Management & Organization-1

Year-1, Term-1

Pramela Nair – pramela.nair@fhrinstitute.sr

Doctoral candidate (Info. Sys. & Tech.)
MBA (Finance) & B. E. (Computer Science)
 Agenda
 Case Ford (Lecture 1)
 Overview Lecture 2
 Main schools of thought in Organizational
Behavior/ Management
 Other Method Assignment
 Introduction case Lecture 3

2
 Case Ford (Lecture 1)

Henry Ford

3
 Course Overview

Lecture Activities / Chapters

1 Overall Case
2 Ch.1
3 Ch.9 - Par. 9.1 / 9.5 / 9.6
4 Ch.2
5 Ch.3
Ch.6 - Par. 6.6
Ch.8 - Par. 8.1 / 8.2 (tm 8.2.5) / 8.3 (tm 8.3.4) / 8.4
6 Ch.3
Ch.6 - Par. 6.6
Ch.8 - Par. 8.1 / 8.2 (tm 8.2.5) / 8.3 (tm 8.3.4) / 8.4
7 Ch.6 - Par. 6.1 / 6.2
+ Repetition (previous weeks)

4
Literature – Course Book

Organisation & Management

An International Approach

Jos Marcus & Nick van Dam

Noordhoff Uitgevers
Third Edition (2015)
ISBN: 978-90-01-85022-7

5
 Overview Lecture 2
- Identify the Chapter 1 - Class Study: Course
main schools -Cover the discussions and * Ch1. Book
of thought in main schools lecturer’s M&O
the history of of thought in PowerPoint Prepare
organizational the history of presentation: 75 for week OM
behavior. organizational min. 3: group
behavior.​ - Discussion OM * Ch9 - assign
(! Important for group Section ment
the Other assignment: 9.1 /
Method group 15 min. 9.5 / 9.6.
assignment !)

6
 Figure 1.2 Important People and Schools of
Thought in the History of Organisational Behaviour

Bron: Noordhoff
Uitgeverij B.V. -
2005 7
 Schools of Thought and Personalities

1. Events Prior to the Industrial Revolution (400 BC – 1900 AD)

2. Frederick Taylor and Scientific Management (+/- 1900)
3. Henri Fayol and the General Management Theory (+/- 1900)
4. Max Weber and the Bureaucracy Theory (+/- 1920)
5. Elton Mayo and the Human Relations- Movement (+/- 1945)
6. Rensis Likert (and others) and The NEO-Human Relations Approach (+/- 1950)
7. Kenneth Boulding and the Systems Approach(+/- 1950)
8. Paul Lawrence, Jay Lorsch & The Contingency Approach(+/- 1965)
9. Recent Organisational Theories (1980+) Crosby until Hammer
10. Recent Organisational Theories (1980+) Prahalad until Christensen

Assignment: Present the main schools of thought in the history of organizational

behavior that are assigned to your group (cards)
Preparation: 20 min.
Presentation: max 5 min per school
of thought

8
 1. Events Prior to the Industrial Revolution
(400 BC – 1900 AD)

Chronology Events
Italian advisor (1469–1527) • preservation and expansion of power
to King - • taking advantage of the situation at any
Niccolo opportunity
Machiavelli
Mercantitlism Until second • key beliefs was that the possession of
half of 18th bullion (gold and money) was the only
century measure of national wealth.
• export more than was imported in order to
accumulate money which could be kept in
reserve for times of war

Bron: Noordhoff Uitgeverij B.V. - 2005

9
 1. Events Prior to the Industrial Revolution
(400 BC – 1900 AD)

Chronology Events
Adam Smith (1723–1790) • rejected the principles of mercantilism
completely.
• a more systematic approach to
management, with much attention
being paid to efficiency.

In the 18th • Development of the pressurised coal-

century fired steam engine, making mass
production in large factories possible
and replacing manufacture of products
in workers’ homes or in small
workplaces.

Bron: Noordhoff Uitgeverij B.V. - 2005

10
 1. Events Prior to the Industrial Revolution
(400 BC – 1900 AD)
Chronology Events
In the 18th • Western society changed from an agricultural to an industrial
century one.
• In the larger cities, growing working classes lived in poorly built
workers’ houses.
• The pay was low and living conditions miserable. This
development began in England, then after 1840, it spread
across Western Europe and the United States.
By the end of • American companies had grown dramatically in response to the
the 19th century ever-expanding consumer market.
• By now, the existing controls and checks were inadequate.
• The division of responsibility between supervisors and staff was
unclear, production standards and wages were determined
subjectively and an air of unpredictability prevailed. There was
hardly any planning.
• The managers tried to push the workers to produce as much as
possible, often using harsh methods. The workers reacted in an
organised way by systematically stretching out their time.

Bron: Noordhoff Uitgeverij B.V. - 2005

11
 2. Frederick Taylor & Scientific
Management (+/- 1900)

• Scientific analysis of the activities

• Clear division of tasks and training for the workforce

• Close and friendly working relationships

• Managers being held responsible for seeking and analysing appropriate

working methods

• Use of careful selection processes to obtain the best person for the job.

• Financial rewards being given for following prescribed methods in order to

reduce production costs.

Bron: Noordhoff Uitgeverij B.V. - 2005 12

 2. Frederick Taylor & Scientific
Management (+/- 1900)

Front-line supervisory responsibilities within the production

department into eight separate areas. Each area and its tasks
was to be the sole responsibility of a particular individual:
•Time and costing
•Task instructions
•Order of work
•Work preparation and allocation
•Maintenance
•Quality control
•Technical guidance
•Personnel management

Bron: Noordhoff Uitgeverij B.V. - 2005 13

 3. Henry Fayol and the General
Management Theoriy (+/- 1900)

Bron: Noordhoff Uitgeverij B.V. - 2005 14

 4. Max Weber en de Theorie van de
Bureaucratie (+/- 1920)

• Clear and definite division of tasks

• A hierarchical command structure
• Carefully defined authority and responsibilities
• Impersonal relations between officials (the position is more important
than the person)
• Recruitment on the basis of ability and knowledge instead of cronyism
and contacts
• Promotion and reward on the basis of objective criteria and
procedures
• The execution of activities according to clearly laid down procedures
• All information, procedures and details written down, so that full control
of every aspect is possible
• The power of officials, even the most senior executives, bound by
documented guidelines

Bron: Noordhoff Uitgeverij B.V. - 2005 15

 5. Elton Mayo and the Human Relations
Movement - (+/- 1945)

• In addition to objective aspects, subjective factors such as attention, a

feeling of security, belonging to a group, and appreciation had an effect on
results.

• According to Mayo, shared group determination exerted the greatest

influence.

Bron: Noordhoff Uitgeverij B.V. - 2005 16

 6. Rensis Likert (and others.) and the Neo
human relations approach (+/- 1950)

• bridging the two theories of scientific management and human relations

approach

• Important persons:

– Likert: linking pin (paragraaph 9.6)

– Herzberg: motivation / dissatisfaction

– McGregor: Theory X and Y (paragraaf 6.3.3)

Bron: Noordhoff Uitgeverij B.V. - 2005 17

 7. Kenneth Boulding and the
Systemapproach (+/- 1950)

• A system (organisation) is run with the help of information that is given

(feedback)
• to the various subsystems (divisions).

Bron: Noordhoff Uitgeverij B.V. - 2005 18

 8. Paul Lawrence, Jay Lorsch & The
Contingency Approach(+/- 1965)

• 'There is not one best way of management'

• To obtain optimal performance, different circumstances will require different

structures, task divisions, and working methods.

• The concept of ‘contingency’ that they introduced means ‘determination by

situation’.

Bron: Noordhoff Uitgeverij B.V. - 2005 19

 9. Recent Organizational Theories(1980+)
Crosby until Hammer (1)

– Philip Crosby: Total Quality Management Theory

• Used extensively by companies in Japan, Europe and America.
• working according to the ‘zero defects’ rule is crucial.

– Henry Mintzberg: Based on organizational structures and strategic

planning (see chapter 9)
1. the success of organisations cannot simply be explained by
their choice of ‘the best’ organisational structure.
2. it is not possible to generalise about the best structure for
organisations.
•strategy (see chapter 3)
– Limitations and strategical planning

Bron: Noordhoff Uitgeverij B.V. - 2005 20

 9. Recent Organizational Theories(1980+)
Crosby until Hammer (2)

• Tom Peters: In Search of Excellence (with Robert Waterman)

– Characteristics in excellent organisations:

1. Strong action orientation

2. Close relationships with customers

3. Entrepreneurship and autonomy

4. Employees most important source of productivity

5. Hands-on, value driven

6. Stick to what you know best

7. Simple structure and lean supporting divisions

8. Structure is both centralised and decentralised

Bron: Noordhoff Uitgeverij B.V. - 2005 21

 9. Recent Organizational Theories(1980+)
Crosby until Hammer (3)

• Peter Drucker; and general management

– Knowledge revolution

• Michael Porter: Harvard Professor with important contrubtions regarding

the environment (Porter’s 5 forces- model), strategy (competitors) and
organisation analyses.
• Michael Hammer: re-structuring re-enginering of processes by a procies
oriented approach: redesign

Bron: Noordhoff Uitgeverij B.V. - 2005 22

 10. Recent Organizational Theories
(1980+) Prahalad until Christensen (1)

• C.K. Prahalad: globalisation and innovation

– Globalisation asks for an improved and more intense collaboration with
customer – delivery of customer satisfactoin
– Innovation focusses on Bottom of the Pyramid.

• Jim Collins: author of Good to Great (2001)

– Differences between good and great (8 dimensions)

Bron: Noordhoff Uitgeverij B.V. - 2005 23

 10. Recent Organizational Theories
(1980+) Prahalad until Christensen (2)

• Kjell Nordstrom and Jonas Ridderstrale: change in organisations

– New genertions of Europese businessgoeroes

• books. Funky Business en Karaoke Capitalism

Bron: Noordhoff Uitgeverij B.V. - 2005 24

 10. Recent Organizational Theories
(1980+) Prahalad until Christensen (3)
• Don Tapscott: role of new technologies
– Mass collaboration was reinventin the way business communicates, creates
value, and competes in the new global marketplace.
• ‘Get out of the way!'

• Steve Jobs: Master of simplicity

– ‘Stay hungry stay foolish‘

• Daniel Pink: uses 50 years of behavioural science to overturn conventional

wisdom about human motivation and offer a more effective path of high
performance:
– motivation 3.0; people move as soon as they’re intrinsically motivated
(autonomy, mastery, purpose)

• Clayton M. Christensen: Disruptive innovation.

– Disruptive technologies and innovations create nuew value propositions and
change markets ( examples on page 63.)

Bron: Noordhoff Uitgeverij B.V. - 2005 25

 Other Method Test

LEARNING GOALS
-Identify the main schools of thought in the history of organizational behavior.
-Describe various types of organizations.
-Describe and classify the managerial positions (levels and roles) and the communication structures in an organization.

PART I. Desk-Research
•Select two different management thinkers and explain in your own words what their management thinking was all about and how they developed it?
•How their management thinking changed companies and organizations?

PART II. Field-Research

•Interview with manager, in which you:
•Characterize and describe the organizational structure.
•Characterize and describe the communication and consultation structure

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Introduction Case Lecture 3

27
 Translation Case
Saturday, 04/11/2017 SLM transports part of the customers today

A technical issue caused SLM to cancel their Flight PY 994 on Friday the 3 rd of
November, 2017. SLM-director Robbi Lachmising told Starnews that the part to be
replaced, had to come from the Netherlands. “ It is on it’s way to Suriname with a KLM-
plane”.

He has been proactive and rented a plane from Hi Fly to fly the SLM passengers from
Amsterdam. Lachmising explains that part of today’s and Friday’s passengers will be
transported with the SLM plane.

“ Sunday’s SLM-flight is planned to take of according to its normal schedule” Lachmising

says. Part of the delayed passengers from Friday will board Sunday’s flight. After Sunday
all flights will be performed according to the regular schedule. The SLM-director points
out that the technical issues were outside the control of the airline.

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 SLM vervoert vandaag deel
gestrande passagiers

• Assignment: Advice SLM using the

communication matrix
Target Means of Senders Planning
Groups communication

Tip 1: Make a distinction between Internal & External Target Groups

Tip 2: Include the communication that is to be found in the case

Source:
29
http://www.starnieuws.com/index.php/welcome/index/nieuwsitem/44072
 Lecture 3
- Identify the Chapter 1 - Class Study: Course
main schools -Cover the discussions and * Ch1. Book
of thought in main schools lecturer’s M&O
the history of of thought in PowerPoint Prepare
organizational the history of presentation: 75 for week OM
behavior. organizational min. 3: group
behavior.​ - Discussion OM * Ch9 - assign
(! Important for group Section ment
the Other assignment: 9.1 /
Method group 15 min. 9.5 / 9.6.
assignment !)

30
31