What is an effective organisation? Flashcards
Why do observers agree that companies as diverse as - IBM, Toyota and Google are well run?
Who created the Competing Values Framework and what does it consist on ?
Quinn and Rohrbaugh (1983) developed a (model) framework of effectiveness based on existing theories, philosophies or outlooks on the process of organising – the Competing Values Framework
What are the elements involved in the Competing Values Framework ?
- Organisational aims
- Organisational structure
- Managerial roles and styles
- Staff roles and styles
What are the four quadrants of the Competing Values Framework?
- Internal Process Model
- Open Systems Model
- Rational Goal Model
- Human Relations Model
While the models seem to be four entirely different perspectives or domains, they can be viewed as closely related and interwoven. They are four subdomains of a larger construct: organizational and managerial effectiveness. The four models in the framework represent the unseen values over which people, programs, policies, and organizations live and die.
What is the Internal Process Model?
- Hierarchical structure; division of labour, centralised control
- People (staff) follow well-defined, rules & procedures
- Measurement, documentation, information, stability and control
Based on hierarchy, emphasis on measurement, documentation and information management. These processes bring stability and control. Hierarchies seem to function best when the task to be done is well understood and when time is not an important factor.
What is the role of managers in the Internal Process Model ?
- Checking compliance with rules
- Maintenance of the structure
What types of organisation/operations NEED to be run with the Internal Process Model
Protection – accuracy & reliability of records; safety; legal evidence..
Examples include Government Departments; Retail Banks; Healthcare organisations
What are the cons of Bureaucracy ?
Image of bureaucracy:
Time consuming; data handling meant documents hence need for storage; Labour intensive; state processes handled ponderously souring relationship with the public; routine boring jobs…
What are the Pros of Bureaucracy ?
What is the Rational Goal Model?
Fundamental driver is profit in a competitive environment; aim of companies - maximum efficiency
Based on profit, emphasis on rational action. It assumes that planning and goal setting results into productivity and efficiency. Tasks are clarified; objectives are set and action is taken.
What is the manager role in the Rational Goal Model ?
Managers expected to direct and produce
- Management by objectives! Problem solution, gives instructions, evaluates performance, motivates staff
- Task orientated; work focused
For what types of organisation/ subunit would the Rational Goal Model be appropriate?
Mass manufacture was a major driver for wealth creation since the industrial revolution (around the end of the 18th century)
Typical companies – Car manufacture (Ford, Toyota..)
Pros and cons of Rational Goal Model in manufactures?
Efficiency achieved generating great wealth but alienation of workforce with ‘boring’ jobs
What is the Human Relations Model?
Characteristics:
- Limitations of scientific management vision of ‘economic man’ – man is also a social animal with needs not met by rational goal organizational structures
- Organisational Structure; clan or team; flat structure
- Emphasis on training; a culture of participative decision making and information sharing
what is the role of managers in the Human Relations Model?
Managers expected to be facilitators and mentors:
- Foster collective effort, manage conflict – emphasis on supporting process
- Develop staff, people are resources to be developed
For what types of organisation/ subunit would the Human Relations Model be appropriate?
Typical organisations – consultants, professional groups (engineering, legal, health..)