Lecture 1 – Foundations of Management and Organisations

MANAGING PEOPLE AND ORGANISATIONS NOTES

Lecture 1 – Foundations of Management and Organisations

M&O Foundations -

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Pre-industrial Management  No Manager o Small Workshops  Direct control by owner – Master Craftsman (Jacques 1996, Morgan 2006)  Discipline apprentices through control of resources control and knowledge  Owner fully liable if enterprise fails (Clegg, Konberger and Pitsis 2016)  Early Management Ideas o Organisation of the army and government o Religious organisations o East India company 17th and 19th Century (Banerjee 2008) o Slavery: Southern US plantations (Cooke 2003; Morgan 2006)  Simple systems and rules  Strict surveillance  Harsh punishment Post-industrial Management  Industrial Revolution o New Technology  Steam engine  Machines o Key Industries  Metallurgy  Railways  Gas lighting  Glass Making  Paper Machines  Limited Liability Legislation o Est in Britain in 1956 o Separated private finance of entrepreneurs from investments o If business failed, personal liability (finance prison) avoided

Definitions of Management and Organisation 

Management o ‘The organisation and coordination of the activities of a business in order to achieve defined objectives’

MANAGING PEOPLE AND ORGANISATIONS NOTES o o o

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Derived from Italian maneggiare (horse handler) and Latin manas (hand) Was initially seen as servile occupation (Fournier & Grey 2000) Defined as the process of pursuing organisational objectives through (Clegg et al 2016):  Interpreting  Communicating  Accomplishing actions  Coordinating

Organisation o Systematically arranged frameworks relating to:  People, things, knowledge and technologies,  In a design intended to achieve specific goals o Organisational design  Principles of vertical (hierarchy) and horizontal division of labour  Definition of responsibilities & roles  Integration: routines & practices

Scientific of Human: The Great Divide 

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Bureaucracy & Scientific Organisation o Max Weber - Bureaucracy  Observed Prussian army and industrialisation  Describes ideal organisations as rational-legal bureaucracy  Legal: Submission to rules and procedures  Rational: predictable, non-arbitrary  Fair: right of appeal  Negatives: Depersonalisation and Demystification o Taylorism – Scientific Management  F.W. Taylor (1856-1915)  Engineer  Studied Productivity and became a consultant  Principles of scientific management  Time & motion studies  Specialisation and routinisation of work  Assumes one best way to manage  Collaboration  Manager: planning, designing, supervising  Worker: executing manual labour  Pay based upon outputs Human Relations o Elton Mayo: Human Relations Movement  Pay attention to group needs and human relationships  Workplace viewed as a social system  Informal groups have influence  Therapeutic interview – active listening o Hawthorne Effect

MANAGING PEOPLE AND ORGANISATIONS NOTES When a group realises that it is valued and forms social relations among its members, productivity rises as a result of the group formation (Clegg et al 2016) o Mary Parker Follet  Participatory Management  Authority derived from function not hierarchy  Collaboration between managers & workers  Not just about productivity also social justice Contemporary approaches o Continuation of historical ideas o Theory X, Theory Y (McGregor 1960)  McDonalds o Efficiency o Predictability o Calculability – Emphasises on quality over quantity o Emphasises on non-human rather than human technology  Google o Creating enjoyment for their employees o Relaxed culture and transparency o Flat organisational structures Positive Organisational Scholarship o Seeks to understand & foster civic virtues, social responsibility, altruism, tolerance, happiness & psychological wellbeing within organisations (Caza & Caza 2008) Tools o Strengths: Values in Action (VIA) & Virtue (Cameron and Winn 2012) o Psy Cap (Avey Luthans & Youssef 2010)  Hope, Efficacy, Resilience, Optimisim o Reflected Best Self (Roberts et al 2005) 

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Conclusion 

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Two traditional images of the manager and the organisation: o Authoritarian Decision Maker – demanding compliance, providing extrinsic rewards and punishments o Supportive facilitator & motivator – Encouraging creativity & offering intrinsic rewards. Third emerging approach with a focus on virtue, positivity and social contribution