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WEEK 2 THEORIES OF MANAGEMENT (Organisations (Social arrangements for the…
WEEK 2 THEORIES OF MANAGEMENT
Systems Theory
what
attempts to integrate classical and human relations theory
human
views organisations as 'open' systems
dependant on socio-technical systems
Consists of interrelated sub-systems
3 stages: Open
inputs
conversion
outputs
Example
Classical Theory
Criticisms
Lack of consideration for human needs
Assumes money is the only motivator
Simplistic view of productivity
Ignores the importance of formal and informal work groups
Quite outdated
Principles are anti-union
What?
developed by earlier theorists
Emphasised the purpose of organisations
a product of rules, guidelines, principles
Focus on organisational productivity more than human beings
Assumed human beings were social & worked in predictable patterns
Key Thinkers
Frederick Taylor
time and motion study
Scientific selection and training
Max Weber
Innate ability of humans to follow and respect positions of authority
Belief in following bureaucracy, hierarchy and impersonality in the workplace
Examples
McDonald's
Organisations
Social arrangements for the controlled performance of collective goals
To facilitate synergy, and to establish a formal system of responsibility and authority
Efficient division of Labour
Generally consist of people, collective goals, clearly defined limits and hierarchy
Synergy: whole is greater than the parts
Human Relations
What is it?
Focus on humans
HR most critical part of organization
Goal: Efficiency
Criticism: Soft management styles
Hawthorne studies
Mayo - Hawthorne Study
Employee social relationships
Increase worker output
More important than $$$?
Formal & informal groups
Importance
Considered reputable at the time
Currently widely criticized
Influenced later strategies
Alphabet Inc.
Contingency Theory
What?
Not absolutist
suggests that it is impossible to prescribe any one type of management in internal and external conditions
depends on the wide range of variables which apply to the organisation at the time
roots in the systems theory
aims to heighten readiness for anything e.g. planning
Examples
Coca Cola
Forms of Management
Mechanistic
Similar to organisational systems
Organic
Deloitte
8.7 on its performance index for HR