University 1st year introduction to business management models
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Peter Drucker
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Set goals, organise activities, motivate and communicate, measure performance, develop people
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Henri Fayol
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"to manage is to forecast and to plan, to organise, to command, to co-ordinate, to control" ; Functions of management (planning, organise, command, lead, coordinate, control); 14 principles of effective management; administrative management
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14 principles of effective management:
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division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interest to general interest, remuneration of employees, centralisation and decentralisation, scalar chain, order, equity, stability of personnel, initiative, esprit de corps
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Administrative management:
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technical activities, commercial activities, financial activities, security activities, accounting activities, managerial activities
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Cole + Kelly
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“Management is a process enabling organisations to set and achieve their objectives by planning, organising, controlling their resources, including gaining the commitment of their employees (motivation)”
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Frederick Taylor
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Principles of Scientific Management (1911); sought to reduce the time taken to complete a task by undertaking a “time and motion study” to find the “one best way” to complete a task
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Henry Ford
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Used specialisation to develop the production line and mass production; based on the organisation of slaughterhouses
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Frank and Lillian Gilbreth
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Refined Taylor’s methods and improved time and motion studies; stressed the need for workers to have the correct tools and resources to complete the job; Lillian Gilbreth advocated for workers welfare
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Transformation processes must add value
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To survive, businesses must innovate
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the innovation of management is just as important as product innovations (Joan Magretta)
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UN global compact and Accenture 2023: Global educational challenge, Climate change, Poverty, Gender diversity, Access to water and sanitation, Food security and hunger
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Overseeing work
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from controller to enabler
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accomplishing tasks
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from supervising individuals to leading teams
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managing relationships
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from conflict and competition to collaboration
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leading
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from autocratic to empowering
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designing
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from maintaining stability to mobilising for change
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Interpersonal roles
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figurehead, leader, liaison
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informational roles
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monitor, disseminator, spokesperson
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decisional roles
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entrepreneur, disturbance handler, resource allocator, negotiator
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Modern public sector is more about value for money and reducing cost through improving inefficiencies than a service for all no matter the cost
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Popularity rose in the 1980s when management reform came into focus in the public sector, to make them “more business like”
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Market-orientated public sector as the ‘core philosophy to increase efficiency’
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Service provisions were decentralised with public services and private services pitching against each other for public sector contracts e.g. NHS
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Why? To give the public sector the ‘more choice’ over which service contractors to use
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‘One best way’ to achieve a task cannot work
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contingent upon situation
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Performance depends upon having a structure that is appropriate to the environment
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Complex and unpredictable environmentFlexibility in fast-changing environment
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Flexibility in fast-changing environments
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Flexibility in the interdependence between subsystems
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Subsystems are moving parts that depend on one another; difficult to change a subsystem without affecting the whole organisation/system
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becoming "agile"
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how a business is managed depends upon the dynamics of the situation
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Woodward, Burns, Stalker, Lawrence, Lorsch
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technical skills
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day to day operations
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human or interpersonal management skills
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conceptual skills
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critical thinking
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different layers of management
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supervisory
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technical = human > conceptual
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middle
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technical = human = conceptual
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top
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technical < human = conceptual
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open systems model
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towards expansion/adaption;Katz, Khan + Thompson; organisation is part of a system that can deliver objectives
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rational goal model
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towards maximisation of output; authoritarian focus; assumes employees are only motivated by money; treats workers like machines; seen in developing economies
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internal process model
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towards consolidation/continuity; bureacracy concept (Weber); tall structures; stability and control within organisation
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human relations model
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towards human commitment; Follet; Hawthorne studies (Mayo); worker participation leads to increased productivity
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Benefits
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Useful for employees that prefer more stability and control; clear rules and regulations; reporting relationships are clear; clear lines of promotion; staff understand where they fit into the organisation; large organisations can streamline processes; way to manage large organisations to reduce chaos
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Drawbacks
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Red tape (long processes) and the slow, clunky decision making; poor communication; lack of innovation; inability to react quickly; inefficiency and waste of money; impersonal working relationships with emphasis on control
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Knowledge management “involves everyone in an organisation in sharing knowledge and applying it to continuously improve products and processes” (Lussier)
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Learning organisations share three characteristics:
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Team-based structure; Participative management; Sharing of information through knowledge management
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High-performance organisations
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managed in a way that drives performance
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HPOs create links between high-performance work systems and organisational performance
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Committed to success, staff development, and empowerment
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Servant leadership is key
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