Management In Organisations

Module SummaryModule Summary

The The OrganisationOrganisation

Change Change Ethics Ethics CultureCulture

LegalisationLegalisationEconomyEconomyInternationalInternationalIssuesIssues

Segment AimSegment Aim

To enable the manager to understandTo enable the manager to understandThe purpose of organisations and The purpose of organisations and

The role of the managerThe role of the managerwithin them within them

Segment Learning Outcomes :Segment Learning Outcomes :

Upon completion of this segment Learners will be able to : State the purpose of organisations Achieve organisational objectives Fulfil stakeholder needs Identify various organisational structures Identify levels of managerial

responsibility

Learning Outcomes cont:Learning Outcomes cont:

Identify Key management roles Explain different management styles Recognise the difference between

management and leadership

““An organisation is a social An organisation is a social arrangement for achieving arrangement for achieving

controlled performance in the controlled performance in the pursuit of collective goals.”pursuit of collective goals.”

Huczynski A, Buchanan D – Organizational Behaviour Huczynski A, Buchanan D – Organizational Behaviour

The Nature Of Organisations The Nature Of Organisations

Functional Achieve objectives Provide satisfaction for stakeholders

Organisation TypesOrganisation Types

Formal Organisation Informal Organisation

Characteristics Of a Formal Characteristics Of a Formal OrganisationOrganisation

Deliberately planned and created Co-ordinates activities Hierarchically structured Stated objectives Specified tasks Defined authority & responsibility

Characteristics Of an Informal Characteristics Of an Informal OrganisationOrganisation

Flexible, loose structure Relationships are not defined Membership is spontaneous

Common Organisational FactorsCommon Organisational Factors

Interactions & Efforts ofInteractions & Efforts ofPEOPLEPEOPLE

In order to achieveIn order to achieveOBJECTIVESOBJECTIVES

Co-coordinated through Co-coordinated through STRUCTURESTRUCTURE

Directed & Guided viaDirected & Guided viaMANAGEMENTMANAGEMENT

FormalFormalOrganisationsOrganisationsRequireRequire

Informal Informal OrganisationsOrganisationsRequireRequire

Organisational PurposeOrganisational Purpose

Why doWhy doWe We exist?exist?

How willHow willWe look We look In theIn theFuture?Future?

How How Will we Will we Behave?Behave?

PURPOSEPURPOSE

VISIONVISION

VALUESVALUES

VISIONVISION

VALUESVALUES

The Statement Of Purpose The Statement Of Purpose should:should:

• State who were are State who were are • Who our customers are Who our customers are • What we do for them What we do for them

The statement Of Purpose needs The statement Of Purpose needs to be :to be :

Inspirational but not unrealistic Have a broad account of all activities Focused on customer benefits not

practicalities

Mission Statements Mission Statements

Need to be based on strategic intent Need to be based on natureNeed to be based on valueNeed to be believed

Think Strategically:Think Strategically:

How will expectations develop over the next five to ten years?

How will our organisation evolve? How will the customer base develop? What benefits will we be able to offer?

““Stakeholders are those Stakeholders are those individuals or groups who individuals or groups who

depend on the organisation to depend on the organisation to fulfil their own goals and on fulfil their own goals and on

whom in turn , the organisation whom in turn , the organisation depends.”depends.”

G Johnson & K Scholes – Exploring Corporate Strategy Fifth EditionG Johnson & K Scholes – Exploring Corporate Strategy Fifth Edition

Influence On Organisational Influence On Organisational PurposePurpose

Who shouldWho shouldThe organisationThe organisationServe?Serve?

Which purposesWhich purposesShould be Should be Prioritised?Prioritised?

OrganisationalOrganisationalPurposesPurposes

Whom doesWhom doesThe organisationThe organisationServe?Serve?

Which Which PurposesPurposesAre priorityAre priorityWHY? WHY?

Corporate GovernanceCorporate Governance Business EthicsBusiness Ethics

StakeholdersStakeholders Cultural ContextCultural Context

Whom does the Organisation Whom does the Organisation serve?serve?

What are their objectives? How much power do they have ? How much interest do they have?

Identifying Stakeholders Identifying Stakeholders

How interested are your stakeholders in impressing their objectives onto the organisation?

Do they have the means to do this ?

Stakeholder Mapping Stakeholder Mapping Level Of Interest

Power

Low High

Low

High

A

Minimal

effort

B

Keep

informedCCKeepKeepSatisfiedSatisfied

DKeyPlayers

Stakeholder Mapping can be an Stakeholder Mapping can be an aid to:aid to:

Matching stakeholder objectives to the organisations purpose?

Outline where stakeholders need to be repositioned

Who to educate Who to persuade Who to assist & encourage

“To the manager his organisation is unique ;but only by comparing the

experience of other organisations can he learn much about it.”

Perrow C , Organisational Analysis A sociological viewPerrow C , Organisational Analysis A sociological view

Why do organisations need a Why do organisations need a structure?structure?

Need to organise resource Clarify activities Facilitate decision making Process information Central Control Standardise & specialise

Organisation Charts Organisation Charts

Outline the organisational structure Division of work Activity groups Authority levels Formal relationships

Functional Organisation ChartFunctional Organisation Chart

C .D unnL o g is ticsM an ag er

E .F ie ldsP rodu c tionM anag er

G .H e adP urcha singM anag er

A .B rownM anufa ctu r ing

D irec to r

Matrix StructureMatrix Structure

Is a combination of : Functional departments with a stable

base for specialised activities Units that integrate various activities of

different departments on a project,programme basis.

An Example Matrix StructureAn Example Matrix Structure

ProjectProjectManagerManager

ProjectProjectManagerManager

ResearchResearch&&DevelopmentDevelopment

Purchasing Purchasing ProductionProduction

ManagingManagingDirectorDirector

The Managers Role within a The Managers Role within a functional structurefunctional structure

Based on a management team approach Control Of a specific function Co-ordination of a specific function Report to the top tier of management

Advantages Of a Functional Advantages Of a Functional StructureStructure

Less managers are required Effective use of personnel Jobs are clearly defined Groups have similar interests The natural flow of information is

vertical Communication lines are short

Limitations Of A Functional Limitations Of A Functional StructureStructure

The structure may inhibit change Unable to diversify Senior managers do not see the bigger

picture Vertical lines of authority restrict Become out of date quickly

The Managers Role in a Matrix The Managers Role in a Matrix StructureStructure

Will be varied Will offer greater role flexibility Can provide the basis for development

of new skills More issues with co-ordination

Limitations Of A Matrix Organisation Chart

Duplication It can take longer to make decisions Levels of responsibility may be unclear Lack of clarity Poor motivation

Advantages Of a Matrix Advantages Of a Matrix StructureStructure

The overall health of the company is intact

Information flows laterally Managing is more informally based Mangers participate more

Matrix UsesMatrix Uses

Manage Change Facilitating the use of bank resource New Project Implementation Sharing & proposing between

departments

““Management is mental Management is mental (thinking ,intuiting,feeling) (thinking ,intuiting,feeling)

work performed by other people work performed by other people in an organisational context.”in an organisational context.”

Kast F.E and Rosenzweig J.E 1985 Organisation & Management .McGraw -HillKast F.E and Rosenzweig J.E 1985 Organisation & Management .McGraw -Hill

What is Management Theory?What is Management Theory?

An attempt to look at issues related to: The organisation Structure People

Why is the Theory Important ?Why is the Theory Important ?

What the leading writers have to say is important

Establish Theory/Practice Link An understanding of current thinking Knowledge of managerial history can

help explain some of the practice Many earlier ideas are still important

Theorists ViewpointsTheorists Viewpoints

Classical Classical Human Human RelationsRelations

SystemsSystems ContingencyContingency

Focus OnFocus OnPurposePurposeFormal structureFormal structureTechnical RequirementsTechnical RequirementsCommon PrinciplesCommon Principles

FredrickFredrickTaylorTaylor

Social FactorsSocial FactorsLeadershipLeadershipInformal OrganisationInformal OrganisationBehaviourBehaviour

IntegratedIntegratedApproachApproachSocio-technicalSocio-technicalsystemsystem

No One best FitNo One best FitSuccess of theSuccess of theOrganisation dueOrganisation dueTo situationalTo situationalVariablesVariables

EltonEltonMayoMayo TristTrist Porter Porter

Burns & StalkerBurns & Stalker

Managerial AttributesManagerial Attributes

Technical Competence Social Skills Human Skills Conceptual Ability

Technical Competence Technical Competence

Application of specific knowledge Skills led More of use at an operational level

Social/Human SkillsSocial/Human Skills

Interpersonal relationships The exercise of judgement Secure effective use of human resource Flexibility Provides direction Co-coordinated effort

Conceptual AbilityConceptual Ability

Required to understand a complex system

Environmental influences Involves decision making Relate to the organisations aims

The Managers RoleThe Managers Role

Is Influenced by: The nature of the organisation The structure Activities & Tasks Technology People The level the manager is at

Managerial Roles Managerial Roles

Based around : Formal Authority & status Interpersonal roles Informational roles Decisional roles

The Managers Role The Managers Role FormalFormalAuthorityAuthorityStatusStatus

MonitorMonitorSpokespersSpokespersononDisseminatDisseminatoror

FigureheadFigureheadLiaisonLiaisonLeaderLeader

EntrepreneurEntrepreneurDisturbanceDisturbanceHandlerHandlerResource AllocatorResource AllocatorNegotiatorNegotiator

Organisational RelationshipsOrganisational Relationships

SeniorSeniorManagerManager

Middle Middle ManagerManager

StaffStaff

Formal RelationshipsFormal Relationships

Depend on the pattern of responsibility Line relationship Functional relationship Staff relationship

Informal RelationshipsInformal Relationships

Lateral Relationships After work groupings Shared interest Common ground Maintain co-ordination

PlanningPlanning

Examine the future What needs to be achieved Develop a plan of action

OrganisingOrganising

Provide the resource Material Human Build the structure Carry out the activity

MotivatingMotivating

Maintain ActivityEncourageInnovate

Co-coordinatingCo-coordinating

UnifyHarmonise effortHarmonise activities

ControlControl

Verify Ensure that all occurs in line with plan Establish principles

““Management style can be as Management style can be as important as management important as management

competence.The movement towards competence.The movement towards flatter organisational flatter organisational

structures,flexible working places structures,flexible working places greater emphasis on integrating greater emphasis on integrating

rather than controlling.”rather than controlling.”

Mullins L – Management & Organisational behaviourMullins L – Management & Organisational behaviour

Managers Responsibility Managers Responsibility

Achieve results through people Involves effective use of human

resource Style of management is likely to be pre-

disposed in reference to : People Human nature Work

Theory X AssumptionsTheory X Assumptions

Average person is lazy Does not like work People must be

coerced ,controlled ,directed Threatened with punishment

The Theory X PrincipleThe Theory X Principle

Direction and control through a centralised

principle of organisation and the exercise of authority

Theory Y AssumptionsTheory Y Assumptions

Work is natural People exercise self direction,self

control The average worker will accept & seek

responsibility People have the capacity for creativity Motivation occurs with affiliation

Principles Of Theory YPrinciples Of Theory Y

The integration of individual and organisational aims and objectives

Other Managerial StylesOther Managerial Styles

Japanese Theory Z management The Managerial Grid

Japanese Theory ZJapanese Theory Z

Long term employment Implicit informal control mechanisms Explicit formal measures Participative decision making Collative decision making Individual ultimate responsibility Broad concern for welfare

The Managerial GridThe Managerial Grid

Based upon : Concern for production Concern for people

The Use Of Managerial Style The Use Of Managerial Style

Mangers switch from one style to another dependant on the situation

Managers tend to have a dominant style

Also have a back-up style when one does not work

All Managerial Styles Should be All Managerial Styles Should be based on:based on:

Consideration Respect Trust Recognition Involvement Fair & Equitable treatment

Influences On Managerial StyleInfluences On Managerial Style

Organisation Values Personal History Chance

Leadership & ManagementLeadership & Management

Not all managers are leaders Leadership is more generic Can be interrelated

ManagersManagers

Tend to be passive Co-ordinate & balance in order to

compromise Low level of emotional involvement Regulators

LeadersLeaders

Tend to be personal about aimsActive attitudeCreate excitementHave empathyLeaders work in but do not belong toSearch out opportunities to change

Why Is Leadership Important ?Why Is Leadership Important ?

Motivation Interpersonal behaviour Communication Effective delegate's Influences organisational performance

Leadership & Management Leadership & Management

Move away from hierarchy has increased the need for effective leadership

Style Staff Skills Shared aims

Management Sum-upManagement Sum-up

The world of work is changing Management in practice will also have

to change Effective leadership is becoming a

sought after asset All stakeholders must be given

consideration The purpose should be believed.