R.E.,Gilbert D.R.Jr (1995), Management, Prentice Hall International Editions, New Jersey 3 A short story Introduction A first lecture of organizational stakes Quiz 4 2

3 From Brussels to Hanoi The organizational story of a missed plane Brussels- CDG Paris : AF 7184 CDG Paris-Hanoi : VN

4 7 From Brussels to Hanoi Decision-making Timing Available information Partnership Rail-Airlines Companies Partnership Airlines 8 4

5 From Brussels to Hanoi Behavior Cooperation among partners Cooperation between agents Preferences of AF & VN agents Conflict management 9 From Brussels to Hanoi Rationality AF staff person at CDG/VN staff person at CDG Effective or intentional? 10 5

6 E. Friedberg on organizational theory Decision-making and organization are linked Behind behavior, rationality Myth of rational decision making as a representation of our intelligence 11 Initial QUIZ 12 6

7 Chap 1 : Perspectives in Organization Theories Management and Organization definitions Organization Main Theories Management process The Five circles model of organization 13 Management definition Many definitions many approaches Management is a process in relation with resources to reach organizational goals «Management is an action, an art, a way to conduct an organization, to direct it, to plan its development, to control it» (Thiétart,1960) Management definition is related to organization definition 14 7

8 Management or general policy of the enterprise synthesis of information (marketing, production management, human resources management, finance ) generates own process 15 Organization Organization definition: 2 or more peoples working together in a structured way to achieve goals «an Organization is a social unity with an aim» (Litterer, 1960) «an Organization is a response to collective action» (Crozier, 1977) «Organization is defined like a collective action pursuing a common mission» (Mintzberg, 1989) 16 8

9 Organization Petrofina corporation Human ressources Drilling platform Executives & workers Financial ressources Profits Stockholder investments Physical ressources Refineries Office buildings Information ressources Sales forecast Opec proclamation Brussels University Faculty Secratariat staff Alumni contributions Government grants Computers Campus facilities Research reports Government publications Brussels city Police officers Municipal employees Tax revenue Government grants Sanitation equipment Municipal buildings Economic forecast Crime statistics Grocery store Grocery clerks Bookkeeper Profits Owner investment Building Display shelving Price list from suppliers Newspaper ads competitors 17 Organization theories Evolution in relation with historical and social times and places Attempts and various approaches beginning at the end of the 19th century in Europe and US 5-6 Basic «schools» of Management Organization 18 9

10 1. Classical School ( the foundators) Model «one best way» Model focused on mass production and on scale economies Mecanist conception of organization 19 Max Weber ( ) The Theory of Social and Economic Organization (1924) Why people obey to orders? Distinction between power and authority Organization Typology : charismatic legitimacy traditional legitimacy rational legal legitimacy 20 10

11 Bureaucracy as the ideal organization whose activities and objectives were rationally thought Bureaucracy as an ideal type based on principles: Norms by mutual agreement Clear hierarchy with functions and jobs Each job has a sphere of legal competence Hierarchy related to the function and not to the person Selection on qualification ( examinations) Career : promotion by superiors 21 Henri Fayol ( ) Administration industrielle et générale (1916) identifies principles and skills of effective management : Division of labor Authority and responsibility Discipline from good leadership, Unity of command, Unity of Direction, Degree of decentralization of authority, Subordination to common good, Equity, Stability of staff, Initiative

12 Frederic W.Taylor ( ) Principes of Scientific management (1911) Principles : Scientific study of work by specialists Scientific selection and training of staff Scientific study and scientific selection of the worker Cooperation between managers and workers Hierarchy is not enough to ensure effective coordination Best methods for performing any tasks («one best way»), selecting, training and motivating workers 23 Differential rate system : payment of higher wages to more efficient workers + : production «miracle» with increasing productivity - : emphasis on productivity and profitability led to exploitation and mistrust by workers 24 12

13 2. The behavioral school (Human Relations) Research in association among big enterprises and academics Role of human factors in the functioning of enterprises Role of motivation 25 Elton Mayo ( ) Democracy and Freedom ( 1929) The human problems of an industrial civilization (1933) Organization is people Understanding of the workers themselves as opposed to an understanding of the work Hawthorne effect : (Western Electric ) studies on the effect of work conditions (lighting, pauses, productivity primes ) shows the possibility that workers who receive special attention will perform better simply because they receive that attention 26 13

14 Abraham Maslow ( ) Motivation and Personality (1954) hierarchy of the needs (physical and safety,, ego needs) emphasizes the fact that when lower-level needs are satisfied, most people are motived more by higher-level needs a satisfied need is not anymore a factor of motivation Ego needs Estime & respect Social needs Security needs Physiologic needs The Cognition School James March (1928) & Herbert Simon ( ) Organizations (1958) analyse patterns of behaviors show that individuals stay in an organization as long as retributions ( salary, status, ego needs ) are superior in their view to their contribution (work, effort, subordination ) cognition : people function in the organization with a certain type of rationality: a bounded rationality 28 14

15 Douglas Mc Gregor ( ) The human side of the enterprise (1960) management decision-making is based upon assumptions about human nature Theory X ( people are lazy, do not accept responsibility, necessity to constraint) versus Theory Y ( people enjoy working, seek challenge, able to direct himself, ordinary man is able to learn, intellectual potential is rarely used ) Structural contingency approach ( ) one best way Influence of variables : size, age, strategy, technical system of production, environment impact) management technique that best contributes to the attainment of organizational goals might vary in different types of situations the manager s task is to identify which technique will, in a particular situation, under particular circumstances, and at a particular time, best contribute 30 15

16 Charles Perrow Organizational Analysis: a sociological view (1970) Introduces a typology of technical systems of production which explain the structure of the organization 2 types of influences: Nature and repetitively( unity, mass production, continued) complexity 31 Arthur Chandler Strategy and Structure (1962) Study between of big US Enterprises (GM, Du Pont, Standart Oil, Sears Roebuck) Structure is determined by strategic choices: Enterprises offering limited quantity and scope of products are often centralized When size, market are growing, structure of enterprises were modified to match with growth strategy: Vertical integration for volume strategy Divisionalization for diversification strategy 32 16

17 Theories of contingency approach Internal Variables age size technology Starbuck, Greiner, Stinchcombe Dale, Blau, Aldrich Woodward, Perrow strategy Chandler, Child coordination Organizational structures are influenced by Labor division variability Burns et Stalker Mintzberg turbulence Emery et Trist External Variables (environment) relativity national culture Laurence et Lorsch Hofstede Power and rationality limits ( organization sociology) ( ) Focus on power in organizations Focus on decision process Discussion of the nature of rationality 34 17

18 Richard M. Cyert James March A behavioral theory of the firm (1963) Organization is a coalition of members with different goals; consensus only on general aims; conflicts solved by local rationality and by sequential treatment of problems Uncertainty is eliminated step by step without anticipation Problematic search Sliding rules and goals 35 Chester Barnard ( ) believes that individual and organizational purposes can be kept in balance; he introduces the concept of «zone of indifference» that is what the employee would accept to do without questioning the manager s authority 36 18

19 Michel Crozier (1922- With G. Friedberg, L acteur et le système (1977) Organization as a place of collective action is composed of actors Organization is never totally controlled ; incertitude zones exist ;one may pursue own goals Power as a way to master incertitude Actors inside the organization may control incertitude's zones : particular competence, link with an environnemental segment, communication, information, rules application Strategic reactivity & participative management Economic context more turbulent, enterprises and academics explore flexible organization Focus on adaptability Role of culture 38 19

20 William Ouchi A conceptual framework for the design of organizational control mechanisms (1979) Markets, Bureaucracies and Clans (1980) Control consists to achieve cooperation among individuals who hold partially divergent objectives 3 sources of control: markets, bureaucracies, clans (possible combination) Market control take place through competition : when organizations participate in free markets, prices and profits can be used to evaluate and control their performance Bureaucracies rely on a combination of rules, procedures, documentation and surveillance to achieve control Cultural values, norms and expectations provide the primary mechanisms of control to organizations that use clan control 39 Chronology of organizational theories (SCOTT) Organize for efficient production Order from rules Individual is a rational Adapt structure agent Organization modeled by exogenous forces Max WEBER( ) Frederick TAYLOR ( ) Henri FAYOL ( ) Directive Management Alfred CHANDLER Paul LAWRENCE et Jay LORSCH Johan WOODWARD Charles PERROW Contingency and planification Organization is a closed system Human Relations Herbert SIMON Organization is an open system Michel CROZIER Participating management Elton MAYO Karl WEICK Douglas McGREGOR James MARCH Abraham MASLOW William OUCHI Frederick HERZBERG Individual is a social «role of group and working conditions» agent «Complexity, change, turbulence and adhocracy» Individual motivation Mobilize through culture

21 Five circles model (Hatch, 1997) ENVIRONMENT Culture Social structure ORG Physical structure Technology 41 Comparison of characteristics associated with industrialism and post-industrialism (Hatch, 1997) Environment Industrial nation states regulate national economies mass marketing Standardization the Welfare State Postindustrial global competition de-concentration of capital with respect to nation state fragmentation of markets and international decentralization of production rise of consumer choice, demand for customized goods rise of social movements, single issue politics, service class pluralism, diversity, localism 42 21

22 Comparison of characteristics associated with industrialism and post-industrialism - continued (Hatch, 1997) Technology Industrial mass production along Taylorist /Fordist lines routine manufacturing output Postindustrial flexible manufacturing, automation use of computer for design, production, and stock control just-in-time systems (JIT) emphasis on speed and innovation service/information output 43 Comparison of characteristics associated with industrialism and post-industrialism continued (Hatch, 1997) Industrial Postindustrial Social structure bureaucratic hierarchical with vertical communication emphasized specialization vertical and horizontal integration focused on control new organizational forms (e.g., networks, strategic alliances, virtual organization) flatter hierarchies with horizontal communication and devolved managerial responsibility outsourcing informal mechanisms of influence ( participation, culture, communication) Vertical and horizontal disintegration Loose boundaries between functions, units, organizations 44 22

23 Comparison of characteristics associated with industrialism and post-industrialism continued (Hatch, 1997) Industrial Postindustrial Culture celebrates stability, tradition, custom organizational values : growth, efficiency, standardization, control celebrates uncertainty, paradox, fashion organizational values : quality, customer service, diversity, innovation Physical structure (space-time) concentration of people in industrial towns and cities local, nationalistic orientation time is linear deconcentration of people reduction in transportation time links distant spaces and encourages international, global orientation compression of temporal dimension (e.g., shortening product lifecycles) leads to simultaneity 45 Comparison of characteristics associated with industrialism and post-industrialism continued (Hatch, 1997) Nature of work Industrial routine deskilled labor functional specialization of tasks Postindustrial frenetic, complex knowledge-based skills cross-functional teamwork greater emphasis on learning more outsourcing, subcontracting, self-employment, tele-working Based on : Clegg (1990); Harvey (1990); Heydebrand (1977); Kumar (1995); Lash and Urry (1987, 1994); Piore and Sabel (1984)

24 The metaphors of organization theory (Hatch, 1997) Perspective Classical period Modern Symbolicinterpretive Metaphor Machine Organism Culture Image of the organization as a machine designed and constructed by management to achieve predefined goals a living system that performs the functions necessary to survival esp. adaptation to a hostile world a pattern of meanings created and maintained by human association through shared values, traditions, and customs Image of the manager as an engineer who designs builds and operates the organizational machine an interdependent part of an adaptive system an artifact who would like to be a symbol of the organization 47 The metaphors of organization theory continued (Hatch, 1997) Perspective Postmodern Metaphor Collage Image of the organization as an organization theory is a collage made from bits of knowledge and understanding brought together to form a new perspective that has reference to the past Image of the manager as a theorist the theorist is an artist 48 24