12/1/2022

Organisational & Historical Context

BMAN 10011: Fundamentals of Management TODAY’S LECTURE

- Organisational Context
- Historical Context
Dr. Masakatsu (Bob) Ono
masakatsu.ono@manchester.ac.uk
AMBS 7.012

What is Organisational Culture? Formation of Corporate Cultures

Artefacts
• “the pattern of basic assumptions physical layout • Personality of the founder(s) is the main causes
dress
that a given group has invented symbols of a culture
discovered or developed and • ASA Model (Schneider, 1987)
therefore taught to new members
as the correct way to perceive think
− Attraction: people are differentially attracted to careers
and feel in relation to problems.” (interests & personality)
(Schein, 2004) Espoused
Beliefs & − Selection: organisations choose those who share
Values common attributes
• Functions:
− Attrition: compatibles remain longer than “misfits”
− Integration
▶ ▶ ▶ increased homogeneity
− Communication
Underlying
− Sense of Purpose Assumptions
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Strong vs. Weak Culture National Cultures

• Strong Culture: “one that is internally consistent, • Dimensions of International Cultures (Hofstede, 2005)
is widely shared, and makes it clear what it Egalitarian Power Distance Embrace hierarchy
expects and how it wishes people to behave”
Collectivist Collectivisms vs. Individualism Individualist
STRONG CULTURE WEAK CULTURE
Comfortable Uncomfortable
Subcultures or people within an Uncertainty Avoidance
with uncertainty with uncertainty
Most people have basic beliefs and values organization have values and beliefs that
that agree with the organization’s values are different or conflict with the Nurture important Femininity vs. Masculinity Power important
organization’s values
Values and beliefs are consistent and
Values are vague or contradictory Traditional and Short- vs. Long-Term Futuristic and
coherent
short-term Orientation long-term
Values and beliefs are comprehensive and
Values are patchy
cover most things
Normative repression Restraint vs. Indulgence Satisfaction is good
example of strong culture
RECENT ADDITIONS

National Cultures National Cultures

• GLOBE Project (House et al., 2004)
Who is more likely to trust
− Data not limited to one firm members of the other group?
− 170 researchers involved
− Proposed a competing model of cultural dimensions
• A study examined whether culture influences the
• 9 dimensions: assertiveness, future orientation, gender
egalitarianism, power distance, uncertainty avoidance, etc. tendency of individuals and organisations to trust
• “as is” scores and “should be” scores (Huff & Kelley, 2003)
− Data: 1,200+ mid-level managers from 7 different
countries
− Result: Higher propensity to trust in the US than in Asia
https://globeproject.com
(e.g., Japan, Korea, China)
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Scientific Management
• Increased importance of management after
HISTORY OF industrial revolution
MANAGEMENT − Larger units
− Demand for specialised labour
 Scientific Management − Costly factories & machines
 Classical Theorists
 Human Relations Platt Brothers & Co. Ltd

 Systems Theory
 Contingency Theory

Scientific Management Scientific Management

• Frederick W. Taylor • Lillian & Frank Gilbreth
− Father of scientific management − Time & Motion Study
− Workers seen as mere parts of a large machine − Studied the hand movements of bricklayers
− Scientifically studied “what a good worker should • Eliminating repetitive or meaningless moves
achieve” • Training bricklayers
• Improving materials
Loading pig iron
Shoveling iron & coal
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Scientific Management Classical Theorists

• Fordism: assembly/production line technology • Henri Fayol: identified the key administrative
− Standardisation, interchangeability, and precision processes & principles
− Simplicity and specialization − 7 Process: POSDCoRB (amended by Gulick)
− Synchronisation and conveyor belt production Planning Organising Staffing

Ford Toyota Deciding Controlling Reporting Budgeting

− 14 Principles
Division of Unity of
Order
Labour Command

Authority &
Centralisation Equity more…
Responsibility

Classical Theorists Human Relations

• Max Weber: provided guidelines for • Elton Mayo’s Hawthorne studies
a rational organization − Tested whether good lighting improves the performance
• 6 features of bureaucracies iron cage of rational control
(illumination experiments)

Specialised, clearly defined Written records of acts and

jobs decisions – equality

Hierarchical order – Comprehensive rules to cover

increasing authority & control all eventualities

Merit-based selection & Management is separate from

promotion ownership
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Human Relations Human Relations

Hugo Munsterberg Mary Parker Follett
• Findings from the Hawthorne studies: - Attention to mental - Management is
skills of workers “getting things done
− Productivity increased when illumination rose - Developed tests to by other people
- Managers to
− Productivity increased when illumination was reduced assess ability &
harnessing the
performance
▶ ▶ ▶ Illumination did not affect productivity increases — potential of people
- Self-governing,
then, what did? empowered groups

Control Experimental Elton Mayo Chester Barnard

• Hawthorne Effect: - Attention to

psychological
- Managers needing to
obtain cooperation of
− Workers responding to the conditions of employees
productive workers - Effective
interest taken in them - Found the Hawthorne communication & a
Effect harmonious working
− aka. observer effect atmosphere

Systems Theory Systems Theory

• “The whole organisation can only work effectively • Complex Open System
if the individual parts work effectively and co-
operate” Inputs (x): Outputs (x + y):
o Money Transformation o Profit/Loss
o Materials process arranged by o Satisfaction
Closed System Open Systems o Men & Women managers o Contribution to local
o Information*** & wider communities
• Operates in isolation to its • Interacts with its environment
environment via feedback loops feedback froma environment
• Predictable environment: • Complex environment
slow technological development & • Considered as a modern
communication speed, low
theory

DEMAND
Shareholders New technology Pressure groups
SUPPLY
competition
Lenders Local community Consumer tastes
• Common among earlier Employees Economic climate Markets
theorists Suppliers Government regulations New competitors

Systems Theory
• Additional features of the theory:
− Excessive feedback can be dysfunctional
− A system tends to run down, decay, and become
chaotic (Entropy) without regular inputs & maintenance
− The extra values can be created when two parts of a
system interact (Synergy)
− An organisation often has sub-systems (e.g., functions
& departments)
Reading & Self-Test
• Smith (2011)
− Chapter 2: The Organisational Context
− Chapter 3: The Historical Context
• Self-test 2 posted on BlackBoard
− Answers are also available
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Contingency Theory
• The style of management in an organisation (as
an open system) is contingent on an
organisation’s environment
− Group’s situations (Fiedler et al., 1978)
− Production type (Woodward, 1965)
• Leadership
− Appropriate leader style (task vs. relationship) depends
on the group’s situations
− Situational elements:
• leader-member relationship, task structure, formal power