31266 Final: 21129- HD- Managing People and Organisations Notes

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UTS 2014 Managing People and Organisations
Page 1
Lecture 1 Foundations of management and organisations
PRE-INDUSTRIAL SOCIETY: NO MANAGER
Small Workshops
Direct control by owner Master Craftsman (Jacques 1996; Morgan 2006)
- Become an apprentice under a Master Craftsman then eventually become a guild
fellow.
Owner fully liable if enterprise fails (Clegg, Konberger & Pitsis 2011)
Discipline of apprentices through:
- Ownership
- Control of resources
- Knowledge of means of production (metal fabrication, barrel making, carpentry,
sewing, tailoring)
PRE-INDUSTRIAL SOCIETY: EARLY MANAGEMENT IDEAS
Organisation of the army and government.
Religious organisations (e.g. the Jesuits)
East India Company 17th and 19th Century (Banerjee 2008)
Slavery Southern US plantations (Cooke 2003; Morgan 2006)
Simple systems + rules
Strict surveillance
Harsh punishment
INDUSTRIAL REVOLUTION: LARGE SCALE ENTERPRISE
New technology
- E.g. Steam engine, machines
Key industries
- E.g. metallurgy, railways, gas lighting, glass making, paper machines
INDUSTRIAL REVOLUTION: LIMITED LIABILITY
Limited liability legislation separated the private fortunes of entrepreneurs from
, so that if the latter failed, the personal fortune was investments in business
sequestered and the debtors’ prison avoided.
- Legislation enabled enterprises to grow beyond the financial capacities of their owners.
- Such legislation was first pioneered in UK (1856) and then widely copied
internationally almost immediately thereafter.
Limited liability legislation Britain in 1856
- Separated private finance of entrepreneurs from investments.
- If business failed, personal liability (finance, prison) avoided.
MANAGEMENT DEFINITION
The term ‘management’ can be derived from the ITALIAN terms (17th century):
Maneggiare meaning to handle, train (horses) or HORSE HANDLER.
Manus meaning hand
Term not commonly used in English until the 1800s.
Was initially seen as a servile occupation (Fournier & Grey 2000)
Managing is an active, relational practice which involves doing things.
The things that managers do are supposed to contribute to the achievement of the
organisation’s formal goals.
Management is defined as the process of communicating, coordinating, and
accomplishing action in the pursuit of organisational objectives while managing
, technologies, and other artefacts, both within as well relationships with stakeholders
as between organisations (Clegg et al 2011).
ORGANISATION DEFINITION
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UTS 2014 Managing People and Organisations
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Derived from Greek organum initially a wind instrument, later a mechanical device.
To be organised means being an element in a systematic arrangement of parts, -
hopefully creating a unified, organic whole.
Organisations are systematically arranged frameworks relating to people, things,
knowledge and technologies, in a design intended to achieve specific goals (Clegg et al
2011).
ORGANISATION CHARACTERISTICS
Why organisations?
-Aggregation of resources (people, objects, knowledge, technology, etc.)
-To achieve a specific GOAL
-To ensure predictability of behaviours.
Organisational design
- Principles of vertical (hierarchy) and horizontal division of labour.
- Definition of responsibilities and roles.
- Integration routines and practices.
Irrespective of the rationale of any specific organisation, they will all be purposive,
with specific objectives and goals, giving rise to the following characteristics:
1. The organisation + its actions are consciously shaped by the organisation’s design,
expressed through its routine practices and specific structure.
2. The organisation is not timeless and motionless: changes will occur as organisations
revise their practices intermittently in the light of experience.
3. The organisation will be future oriented, as the members of the organisation seek to
achieve a desired and planned future. Often this future will be expressed in terms of
key performance indicators or targets.
4. The organisation will employ hierarchy and a division of labour to create distinct and
related roles that are laterally separated and stratified vertically. A hierarchy is a
systematic arrangement of powers of command and control with reciprocal obligations
of obedience and consent lodged in those being managed.
5. Responsibilities are defined for roles, and actions, roles and responsibilities are revised
in the light of experience as future actions unfold.
As future action unfolds the preferential weighting of actions, roles, and 6.
responsibilities is systematically revised by programmes of change management or
organisation reform.
DEVELOPING EARLY MODERN MANAGEMENT
Early modern management was based on the efficient extraction of value from the
labour that was employed.
For early modern management those who were managing and being managed
should create more value than would be paid out to them in wages and salaries, thus
ensuring that there is a return to the capital usually in the form of shareholdings
that is invested in the enterprise.
For value to be extracted in this way reform of both asset holding and, as a
consequence, of MANAGEMENT, was necessary.
SCIENTIFIC OR HUMAN (MANAGEMENT) THE GREAT DIVIDE
Bureaucracy and scientific organisation
o Max Weber
o F.W. Taylor and H. Ford
Human relations
o Elton Mayo
o Mary Parker Follet
Contemporary ideas
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UTS 2014 Managing People and Organisations
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BUREAUCRACY MAX WEBER
Observing the Prussian army (most successful military force at time) and
industrialisation.
Describes ideal organisations as rational-legal bureaucracy:
- Legal: submission to rules & procedures
- Rational: predictable, non-arbitrary
- Fair: right of appeal
- Negatives: DEPERSONALISATION (i.e. dehumanising) and DEMYSTIFICATION
Bureaucratic organisation, seen at turn of 19th century as hallmark of modern
organisation, depended above all else on the application of what Max Weber (German
scholar) termed ‘rational’ means for the achievement of specific ends.
In a bureaucracy, techniques would be most rational when they were designed purely
from the point of view of fitness of purpose the better they fit their purpose, the
more rational.
Bureaucracy is an organisational form (design) consisting of a hierarchy of
differentiated knowledge and expertise in which rules and disciplines are arranged not
only hierarchically in regard to each other but also in parallel.
oAn organisational design is the designated formal structure of the organisation as a
system of roles, responsibilities and decision-making.
oIn bureaucracy, action is supposed to be procedurally based or formal rules.
oWhen bureaucracies are classified as being ‘rational-legal’, they are supposed to apply
values and principles universally, without favour or prejudice.
Weber identified authority based on rational-legal precepts as the heart of
bureaucratic organisation.
Rational-legal precepts refer to when people obey orders as rational-legal precepts
because they believe that the person giving the order is acting in accordance with a
code of legal rules and regulations.
-Basically, this means that people follow rules because they respect the correctness of
those rules, either because of their substantive legal content or because of their
rationality their appropriateness and correctness.
SCIENTIFIC MANAGEMENT TAYLORISM
F.W. Taylor (1856 1915)
-An engineer who studies PRODUCTIVITY and later becomes a consultant.
Principles of SCIENTIFIC MANAGEMENT (Taylor 1911)
-Time + motion studies
-Specialisation and routinisation of work.
-Assumes one best way to manage.
Collaboration
- Manager: planning, designing and supervising.
- Worker: executing manual labour
Play based upon outputs
Taylor, Ford and the ASSEMBLY LINE.
Scientific management refers to the principle that there is one best way to organise
work and organisation, according to a science of management based upon principles of
standardisation of time and routinisation of motion as decided by authoritative
experts.
Taylor’s four principles of management are as follows:
1. Developing a science of work observing + measuring norms of output
(productivity) and detailed observation of human movements. On this basis,
improvements can be made.
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Document Summary

Lecture 1 foundations of management and organisations. Direct control by owner master craftsman (jacques 1996; morgan 2006) Become an apprentice under a master craftsman then eventually become a guild fellow. Owner fully liable if enterprise fails (clegg, konberger & pitsis 2011) Knowledge of means of production (metal fabrication, barrel making, carpentry, sewing, tailoring) East india company 17th and 19th century (banerjee 2008) Slavery southern us plantations (cooke 2003; morgan 2006) E. g. metallurgy, railways, gas lighting, glass making, paper machines. Limited liability legislation separated the private fortunes of entrepreneurs from investments in business sequestered and the debtors(cid:495) prison avoided. , so that if the latter failed, the personal fortune was. Legislation enabled enterprises to grow beyond the financial capacities of their owners. Such legislation was first pioneered in uk (1856) and then widely copied internationally almost immediately thereafter. Limited liability legislation britain in 1856. If business failed, personal liability (finance, prison) avoided.

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