Management perspectives & organisational behavior. Flashcards
Define management
The attainment of organisational goals in an effective and efficient manner through planning, organising, leading and controlling organisational resources (Daft and Benson, 2016, p.6.)
Define process management?
The process of achieving desired results through other people.
What are the 3 steps of process management?
1) Inputs - info, raw material, labour, assets, services etc.
2) Managing inputs into outputs
3) Outputs - finished products, profit, reputation, info etc.
What is social construction management?
Thinking about what people do in an organisation (what roles mean).
What are the reasons for management theory?
- Growth of large organisations.
- Growth of new tech.
- Control complexity.
- No other theory.
- Practical experience valued.
What did Henri Fayol do?
Invented management as a separate activity.
- Administrative theory
A founding father of modern management techniques:
– System approach
What is meant by division of work (Fayol)?
Efficiency from task specialisation.
What is meant by authority (Fayol)?
Managers right to command
What is meant by discipline (Fayol)?
Ensuring obedience
What is meant by unity of command (Fayol)?
Single line manager
What is meant by scalar principle (Fayol)?
Authority runs from top of hierarchy to bottom
What is meant by unity of direction (Fayol)?
Each objective has one manager and one plan
What is meant by interest subordination (Fayol)?
Organisational interests/ goals over individual interests.
What is meant by remuneration(Fayol)?
Fair pay to motivate but not unreasonably high.
What is meant by centralisation (Fayol)?
sufficient to ensure accountability
What is meant by order(Fayol)?
People and materials in right place at right time.
What is meant by equality of treatment (Fayol)?
Managers should be fair and kind to subordinates
What is meant by stability of employment (Fayol)?
Avoidance of inefficient employee turnover
What is meant by opportunity for initiative (Fayol)?
freedom to originate and execute a plan
What is meant by espirit de corps (Fayol)?
Promoting team spirit to build unity.
What is the criticism for administrative management (Fayol)?
- Not research based
- Assumes stable environment
- Assumes managers right to manage
- Underestimates conflict
- Assumes universality
How relevant is Fayol today?
Laid down the foundation.
What are the 2 fancy definitions for bureaucracy? (Weber)
“A system of admin based upon organisation into bureaus, division of labour, hierarchy of authority”
“Any administration in which action is impeded by unnecessary official procedures”
What is the simple def of bureaucracy? (Weber)
An organisation being managed on a rational basis.
-Appointed officials, formal structures, with records.
What are the 6 points to an ideal bureaucracy?
- Division of labour
- Hierarchy position
- Management rules and procedures
- Separate owners and managers
- Records kept
- Personnel selected and promoted by qualifications
What are the 3 key concepts of bureaucracy? (Weber)
Formalisation:
- Written rules and procedures (direct and regulate)
- Organisational chart
Instrumentalism:
- Organisation as machine to achieve purpose
- Means to an end (done only to get something out of it)
Rational legal authority:
- Legitimate authority based on position, no person
Advantages of bureaucracy?
- Accountability for actions
- Consistency of operations
- Transparency (good for governmental organisations)
Disadvantages of bureaucracy?
- Rules, paperwork
- Initiative stifled and lack of flexibility
- Tech experts may abuse power
- Impersonality = inhuman
- Bureaucracy + holocaust
What are the common Objections to Bureaucracy?
Popular: impersonal, regimented, form filling, expensive
Ethical: Denies emotions, passion, morality, dehumanisation.
Economic: uncompetitive, unflexible
What was Frederik W Taylor’s theory?
Scientific management: systematic method of determining best way to do job and specifying skills needed -> precise procedures
What are the 5 different aspects to the scientific management method (Taylor)?
- Standard method
- Standard method training
- Workers selected on measured ability
- Work planned
- Wage incentives for increased output
Advantages of scientific management theory? (Taylor)
- Earn more money (potentially)
- Safe and effective work method
- Training
- Increase efficiency
Disadvantages of scientific management theory? (Taylor)
- Not everyone motivated by money
- Leads to quantity over quality
- Treats workers as resources
- Measured society
Why do organisations exist?
- Enlarge scale of industrial activity.
- Satisfy needs of individuals.
- Increase efficiency.
- Achieve economies of scale (savings in cost gained by increase level of production)
- Pool and conserve knowledge.
- To provide ind. security within a thriving economy.
- Get things done
Define organisation
A group of people working together to achieve a common objective, with a formal agreement in place.
- Hierarchy with an opportunity to move up.
- A normative order controlled via management.
- Controlled performance?
Define anthropomorphism?
Giving human traits to non human entities e.g. Kellogg’s tiger.
Define sole trader?
1 exclusive owner of a business
What are the advantages of a sole trader?
- Low cost and easy to set up.
- Full control retained.
- Very little financial reporting.
What are the disadvantages of a sole trader?
- Full liability for debt.
- If sued may go bankrupt.
- Pay more in tax.
- Lacks credibility in market.
What is a partnership?
Formal agreement made by 2+ parties
What are the advantages of a partnership?
- Same as sole trader, but with more heads.
- Greater potential to raise finance.
What are the disadvantages of a partnership?
- Same as sole trader, but affects all partners.
- Risk of disagreements between partners.
- Can be messy to wind up.
What are the advantages of a limited liability partnership?
- Flexibility.
- Adv of partnerships + limited company.
What are the disadvantages of a limited liability partnership?
- Profit taxed as income.
- Partners must disclose income.
What is a limited liability partnership?
People only liable for money they invest.
What is a limited liability company (LLC/LTD)
Liability linked to investment in company.
What are the advantages of a limited liability company?
- Less personal financial exposure.
- Favourable tax regime.
- Lends credibility to business -> opportunity to work for corporate clients.
What are the disadvantages of a limited liability company?
- Administration and regulatory demands heavier.
- Limited access to capital.
- Annual accounts and financial reports public domain.
What is a public limited company?
Liability limited to share face value?
What are the advantages of a public liability company?
- Raise more finance
- More media attention
What are the disadvantages of a public liability company?
- No restrictions on share ownership.
- Increased regulation.
- Share prices may fluctuate.
- Managers may lose control of business.
What is a multinational corporation?
e.g. Apple
Define SME
Small/medium sized enterprise.
<250 people
turnover <5 millions euros
Define cooperative
Owned and controlled by members, equality.
Define staff ownership
Employees own majority stakes.
Define Mutual society
No external shareholders, owned by members
Define not for profit organisations
Owners don’t earn profit
Define franchise
Supplier allows operator to use their trademark and to distribute supplier’s goods (operator pays fee)
Define social enterprises
No shareholder, invests profits in services
What are the characteristics of a private sector company?
- Owned and financed by individuals, partners or shareholders.
- Main aims = profit, market standing
What are the characteristics of a public sector company?
- Government created
- Provide public services
- Main goal is to be effective, not profit
What is a strategic orientation organisation?
What are they aiming to do?
Focuses on:
Product/service quality
Sales/profit
Relationship
What is a prime beneficiary organisation?
Who is first to benefit?
Focuses on:
Members
Owners
Customers
Society
What is organisational structure?
Defines how activities are directed toward the achievement of organisational aims:
What does organisational structure allow for?
- Efficient performance
- Activity monitoring
- Accountability
- Coordination & flexibility
- Social satisfaction (please boss)
What are the consequences of poorly designed organisational structures?
- Low motivation/morale
- Slow decision making
- Conflict & coordination lack
- Unnecessary costs + lack of cost control
What the features of structure?
- Not obvious
- Possibly bureaucratic
- Complex
- Maybe inflexible
- May enable or restrict self growth/self fulfillment
- May detract for human personality
What are the different management levels (going up the triangle)?
Operational (shop floor activity, what happens) -> Tactical (Coordination, how will you get there) -> Strategic (Goals/visions)
What are the different organisational levels (going up the triangle)?
Technical -> Managerial -> Community/institutional
How do the dif organisational and management levels compare?
Operational = technical
Tactical = managerial
Strategic = community/institutional
What is the difference between structure and process?
Structure = fixed image
Process = moving image
What are the 5 points of Galbraith’s star model?
- Strategy
- People
- Rewards
- Structure
- Processes
How can you segment an organisation?
- Functional area (department group)
- Product/service (e.g. types of wines)
- Region
- Nature of work (e.g. confidential projects etc…)
- Customer type (e.g. low/high value)
What are the adv of segmenting by region?
Local market focus, fewer cultural difficulties, quicker decision
What are the dis of segmenting by region?
Territorialism, divergent cultures, diseconomies, time & distance from HQ
Define chain of command
Dif hierarchal levels
Define spans of control
no. of subordinates reporting directly to a superior
Define line relationships
relationship of authority btwn superior and subordinates
Define functional relationship
relationship with people in specialist/advisory positions
Define staff relationship
Between employers and employees
Define lateral relationship
Ind. in different sections (especially on same level)
Define project authority
Sharing authority + influence between project and functional managers
What is machine bureaucracy?
(Mintzberg’s 5 types)
- Tight vertical structure (centralised control)
- Like a machine
- Routines + procedures
- Consistent
- Too conservative
e.g. government
What is professional bureaucracy?
(Mintzberg’s 5 types)
- Rely on professional, skilled workers
- Workers have control of work e.g. unis
- Decentralised experts making decisions
What is divisional organisation?
(Mintzberg’s 5 types)
- Common in large corporations
- Each division has spec mgmt style
- Centralised control
What is innovative organisation (adhocracy)?
(Mintzberg’s 5 types)
- Decentralised decision making e.g. filmmaking
- Common at companies operating with projects
- Flexible
What is entrepreneurial organisation?
(Mintzberg’s 5 types)
- Simple, flat , loose structure
- Driven by entrepreneurial minded leader
e.g. start ups managed by founders
Define a flat organisation structure
few levels of mgmt
Define a network organisation structure
Use outsourcing
Define a joint venture organisation structure
-temporary/virtual: companies coming together to exploit market gap
Define a virtualised organisation structure
Alliance of sep ind. businesses with different strengths
Define a platform organisation structure
Client centric and focused on flows
What is meant by ‘activity school’
What managers do
What is Henry Mintzberg’s activity school?
Nature of managerial work (1973) -> shifted focus on what managers should do to what they actually do
Observations of managers: short burst of activity, language/communication is key, adhoc thought
What are the dif managerial roles? (Mintzberg)
- Formal authority status
- Interpersonal roles (Leader, liaison, figurehead)
- Informational roles (Monitor, spokesperson, disseminator)
- Decisional roles (entrepreneur, negotiator, resource allocator, disturbance handler)
What did John P Kotter observe about managers?
Leaders…
- Spent most time with others.
- Lots of small talk.
- Ask lots of Q’s
- Long hours
- Rarely make big decisions in convos
What are Fred Luthans 4 ‘real’ managerial activities?
- Networking
- Traditional mgmt
- HR mgmt
- Communication
What are Rosemary Stewart’s 3 factors of managing
Demands: attend meeting, reports, get involved
Constraints (limiting managers): finance, legal, trade union, location
Choices: Can do but doesn’t need to
What are the 6 bases of power?
- Legitimacy (role)
- Coercion (threat of punishment)
- Rewards (bestow or withdrawal of rewards)
- Expertise
- Referent (earning respect)
- Informatical
What is Alasdair MacIntyre’s form of management?
Exert power via emotivism e.g. “I approve of…you should approve aswell…so do it”
Define managerialism
The idea of how organisations should be organised.
Performance can be optimised by applying generic mgmt skills and theory
Driven by targets
What are the ideological principles of managerialism
1) Efficiency via mgmt techniques and hierarchies solve all social problems
2) Efficiency -> produce profit maximisation
3) -> competitive adv in a free market -> perpetual growth
What is Goodhart’s law?
- When a measure becomes a target, it ceases to be a good measure
What is Campbell’s law?
- Highlight negative unintended effect of policies
e.g. schools aim to do well in exams, student don’t actually learn
Define creaming
Target easy cases, ignore challenging ones
Define Neoliberalism
Idea that social good will be maintained by bringing human action into market domain
Define mcdonaldisation
Society adapts characteristics of a fast food restaurant:
Efficiency, predictability, calculability, non human tech
Define isomorphic imitation
copying others e.g. all cars in 1980 look the same as each other and all cars in 2020 all have the same shape
What was Robert Owen’s idea of paternal philanthropic mmgt?
- 8 hours is enough.
- proper arrangements to afford food, shelter and other necessities.
- Every person has a right to education, recreation & sleep.
What was Titus Salt’s idea of paternal philanthropic mmgt?
- Model town for workers: houses, school & hospitals
- Rules for his town
What did Joseph Rowntree deal with?
Poverty issues
What did William Lever realise?
Happy workers is an advantage
What was Mary Parker Follett’s concern?
Concern for ethics & power
Replace orders with teachings (give reason and purpose)
What are the 3 ways of conflict resolution?
Dominate <-> Compromise <-> Integrate
What was Chester Irving Barnard’s theory of ‘Informal organisation’
- there are naturally forming social group.
- workers have free will
- learn to manage informal relationships
What was Mayo and Roethlisbeger’s illumination study?
Hawthorne study:
Illumination study- changed lighting but ultimately concluded that people worked harder if they knew they were being studied.
What was Mayo and Roethlisbeger’s Relay assembly test?
Relay assembly test- people felt special working in small team of friends.
What was Mayo and Roethlisbeger’s bank wiring room?
Bank wiring room- promised higher pay for more productivity. Actually decreased as people feared job loss or lower basic rate. Formed cliques.
What was Mayo and Roethlisbeger’s employee interviewing project?
Found productivity impacted by:
- worker concern
- willingness to listen to worker voice
What were the conclusion of the hawthorne studies?
- Human change when observed
- Humans motivated by social norms (want to be cared for)
What did Maslow think would help a business to thrve?
Hierarchy of need:
1) provide good facilities
2) antibullying, H&S
3) Nurture strong teams
4) Recognise good work
5) Support ind. development journey
What was Douglas McGregor’s X and Y theory?
X - assumes workers try to do minimal work (observe)
Y- assumes workers want to do a good job (trust them to do their job)
What was Frederick Herzberg’s 2 factor theory?
Job satisfaction and dissatisfaction are independent.
Depends on hygiene (pay, job security) and motivation (opportunities, recognition) factors
What is a closed system?
- Tightly controlled boundaries (inputs & outputs within them)
- Closed off from outside environment (secretive, rules applied, under control)
What is an open system?
- Open to environment (unpredictable)
- Permeable boundaries (info & resources flow around)
What is the difference between the machine and systems approach?
Machine:
- Consistency design
- Assumes no change
- Goals: efficiency
Systems:
- Flexibility design
- Assumes change
- Goals: contingent
What is the systems concept?
- Micro & macro level
- Understand connections
- Decisions at strategic level has implications for operational level
- Operational lvl issue = big repercussions
E.g. departments
What is the ITOCO model?
Input->throughput->output->outcome
Feedback from throughput and output go to control then back to input.
What are the features of a process?
-Structured, responds to spec events.
- Defined objectives.
- Measurable
- Accountable owner
- Define roles & responsibilities
What is system entropy?
Without attention organisational systems will become.
Maintenance=essential
What is the Deming cycle?
Act, plan, do, check (repeated)
Define effective and efficient
Effective - right things
Efficient - done right
What is the trait approach to leadership?
Stems from great man approach.
Suggests leaders have particular personality traits, different to the rest of the population. e.g. self confidence, drive , creativity
What is the greatman approach to leadership?
“Born to lead”
e.g. boris johnson born into wealth
What are the six personality sub sections of the trait approach?
- Physical (energy)
- Social background (education)
- Social (Interpersonal skills)
- Personality (Desire to lead)
- Ability (Knowledge)
- Work related (Desire to excel)
Missing transparency?
What are the behavioural approaches to leadership?
Behaviours associated with leadership:
- Task orientated (directs workers towards goals)
- People orientated (respects ideas and feelings of workers)
What work Fred E Fiedlers theory of leadership?
AKA contingency theory:
- Incorporates the situation and the group as key variables.
- Mgmt style depends on situation.
What is the situational approach to leadership?
Leader assesses situ and chooses leadership style
Focus on tasks and peoples needs.
1) Directing style (detailed instructions & close monitoring)
2) Coaching style (Task instructions & support as needed)
3) Supporting style (Encouragement & support)
4) Entrusting style (Delegation & trust to do it)
What is emergent leadership?
Informal authority -> due to contextual situation
What is transactional leadership?
- Compliance via rewards and punishments
- Effective in crisis situ
What is transformational leadership?
- Identify opportunities for change -> sees a future and drives towards it.
- Goals
What is the instructional discourse approach to leadership?
- Do what leadership gurus do
What are the 10 leaderships “to-dos”?
- Find and manage top talent
- Reinvent HR department
- Destroy barriers
- Build leadership centres
- Pay where talent is, don’t cut costs
What is the difference between management and leadership?
Mgmt: operational efficiency
Leadership: strategic
What are the 2 factors leading to change?
- Denial of need to change
- Power to side with change
What are the 3 stages of change?
Unfreezing, changing, freezing.
What are the 8 stages of change process (John P.Kotter)?
1) Establish urgency
2) Create guiding coalition
3) Developing vision and strat
4) Communicate the change vision
5) Empower employees for action
6) Generating short term wins
7) Consolidating gains, produce more change
8) Anchoring into culture
What is the first order of organisational change?
Small incremental & reversible change to processes
What is the second order of organisational change?
Major irreversible change to business
What is the third order of organisational change?
Complete change for survival
Why does change management fail?
- Methods not applied properly into steps
- Cutting costs/corners
- Conflict + resistance
- Lack of attention of cultural issues
What are Phil B Crosby’s 5 absolutes of quality management?
1) Quality = “conformance to requirements”
2) No such thing as a quality problem. Poor mgmt = poor quality.
3) Cheaper to do it right the first time.
4) Only performance measure = cost of quality.
5) Only performance standard is 0 defects.
What is Deming’s 7 point action plan?
Senior management must:
1) Agree of meaning and direction of quality programme.
2) Accept and adopt the philosophy.
3) Communicate the plan and need for it.
4) Every activity -> step in process + customer
5) Adopt PDCA on each stage (plan, do, check, act).
6) Team work
7) Employ good staticians -> quality increase
What are Armand V Feigenbaum’s 4 steps of quality control?
1) Set quality standards.
2) Appraise conformance to standards.
3) Act when standards are not met.
4) Plan to improve.
What are Joseph M Juran’s 5 key beliefs of quality?
- Mgmt responsible for quality
- Quality improved through planning
- Plans & objectives -> specific & measurable
- Training essential, starts are top
- 3 step process needed: planning, control, action
What is Karl Marx’s theoretical perspective on alienation?
Separation of design of labour process is political. Alienates worker from themselves & confiscates freedom.
Actions are political.
What are Robert Blarner’s 4 facets of alienation?
- Powerlessness
- Meaningless
- Isolation
- Self estrangement
What is the panopticon analogy?
Force & violence -> total surveillance -> people discipline themselves
What are the 3 categories of IT?
Function IT: assists with discrete tasks e.g. excel
Network IT: Facilitates interactions without specifying parameters e.g. email, WhatsApp
Enterprise IT: Specifies business processes e.g. customer resource management.
What are Shoshana Zuboff’s 3 IT laws?
- Everything that can be automated will be.
- Everything that can be informated will be.
- Every application that can be used for surveillance & control will be.
What are the 4 distinct managerial control purposes
- Prescribes labour process
- Knowledge capture
- Surveillance & performance measurement
- Constraint of worker
What are the 6 R’s of algorithmic control?
Direction:
- Recommending
- Restricting
Evaluation:
- Recording
- Rating
Discipline:
- Replacing
- Rewarding
