Rational Systems

Question 1

Weber (1924)

Answer 1

Bureaucracy (Rational Systems)

• To Weber the Bureaucracy concept was developed as a more efficient/effective solution to the problems of “traditional administrative forms” (think - feudalism- single ruler overseeing slaves/relatives)
• Today Bureaucracy often is conceived of negatively as too much administration”

Bureaucracy varies along a continuum and is defined by
DOHMOP
1) Hierarchical structures are clearly defined
2) Operating Procedures are in place to govern decisions (SOPs)
3) Division of labor is fixed (not shifted by one leader at whim)
4) Means of production (tools, equipment, rights) belong to the firm.
5) Ongoing Employment is expected by participants.
6) Personnel is hired based on merit (qualification) rather than personal relationships)

• Officials tend to be utilitarian in carrying out their duties considered those employees they manage.
• Bureaucracy criticism
  a. Un-adaptive
  b. Stifles freedom and creativity
  Some say Bureaucracy legitimizes the control of the many by the few.

Question 2

Taylor (1911/1947)

Answer 2

Scientific Management (Rational Systems)
METHOD "Time & Motion studies" to deterimine optimal use of labor. Believed labor could be optimized (one best way) and optimized labor could enhance the society as a whole (Similar to Adam Smith)

• Division of Work: should be into small elements and monitoring constantly
• Motivation/Higher Wages: Believed scientific management could motivate workers to perform at optimal levels as he believed some increases in productivity should be paid back in the form of higher wages for workers.
• Loss of Autonomy for Workman/Management. Emperically derived rules are used for decision making to “control” workers/managers as they may be dumb —> could parallel this with agency theory.
• Highly influential: After Taylor Managers/Engineers began to standardize fittings, tools and human elements of production in Orgs.

Question 3

Simon (1945/1960)

Answer 3

Administrative Behavior (Rational Systems)
- The key to Orgs is Decision-Making (Carnegie School). The future org will be heirarchial consisting of automated day to day procedures at the lower levels, and at the higher level man will make decisions about the systems that maintain perform the work. 

Decision-making can be thought of as 3 phases:

1) Scanning- Using intelligence to find occasions to make decisions
2) Analyzing/evaulation/Designing alternatives
3) Choice- selecting the course of action)

• Good Execs are good decision-makers and they can be trained…
• Goals: Orgs help managers make decisions by supplying goals/values premise to guide them

Question 4

Scientific Management Evidence Based Management /the role of science in Management today.

Answer 4

• Similarity between Scientific Management and Evidence Based Management “under scientific management arbitrary management decisions cease and each decision rather becomes the question of scientific investigation (reduction to law) (Weber, 1947)
• Experiments are used to guide Manager’s Decisions