Week TwoOrganisations and Management

By the end of this class you will have:

Gained understanding of the systems view of organisations and the implications for managers of taking a systems view

The role and function of management

One way of viewing an organisation: a systems view (the value of studying snails!)A system:

Is a collection of inter-related parts that function to achieve a common purpose e.g a snail

Can be viewed as ‘open’ systems that interact with their environments (so does a snail) e.g comes out when it rains

Transforms resource (inputs) into outputs (products, knowledge, goods and services) (a snail chews up my flowers) and leaves ‘feedback’ ie a tell-tale silver trail

Feedback from the environment tells an organisation how well it is meeting the needs of customers and society (the snail? Too hot, hides in the shade too cold, hibernates under a rock, too dry (dies), danger, goes into its shell)

Goal and values Technical

Psychosocial

StructuralManagerial subsystem

Structural

Looking for the similarities and differences: Gallagher’s and the University

History: Gallaghers, 1930s , University 1950sFounding ‘fathers’ (why not founding

mothers?)Have stated purpose and visionStrategiesStructureResourcesBoth have grown Both have diversifiedSo they have similarities but major

differences

What constitutes the inputs, processes and outputs of both organisations?

Make a list of the inputs at the UniversityWhat sort of processes do they use? How do

they turn these inputs into outputs?What are the outputs?What sort of feedback does the University

need?How does it use this feedback? For what

purpose?But what are differences with Gallaghers?Who owns and controls each?Shareholders and stakeholders

Implications of taking a systems view

Everything is dependent on everything else e.g management style and employee satisfaction

Everything is related to everything else You cannot change one part (e. g technology)

without affecting other sub-parts of the organisation

Organisations have to overcome negative entropy to prevent themselves running down., How?

Feedback is essential for system survival

Why has management become so important?

Attained the status of a religion. Why?Managers often highly paid especially CEOsStudents clamour to have ‘management’ in

their degrees. Why?Efficient and effective management of

organisations, public, private , not for profitWhy did management become so important?

The history of management: three revolutions

The Agricultural Revolution 16th century England

The Industrial Revolution 18th century England

The Knowledge Revolution 20th century, western developed nations e.g. USA

The next revolution???

What do managers actually do?

Is it a contextual or universal activity i.e. the same in Hamilton as Shanghai? How does culture infleunce mangement?

Does managerial work differ at different levels? e.g. senior or lower levels

What are the major challenges facing managers in the 21st century?

The Management Process

Planning

Leading

Controlling Organising

Raises more questions than answers….

What do these labels actually mean e.g. planning?

Do all managers engage in all of these activities or only some?

Do managers at different levels engage in more or less of these activities?

Can the messy world of managing be neatly compartmentalised under these headings?

In attempting to simplify the complex, we need to be very careful…….

Managing is ‘results-orientated’ Managers are concerned about efficiency and

effectiveness:Effectiveness (goal attainment)

◦ measure of task output or goal accomplishment◦ direct line to ultimate customer service and

satisfactionEfficiency (input/output ratio)

◦ measure of the resource cost associated with goal accomplishment

◦ measure of outputs realised compared to inputs consumed

How do managerial assumptions affect employee behaviour: Enter Theory X and Y

Manager’s beliefs about people influence their style of managing i.e people are basically good

Assumptions about people as well as what makes a business successful

Our beliefs have consequences for how we behave and the expectations others have of us

Beware unintended consequences

McGregor’s Theory X

Management's responsibility is to its shareholders, to improve the company's "bottom line."

Employees are another resource to be used to meet this goal.

People are basically unwilling to work in the best interests of the company, cannot handle responsibility, and must be tightly controlled, prodded, and pressured to get their work done.

Managers are ‘policemen’Sounds negative but…..

Theory Y on the other hand

Management should create conditions that enable and encourage employees to attain their own goals by working toward the goals of the organization.

Employees are inherently ready to accept responsibility, do a good job, and work in the best interests of the company.

It is management's responsibility to create the conditions that will allow employees to develop their fullest potential.

What are the major challenges facing?

No. 1: the Climate CrisisRapidly changing business environment Rapid technological change e.g. ‘twitter’Developing skills needed e.g. managing

‘GEN-Yers’Time pressures Stress from pressure to achieve results

(Challenges cont)Ethical issuesGlobalisationManaging knowledgeDiversity in the workplaceSpeed of change & innovation

Week Two: SummaryWhere have we got?What should you know?What should you be reading?

Read the chapters in the textsRead the outline in preparation for your

tutorial and the possibility of a quiz…soonGo back and view the videod lecture

The funnel analogy: wide at the top, narrowing downStarting broad: what is management? how did it develop? the management process what is it that managers

actually do?

Is management universally the same, Birmingham or Bejing?

Two paradigms: universalistic (looking for the best way) vs contextual (it all depends)

Managing in the New Zealand contextTwenty five years ago major changes

happened in Aotearao New Zealand; 4th Labour Government

Why should we be bothered with this ‘history’?

Led to twenty years of continuous change Affected all aspects of society: economic,

political, social, technological and demographic

Shaped management practicesRead Chpts 1 & 2. in Jones Context bookThe first ‘quiz’ is likely to be drawn from this

The global context: globalisation and management

What is meant by globalisation?What has driven globalisation?How has it affected management practices?How is it affecting management and

organisations in New Zealand?What do these companies have in common:Fisher & Paykel, BNZ,

1984: Was Orwell Right?By the end of the 1970s, New Zealand’s economy

was in bad shapeLow economic growthHigh inflationNegative balance of paymentsLow productivityGrowing overseas debtWorst performing economy in the OECD countryUnemployment was 4.6%Inflation 18%Mortgage rates hit 23%

Managing in the 1970s and early 80sIndustries protected by tariffsAgricultural protection and subsidies Highly regulated economyInefficient government departmentsTime for change

1984: Labour GovernmentSecond Labour Government 1984-7David Lange and Roger Douglas‘Rogernomics’De-regulation of the economyDevaluation of the dollarLower corporate taxesTwo goals: economic growth and low inflationRogernomics: ‘consistent application of free

market doctrine to almost every aspect of New Zeland life.’

The results?Government regulations and subsidies for

manufacturing and farming were abolishedState and local body enterprises were to be

turned into profit-making enterprisesImport restrictions and quotas abolishedGovernment subsidies to agriculture

abolishedMonetary policy became the guiding

principleNot just theory; put into practice

The changesFloated the dollarAbolishing import restrictions (end of car

assembly)Reduction in tariffs (some companies closed

or went off shore)Encouraged foreign investmentRestructuring of ownership of public

departments e.g. Post Office into TelecomMany old established companies bought up

by overseas interests e.g BNZ

(cont p. 11)

Reform of the public sectorEstablishment of SOE e.g. NZPostReform of the health sector (p.12)Reform of education (p.12)

But one sector escaped relatively untouched; the labour market

The effects of the reforms are argued to have been

A more open economyOrganisations forced to become more competitiveA more diverse society e.g. arrival of many Asian

peoplesA great deal of pain for many ordinary people e.g

firm closuresEmphasised the need for more effective

management of organisations and the economy.‘Accountable management’ became the catch-cry

in schools, hospitals, universities, churches, voluntary organisations as well as companies

Management seen as a critical competitive advantage