Managing Organization ABE Graduate Diploma (QCF Level -6)

Prepared & Presented

by

Pyi Kyaw Lynn

B.A (English), Yangon University

M.B.A (Finance), Assumption University of Thailand

4/1/2015 PKL 1

CHAPTER [I]

4/1/2015 PKL 2

THE DEVELOPMENTOF

ORGANIZATIONAL THEORY

A. Nature of Organizations

B. Classical Theory

C. Human Relations School

D. Contingency Theory

E. System Theory

F. Action Theory

G. Contemporary Theories

TODAY’S AGENDA

[A] Nature of Organizations

4/1/2015 PKL 3

Common Features to All Organizations

Providing Utilities

Rules & Regulations

Division of Labor

Organizations perform tasks by collecting the factors of production (FOP) or resources & converting them into utilities. FOP : Land, e.g., minerals, trees , Labor, human skills & brain, Capital, e.g., machinery & goods. Utilities : goods & services > distribution > retailers & wholesalers > consumers.

Formal [written] or outlined structures and objectives . E.g., large organizations Informal [generally accepted policy or ways of doing things]. E.g., family shop.

Breaking up of activities into selected work tasks, increasing the efficiency of the firm by specializing in work & becoming expert. Work roles or set of duties may be highly specialized or general.

Cont’d

4/1/2015 PKL 4

Chain of Authority

Information System

Hierarchy of roles or combination of individual performance to achieve the objectives of the organization. Hierarchy :a high or low structure of organizational roles. At the top of chain, senior management make decisions, orders & instructions are passed down the chain of authority & until the lowest level are reached to be carried out.

Up-to-date information help to optimize the usage or plan the operation or efficient use of resources To control & evaluate the performance of the workforce ,checking whether targets are being met, comparing the performance with others in a similar industry. Organizations possess information systems > to be available up to date information > to assist the efficient operation of the firm.

[B] Classical Theory (Structure & Formal Organization)

4/1/2015 PKL 5

APPROACHES

KEYTHEORISTS PRINCIPLES

Organization withoutPEOPLE

To pursue a single set of principles or “Holy Grail” approach of structure of organization once discovered is the key to the best way for structuring > all types of organizations.

There should be a blue print [one best practice]of structure which could be applied universally.

The structure to be hierarchicalwith clear level of authority, having each level its own function.

Scientific guidance to managers on how to run an organization.

Henri Fayol Lyndall Urwick F. W. Taylor ‘s Scientific Management Weber’s bureaucratic structure

HENRI FAYOL (1841- 1925) Administrative Management

4/1/2015 PKL 6

Henry Fayol : Administrative Management

[Principles of Ideals Structures]

4/1/2015 PKL 7

Division of Labor

Coordination

Span of Control

Economies of Scale

Work is divided : between the levels of authority with each level having its own duties form top to down.

between departments & groups having its function to perform.

Departments to be coordinated so that all the efforts to move in same directions in achieving the objectives of the organization.

Setting up maximum numbers of subordinates under a superior. E.g. 30 or 50 ???

Similar activities to be grouped to avoid overlap & to get economies. E.g., mass production, bulk buying

Organizations to have clear objectives. Objectives

Cont’d

4/1/2015 PKL 8

Authority

Responsibility

Specialization

Definition of Tasks

Organizations to have a clear line of authority.

A responsible person to be given the authority to carry out the task. Superior to be responsible for the actions of subordinates.

As far as people to specialize in order to be proficient.

Employees to know exactly what is expected of them.

Each member to have one clear superior to whom the person is responsible. The span of control should not be too wide & no person should not supervise more than five or six subordinates.

Unity ofCommand

Unity of Effort

Everyone in the organization to be working towards achieving the goals of the organization.

LYNDALL URWICK (Administrative Management)

4/1/2015 PKL 9

Lyndall Urwick’s Principles of Management

4/1/2015 PKL 10

one group, one function” principle to be effective organization and every department to be focused on own jobs not to interfere with other activities.

Management to structure the organization so that all the parts fit together & work as a functional whole.

There has to be clear lines of authority in the organization.

Achieving objectives is the reason for the existence of organization & failing to achieve the objectives should cease to exist.

bjectivesO

pecializationS

oordination C

uthorityA

esponsibilityR Superiors to be responsible for the actions of their

subordinates.

Cont’d

4/1/2015 PKL 11

Authority & responsibility to go together.

A superior to be responsible for only up to six subordinates.

The sections & departments to be in balance : no one department not to dominate the organization.

Jobs to be described & duties precisely defined.ob DefinitionJ

orrespondenceC

pan of ControlS

alanceB

ontinuityC The organization to be set up in such a way that it can

continue to perform its functions.

FREDERICK WINSLOW TAYLOR (1856-1915) Scientific Management

4/1/2015 PKL 12

Attacked the Traditional Approach to Management !!

Developed Systematic & Analytical Approach to Management !!

Application of Scientific Knowledge to Management

4/1/2015 PKL 13

The best method of doing jobs !

The best way to solve every operating problems !

Replace of opinion & rule of thumb with scientific operation !

Scientifically determine theaccurate time & method of each job !

F W Taylor : Scientific Management

4/1/2015 PKL 14

Managers to be responsible for planning, organizing, supervising the subordinates. Workers to be free from the problems & to concentrate on tasks to get the jobs done.

Managers to treat employees as individuals rather than as teams or trade unions.

Managers to select & train staff in the most efficient way of performing works.

Managers to motivate workers with the prospect of higher pay & the chance of promotion for those who deserve it.. E.g., “ a fair day’s pay for a fair day’s work”.

Managers to produce a blueprint of the best way to perform a task by studying successful employees then applying to all employees.

Managers to create harmony in the work place by showing that success of an employee is directly linked to the success of the organization.

Managers to see scientific approach is applied to each operation performed by an employee to avoid the waste of effort.

Criticisms of Scientific Management

4/1/2015 PKL 15

Management takes over all functions & workers just taking orders with little control over work situations. No delegation.Little control

Managers only focused on first-class workers, ignoring older or handicapped people.

Little room for negotiation between management & workers. Unscrupulous manager potentially exploit in payments & measuring performance. No bargaining about wage rate since every job was measured, timed and rated scientifically.

Money as motivator

Group pressures

First class workers

Lack of negotiation

Lack of group dynamics

Money as the only motivator and lack of other factors for job satisfaction, encouraging management a “ carrot & stick” attitude to workers.

Workers are treated as individuals & underestimates the effects of group pressures & unions on production & efficiency.

It does not take into account the concept of group dynamics. The creation of boring, repetitive jobs, tight control over work.

Scientific Management Through Time & Motion Studies

4/1/2015 PKL 16

Select & Train the workers !

Development of the efficient production line through Time & Motion Studies !

Carrot- Stick approach to the Motivation of workers to increase output!

Max Weber (1864-1920) Bureaucratic Management

4/1/2015 PKL 17

BUREAUCRACY

4/1/2015 PKL 18

Main Features

Specialization : There is clear-cut division of labor and a high level of specialization, creating continuity even if the current job holder leaves.

Hierarchy of authority : Sharp distinction between management & labor. Clearly defined levels of authority within management ranks. E.g. Army and civil service.

System of rules : Uniformity of decisions & actions is achieved through formally established rules & regulations.

Impersonality : Allocation of privileges exercise of authority & decisions are in accordance with the laid-down system of rules. Avoid personal preferences of employees.

BUREAUCRACY

4/1/2015 PKL 19

Criticisms of Bureaucracy

Over-emphasis on rules & procedures.

Too dependence upon bureaucratic status,

symbols & rules by officials.

Initiative may be stifled & lack of flexibility

or adaptation to changing circumstances.

Position in the organization can lead to

officious or dictatorial behavior.

Impersonal relations lead to stereotyped

behavior & lack of responsiveness to

individual incidents or problems.

Values and Weakness of Classical Theory

4/1/2015 PKL 20

Strong elements of common sense easily recognized by practicing current managers.The principles didn’t completely ignore social dimension.Mainly focus that structure affects performance of organization & the importance of management education.The strongest criticism of the approaches belief in the existence of a single set of guiding principles of organization.

The rigidity of the principles preclude the flexibility in designing structure to suit the circumstances. Overemphasis on division of labor & specialization, spans of control, etcHuman beings treated as puppets to fit into the organizational roles Decision-making rests on management & little consultation from staff.Management has complete control but staffs need to be responsive to external forces. E.g., customers, competitors, etc.

Values of Principles of Organization Weaknesses of Principles of Organizations

[C] Human Relations School Behavioral Management

Social factors, Behavior & Informal network

4/1/2015 PKL 21

Understanding the interaction of people to improve the organization. (Precursor of Personnel Management)Basic Idea

Main Concern

To identify possible organizational practices in line with the reality of the people behavior.

Forces of Elton Mayo (Harvard Professor)

Workers motivated by social needs & interaction, self-esteem, recognition, a sense of belonging & security after achieving money.

Individual workers belong to groups at the workplace with their own codes of behavior , leaders, means & practices enforced by group norms , forming informal network within formal structure.

Motivation

Group Belonging

Elton Mayo (1880-1949)

4/1/2015 PKL 22

Elton Mayo & The Hawthorne Studies (1924-32)

4/1/2015 PKL 23

Relationship between the lighting level in work place & the productivity by workers. There was not that much difference between the productivity of workers when the level of illumination was increased or decreased in the Test Room.

Individual workers cannot be treated in isolation, but must be seen as members of a group. Informal groups at work exercise a strong influence over the behavior of workers.

The need to belong to a group is more important than monetary incentives or good physical working conditions.

If workers feel valued and important, as opposed to external factors, enthusiasm increase for their job & higher output.

Hawthorne Effect

Findings

Contributions

Hawthorne studies demonstrated that the working conditions had no significant effect on productivity, but it was the social interactions within the group which affect the motivation of workers & standard of work performance.

Hawthorne Studies at Relay Assembly Test Room

4/1/2015 PKL 24

Summary of the Human Relations School

4/1/2015 PKL 25

Hawthorne studies shows the formal structure ,values & goals are not the only determinant of behavior in the work place, informal network of work groups and interactions (interpersonal relationship ), play important roles for the lives of workers.

Informal work groups controls & determines the habits, attitudes & motivation of the individual worker, provide informal channel of communication, e.g., grapevine (gossip, rumours) or word of mouth

Work group norms set standards of performance. E.g., time keeping, output, quality, attitudes towards clients, dress codes, etc.,

Group collaboration does not occur by accident; it must be planned and developed to reach a cohesion within a work plant.

The concept bring > formal & informal to be inline > applying values & goals > maintaining empowerment & participation to develop motivation.

Emphasize the importance of the social needs of individuals, sense of personal identity, recognize organization as a social organization & the importance of group, group values & norms.

Organizational Iceberg

4/1/2015 26PKL

Joan Woodward

4/1/2015 PKL 27

[D] Contingency Theory by Joan Woodward

(Alternative forms of organization structures & management system)

4/1/2015 PKL 28

Main Features No one best structure or method can be applied to all

organizations. There is a wide range of possible structures.

Influencing factors or

contingencies

The decision to choose appropriate structure depend on the factors such as types of technology, product or service, motivation, skills, knowledge, commitment & experience of work force.

Findings

No definite pattern can be set with regards to business success. Size of production affect the structure of the firm.

Different structures in terms of the level of authority, span of control, definitions of duties, the extent of communication and specialization to be developed.

There is a correlation between the level of control over the production process and working patters directly linked to the objectives of the organization.

Important Contingencies or Attributes

4/1/2015 PKL 29

Deciding which structure produce the best performance is situational

i.e. contingent upon certain contingencies or attributes (nature of tasks & nature of environment influences ) of the situation of each particular organization

Type of Technology

Range of Products

Suppliers and distributors

Consumer interest groups

Customers &competitors

Government

Unions

Structure & Technology (Three Forms of Organizations by Joan Woodward)

4/1/2015 PKL 30

Unit or Small Batch Production

The least automation processes where machines are not suitable for short run production by customer’s specification & prototypes .

Production is based on order. None routine technology. Small batches of items. E.g., aircraft or ship-building, furniture maker,

surgical teams.

Type

Lose structure with delegation of authority within a standard pyramidal hierarchy with permissive management attitudes.

Structure

Skills and knowledge is more important than machines Work process is unpredictable, hard to pre-program or automate. CEO has low span of control (direct reports). Relatively low percentage of managers Organic structure & Flat organization (few levels of hierarchy).

Tips

Cont’d

4/1/2015 PKL 31

More automated with production of standard items in large quantity & assembly line working. Routine Technology.

Technology not entirely dominant due to occurrence of variations and uncertainties even in the mass production line. E.g., Cars, Aluminum cans, toasters.

Type

Characterized by tighter control with large scale hierarchies . Traditional pyramid shape ,elongated at the base where large

numbers of workers at the lowest levels with relatively few middle & senior managers.

Structure

Taller hierarchies Bottom level is huge (supervisor span of control is 50) Relatively greater number of managers ( hierarchy is so tall) Mechanistic, bureaucratic structure with large span of control.

Tips

Large Batch & Mass Production

Cont’d

4/1/2015 PKL 32

Type

Structure

Tips

Characterized by oil refineries & chemical manufacturing where production process is relatively stable & fully automated.

E.g., bakeries, breweries, dairies, power plants.

Machines do everything, humans just monitor the machines. Tall and thin or inverted pyramid: almost nobody at the bottom Organic at the top & mechanistic at lower levels , because machines

do everything & not much paper work, low level supervision, etc.

Flexible structure with diamond shaped hierarchies where small number of operatives for service and maintaining the machinery.

A larger group of middle managers, scientists, accountants. Problems arise from the middle where limited opportunities for

advancement & limited individual initiative for the production process.

Process Production

Burns & Stalker : Two “Ideal Types” of Organizations

4/1/2015 PKL 33

Mechanistic Structure Organic Structure

Based on Bureaucracy Directive leadership Output orientation Rigid departmentalization Highly specialized functional tasks Traditional ways of working New ideas are not acceptable Strict chain of command Narrow span of control Centralized decision making Vertical communication Little teamwork Loyalty to organization Precise technical methods Daily reporting

Fluid structure Horizontal/lateral interaction Loyalty to project/group Network communication Individual decides own methods Tasks are adjusted & redefined

frequently Members not stick to JD Service oriented Responsive to customer needs More verbal style reporting Prestige comes from personal

contribution

Lawrence & Lorsch’s Structure & External Environment

4/1/2015 PKL 34

If environments are changing rapidly ,difficult to predict with different demands, more department & sections to be set up forming a greater division of labor & specialization.

The internal structure of the organization develop or create different attitudes and ways of doing things based on the nature of the tasks.

Potential departmental conflicts .

Research & Development Production Department

Sales Department

More concerned with new ideas, product innovation with long term view. Operate in a dynamic & scientific environment , suitable with organic structure

More concerned with short term problems like quality control, inventory management & delivery dates. Operate in stable & technical environment , suitable with bureaucratic structure.

In the middle between R&D and Production. More concerned with chasing production and external market.

Differentiation

Cont’d

4/1/2015 PKL 35

Conclusion

The ways in which the organization as a whole draws together its parts or subsystems in order to achieve objectives.

The degree of co-ordination and co-operation between different departments with interdependent tasks.

In mechanistic structures, integration to be achieved through policies, rules & procedures.

In organic structures, integration to be achieved through teamwork & mutual corporation

For rapidly changing environments, both differentiation & integration need to be at high level.

For relatively stable environments, less integration is needed because decision is made at the top level of the organization.

Too low level of integration may result in departments ‘doing their own thing’, creating poor decision & inefficient use of resources.

Integration

[E] System Theory : The systems Approach

4/1/2015 PKL 36

The frame of reference : Composed of regularly interacting or interrelating groups of activities evolved from “ individually oriented industrial psychology to system oriented organizational psychology.

Based on premise that organizations are highly complex social systems.

Summary : Organizations > inputs > transformation process > outputs. Feedback loop included to show > outputs have an effect upon the system > by returning as an input.

InputsOrganization or

Transformation SystemOutputs

FEEDBACK

Basic Elements of A System

Organization As An Open System

4/1/2015 PKL 37

An organization, e.g., a manufacturing company is a complex system of interrelated departments, processes, and people.

There is clearly a boundary between what is “inside” and what is “outside” of the organization.

The organization as an open system exists within an environment and imports materials, capital and people from that environment.

These inputs are used to create goods and services and then exported back into the environment with and added value outputs.

The Nature of Systems

4/1/2015 PKL 38

Sub -Systems

Boundaries &

Environment

Each system has many “sub-systems”, within an organization , every department can be seen as sub-system.

A system of interdependent parts constantly inter-relate both internally and externally.

E.g., Planning Department (sub-system) interfaces internally with HR, Sales & Mar.., Production & Procurement and Finance for budgeting.

E.g., HR Department (sub-system) interfaces externally with labor market which is outside the organization.

Closed systems function entirely within their boundaries & totally unaffected by anything outside. E.g., Nuclear Power Plants

Open systems more common & flow occur across the boundary & factors outside the system affect it significantly. E.g., Organizations

Boundary exist around each system or sub-system .

Objectives &

Goals

All systems & sub - systems have a purpose, objectives & goals. E.g., Ford Motor Co’s main objective is the production of cars but it’s

sub – systems’ objectives is painting the body parts & mixing paints into the correct colors.

Sub-Systems of the Organization

4/1/2015 PKL 39

Psycho social sub-system

People are key element in the firm and important determinants are goals, values, relationship & behaviors of the members of the organization.

Concerned with the division of tasks & grouping into operation units, coordination & control. creating interdependence between personnel and technology. E.g., Organization chart

Organizations employ technology for carrying out its tasks. E.g., machines, robotics ,filling systems, communication equipment.

Attention on mechanisms of coordination & control. E.g., quality, customer care & TQM are applied for managerial

objectives.

Emphasizes on the formal goals & values of the organization itself. Production industry, goals & values are expressed by quantifiable

targets > profits, numbers of units produced over time.

Technical Sub-System

Structural Sub-System

Goals & values sub -

system

Managerial sub - systems

System, Sub-system & Boundary

4/1/2015 PKL 40

System has boundary to interface with environment !

Subsystems are mutually related to each other !

Levels Within The Organizations

4/1/2015 PKL 41

Technical or Operational Level

Concerned with getting the actual task done. e.g., finance department the task is the date entry payment of creditors.

[daily operation]

Tactical Level

Concerned with coordination & integration of technical level.

Emphasized on mediation & compromise between the departments to work well together, ensuring continuity & consistency across operations.

e.g., overall financial or accounting systems and policies.

r Strategic Level

Organization –wide development in relation to its environment ,forecasting internal & external pressures, forming policy about responses.

Determining future direction of the operation using the overall methods of achieving development & commitment.

[F] Chris Argirs’s Action Theory

4/1/2015 PKL 42

Action Theory : Argyis & Schol’s Three Variables

4/1/2015 PKL 43

Case Study to illustrate this process.

A manager may have a governing variable of suppressing conflict of interest problem and one of being competent.

In this situation he plan or design action strategies to keep both these governing variables within acceptable limits. In this case, he intend to avoid the discussion of the conflict situation and say as little as possible. This avoidance may (he hopes) suppress the conflict, yet allow him to appear competent because he at least hasn't said anything wrong.

This strategy will have various consequences both for him and the others involved. An intended consequence might be that the other parties will eventually give up the discussion, thereby successfully suppressing the conflict. As he has said little, he may feel he has not left himself open to being seen as incompetent. An unintended consequence might be that the he thinks the situation has been left unresolved and therefore likely to recur, and feels dissatisfied.

Cont’d

4/1/2015 PKL 44

Values or feelings which the person is trying to keep within some acceptable range.

We tend to have many governing variables. Any action will likely impact upon a number of these variables.

Therefore any situation may trigger a trade-off among governing variables.

Governing variables

Action strategies

Consequences

Moves & plans used by the person to keep their governing values/variables within the acceptable range.

These strategies will have consequences which are both intended -- those the actor believes will result --and unintended. In addition those consequences can be for the self, and/or for others.

[G] Contemporary Theories

4/1/2015 PKL 45

Excellence Theoryhttp://www.businessballs.com/tompetersinsearchofexcellence.htm

Theory Z

Organizational Culture

American & Japanese Corporate Cultural Models

[G] Contemporary Theories

Excellence Theory : Peters & Watermen

4/1/2015 PKL 46

Employee Engagement

Excellence is related to motivation & achieved only when employees are engaged with the organization’s objectives.

Purcell’s finding of conventional management style of command & control focusing on customers shift towards employees’ expectations which in turn creating commitment & loyalty , resulting customer satisfaction.

Bias for Action

Action oriented & bias for getting things done by SOPs. Bias for action require tolerance for risk taking & mistakes. Managers must show readiness to engage in crisis & people not to be

afraid of making mistakes. Enemy of excellence : playing safe by a firm leading to inertia.

Autonomy & Entrepreneu

rship

Excellent firms foster leaders & innovators. If people are held on so tight , creativity destroyed. Practical risk-taking to be encouraged. Given the chance,

encourage to try motivating factor even efforts no results.

Cont’d

4/1/2015 PKL 47

Close to the customer

Excellent firms learn & listen from customers, creating marketing approach rather than just selling.

Customer service concept to be committed by all employees. Innovative firms get the best ideas > from customers.

Productivity through People

Excellent firms treat > even rank –and –file [ordinary] employees > as a source of ideas, quality & productivity.

To break “Them & Us” mindsets generating commitment & productivity.

Managers to treat the stuff as valuable assets encouraging to take risks, listening & learning from both from the subordinates & the clients/customers.

Hands-OnValue-Driven

To have well defined value system & top management to keep in touch with front lines.

To value of perfection [zero tolerance for flaws]. E.g., Honda motor.

Cont’d

4/1/2015 PKL 48

Stick to the Knitting

[Stay with the business that you know !! ] Excellent firm concentrates on what it does best & does not

branch out [diversify] into unfamiliar areas . The principle mainly concerned with mergers & acquisitions

industry.

Simple formLean staff

Some of the best companies have minimal HQ or top level staff with central corporate staffs less than 100.

Some excellent firms have simple management structures without too many layers & levels of authority

No matrix forms of multidisciplinary project teams.

Simultaneous Loose Tight Properties

Decentralized operational units or shop-floor activities but strong centralized control over core units.

Organizations need to have not only vision & centralized objectives & values but also delegation of staffs as son as key standards are maintained.

Characteristics of Culture of Excellence

4/1/2015 PKL 49

The role of leadership & vision of management is crucial. Motivation of staffs are important for the achievement of the

vision.Leadership

To focus on quality & value for both the company & the customer, encouraging creativity & innovation of employees.

Blame mindset to be eradicated & free from worry of making mistake & risk taking culture to be encouraged.

Quality &Value

Structure to be flexible to cope with external environment. Employee to get involved in problem solving & decision making

process. To apply benchmarking concept in comparing & contrasting

process with other firms .

Structure

Attributes to the Organization’s Culture

4/1/2015 PKL 50

Goals & mission statement to be clearly communicated by all levels of the organization.

The dominant behavior patterns of interactions between the organization & its stakeholders to be in line with expectations.

The distribution of authority & decision making concentrated at the top & spread downward to empowered employees.

Structure closely related to the authority distribution of the organization. E.g., organization charts.

The way in which power & authority is exercised along a continuous sequence from authoritarian to democratic.

Responsiveness to the needs & aspirations of staff & stakeholders.

The degree of enterprise, innovation, competitiveness, flexibility & drive for excellence of organization.

Readiness to embrace changes from environment. It may be proactive (anticipating & planning for change ) or reactive ( coping with changes when arises )

Behavior

Authority

Structure

Leadership

Values

Entrepreneur Spirit

Change

Goals

American Culture (Tend to be bureaucratic )

4/1/2015 PKL 51

OrganizationCulture

Disadvantages

Advantages

Loyalty

Feature

Decision making > concentrated at the top & Instructions flowing down to subordinates (Top-down)

few people > involve in planning & decision - making .

Swift decision – making > because of clear cut objectives of the plans and decisions from the top

Take times for implementation of plans & decisions > because of distance to flow down the organization ( needed to explain to lower levels )

Leadership

US firms > loyalty first for their professions and culture stresses > the importance of short term results > create the culture of hard sell ( high pressure selling ),rewarding individual results & actions

A sense of job insecurity > rapid labor turnover > creating some firms reluctant for > heavy investment in long term stuff & management training.

US culture > favors > strong & decision leadership from the top > management not afraid of confrontation & competition.

Japanese Culture (Tend to be collectivie )

Decision– making > flowing up from > the lowest levels with suggestion and ideas > to top management > then flowing down again > through consultations with > people concerned.

Bottom – up decision making > encourages a culture of consensus > people get a chance to get involved with the decision making process.

Long decision making process > objectives become confused within people > more delay in implementation of the planning.

4/1/2015 PKL 52

OrganizationCulture

Disadvantages

Advantages

Loyalty

Feature

Stuff > first loyalty to the firm > far more collectivist > as opposed to rewarding individual results. Japanese pride > in the group or organization > not in the individual.

The loyalty of employees to their firms > reciprocated by the job security for them.

In many firms > lifetime employment offered > coz confidence in people > in turn encourages to undertake long term, expensive training program > creating benefits both staff and firm

Lifetimeemployment

Ethics, Morals & Codes of Conduct

4/1/2015 PKL 53

DEFINITION

Ethics is concerned with the study of morality : practices & activities that are considered to be importantly right or wrong, together with the rules that govern those activities & the values to which those activities relate.

Ethics refers to a code of moral principles & values that guide human activity by setting standards of what is acceptable or not.

ARGUMENTS FOR ETHICAL BEHAVIOUR

Promote social responsibility Changes in legal/compliance regulations Good practice Retain & motivate staff Commercial implications of unethical behavior Stakeholder support

Business Ethics

4/1/2015 PKL 54

Behavior

Treatment

Stakeholders

Environment

Behavior towards customers, suppliers, distributors & competitors : e.g., selling & marketing, fair competition, information gathering, inducements & incentives.

Treatment of employees : e.g., recruitment, rewards, training, promotion, dismissal, rights & duties of employers & staffs.

Treatment of other stakeholders : e.g., local communities, governments, interest groups (NGOs).

Effect on natural environment : e.g., pollution, recycling, sustainability.

Conduct Conduct in international operation : e.g., use of power, respect of

human rights, respect for local cultural values, offshoring.

Approaches to Ethics, CSR & Corporate Governance

4/1/2015 PKL 55

Descriptive

Normative

Analytical

The approach draws attention to the values & beliefs of people from different cultures & societies that influence their attitudes towards the various activities of business in their home countries & abroad.

The approach identifies sets of values & beliefs as a basis for making ethical decisions at the individual, group or senior management level in an organization.

The approach attempts to explore the relationship between these normative values & believes or ideologies such as political or religious beliefs & culture & social customs.

4/1/2015 56PKL

Thank You !!

[Q & A] Be Prepared !!!

1. Most organizations have different levels of operations. These operations are generally known as “Technical or Operational Level, Tactical Level & Corporate or Strategic Level”. Describe and explain the three main levels of operations. Use examples from the workplace to support your answer. [15 marks]

2. The ‘Human Relations School’ approach to management is based upon understanding the role of the people dimension within an organization.Critically evaluate this approach to management, using relevant theory to support your answer. [15 marks]

3. Bureaucratic management structures are still used by many organizations.Outline and critically evaluate this type of structure, using workplace examples to support your answer. [15 marks]

4. Explain the main characteristics of a “bureaucracy”. Discuss the extent to which an organization can operate without any features of a Bureaucracy.

[25 marks]

4/1/2015 57PKL

5. Assess the extent to which the use of scientific management method can lead to a sustainable improvement in a company’s competitiveness.

[15 marks]

6. Organizational structures are often classified as being either mechanistic or organic; the right structure for an organization depends, to some extent, on the environment in which it operates.

Explain what is meant by the term “mechanistic organizational structure”[10 marks]

Assess the strengths and weaknesses of mechanistic structure.[15 marks]

7. One way to recognize why people behave as they do at work is to view an organization as an iceberg. What sinks a ship isn’t always what sailors can see, but what they can’t see”. (Hellriegel, Slocum and Woodman)

Explain the meaning of the term “organizational iceberg” [10 marks]

Refer to the sample Q&A .Discuss the usefulness to managers of viewing organizations as icebergs., [15 marks]

4/1/2015 58PKL

8. Many companies have recognized that traditional vertical organizational structures are ineffective in today’s fast-shifting environment. [2009 – December]

Examine the three main influences on the design of successful organizations in the 21st century. Justify your choices. [10 marks]

Assess the extent to which organizations that adopt mechanistic structures are likely to be successful in the 21st century. [15 marks]

9. Compare and contrast mechanistic with organic structures as appropriate organizational structures for the 21st century. [25 marks]

10. Explain the key principles of scientific management. [10 marks]

Using examples to support your answer, critically assess the relevance of scientific management to today’s organizations. [15 marks]

4/1/2015 59PKL

11.Explain, with reference to appropriate theories, the “Human Relations Approach to Management. [10 marks]

Contrast the approach to the “contingency Theory” , explaining the advantages and disadvantages of each approach. Use relevant concept/theories to support your answer. [15 marks]

12. Explain the term “The Human Relations Approach to Management” and discuss its significance in today’s business world. Refer to relevant theory and give examples from the workplace to support your answer. [15 marks]

Burns and Stalker identified two types of systems for structuring organizations- “Mechanistic and Organic”.

Explain and evaluate these two systems, giving examples of how each could be used by organizations. [15 marks]

4/1/2015 60PKL

13. Action theory provides a way of addressing the different ideas, interests and motivations of individuals within an organization.

Explain what is meant by “Action Theory” and evaluate its role in understanding organizations. You should refer to the work of specific theorists in your answer. [15 marks]

14. Many organizations are adopting a more flexible working approach, which has an impact on their organizational structure.

Describe two different organizational structures and discuss the strengths & weaknesses of each. [15 marks]

15. Most organizations have different levels of operations. These operations are generally known as “Technical or Operational Level, Tactical Level & Corporate or Strategic Level”.

Describe and explain the three main levels of operations. Use examples from the workplace to support your answer. [15 marks]

4/1/2015 61PKL