--- BEGINNING OF FILE --- EW2491 - EXAMINATIONS Exam - notes and ch. 2-5, 8-18 last section of textbook - section 5 - environment. section 6, 7 not studied solutions in h/o partial and bulleted. form of exam same- 3,3 - one at least from each section - human, organisation material has not changed in past years no opinions - state FACTS - no essay EW2491 - Lectures 1+2: on paper. EW2491 - Lecture 3 - ch. 4 ---------- FW didn't do anything new but put it in a coherent package scientific management doesn't work - causes unrest how do you continue scientific management without unrest? experimental psychiatrists made job easier and comfortable Americans used psychiatrists to do selection of people for US army. human relation 1920 --------------------- hawthorne experiments four phases: 1.human factor phase 24-29-the conditions under which people worked. illumination experiments-lighting first relay assembly group - a group of women all doing same job. they took 6 in separate rooms and experimented with lights... some got no bonus for production.. less illumination-more work done. they decreased illumination and increased production by 30% 2nd relay assembly grp. some got jealous and it needed to be stopped. the women got involved and contributed so they were asked how they felt.. unlike robots. mica splitting group : that was the last one where they got conclusions 2nd phase - clinical phase: 28 - 31 foreman got feedback but had no training... they asked question directy which was wrong... questions where you couldn't get honest answer... so by accident the foreman asked about person life, social, family... being sympathetic... offered help... 1931 was harsh and not much could be done about workers needs 3 - anthropological phase 1931 -1933 - employed a guy who examined gorillas and apes - psychiatrist... sat at corner until ignored and then took notes on behaviour. discoved that men in the machine shop split into 2 groups who controlled output for shop.. they knew how much to produce and didn't do more... the group would not allow more production and ridiculed those who did... if that didn't work, it got worse until outcasting/violence. 4. phase - manipulatory phase: 35-46 instructed to manipulate things in working place for production... didn't work well.. foremen then uncomfortable.. didn't try hard.. the worker realised and withdrew... so no production and nobody is happy the main book - management and the worker 39, Dickson and Roethisberger also - the industrial worker 38, Whitehead Mayo - the human problems of an industrial civilisation G.A. pennock - division of industrial research. Dickson helped him. Roethisbrger and Whitehead are advisors from 32. Mayo not involved. books unclear and contradictory - not scientific experiments... can't reach just one conclustion... we can talk about Hawthorne effect - group of people in experiment influenced by observers on group interview leads to information of interest to worker and management. general environment - consider life outside factory workgroups - informal groups - about size 7 . they have objective different than company's. management has lost control. scientific management had failed.. group controlled output. train suprvisor for leadership and interpersonal skills. possitively influence motivation, work attitude aim still same - higher output interpersonal skill training --------------------------- 1950's onwards understand root of problem to solve the problem by changing environment 1.understand root causes 2.alter work environment 3.voluntary attitude change interpersonal skills to management and supervisors: train management to manipulate workers.. training designed to change manager's behaviour. they used technique from psychiatry.. T group - T for training ... they all have same problem and discuss it... psychiatrist controls it.. the management have beliefs and traits or attitude to work effectively.. so go to T group training some bad psychiatrists were employed... and it was unsuccessful and went out of hand and stopped... brainwash.. alter people's personalities. people came back with knowledge of their effect and they pretended to have changed... workers saw through posturing - the workers saw that the management pretended. then emphasis placed on changing whole person ethical problem justified as being for own good what exactly is being changed? EW2491 - Lecture 4 - ch. 5 - motivation and job redesign - ch. 7 the chapters are too long and here's a summary... the human relation movement made changes... look at what happens outside factory.. sympathetic talks help.. consequently emphasis on changing environment and change attitude towards work. brought: management had to change face to worker.. be soft and change ATMOSPHERE where everybody cared. brainwashing attempted to change beliefs of managers to create caring atmosphere... another way is to change environment (ch 7) idea of needing to understand what motivates people.. MOTIVATION a sector in psychology.. some researched on it... human relation - change environment interpersonal skill training job redesign understand workers' motivation specialist area of study in psychology key processes: motivation emotion learning thinking perception PT Young - 'motivation of beaviour', 36: drive good direction reinforcers Dr. AH Maslow was psychiatrist... he tried to help people who were locked up.. wrote about his experience.. to help others psychiatrists help nutters... he didn't know people took his work into industry... motivation theory comes back to Maslow who worked with madmen. just like Mayo, people took his work and made money from it. AH Maslow - 'Hierarchy of Needs' the controlling people are the groups, not company. unstable theory research does not fully support it JOB REDESIGN - scientific management - job redesigns itself - Fordism: Henry Ford 08 - 13 standardised product design new machine tool design flow line production all tasks simple and repetitive COLT did that before for guns so standard design made it easy to fix. post 45' - the 'cost plus' economy... lasted a long time until early 60's - you added let's say 20 per cent to price because of economy. if people complained, you raised wage and it was called 'job satisfaction'.. if the worker satisfied, he followed company's rules. in Britain, psychologists came up with 'autonomous group'.. people form informal groups and work against company. they set up the groups.. autonomous because decided how work done.. give the job to 7 people and group organised it itself. they coordinated between groups (in Britain)... - job satisfaction was 'in' phrase in America - by 60's, motivation was central concept in job satisfaction -in Britain, Tavistock institute of human relations, workgroups and the work -in America, focus was on individual and job -Frederick Herzberg - Professor of psychology at Weston reserve university, cleveland -survey of 200 engineers and accountants in Pitsburgh in 59' - The Motivation of Work - Herzberg, Mausner, Snyderman - by 68' , Herzberg was management guru, pedalling a simple solution to industrial manager. if you work in great conditions but don't like work, you won't be motivated.. hygiene not enough... you can be dissatisfied, neutral (if hygiene good), satified (if happy with job) ideas thoroughly discredited (ideas of guru) physical and psychological needs - not independent. cannot be separated. participants carefully selected then results generalised.. but what applies to some people cannot apply to floor broomers... classification system inconsistent. five versions independent research does not support conclusions. satisfied employees change company less often. psychological growth is a precondition of job satisfaction. psychological growth stems from the job itself this was already known. Herzberg advertised it to a wide industrial audience EW2491 - Lecture 5 - ch. 5 - some chapter in book: in industry people work for money so.. correlation between money and motivation.. in book there's a chart... that is' the theory about the role of money.. see if these 6 theories of motivation work in practice? does money motivate? next chapter - groups 2 kinds - formal, informal.. organizaion and group you join because people need other people. groups were largely ignored at first so it was believed it was about the individual.. early work of Allport in the 20's and Asch and Sherif in 30's publicising by mayo of the Hawthorne work in groups much work done on workgroups in 50's which carried on to 70's by Millgram a group: collection of people share norm pursue common goals size is about 7 - if more they break up form because of proximity or economic reasons or because of need to belong (need social life...?) what influence does the group have on individual members? effect of group on an individual - work behaviour knowledge and skills: jobs tend to be occupied by individual with adequate knowledge and skills groups can improve individual knowledge and skills small effect because of self study and training arousal level: alert, ready to respond. (brain activity) high arousal helps with performing well learned tasks impairs performance of new and unfamiliar tasks managers under high stress surround themselves with trusted associates to damp down arousals supervisor has greatest effect on low level worker effort and strategy (the way or plan of doing job) these are controlled by expectation of individual and the value he puts into them direct group impact by group enforcing its norms indirect impact because groups control information. how can management persuade the group to positively effect individual's behaviour? group participation in decisions about work.. not hygiene changes but WORK itself participation increases amount of accuracy of information the interpretation from the 'grapevine' is usually against company participation helps development of positive norms there must be a positive outcome from the improved behaviour and not - hard work around here only gives you headache GROUPTHINK how could they have been so stupid? groupthink is a Newspeak type word. George Onwell 84' - group does not think it is a convention, way of expressing what happens when amicable agreement in a cohesive "ingroup" becomes so important that it overrides realistic appraisal of the problem. ingroup is formed by leader inviting people to join. cohesive - sticking together.. the ingroup is cohesive due to external pressure.. more pressure, more cohesive until what happpens is a realistic appraisal is overriden... this is a modern idea... appeared when freedom of information discovered this in America bay of pigs fiasco with Keneddy in 60's... they got army to overthrow Castro and it was a disaster... the result is people ask how could this ingroup be so stupid? in general, group where all member feel accepted can discuss problems. in practice, with groupthink dicussion reduces as group becomes more cohesive members of groups deliberately suppress debate. they uncritically accept proposals in general, group decisions are better than inividual's groupthink comes about when the group feels some crisis which places individual members under stress symptoms that show groupthink has taken over: invulnerability - overoptimistic, take risk rationalisation - ignore warnings morality - ignore ethical consequences stereotype - of any outside opposition pressure - if disserting members unanimity - silence means assent mindguard - protect from adverse information effects discussion limited to 2 alternatives - yes, no fail to re-examine when further information available no time spent discussing pluses and minuses of alternative options no attempt to gather further information from outside experts interested in supportive facts but not those that don't fit no consideration that decision may go wrong, therefore no contingency plans Remedies: encourage airing of doubts and objections examine problem without preconceived ideas set up other groups to work individually Independently in problem before consequences, each member to discuss matters within his own mind outside experts, should attend all meetings but not the same types appoint a devil's advocate (survey all warning signals and develop contingency plans for rival alterative courses of action) divide groups into accept what best laid plans go wrong and develop contigency plan after agreement, leave decison until next meeting for large groups, divide into smaller groups with different chairman (organization and formal groups - not much attention paid ) EW2491 - Lecture 6 - manager or leader (last part about human relation - 1st part of course) is there a difference in the above? yes. 1.development 1.development starts in family and is influential by particular people during childhood 2.managers form modern attachments and many of them... 3.leaders have intensive 1 to 1 relationships which are made and broken. this accelerates and intensifies development 2.personality 1. the manager is problem solver with impersonal attitude towards goals. he views work as enabling process and is flexible in his use of tactics 2.people are actors, merely the means by which problem is solved and communicate by signals 3.managers use deductive logic. homing in on a solution, focus on procedures and not the substance and play for time. 4. managers are often described by employees as detached, manipulative 5.leaders are ideas people are developing . fresh approaches to problems and they use their ideas to excite people. they are tempermentally disposed to look for risk and danger and have a personal commitment to goals 6 they relate easily to individuals - empathy - and communicate their ideas with messages. they are not so intersted in how ideas converted into practical effort. 7 leaders generate strong feelings of love or hate. You can't ignore them. 3. how do they fit in organasations? 1. leaderships involve risk talking. organisation are risk averse (forgive for mistakes) 2. conversation and inertia lead to doing things by tried and proven methods 3. they develop managers in their own image - like other people 4. no known way of training leders but could conceivably develop leaders. 5.would involve 1 to 1 relationship between junior and senior executives. fostering a culture of individualusm and the ability to sput potential leaders 6.it would be counter to organisation culture and would mean establishing an elite EW2491 - Lecture 6 - part 2 second part of course ---------------------- the efficiency gurus ----- FW Taylor 1856 1915 Max Weber 1864 1920 Professor at Berlin university founder of modern sociology one of the outstanding thinkers in 20th century. the underlying theme of his work Evolution of Civilisation. need to have rules and regulations on how people behave and what they do not only analysed ancient Mediterranean civilisation, but also conditions in west German textile mill principal contributed to study of organisation - his Theory of Authority Structures powerful ability to force obedience authority orders voluntarily obeyed -- he proposed 3 different ways which could be 3 types of oganisations first - traditional authority - this rests with tribal chief or monarch or council of elders - captains. heredity is the governing principle of succession. law is by precedence. obedience given to person. rebellion is against person of the Chief 2nd - charismatic authority chrisma - from christian dictionary - gift of grace leader has supernatural power - sorcerer, prophet, arrior, dagogue. this subject to authority are discipline and recognises no other authority this authority is transitoty, changing on leader's death. 3rd - legal/rational authority - rests ultimately on written documents. the rules are applied partially and there is formal right to appeal. authority belongs to 'office' and not the peon fillingit -- for all types of authority, an administrative staff is vital. with this authority the staff is much larger and better trained the best form of administrative staff is bureaucracy. it is superior in precision, stability, descipline and reliability. characteristics: division of labour - sole occupation organised hierarchacally operates in strict rules Henri Fayol qualified as mining engineer joined and company within which he spent all life. by 1866 he was manager of group of collieries... 6 years afer joined company. in 1872 his responsibility were enlarged to include more collieries 1888 the company was almost bankrupart he was appointed chief executive and saved company..... his title was general manager. held position for 30 years until death at 77. always claimed that his success was not personal quality but the application of science to management.. like Taylor. he started thinking about his own job and viewed it objectively as technical process was subject to definite principles. he also wished to pass his expertise in writing. Already 12 years expertise, he he wrote first paper. 8 years later he wrote what became his book in switzerland. GENERAL AND INDUSTRIAL ADMINISTRATION - 1915 (1929 - in english but it made little impact. in 49' it was available in libraries - not that it came out then...) he paid for school of management and administration - predated in Britain. it was not back then usual (teaching management). in book, Fayol distinguishes group of operations in company and business: technical commercial - buy and sell financial - search for capital security - protection accounting - stocktaking, wages, costs administration (Weber and Fayol knew about each other, they knew Taylor.. he didn't know them) administration is further subdivided: organising coordinating commanding controlling prevoyance- forecasting, planning administration - special function which occurs at all level of business. at low level, technical knowledge lead to predominance EW2491 - Lecture 7 - Missing - Not attended due to illness EW2491 - Lecture 8 Fallacies - by Simon 1-the manager is man on top 1 this is picture presented by organisation chart 2 always someone on top of manager 3 there is presure from all sides, and bombardment from below. 5 manager is man in middle 2-authority and power flow downwards again pictured by organisation chart compared with water in waterfall in reality, each position carries own authority power is characteristic of individual 3-efficiency is main goal of administration administration must contribute to organisation's goals and many goals exist efficiency can't be measured internally 4-worker should be isolated from outside press. no organisation can be isolated from environment - people bring problems with them. every member affected by environment 5-good administration smoothes and eases difficulties think of duck - feet working underneath.. but calm outside 6-principles provide answers principles can't be applied blindly principles can highlight problems but don't bring solutions intelligent application needed individuals in organisation have to make value judgement end of ch. 12 now the next 2 - 13' ,14 - examinable EW2491 - Lecture 8 - part 2 ch. 15 - alternative forms of organisation --------------------------------- matrix/project organisation - 1950's people started doing some thinking and traditional organisation didn't help get objectives management of project --------------------- 1. a project can be defined as non routine, non repetitive, one of undertaking, generally with time, financial and technical performance goals. this management of project different from one of operation - the definition of project management - concept as specialist area came about US aerospace etc. project and project management increasingly used in engineering, constrution, manufacturing, research, development principle reason for development of project - traditional form of organisation structure and technique can't handle project type work effectively projects essentially temporary activity management organisation and information system have to be establlished anew for each project only very limited learning curve for people involved descision making in project is not reptitive project requirements is: different departments in company to work together more than one company to work with - specialists relationships and interdependencies are dynamic and never static no one functional depart or company is most important over whole life of project no individual can accept responsibility for whole of project traditional management theory and organisation structure have to be modified in project management traditional model of organisation structure based upon 3 organisational concepts 1 functional division of managers 2 hierarchcal concept of superior-subordinate relationship 3 a number of so called principles of mangement unfortunaltely, this traditional form of organisation doesn't handle projects is operations-oriented. not project or goal oriented - time, finance, performance goals tends not to meet schedule several different functional departments involved so effective communication, collaboration, coordination and control - have to be obtained can't handle dynamic changing relationship a different form of organisation required to transcend traditional company organisation this form is matrix organisation matrix form organisation is supplementary to primary functional organisation must have hierarchical structure - but also matrix structure where dissolves as project finishes. work done by staff of functional departments who can be allocated for project but still remain members of functional department matrix organisation interdates them into goal-oriented team matrix organisation sets means of communication, coordination and control that goes across vertical structure of organisation matrix conflicts with traditional management. ------------------- The environment organisation finds itself in ------ British business environment how does environment effect way management does job? role of manager traditional - Fayol etc: planning, organisation, staffing, leading, controlling, coordination, developing what managers do hasn't changed much in 30 years they do: work long hours - senior managers longest are highly interactive - hundreds of meeting, never more than half an hour highly variable tasks coped with by management communicate by word of mouth - 75 per cent information comes from wide range spend time as predecessors did do not make decisions rationally - Herbert Simon - decision theory - logic leads to action - managers act upon Gut Feeling. satisficing.. any choice that will satisfy... not if it is the best solution. significant events ------------------ events that have totally changed environment: government - thatcher deregulation of many industries privitisation of public monopolies e.g. railways, elecricity Eurpoean Union - 92' decline in power of trade unions OPEC oil crisis fiscal crisis, stock market crash oct. 87' ERM sept 92' action against insider trading SUCCESSFUL ORGS no mecanism to knowing which will be successful - sharpbenders have one or two stimuli: intense external pressure change of chief executive key aspects: actions of shareholders, banks had little effect luck played big role invested in new people and technology whole pace of life changed change was costly and irreversible no guarantees EW2491 - Lecture 9 external factors dominate, can management do anything? Childs suggests: management have range of alternative actions open: new market, can do different field organisation can influence environment lobbying joint venture. vertical integration - looking at suppliers and buy them or vice versa. management conceptions not always correct. doing anything is better than doing nothing. enactment process by which managers decide which environment factors important results in small number of factors receiving attention environment is not fixed. managers act on own perceptions. STRATEGY FORMULATION strategy is what is desirable. GENERIC STRATEGIES Porter explained his ideas in books... general strategies three fundamentally different ways to get competitive advantage: 1. a cost leadership strategy - where company gets low cost producers 2. a differentiation strategy - where a firm seeks to be unique in its industry along some dimensions that are widely valued by buyers 3. a focus strategy - firm selects segment or group (niche market). it tailors its strategy to serve this segement to the exclusion of other segments. porter also said that in long term its obvious which strategy was adopted. generic strategies does not give advantage unless it is sustainable - e.g. people copy in electronics... all strategies have degree of risk problems with concepts of generic strategy --- porters view criticised because: cost leadership can be achieved by substantial market share advantage, but market share is only important if management can capitalise on it only one firm can be industry cost leader. Therefore, this strategy cannot be of general use. cost measures input whereas price measures output. even if organisation is cost leader it doesn't mean it will choose to price lower than competition. the output is important, the cost base is means of achieving or enhancing that output in some way 2. differentiation a product or service which offers something unique should mean higher price. however, company can offer extra things for for similar price to its competitors to increase market shares. porter claims this is being stuck in middle and is dangerous, yet there is evidence companies do it succesfully THE STRATEGY CLOCK market based model of generic strategy options customer may choose where to buy - cost, one product better. 'perceived added value' which is one of the axes of the strategy clock each alternative strategy is described as a route ALL IN H/O route 1 is the cheap and nasty option. route 2 entails reducing price while trying to maintain quality and service route4 - broad differentiation strat: offering perceived added value over competitors for similar price. route 3 requires the provision of added value while keeping price down route 5- relies on business competing by offering more by significantly higher price. route 6-8 lead to failure 6- put price up without better product 7- reduction in value and increasing relative price 8- reducing value, maintaining price - also dangerous GOALS ------- organisation is a social unit whose purpose is to pursue specific goals. goals can serve several purposes: 1-guides for organisation activity 2-justify activities in organisation 3-serves as standard for members and outsiders to judge success EW2491 - Lecture 9 - part 2 but once formed organisation require their own needs and in extreme cases this can lead to abandonment of initial goals. the organisation pursues goals suited to needs NATURE OF GOALS organisation goal is desired state of affairs which organisation aspires to. organisation ceases to exist - if reached. it is a state that organisation collectively tries to bring about. how is goal determined? 1-interview employees 2-seeing what end of resources being directed. what is used? these two methods conradictory. the latter is more reliable and 'real goal of organisation' interviews give wrong goals because: -not aware of real goal -might not wish to know real goals the distinction should not be confused with intended and unintended consequences. goals are always inended. difference between stated intention and real ones. How goals are set ----------------- there will be formal, explicit legally specified method of setting initial goals and the way they can be changed in future. in practice, often are result of complicated power play between members of boards and environment they are in. Power play - different people in company chase different goals - e.g. finance and production environment has impact e.g. if prisoner escapes and then public pressure. EW2491 - Lecture 10 GOALS - company never reaches goal, since then it would cease to exist HOW GOALS ARE SET they will be formal, explicit, legally specified. method of setting initial goal which will be amended and will cause power plays between organisation members. environment will also have an impact. goal distortion --------------- organisation measures effectiveness and efficiency effectiveness - the degree to which goals realised. efficiency - amount of resources used to produce one unit of product. where a goal is limited and concrete, it easy to measure its effectiveness. it is rarely the case you can have goals continuous or even enumerated. efficiency sets similar problems. you can't compare efficiency in hospital and school. because these are hard to measure, organisation concentrate on less impotant things you can measure. measurements distort reality because if only measurable is accountable, ignores what cannot be measured. GOAL DISPLACEMENT arises when organisation substitudes legitimate goals with another for which organisation not created. commonly, individual's interest or group in organisation use stated goals to generate resources diverted to bolster their own position. displacement occurs when goal have internal significance e.g. rigid adherence to rules which are good for employees, not clients German person - Iron Law of Oligarchy - people secure own decision by purging young potential challengers GOAL SUCCESSION tendency of organisation to find new goals when old ones realised and can't be attained new goals justified by saying they help achieve old goals but in time they are equal in their own right and may replace old goals. THE GOAL MODEL uses concept of effectiveness to measure organisation success. FAQ - how close is organisation to acieve goals? problem with approach is that goals are not obtainable and never are reached. in a sense, organisation is operated as a failure. THE SYSTEM MODEL comparative analysis one organisation judged against another external comparison measures efficiency efficiency can't be fully measured internally. --- END OF FILE ---