CONTEXT FOR ORGANIZATION THEORY
Dec 25, 2015
KEY QUESTIONS TO ANSWERTHEORY TO PRACTICE. . .
WHAT DO I NEED TO KNOW ABOUT THIS ORG?
HOW CAN I FIND OUT? HOW CAN I USE THE INFORMATION
THAT I GET? MAKING CHOICES
MAKING SENSE OF WHERE I AM WHAT KNOWLEDGE AND HOW TO
APPLY
WHAT IS THE ROLE OF GOVT?
A NECESSARY EVIL?
TO SHOW THE WAY?
TO PROTECT, PRESERVE, PROMOTE?
TO MAKE IT WORK?
TO ENGAGE?
WHY STUDY FORMAL THEORIES?
USING THEORIES AS BENCHMARKS QUESTIONS TO ANSWER ISSUES TO BE CONSIDERED WHERE WE STAND THOUGHTFUL RECONSTRUCTION OF HOW
WE SEE THE WORLD AROUND US EMPHACIZING AND DE-EMPHACIZING
CERTAIN THINGS AND LEAVING SOME OUT
ROLE MODELS– REPRESENTATION OF REAL LIFE– MOLECULAR STRUCTURES VS MODEL CARS
BUILDING THEORIES
FROM PUBLIC ADMINISTRATION AS PART OF THE
GOVERNMENTAL PROCESS TO
PUBLIC ORGANIZATIONS ARE THE SAME AS BUSINESS
TO PUBLIC ADMINISTRATION IS A
PROFESSIONAL FIELD USUALLY FOCUSING ON
COMPLEX ORGS. CARRYING OUT GOVERNMENT MANDATES
BUILDING THEORIES OF PUBLIC ORGANIZATIONS
PUBLIC ADMINISTRATION AS PART OF GOVERNMENTAL PROCESS
GOVT IS LIKE BUSINESS RE: EFFICIENCY PUBLIC ADMINISTRATION AS A PROFESSION COMPLEX ORGS
– BUREAUCRATIC STRUCTURES– AUTHORITY RELATIONSHIPS
• PRINCIPAL-AGENT THEORY
– PUBLIC ADMINISTRATION AS GOVT ADMINISTRATION WITH AMBIGUOUS GOALS
– SERVICE FIRST?– DEMOCRATIZATION OF ORG DETERMINES
PUBLICNESS OF MGT PROCESSES
STACKING THE DECKAmerican Pol. Sci. Review, Vol. 81, No. 3
www.jstor.org
SHOULD PUBLIC MGRS BIAS THE SEARCH FOR OPTIONS?
SHOULD POLITICIANS ANTICIPATE AND CONTROL SOLUTIONS?
REDEFINING THE FIELD
PROCESS NOT STRUCTURE CLARIFY EARLIER PERSPECTIVES
– POLITICAL– ADMINISTRATIVE– PROFESSIONAL
PUBLIC NATURE NOT GOVT SYSTEMS MANAGING CHANGE PROCESSES IN
PURSUIT OF PUBLICLY DEFINED SOCIETAL VALUES
REDEFINING THE FIELD BRINGING TWO PERSPECTIVES
TOGETHER– DEMOCRATIC POLITICAL THEORY
• FREEDOM, JUSTICE AND EQUALITY
– ORG. THEORIES• MANAGING CHANGE IN PURSUIT OF PUBLICLY
DEFINED VALUES
CRITICAL ROLE OF PUBLIC MGR– INTERPERSONAL AND STRUCTURAL
RELATIONSHIPS AND CHANGE– DESIGN AND IMPLEMENTATION OF
SOCIETAL VALUES– DEFINING ETHICAL BASIS FOR PUBLIC MGT
WHY STUDY FORMAL THEORIES?
PROVIDE A BENCHMARK MORE COHERENT AND
INTEGRATED UNDERSTANDING MORE THAN SIMPLE OBSERVATION
–CONTEXT MODELS AS A REP. OR REAL LIFE
– LIKE MODEL CARS LANGUAGE
– SAID, UNSAID, SAID NEXT
INSIDE FORCES ON A PUBLIC AGENCY MANAGER
AGENCY HEAD OR MANAGER
AGENCY HEAD OR MANAGER
NEED TO MAINTAIN OR INCREASE PRODUCTIVITY
DEMANDS OF UNITS
PROFESSIONAL ASSOCIATIONS.
EMPLOYEE/UNION DEMANDS
MORALE
BUDGET CONSTRAINTS
TWO CASES: EFFICIENCY VS. EFFECTIVENESS?
KEN WELCH AS AN INTERN STUDIES THE RECRUITMENT PROCESS AND GETS TO KNOW RICK, TIM AND THE DIRECTOR– WHAT MOTIVATES EACH?– HOW DID HE COME TO UNDERSTAND
THE BUREAUCRACY?– WHAT COMMUNICATION PATTERNS?– WHAT ROLE ACQUISITION OF
KNOWLEDGE?– HOW TO COPE WITH OR DIRECT ORG
CHANGE?
TWO CASES: EFFICIENCY VS. EFFECTIVENESS?
JOHN AND CAROL TAKE OVER A NEW HOUSING-LOAN PROGRAM AND DISAGREE ON APPLICATION PROCESSING
– CUT RED TAPE OR EDUCATE?
– HOW DOES WHERE THEY SIT DEFINE WHERE THEY STAND?
THE POLITICAL & CULTURAL ENVIRONMENT OF PUBLIC POLICY &
IT’S ADMINISTRATION
WHAT IS PUBLIC POLICY– Public Policymaking in a Republic– Executive Powers
• The Restricted View– Wm. Taft and Strict Constructionism
• The Prerogative Theory– John Locke and Executive Privilege
• The Stewardship Theory– T. Roosevelt and Actions in the Public Interest
THE POLITICAL & CULTURAL ENVIRONMENT OF PUBLIC POLICY & ITS ADMINISTRATION
THE POLICY MAKING PROGRESS– Agenda Setting
• Process of ideas bubbling up for consideration• Anthony Downs – Preproblem, Alarmed Discovery,
Recognition, Decline of Public Interest, Post Problem Phase
– Decision Making • Rational• Intelligence, Recommending, Prescribing, Invoking,
Application, Appraisal, and Terminating Phases
– Implementation – small decisions at the margin• Seven Reasons for Incrementalism
– Evaluation – Feedback
RATIONAL ACCORDING TO HERMAN SIMON
1958
MAKING OPTIMAL CHOICES IN HIGHLY SPECIFIED ENVIRONMENT– IDENTIFYING ALTERNATIVES A GIVEN– CONSEQUENCES FOR EACH
• CERTAINTY, RISK, AND UNCERTAINTY
– DECISIONMAKER CAN RANK CHOICES BASED UPON CONSEQUENCES
– GOOD SELECTION POSSIBLE – MINIMAX RISK=MAXIMUM BENEFIT AND
MINIMUM CONSEQUENCE
THE POLITICAL & CULTURAL ENVIRONMENT OF PUBLIC POLICY &
ITS ADMINISTRATION
POWER--THE EXTERNAL PERSPECTIVE– Pluralism
• Assuming the shifting of power within a democracy
– Group Theory• Madison – Federalist Paper #10• Interest Groups Will Be Heard and Can Be
Managed
– Organizational Goals– Internal Power Relationships
THE POLITICAL & CULTURAL ENVIRONMENT OF PUBLIC POLICY & ITS ADMINISTRATION
THE CULTURES OF PUBLIC ADMINISTRATION– The Outside Cultural Environment – The Inside Cultural Environment – Professional Socialization– Symbolic Management
THE EVOLUTION OF ORGANIZATIONAL AND MANAGEMENT THEORY
From Moses Meets a Management Consultant to New
Public Management
A CHRONOLOGY 400 B.C. SOCRATES – MGT IS AN ART UNTO ITSELF 360 B.C. ARISTOTLE – CULTURAL CONTEXT 1776 ADAM SMITH – OPTIMAL ORGANIZATION OF
PIN FACTOR 1813 ROBERT OWEN – EMPLOYEES ARE VITAL
MACHINES 1910 LOUIS BRANDEIS AND FREDERICK TAYLOR -
SCIENTIFIC MANAGEMENT 1922 MAX WEBER –BUREAUCRACY AS A
STRUCTURE
A CHRONOLOGY 1937 GULICK’S POSDCORB 1940 MERTON AND THE DYSFUNCTIONS OF
BUREAUCRACY 1946 SIMON ATTACKS THE PRINCIPLES
APPROACH 1948 WALDO ATTACKS THE GOSPEL OF
EFFICIENCY 1949 SELNICK AND TVA’S COOPTATION 1954 DRUCKER AND MANAGEMENT BY
OBJECTIVES 1957 ARGYRIS AND THE CONFLICT BETWEEN
PERSONALITY AND THE ORGANIZATION
A CHRONOLOGY 1961 THOMPSON FINDS DYSFUNCTION
DUE TO ABILITY VS AUTHORITY 1962 PRESTHUS’ UPWARDMOBILES,
INDIFFERENTS AND AMBIVALENTS 1964 CROZIER – BUREAUCRACY AS AN
ORGANIZATION THAT CANNOT LEARN FROM ERRORS
1966 BENNIS PROCLAIMS DEATH TO BUREAUCRATIC INSTITUTIONS
1968 HERZBERG – MOTIVATORS, SATISFIERS AND HYGIENE FACTORS
1972 CLEVELAND – CONTINUOUS IMPROVISATION IS REQUIRED
1976 MACCOBY AND THE GAMESMAN 1981 PFEFFER – POWER IN
ORGANIZATIONS
A CHRONOLOGY 1983 ROSABETH MOSS KANTER AND
THE CHANGEMASTER 1988 ZUBOFF AND THE AGE OF THE
SMART MACHINE 1990 GAGLIARDI AND SYMBOLS AND
ARTIFACTS 1992 OSBORNE AND GAEBLER RE-
INVENT GOVERNMENT 1997 VIRTUAL ORGANIZATIONS AND
BEYOND 2000 SNOOK ANALYZES SYSTEMIC
BREAKDOWN IN FRIENDLY FIRE 2002 PERROW AND ORGANIZING AMERICA:
WEALTH, POWER AND ORIGINS OF CORPORATE CAPITALISM
MOSES CREATES FIRST BUREAUCRACY
JETHRO – INSTEAD OF COUNSELING EVERYONE – TEACHING ORDINANCES AND LAWS SO THEY FIND THEIR OWN WAY USING BASIC PRINCIPLES
HAVING TO DEAL WITH ONLY THE HARD CHOICES
EIGHT DEFINITIONS OF ORGANIZATION
WEBER– OBEY ORDERS
WALDO– STRUCTURE OF INTER-RELATIONS
BARNARD– CONSCIOUSLY COORDINATED
ACTIVITIES SELZNICK
– STRUCTURAL EXPRESSION OF RATIONAL ACTION
EIGHT DEFINITIONS OF ORGANIZATION
KATZ AND KAHN– ENERGETIC AND INTERDEPENDENT INPUTS-
OUTPUTS SILVERMAN
– SOCIAL INSTITUTIONS WITH SPECIAL CHARACTERISTICS AND LEGITIMACY
COHEN, MARCH, OLSEN– COLLECTION OF ISSUES LOOKING FOR
RESOLUTION AND DECISION MAKERS LOOKING FOR WORK
BRINGING THEORIES INTO PERSPECTIVE
DOMINANT METAPHORS PRIMARY UNITS OF ANALYSIS RELATION OF INDIVIDUAL TO ORG. MEANING OF RATIONALITY PRIMARY VALUES EMBODIES IN
THEORITICAL PERSPECTIVES “GENERIC” NO DIFFERENCE
BETWEEN PUBLIC AND PRIVATE SECTOR THEORIES???
THREE ARENAS OF PUBLIC ORGANIZATION
INTER-ORGANIZATIONAL– PUBLIC ADMINISTRATOR ACTS AS AGENT
INTRA-ORGANIZATIONAL– PUBLIC ADMINISTRATOR HAS A PLACE IN
THE ORGANIZATION
ORGANIZATION TO INDIVIDUAL– INTERACTIONS WITH INDIVIDUALS INSIDE
AND OUTSIDE AND DISCRETION
BUREAUCRACY ACCORDING TO MAX WEBER
1. FIXED AND OFFICIAL JURISDICTIONAL AREAS DEFINED BY REGULATIONS
2. AUTHORITY AND SUPERVISION 3. WRITTEN AND PRESERVED FILES 4. EXPERT TRAINING IS ASSUMED 5. OFFICIAL ACTIVITY DEMANDS AND
RECEIVES FULL CAPACITY 6. MANAGEMENT FOLLOWS STABLE,
COMPLETE AND UNDERSTANDABLE RULES
POSTURE OF THE OFFICIALACCORDING TO WEBER
OFFICE HOLDING IS A VOCATION SOCIAL ESTEEM APPOINTED BY LEGITIMATE
AUTHORITY TENURE FOR LIFE COMPENSATION AND PENSION SET FOR A CAREER WITHIN
HIERARCHY OF PUBLIC SERVICE
THE EVOLUTION OF MANAGEMENT & ORGANIZATION THEORY
THE ORGINS OF PUBLIC MANAGEMENT – The Continuing Influence of Ancient Rome– The Military Heritage of Public Administration– Comparing Military & Civilian Principles – The Principles Approach– The Cross-Fertilization of Military & Civilian
Management –
THE EVOLUTION OF MANAGEMENT & ORGANIZATION THEORY
Key Concepts– Merit system– Public Works– Police– Commander in Chief– Span of Control– Unity of Command
THE EVOLUTION OF MANAGEMENT & ORGANIZATION THEORY
WHAT IS ORGANIZATION THEORY?– Classical Organization Theory
• Production related and economic goals• Systematic Organization• Division of Labor• People Act Rationally
– Adam Smith and the Pin Factory• Laissez-faire capitalism
THE EVOLUTION OF MANAGEMENT & ORGANIZATION THEORY
THE ORGINS OF SCIENTIFIC MANAGEMENT
– Frederick W. Taylor• Time and Motion, Measuring Management• Worker Development• Worker Cooperation• Division of Work
– Fayol’s General Theory of Management• Six Principles – technical, commercial,
financial, security, accounting, management
FREDERICK TAYLOR PRINCIPLES OF SCIENTIFIC MGT.DECEMBER, 1916
RESTRICTING WORKER OUTPUT HURTS THE WORKER
PRACTICE PRECEDES THEORY GOODWILL IS CREATED AMONG WORKERS WORKERS ASSUME NEW BURDENS
VOLUNTARILY THE SCIENCE OF SHOVELING AT
BETHLEHEM STEEL COSTS MONEY AND JUSTIFIES PROFIT MR. BARTH INCREASING WORK 2-3 TIMES
THROUGH ANALYSIS
FREDERICK TAYLOR PRINCIPLES OF SCIENTIFIC MGT.DECEMBER, 1916
1ST PRINCIPLE: LEARNING THE SCIENCE OF WORK BY STUDYING MOTION AND TIME ON THE JOB
2ND PRINCIPLE – SELECT AND DEVELOP WORKMEN
3RD PRINCIPLE – BRINGING SCIENCE TOGETHER WITH TRAINED WORKERS
4TH PRINCIPLE – DIVIDING WORK BETWEEN WORKERS AND MGT.
FAYOL’S PRINCIPLES OF MANAGEMENT
DIVISION OF WORK AUTHORITY AND RESPONSIBILITY DISCIPLINE UNIT OF COMMAND UNITY OF DIRECTION SUBORDINATION OF INDIVIDUAL TO
GENERAL INTEREST REMUNERATION OF PERSONNEL CENTRALIZATION
FAYOL’S PRINCIPLES OF MANAGEMENT
CLEAR LINE OF AUTHORITY ORDER EUITY STABILITY OF TENURE OF
PERSONNEL INITIATIVE ESPRIT DE CORPS
THE EVOLUTION OF MANAGEMENT & ORGANIZATION THEORY
• THE PERIOD OF ORTHODOXY- between the wars• Paul Appleby’s Polemic
– Govt is different because Govt is Politics
• Luther Gulick’s POSDCORB
POSDCORB AS AN ORGANIZING PHILOSPHY
PRIMARY ACTIVITIES OF THE EXECUTIVE
CONSEQUENCE:– EMPHACIZING MEANS OF
ADMINISTRATION NOT PURPOSE– DICHOTOMY BETWEEN POLITICS AND
ADMINISTRATION– EFFICIENCY OF WORK IS IMPORTANT
THRU DIVISION OF LABOR
POSDCORB AS AN ORGANIZING PHILOSPHY
PLANNING ORGANIZING STAFFING DIRECTING COORDINATING REPORTING BUDGETING
FOUR VIEWS OF ORGANIZATION
MACRO LEVEL
NATURAL SELECTION
COLLECTIVE ACTION VIEW
SYSTEM STRUCTURAL VIEW
STRATEGIC CHOICE
MICRO LEVEL
DETERMINISTIC VOLUNTARISTIC
FOUR BUREAUCRATIC POSTURESTOWARD A COMPOSITE
APPROACH APPROACH FORM SCOPE COVERAGE MOTIVE OR VALUES ORIGINS NET IMPACT ON PUBLIC INTEREST NET IMPACT ON PERFORMANCE
WEBERIAN OR RESPONSIBLE REPRESENTATIVE
PUBLIC SERVICE PUBLIC CHOICE
ADMINISTRATIVE DECISION-MAKING
DECISION MAKING: CHOICES EFFICIENCY VS. EFFECTIVENESS PRODUCTIVITY
– WEBER – LEGAL/RATIONAL (INSTRUMENTAL) AUTHORITY
RIGHTS AND THE ADEQUACY OF PROCESS– PUBLIC WELFARE ADMINISTRATORS AND
THEIR CLIENTS REPRESENTATION AND CONTROL OF
DISCRETION– ROLE OF MORAL OBLIGATION/CODES OF
ETHICS
WHAT DOES PUBLIC ADMINISTRATION DEAL
WITH? DECISIONS THAT
– AFFECT PEOPLE’S LIVES– ARE MADE IN THE NAME OF THE
PUBLIC– USE PUBLIC RESOURCES
TAME AND WICKED PROBLEMS PERSONAL VS. ORGANIZATIONAL
ACTION
FOUR QUESTIONS TO THINK ABOUT. . .
WHAT IS THE PUBLIC ADMINISTRATION FRAMEWORK?
WHAT ARE THE THEORIES THAT APPLY TO ORGANIZATIONAL BEHAVIOR?
HOW WOULD YOU DEFINE ORGANIZATIONAL THEORY?
COMPARE AND CONTRAST CLASSICAL AND NEOCLASSICAL APPROACHES TO ORGANIZATIONAL BEHAVIOR
DONALD RUMSFELD AND PRISONER ABUSE AT ABU
GHRAIB - 2004 AS A TRUSTED OUTSIDER AND
ADVISOR TO RUMSFELD– WHAT FACTORS BROUGHT THIS TO
CRISIS?– TO WHOM AND FOR WHAT IS
RUMSFELD MOST RESPONSIBLE?– WHAT STEPS TO TAKE TO ADDRESS
AND RESOLVE THE CRISIS?– WHAT ARE THE LESSONS LEARNED?
MOVING FROM CLASSICAL ON. . .
INDUSTRIAL REVOLUTION– EFFICIENCY AND EFFECTIVENESS
ORGANIZATION BY DECISION SETS ORGANIZATIONS AS PURPOSIVE
ENTITIES INTEGRATING INDIVIDUALS ORGANIZING AS REVEALED SELF-
INTEREST ORGANIZING AS SOCIAL ACTION OGANIZING AS DISCOVERED
RATIONALITY
SUPERINTENDENT’S REPORT
1856 – ERIE RAILROAD COMPANYSETTLED PRINCIPLES DIVISION OF RESPONSIBILITIES POWER TO CARRY OUT MEANS OF MEASUREMENT PROMPT REPORT OF ERRORS SO
CORRECTED DAILY REPORTS, CHECKS AND BALANCES ADOPTION OF SYSTEM TO ALLOW
GENERAL SUPERINTENDENT TO DETECT AND CORRECT ERRORS IMMEDIATELY
THE ENGINEER AS AN ECONOMIST
SEPARATE FROM THE AMERICAN SOCIETY OF MECHANICAL ENGINEERS
SHOP MANAGEMENT– ORG. , RESPONSIBILITY, REPORTS, SYSTEMS
OF WORK, EXECUTIVE MANAGEMENT
SHOP ACCOUNTING– TIME, WAGES, COSTS, BOOKKEEPING,
EXPENSES, RECORDS OF RESULTS AND PROFITS
CLASSICAL SCHOOL1930’S AND INFLUENTIAL
TODAY 1. ORGS EXIST TO ACCOMPLISH
PRODUCTION RELATED GOALS 2. ONE BEST WAY TO ORGANIZE 3. PRODUCTION IS MAXIMIZED THROUGH
SPECIALIZATION AND DIVISION OF LABOR
4. PEOPLE AND ORGANIZATIONS ACT IN ACCORDANCE WITH RATIONAL ECONOMIC PRINCIPLES
THE ECONOMY OF INCENTIVESCHESTER BARNARD - 1938
SPECIAL INDUCEMENTS FOR PRODUCTIVITY– MATERIAL– PERSONAL DEVELOPMENT– WORKING CONDITIONS– IDEAL BENEFACTIONS
• SATISY PERSONAL IDEALS RELATED TO FUTURE AND ALTRUISM
– ORGANIZATION ATTRACTIVENESS INCENTIVES DIFFER BY ORG. PURPOSE
– INDUSTRIAL – PRODUCTION OF MATERIAL GOODS + LIMITED MATERIAL REWARDS
– POLITICAL – PERSONAL PRESTIGE/MATERIAL REWARDS IMPORTANT TO IDEAL BENEFACTIONS
– RELIGIOUS – FAITH/LOYALTY MADE POSSIBLE BY MATERIAL CONTRIBUTIONS
BUREAUCRATIC STRUCTURE AND PERSONALITY
ROBERT MERTON - 1957
THE DYSFUNCTIONS OF BUREAUCRACY– SECRECY– OCCUPATIONAL PSYCHOSIS– OVERCONFORMITY– SECULAR AND SACRED DIVISION OF LABOR– DEPERSONALIZATION– DISCREPANCY BETWEEN IDEOLOGY AND
FACT• SERVANTS OF THE PEOPLE?
– QUESTIONS TO BE ANSWERED• PRESTIGE SYMBOLS TO INNER CIRCLE?
THE EVOLUTION OF MANAGEMENT & ORGANIZATION THEORY
“MODERN” STRUCTURAL ORGANIZATION THEORY– Talcott-Parsons 1951– Social Systems vs. Political Organizations– Basic Assumptions
• ORGANIZATIONS ARE RATIONAL• BEST STRUCTURES• DIVISION OF LABOR• PROBLEMS ARE STRUCTURAL
– Mechanisms and Organic Systems
THE EVOLUTION OF MANAGEMENT & ORGANIZATION THEORY
NEOCLASSICAL ORGANIZATION THEORY- 1776 TO 1937
ORGANIZATIONS DO NOT EXIST AS ISLAND– Herbert Simon’s Influence
• SATISFICING• BOUNDED RATIONALITY
– The Impact of Sociology• SELZNIK – GOALS AND VALUES NOT
NECESSARILY ALIGNED• OPENING UP ORGANIZATIONS
ORGANIZATIONS AS NON-RATIONAL INSTITUTIONS
SELSNICK - 1948
ORGANIZATIONS AS ECONOMIES ORGANIZATIONS AS ADAPTIVE SOCIAL
SYSTEMS STRUCTURAL-FUNCTIONAL ANALYSIS
– SECURITY, STABILITY CONTINUITY, RECALCITRANCE, HOMOGENEITY OF OUTLOOK
CO-OPTATION – PROCESS OF ABSORBING NEW ELEMENTS
AS A MEANS OF AVERTING THREATS
ORGANIZATIONS AS A COLLECTION OF BEHAVIORS
Cyert & March -1959
COALITIONS– OBJECTIVES SET THRU BARGAINING,
INTERNAL CONTROLS AND ADJUSTING TO EXPERIENCE
– EXAMPLE: COMMITTEE AND PAINTING– PREDICTIVE THEORY
• DEMANDS AND PROBLEMS FOR MEMBERS• TOOL TO CHANGE DEMAND OVER TIME• ATTENTION-FOCUS TOOL FOR DEMANDS• ATTENTION-FOCUS TOOL FOR PROBLEMS• DEMAND EVALUATION PROCEDURE• TOOL FOR CHOOSING AMONG VIABLE COALITIONS
THE EVOLUTION OF MANAGEMENT & ORGANIZATION THEORY
SYSTEMS THEORY– SYSTEMS ANALYSIS-RIGOROUS COLLECTION,
MANIPULATION AND EVALUATION OF DATA TO MAKE GOOD DECISIONS
– CYBERNETICS – ADAPTIVE SYSTEMS REQUIRING MULTI-DISCIPLINARY APPROACHES
– THE LEARNING ORGANIZATION-PERSONAL MASTERY, MENTAL MODELS, SHARED VISION, TEAM LEARNING, SYSTEMS THINKING
THE EVOLUTION OF MANAGEMENT & ORGANIZATION THEORY
THE ORGINS OF PUBLIC MANAGEMENT – The Continuing Influence of Ancient Rome– The Military Heritage of Public Administration– Comparing Military & Civilian Principles – The Principles Approach– The Cross-Fertilization of Military & Civilian
Management
NEO-CLASSICAL: ORGANIZATIONS AS DECISION
SETS
FROM SYSTEM, HIERARCHY, STRUCTURE TO NEO-CLASSICAL:– HUMAN ANALYSIS– DECISIONMAKERS– SERIES OF CHOICES – RATIONAL LINKAGES– BOUNDED BY ORGANIZATIONAL
PURPOSE
FAYOL’S FOURTEEN PRINCIPLES
PRINCIPLES APPLY DIFFERENTLY IN DIFFERENT SITUATIONS
ADMINISTRATION: TO BRING A BETTER, ORDERED LIFE FOR THE ORGANIZATION AND THOSE WORKING IN IT– SUBORDINATION OF INDIVIDUAL INTERESTS
TO COMMON GOOD– HIERARCHY– CENTRALIZATION– UNITY OF COMMAND AND MANAGEMENT
FAYOL’S PRINCIPLES OF MANAGEMENT-1916
DIVISION OF WORK AUTHORITY AND RESPONSIBILITY DISCIPLINE UNIT OF COMMAND UNITY OF DIRECTION SUBORDINATION OF INDIVIDUAL TO GENERAL
INTEREST REMUNERATION OF PERSONNEL
– JOB, PIECE, BONUSES, PROFIT SHARING, PAYMENT IN KIND, WELFARE WORK, NON-FINANCIAL INCENTIVES
CENTRALIZATION – ALWAYS THERE JUST QUESTION OF PROPORTION
FAYOL’S PRINCIPLES OF MANAGEMENT
SCALAR CHAIN: CLEAR LINE OF AUTHORITY
ORDER EQUITY STABILITY OF TENURE OF
PERSONNEL INITIATIVE ESPRIT DE CORPS
CONSEQUENCES OF POSDCORBLUTHER GULICK
WILSONIAN CONTEXT: ACHIEVING MEANS WITHIN A DEMOCRACY
EMPHASIS ON DIVISION OF WORK ORGANIZATION AS A TECHNICAL
PROBLEM CENTRALITY OF EFFICIENCY
KEY TERMS SATISFICING: LIMITS TO DECISION MAKING RATIONAL MAN: ANALYZES COMPLEXITIES
AND MAXIMIZES CHOOSING BEST ALTERNATIVE
BOUNDED RATIONALITY: LIMITING ADMIISTRATIVE RATIONALITY DUE TO – COMPLETE KNOWLEDGE OF
CONSEQUENCES– FUTURE MUST BE ANTICIPATED– ALTERNATIVE BEHAVIORS LIMITED– ORGANIZATIONAL SETTING– PSYCHOLOGICAL STATE
• NARROW INTERPRETATION
KEY TERMS INSTRUMENTAL RATIONALITY – SUBJECTIVE
MEANS-END REASONING DECISION – CONCLUSION DRAWN FROM SET OF
VALUE AND FACTUAL PREMISES EFFICIENCY –MAXIMIZE ATTAINMENT OF CERTAIN
ENDS WITH SCARCE RESOURCES EFFECTIVENESS-ACCOMPLISHING ORG
OBJECTIVES AND OVERALL PERFORMANCE PUBLIC PROBLEMS – EXTRA-ORGANIZATIONAL AUTHORITY –POWER TO MAKE DECISIONS WHICH
GUIDE THE ACTIONS OF ANOTHER COORDINATION – THE PRINCIPLES OF
ORGANIZATIONS IN TOTO OPERATING THRU A SUPERME COORDINATING AUTHORITY (URWICK)
SIMON’S ACCEPTED ADMINISTRATIVE PRINCIPLES
ADMIN. EFFICIENCY INCREASED BY:– SPECIALIZATION OF THE TASK– ARRANGING MEMBERS IN DETERMINATE
HIERARCH OF AUTHORITY– LIMITING SPAN OF CONTROL TO A SMALL
NUMBER– GROUPING WORKERS ACCORDING TO
PURPOSE, PROCESS, CLIENTELE AND PLACE KNOWLEDGE IS NEUTRAL
– VALUES OF USER APPLY TEHCNOLOGY IS APPLIED KNOWLEDGE
AND NEUTRAL
RATIONAL ACCORDING TO HERMAN SIMON
1958
MAKING OPTIMAL CHOICES IN HIGHLY SPECIFIED ENVIRONMENT– IDENTIFYING ALTERNATIVES A GIVEN– CONSEQUENCES FOR EACH
• CERTAINTY, RISK, AND UNCERTAINTY
– DECISIONMAKER CAN RANK CHOICES BASED UPON CONSEQUENCES
– GOOD SELECTION POSSIBLE – MINIMAX RISK=MAXIMUM BENEFIT AND
MINIMUM CONSEQUENCE
HERBERT SIMON’S ACCEPTED ADMINISTRATIVE
PRINCIPLES
EFFICIENCY IS INCREASED BY 1. SPECIALIZATION
2. GROUP IN HIERARCHY
3. LIMITING SPAN OF CONTROL
4. ORGANIZING ACCORDING TO PURPOSE, PROCESS, CLIENTELE AND PLACE
OVERHAULING THE PROVERBS NOT PRINCIPLES OF ADMINISTRATION
1. DEVELOP A VOCABULARY
2. STUDY THE LIMITS OF RATIONALITY
DECISION-SET CHARACTERISTICS
DECISION MAKING IS FOCAL POINT OF ADMINISTRATION – MAKING DECISIONS, ANALYSIS, PRIORITIZING,
COMMUNICATION CORE MODE OF OPERATION IS
INSTRUMENTAL RATIONALITY EFFICIENCY AS A MEASURE ROLES MORE IMPORTANT THAN
INDIVIDUALS WHAT ROLE REPRESENTATION AND
CONTROL OF DISCRETION??
OPEN SYSTEMS AND SYSTEM MANAGEMENT
OPEN SYSTEMS – ANY ORGANIZATION THAT INTERACTS WITH ITS ENVIRONMENT
STRUCTURAL/FUNCTIONALISM – ORGS EXPLAINED IN TERMS OF CONTRIBUTION TO MAINTAINING THE SYSTEM
SYSTEMS THEORY – DYNAMIC RELATIONSHIPS OF INPUTS, PROCESSES, OUTPUTS, FEEDBACK LOOPS, ENVIRONMENT
NEO-CLASSICAL APPROACHES
WHAT ARE THE DISTINGUISHING CHARACTERISTICS?
WHERE DO INDIVIDUAL EMPLOYEES FIT?
ARE THEY ALL THE SAME? WHAT DO THEY MISS? HOW WOULD THEY ADDRESS THE
LOCAL EDUCATION AUTHORITY ALES RAKOVICH’S DILEMMA?
HUMAN RESOURCE THEORY PRINCIPLES
ORGANIZATIONS EXIST TO SERVE HUMAN NEEDS
ORGANIZATIONS AND PEOPLE NEED ONE ANOTHER
WHEN THE FIT IS POOR, ONE OR BOTH SUFFER
A GOOD FIT BENEFITS BOTH
HUMAN RESOURCE THEMES
LEADERSHIP MOTIVATION INDIVIDUALS IN TEAMS AND
GROUPS EFFECTS OF WORK ENVIRONMENT USE OF POWER AND INFLUENCE ORGANIZATIONAL CHANGE
HUMAN RESOURCE THEORY
MUNSTERBERG – FINDING AND SHAPING PEOPLE TO FIT NEEDS
PEOPLE, GROUPS, RELATIONSHIPS AND ORG ENVIRONMENT
HAWTHORNE EXPERIMENTS MASLOW’S THEORY THEORY X & THEORY Y MAXIMUM INFORMATION AND INFORMED
DECISIONS (ARGYRIS, 1970) GROUPTHINK (JANIS, 1971)
WHAT ROLE LEADERSHIP?
MANAGER – FORMAL AUTHORITY
LEADER– EFFECTIVE USE OF INFLUENCE– RELATIONSHIP BETWEEN PEOPLE
WHERE INFLUENCE IS UNEVENLY DIVIDED
– CANNOT FUNCTION IN ISOLATION
ESSENTIAL FUNCTIONS OF LEADERS AS EXECUTIVES
CHESTER BARNARD - 1938
PROVIDE SYSTEM OF COMMUNICATION
PROMOTE THE SECURING OF ESSENTIAL EFFORTS
TO FORMULATE AND DEFINE THE PURPOSES AND GOALS OF AN ORGANIZATION
LEADERSHIP APPROACHES TRAIT
– LEADERS ARE BORN NOT MADE• PERSONALITY CHARACTERISTIC
– TRANSACTIONAL• BASED ON AN INTERACTIONS• FOCUS ON THE LEADER AND ON SUBORDINATES
– CONTINGENCY OR SITUATIONAL• PARTICIPATORY LEADERSHIP• LAW OF THE SITUATION• CONTINUUM FROM BOSS-CENTERED TO
SUBORDINATE -CENTERED
– CULTURAL AND TRANSFORMATIVE• CHANGING CULTURAL ASSUMPTIONS
– WHERE TO FROM HERE?
LIFE CYCLE OF LEADERSHIP
THE MANAGERIAL GRID – CONSIDERATION VS INITIATING STRUCTURE– TEAM MANAGEMENT VS IMPOVERISHED– ADDING AN EFFECTIVENESS GRID
MOVING FROM – HIGH TASK LOW RELATIONSHIP TO HIGH ASK HIGH
RELATIONSHIPS– LOW HIGH RELATIONSHIPS LOW TASK TO LOW TASK
LOW RELATIONSHIPS LIKERT – EMPLOYEE CENTERED DIFFICULTIES
– CHANGING STYLE– CHANGING PERFORMANCE
CONTINGENCY THEORY
SELECTION AND TRAINING OF LEADERS
CO-ACTING TASK GROUPS ADMINISTRATIVE AND
SUPERVISORY STRATEGIES MOVING FROM NOVEL TO FAMILIAR STRUCTURED SITUATIONS VS.
CRISES
CALLING FOR TRANSFORMATIONAL LEADERS
TICHY AND ULRICH
ASSUMPTIONS– TRIGGER EVENTS INDICATE CHANGE IS
NEEDED– A CHANGE UNLEASHES MIXED FEELINGS– QUICK FIX LEADERSHIP LEADS TO DECLINE– REVITALIZATION REQUIRES
TRANSFORMATIONAL LEADERSHIP• VISION• MOBILIZATION OF COMMITMENT• INSTITUTIONALIZATION OF CHANGE
PHASES OF CHANGE
THREE-PHASE PROCESS– ENDINGS– NEUTRAL– NEW BEGINNINGS
QUALITIES OF THE LEADER– EQUITY, POWER, FREEDOM AND
DYNAMICS OF DECISIONMAKING, TOUGHNESS, SEIZING OPPORTUNITIES
CORPORATE CULTURE PROVIDES A WAY OF UNDERSTANDING + MEANING
ROLES OF LEADERSHIP IN STRATEGY FORMULATION
ED SCHEIN
PERCEIVE WHAT IS HAPPENING IN ENVIRONMENT
INFORMATION THAT MOTIVATES CHANGE
VISION FOR PSYCHOLOGICAL SAFETY ACKNOWLEDE UNCERTAINTY ACKNOWLEDGE ERROS IN THE
LEARNING PROCESS MANAGE THE PHASES OF CHANGE
LEARNING LEADERSED SCHEIN
PERCEPTION AND INSIGHT MOTIVATION EMOTIONAL STRENGTH ABILITY TO CHANGE THE CULTURAL
ASSUMPTIONS ABILITY TO CREATE INVOLVEMENT AND
PARTICIPATION ABILITY TO LEARN A NEW CULTURE
EMOTIONAL INTELLIGENCE MAKES A LEADER
DANIEL GOLEMAN
SELF-AWARENESS SELF-REGULATION MOTIVATION EMPATHY SOCIAL SKILL
LEADERS , DOUBT AND SENSEMAKING
KARL WEICK
THE VALUE OF UNCERTAINTY
LEADING BY COMPASS– ANIMATION– IMPOVISATION– LIGHTNESS– AUTHENTICATION– LEARNING
EFFICACY AND EFFECTIVENESSMARTIN CHEMERS
THE ROLE OF INTELLIGENCE FUNCTIONAL LEADERSHIP
– IMAGE MANAGEMENT– RELATIONSHIP DEVELOPMENT– RESOURCE DEVELOPMENT– TRANSFORMATIONAL – TRANSCEND AND
TRANSFORM • WEBER’S CHARISMATIC
SELF EFFICACY FOUR TYPES OF EMOTIONAL INTELLIGENCE
– TO FACIITATE THINKING– TO UNDERSTAND OWN EMOTIONS– EMPATHY– REGULATION OF SELF TO CONTROL AND PROMOTE
PERSONAL GROWTH
FROM OLD PUBLIC ADMINISTRATION TO PUBLIC SERVICE FOUNDATIONS HUMAN BEHAVIOR PUBLIC INTEREST RESPONSIVENESS MECHANISMS ACCOUNTABILITY ADMINISTRATIVE DISCRETION ASSUMED ORGANIZATIONAL STRUCTURE ASSUMED MOTIVATION BY PUBLIC
ADMINISTRATORS AND SERVANTS
SERVING CITIZENS NOT CUSTOMERS
CIVIC VIRTUE AND DEMOCRATIC CITIZENSHIP THEORIES OF CITIZENSHIP THE ROLE OF THE CITIZEN BUILDING CITIZEN INVOLVEMENT
– FIVE TENETS PUBLIC SERVICE AS AN EXTENSION OF
CITIZENSHIP NEW PUBLIC MANAGEMENT AND CUSTOMER
SATISFACTION NEW PUBLIC SERVICE AND QUALITY CITIZEN
SERVICE
ACCOUNTABILITY ISN’T SIMPLE
WHAT ARE WE RESPONSIBLE FOR? TO WHOM ARE WE
ACCOUNTABLE? BY WHAT MEANS WILL WE
ACHIEVE OUTCOMES AND BE ACCOUNTABLE FOR THEM?
SERVING CITIZENS NOT CUSTOMERS
CIVIC VIRTUE AND DEMOCRATIC CITIZENSHIP THEORIES OF CITIZENSHIP THE ROLE OF THE CITIZEN BUILDING CITIZEN INVOLVEMENT
– FIVE TENETS PUBLIC SERVICE AS AN EXTENSION OF
CITIZENSHIP NEW PUBLIC MANAGEMENT AND CUSTOMER
SATISFACTION NEW PUBLIC SERVICE AND QUALITY CITIZEN
SERVICE
BUILDING CITIZEN INVOLVEMENT
ACHIEVE BEST POLITICAL OUTCOMES
SATISFY INTERESTS OF CITIZENS
LEGITIMIZE GOVERNMENT
DEMOCRATIC MORALITY
BUILDING CITIZEN INVOLVEMENT
ACCESS TO INFORMATION
ACCESS TO DECISIONMAKING
ABILITY TO OPEN ISSUES FOR PUBLIC DISCUSSION
CONSIDERATION OF ALL CLAIMS ASSERTED
DEFINING PUBLIC SERVICE QUALITY
CARLSON + Schwarz, 1995
CONVENIENCE SECURITY RELIABILITY PERSONAL ATTENTION PROBLEM-SOLVING APPROACH FAIRNESS FISCAL RESPONSBILITY CITIZEN INFLUENCE
SEEKING THE PUBLIC INTEREST
WHAT IS THE PUBLIC INTEREST? NORMATIVE MODELS ABOLITIONIST VIEWS POLITICAL PROCESS THEORIES SHARED VALUES OLD AND NEW PUBLIC ADMINISTRATION AND THE
PUBLIC INTEREST WHAT ARE WE RESPONSIBLE FOR? TO WHOM ARE WE ACCOUNTABLE? BY WHAT MEANS WILL WE ACHIEVE OUTCOMES
AND BE ACCOUNTABLE FOR THEM?
Key Concepts
PUBLIC INTEREST AS THE BEST RESPONSE TO ALL INTERESTS AND CONCEPTS OF VALUE
PUBLIC INTEREST IS BEST UNDERSTOOD THROUGH INDIVIDUAL CHOICES
PUBLIC INTEREST IS DEFINED BY POLITICAL PROCESS
PUBLIC INTEREST AS PUBLIC VALUE CONSENSUS
FORCES THAT MISCONSTRUE THE PUBLIC INTEREST
SOCIAL – HIGH LEVEL OFFICIALS ARE NOT REPRESENTATIVE OF POPULATION
SPECIALIZATION LEADS TO NARROW INTERESTS
BUREAU IDEAOLOGY (DOWNS)– POSITIVE BENEFITS VS. COSTS– EXPANSION VS. CURTAILMENT– GENERAL BENEFITS VS. SPECIAL– PRESENT EFFICIENCIES VS. PAST FAILURES– ACHIEVEMENTS AND CAPABILITIES VS.
FAILURES AND LIMITATIONS
SHIFTING IN PEOPLE AND PERFORMANCE AREAS
TRADITIONAL– SINGLE SYSTEM– FAIRNESS IS
SAMENESS– PROCESS/RULES– PROMOTION BASED
ON TECH. EXPERTISE– JOB FOR LIFE– PROTECTION
JUSTIFIES TENURE– CENTRAL PERSONNEL
AGENCY
NEW PUBLIC SERVICE– MULTIPLE SYSTEMS– DIFFERENTIATION
BETWEEN DIFF. TALENTS– PERFORMANCE/RESULTS– HIRE, DEVELOP,
PROMOTE– CORE VALUES– PERFORMANCE AND
EMP. NEED– CENTRAL AGENCY WITH
EMPOWERED MANAGERS
NEW APPROACHES TO REGULATION
COMPLIANCE THROUGH DETERRANCE IS MISGUIDED AND MUST BE REPLACED BY:– PARTNERS– ONE-STOP SERVICES– IMPACTS VS. OUTPUTS– PROBLEMS VS. VIOLATIONS– FEASIBILITY VS. UNIVERSAL ENFORCEMENT– NEGOTIATION AND EDUCATION AS TOOLS– STRATEGIC ENFORCEMENT TARGETS– DEALING EFFECTIVELY WITH WORST
VIOLATORS
TOWARD NEW POLITICAL APPROACHES TO REGULATORY
ADMINISTRATION
BEYOND POLITICAL HACKS OF THE PAST
PUBLIC AS AN AGENCY CONSTITUENCY– AARP, CONSUMER GROUPS
FORWARD LOOKING ASSESSMENT– NEPA, REGULATORY FLEXIBILITY ACT,
PAPERWORK REDUCTION ACT
LEGAL APPROACHES TO REGULATORY ADMINISTRATION
ADVERSARY PROCEDURES
NEUTRALITY AND THE ADMINISTRATIVE LAW JUDGE
DUE PROCESS PROTECTION
REASONABLENESS– PROPERTY RIGHTS
AND TAKINGS
REGULATORY ADMINISTRATION
NARROW VS. BROAD PUBLIC INTEREST
BALANCING PRIVATE INTERESTS AGAINST ONE ANOTHER
PROTECTING AGAINST DISASTER
NEW PUBLIC SERVICE
PUBLIC ADMINISTRATORS ARE RESPONSIBLE FOR ENHANCING CITIZENSHIP AND SERVING THE PUBLIC INTEREST
VALUING CITIZENSHIP OVER ENTRPRENUEURSHIP
GOVERNANCE – EXERCISE OF PUBLIC AUTHORITY
NEW ROLES FOR GOVERNMENT– LEGAL AND POLITICAL RULES
– PROTECTING ECONOMIC INTERESTS
– ASSURE DEMOCRACY AND SOCIAL EQUITY ADMINISTRATION AND ADMINISTRATOR’S ROLES SERVICE PROCESS
– INVOLVEMENT
– INFORMATION
– CONSULTATION
– ACTIVE PARTICIPATION
REINVENTING THROUGH NATL PERFORMANCE REVIEW
1997
FLEXIBLE RESPONSIVE HIRING SYSTEMS REFORM PAY CLASSIFICATIONS ORGANIZATIONAL DEVELOPMENT INCENTIVE AWARDS SUPPORT MGT IN DEALING WITH POOR PERFORMERS MARKET-DRIVEN TRAINING FAMILY FRIENDLY WORKPLACES CROSS-TRAINING AND INTERAGENCY COLLABORATION ELIMINATE RED TAPE – AUTOMATE INFORMATION LABOR-MANAGEMENT PARTNERSHIPS INCENTIVES FOR VOLUNTARY SEPARATIONS
DELIBERATIVE DEMOCRACY
STRUCTURING PUBLIC DELIBERATION FOR THOUGHTFULNESS AND ETHICS
DIALOGUE NOT MONOLOGUE DIALOGUE FREE OF DOMINATION
AND DISTORTION INSTITUTIONALIZED DISCURSIVE
STRUCTURES
3 CONDITIONS FOR LEGITIMACY
EQUALITY AND SYMMETRY
ALL HAVE RIGHT TO QUESTION
ALL HAVE RIGHTS TO CHANGE THE RULES OF DISCOURSE
PUBLIC ADMINISTRATION AND CONSTITUTIONAL
RIGHTS LEGITIMACY DIVERSITY AMONG CITIZENRY FREEDOM AND LIBERTY
– CHILLING EFFECT– OVERBREADTH– LEAST RESTRICTIVE ALTERNATIVE
PROPERTY RIGHTS DUE PROCESS INDIVIDUALITY PRIVACY EQUITY
MOVING ON AFTER WORLD WAR II
ORGANIZATIONAL EFFICIENCY IS THE ESSENCE OF ORG. RATIONALITY
RATIONALITY INCREASES PRODUCTION IN TERMS OF REAL GOODS AND SERVICES
STRUCTURE, CONTROL COORDINATION ONE BEST STRUCTURE SPECIALIZATION AND DIVISION OF
LABOR STILL IMPORTANT MOST ORG PROBLEMS ARE
STRUCTURAL
ORGANIZATIONS AS NON-RATIONAL INSTITUTIONS
SELSNICK - 1948
ORGANIZATIONS AS ECONOMIES ORGANIZATIONS AS ADAPTIVE SOCIAL
SYSTEMS STRUCTURAL-FUNCTIONAL ANALYSIS
– SECURITY, STABILITY CONTINUITY, RECALCITRANCE, HOMOGENEITY OF OUTLOOK
CO-OPTATION – PROCESS OF ABSORBING NEW ELEMENTS
AS A MEANS OF AVERTING THREATS
ORGANIZATIONS AS A COLLECTION OF BEHAVIORS
Cyert & March -1959
COALITIONS– OBJECTIVES SET THRU BARGAINING,
INTERNAL CONTROLS AND ADJUSTING TO EXPERIENCE
– EXAMPLE: COMMITTEE AND PAINTING– PREDICTIVE THEORY
• DEMANDS AND PROBLEMS FOR MEMBERS• TOOL TO CHANGE DEMAND OVER TIME• ATTENTION-FOCUS TOOL FOR DEMANDS• ATTENTION-FOCUS TOOL FOR PROBLEMS• DEMAND EVALUATION PROCEDURE• TOOL FOR CHOOSING AMONG VIABLE COALITIONS
SOCIO-TECHNICAL APPROACHBURNS AND STALKER - 1961
STABLE VS. DYNAMIC CONDITIONS
MECHANISTIC VS. ORGANIC ORG.
SECURITY VS. UNCERTAINTY
FORMAL VS. INFORMAL ORGS
BARNARD – 1938– UNCONSCIOUS ATTITUDES,
UNDERSTANDING, CUSTOMS, HABITS CREATING THE CONDITION UNDER WHICH FORMAL ORGANIZATION ARISES
BLAU + SCOTT – 1962– BUREAUCRATIZATION = AMT OF EFFORT
DEVOTED TO MAINTAINING THE ORG– NUMBER OF ADMIN.
PERSONNEL, HIERARCHIAL CHARACTER, STRICT ENFORCEMENT OF RULES, REIGID COMPLIANCE TO RULES
STRUCTURING ACCORDING TO PRODUCT OR FUNCTION
WALKER AND LORSCH - 1968
GROUPING BY WORKER OR BY PRODUCT– MAXIMUM USE OF A SPECIAL KNOWLEDGE?– EFFICIENT USE OF EQUIPMENT?– BEST CONTROL AND COORDINATION?
BEHAVIORIST FINDINGS– RELATIONSHIP BETWEEN ACTIVITIES AND
THOUGHTS AND BEHAVIORS– COLLABORATION AND INTEGRATION– COMMUNICATION AMONG SPECIALISTS
CLUES FOR MANAGERS– CROSS-FUNCTIONAL TEAMS– FULL-TIME INTEGRATORS– MATRIX OR GRID ORGANIZATIONS
KEY TERMS
DIFFERENTIATION = SPECIALIZATION IN A RAPIDLY CHANGING ENVIRONMENT– REQUIRES CONTROL, COORDINATION
AND INTEGRATION DONUT ORGANIZATIONS ORGANIZATIONAL NETWORKS VIRTUAL ORGANIZATIONS
FIVE PARTS OF AN ORGANIZATION
MINTZBERG - 1979
OPERATING CORE STRATEGIC APEX THE MIDDLE LINE TECHNOSTRUCTURE SUPPORT STAFF
IN DEFENSE OF BUREAUCRACYJAQUES - 1990
HIERARCHIAL LAYERS ALLOW ORGS TO COPE WITH DISCONTINUITIES
MANAGERS NEED TO UNDERSTAND AND BE ACCOUNTABLE– FOR ADDING VALUE– SUSTAINING TEAM– SETTING DIRECTION AND ENGAGING
SUBORDINATES ACCOUNTABILITY IS POSSIBLE WITH AUTHORITY
– VETO APPLICANTS– MAKE WORK ASSIGNMENTS– DECISIONS ABOUT RAISES AND REWARDS– INITIATE REMOVAL
TECHNOLOGY AS A TOOLBURTON AND OBEL 1998
FORMALIZATION CENTRALIZATION COMPLEXITY CONFIGUATION COORDINATION CONTROL INCENTIVES
Market Theories: Rational Self Interest
Grounds for opposition to organic system theories
Indifference to merits of human relations theory
How to maximize individual utility through rational choices?
Community as a Fictitious BodyJeremy Bentham - 1948
Composed of individual persons who are considered members
Community interest is the sum of individual interests
MARKET THEORIES: ORGANIZING AS REVEALED
SELF-INTEREST HOW INDUCE MGRS TO ACT IN BEST INTEREST OF
OWNERS AND THOSE IN CONTROL ANSWERING ECONOMIC QUESTIONS
– CONTRACTUAL NATURE– BOUNDED RATIONALITY– SIGNIFICANCE OF INVESTMENT IN SPECIRIC
ASSETS– SPECIFIC RIGHTS VS. RESIDUAL RIGHTS– EFFECTS OF IMPERFECT INFORMATION
EMERGENCE AND EXPANSION OF ORGS GIVEN COST OF UNCENTAINTY, INFORMATION, BOUNDED RATIONALITY AND COGNITIVE BARRIERS
Self-Interest and Market Organizing Theory
Collective Action is Aggregation of Individual Choice
Organizing manages individual conflicts
Rules needed to adjudicate conflicting preferences
Satisficing not maximizing choices in decisions
Satisficing results in incremental change
FRAMING INSTITUTIONAL ACTION
INTERPLAY OF INTRESTS, GROUPS AND INDIVIDUALS– PUBLIC CHOICE THEORY
IMPORTANT LIMITATIONS TO WHAT CAN BE DONE BY PUBLIC PLANNING– Satisficing (Simon)– Political
• What is legitimate?• What can be reasonably
acted on?
Administration as Political Challenging the
possibility/ desirability of tightly structured orgs reaching goals of internal efficiency and control
Agreeing with System Theorists– Engaging political
environments– Internal Rules Stabilize
Disagreeing– Decisions not Structure
WHAT ARE THE RULES? PUBLIC CHOICE AS
REPRESENTED BY BUCHANAN, TULLOCK AND OSTROM– CONSTITUTIONAL RULES– IMPROVING GOVT
PERFORMANCE MEANS MAKING IT MORE DEMOCRATIC AND EFFICIENT
– DEFINING HUMAN MOTIVATIONS SO AS TO DERIVE A PREFERRED THEORY OF VALUES
– BASIC ASSUMPTIONS ENABLE EXPLANATION OF PAST, PRESENT AND PREDICTION OF FUTURE
MARKET THEORISTS
SCOT, DAVID HUME, JEREMY BENTHAM, JOHN STUART MILL– UTILITARIANSIM
JAMES BUCHANAN, GORDON TULLOCK AND VINCENT OSTROM– PUBLIC CHOICE
CHARLES LINDBLOOM, DAVID BRAYROOKE– INCREMENTALISM DISJOINTED
ALBERT HIRSCHMAN– ECONOMIC– FAILING TO RESPOND TO REPAIRABLE LAPSES
IN PERFORMANCE
KEY TERMS
AGENCY THEORY – MANAGERS ARE AGENTS OF THE OWNERS AND DELEGATED AUTHORITY
PROPERTY RIGHTS THEORY – HOW COSTS AND REWARDS ARE ALLOCATED TO PARTICIPANTS IN AN ORGANIZATION
TRANSACTION COST THEORY – HOW TO MAINTAIN PRINCIPAL-AGENT RELATIONSHIPS AND MINIMIZE COSTS OF TRANSACTIONS AND MANAGEMENT DECISIONS AND SOCIAL INTERDEPENDENCE
UNANIMITY RULE – INDIVIDUALS ARE PROTECTED AGAINST COERCIAN AND EXTERNAL DAMAGE
PUBLIC CHOICE – DECISION-MAKING ARRANGEMENTS ESTABLISH THE TERMS AND CONDITIONS FOR MAKING CHOICES.– MAKING GOVERNMENT MORE DEMOCRATIC AND EFFICIENT
MORE KEY TERMS SELF-INTEREST – HEDONISM VS
ALTRUISM INCREMENTALISM - DECISIONS THAT
TAKE INTO ACCOUNT ONLY THE MARGINAL OR INCREMENTAL DIFFERENCES BETWEEN PROPOSAL AND EXISTING STATE OF AFFAIRS
DISJOINTED – LACK OF CONSCIOUS COORDINATION IN DECISIONMAKING
CRITICS OF THE MARKET THEORIES
HIRSCHMAN - 1970
MARKET FORCES ARE AT BEST A PARTIAL CONDITION FOR ORG RESPONSIVENESS
EXIT, VOICE OR LOYALTY CONDITIONS FOR CORRECTION
– MEANS TO EXPRESS DISSATISFACTION– TIME AND RESOURCES TO MEND WAYS– SELF-INTERESTED REASONS FOR TAKING
SERIOUSLY EXIT OR VOICE OF CLIENTS OR CITIZENS
Questions to think about . . . What are the tenets or assumptions
of market theories? What types of behavior do market
theories explain? How do market theories explain the
behavior of organization members? What insights do market theories
provide about orgs? How are market theories different
from classical theories? What is the market metaphor?
POWER AND POLITICS COMPLEX SYSTEMS OF INDIVIDUALS AND
COALITIONS CONFLICT IS INEVITABLE INFLUENCE, POWER AND POLITICAL ACITIVTY
PRIMARY TOOL GOALS ACHIEVED THROUGH MANUEVERING INTERDEPENDENCE OF ORG UNITS POWER IN ORGS
– CONTROL OVER SCARCE RESOURCES– ACCESS TO POWER– CENTRAL POSITION IN POTENT COALITION– WORKING THE RULES– CREDIBILITY
KEY TERMS POWER – THE ABILITY TO GET THINGS
DONE THE WAY ONE WANTS THEM DONE AND TO INFLUENCE PEOPLE
SOCIAL POWER – POWER BETWEEN TWO AGENTS BASED UPON REWARDS, COERCIVE , LEGITMATE, REFERENT AND EXPERT POWER
SOCIAL CHOICE-POWER IS THE RESULT OF INFLUENCE EXERTED BY NUMEROUS COMPONENTS AND RESPONSIVENESS IS A FUNCTION OF CHANCE, FORCE, OR PROCESS
THE EVOLUTION OF MANAGEMENT & ORGANIZATION THEORY
“MODERN” STRUCTURAL ORGANIZATION THEORY– Talcott-Parsons 1951– Social Systems vs. Political Organizations– Basic Assumptions
• ORGANIZATIONS ARE RATIONAL• BEST STRUCTURES• DIVISION OF LABOR• PROBLEMS ARE STRUCTURAL
– Mechanisms and Organic Systems
KEY TERMS SATISFICING: LIMITS TO DECISION MAKING RATIONAL MAN: ANALYZES COMPLEXITIES
AND MAXIMIZES CHOOSING BEST ALTERNATIVE
BOUNDED RATIONALITY: LIMITING ADMIISTRATIVE RATIONALITY DUE TO – COMPLETE KNOWLEDGE OF
CONSEQUENCES– FUTURE MUST BE ANTICIPATED– ALTERNATIVE BEHAVIORS LIMITED– ORGANIZATIONAL SETTING– PSYCHOLOGICAL STATE
• NARROW INTERPRETATION
BUREAUCRATIC STRUCTURE AND PERSONALITY
ROBERT MERTON - 1957
THE DYSFUNCTIONS OF BUREAUCRACY– SECRECY– OCCUPATIONAL PSYCHOSIS– OVERCONFORMITY– SECULAR AND SACRED DIVISION OF LABOR– DEPERSONALIZATION– DISCREPANCY BETWEEN IDEOLOGY AND
FACT• SERVANTS OF THE PEOPLE?• QUESTIONS TO BE ANSWERD
– PRESTIGE SYMBOLS TO INNER CIRCLE?
KEY TERMS INSTRUMENTAL RATIONALITY – SUBJECTIVE
MEANS-END REASONING DECISION – CONCLUSION DRAWN FROM SET OF
VALUE AND FACTUAL PREMISES EFFICIENCY –MAXIMIZE ATTAINMENT OF CERTAIN
ENDS WITH SCARCE RESOURCES EFFECTIVENESS-ACCOMPLISHING ORG
OBJECTIVES AND OVERALL PERFORMANCE PUBLIC PROBLEMS – EXTRA-ORGANIZATIONAL AUTHORITY –POWER TO MAKE DECISIONS WHICH
GUIDE THE ACTIONS OF ANOTHER COORDINATION – THE PRINCIPLES OF
ORGANIZATIONS IN TOTO OPERATING THRU A SUPERME COORDINATING AUTHORITY (URWICK)
ORGANIZATIONAL CULTURE CHALLENGING RATIONAL
THEORISTS ORGANIZATIONS AS COLLECTION
OF VALUES, LIEFS, PERCEPTIONS, BEHAVIORAL PATTERNS
BEHAVIOR IS PREDETERMINED BY MEMBERS’ ASSUMPTIONS
ORGS ARE ONLY RATIONAL IF:– SELF-CORRECTING SYSTEM OF
INTERDEPENDENT PEOPLE
– CONSENSUS ON OBJECTIVES AND METHODS
– COORDINATION THROUGH SHARED INFORMATION
– PREDICTABLE PROBLEMS AND SOLUTIONS
ORGANIZATIONAL SYMBOLISM
MEANINGS AS SOCIALLY CONSTRUCTED REALITIES
INTERPRETATION IS MOST IMPORTANT
AMBIGUITY AND UNCERTAINTY PRECLUDE RATIONALITY
PEOPLE USE SYMBOLS TO REDUCE AMBIGUITY– ROOT METAPHORS, SHARED
MEANINGS, INTEGRATING SYMBOLS
CHANGING ORG. CULTURES
TRICE AND BEYER 1993
CAPITALIZE ON PROPITIOUS MOMENTS
COMBINE CAUTION WITH OPTIMISM
UNDERSTAND RESISTANCE TO CHANGE
CHANGE ELEMENTS BUT MAINTAIN CONTINUITY
CHANGING ORG. CULTURES
TRICE AND BEYER 1993
RECOGNIZE IMPORTANCE OF IMPLEMENTATION
SELECT, MODIFY AND CREATE RIGHT CULTURAL FORMS
MODIFY SOCIALIZATION TACTICS
FIND AND CULTIVATE INNOVATIVE LEADERSHIP
DEFINITIONS OF ORG CULTURE
SHARED BELIEFS SHARED
UNDERSTANDINGS UNDERLYING
ASSUMPTIONS COMMON
ORIENTATION PATTERNS OF
MEANING STORIES TOLD IN
ORIENTATION
REFORM THROUGH CHANGE1980’S AND 1990’S
LASTING ORG. REFORM REQUIRES CHANGE IN ORG CULTURE
TOTAL QUALITY CONTROL– PRODUCTIVITY– FLEXIBILITY– RESPONSIVENESS– RE-EINGINEERING– CUSTOMER SERVICE
APPLYING JAPANESE METHODS
OUCHI - 1980
THEORY Z ORGS– CULTURAL
CONSISTENCY NOT HIERARCHY
– CLANS NOT MARKETS OR HIERARCHIES
– DIFFICULTIES IN TRANSLATION
– SOCIAL ORGS VS. FORMALITY
– BUREAUCRACY VS. DISCRETION
– BALANCING FREEDOM AND INTEGRATION
ATTRIBUTES OF EXCELLENCE
PETERS - WATERMAN
BIAS FOR ACTION CLOSE TO CUSTOMER AUTONOMY ENTREPRENUERSHIP PRODUCTIVITY THROUGH
PEOPLE HANDS-ON VALUE-DRIVEN STICK TO KNITTING SIMPLE FORM LEAN STAFF LOOSE-TIGHT
LEARNING ORGANIZATIONSPETER SENGE - 1990
LEARNING HOW TO LEARN TOGETHER
COMPONENT TECHNOLOGIES
FIVE DISCIPLINES– SYSTEMS THINKING– PERSONAL MASTERY– MENTAL MODELS– BUILDING SHARED
VISION– TEAM LEARNING
REINVENTING GOVERNMENTOSBORNE & GAEBLER - 1992
CATALYTIC COMMNITY-OWNED MISSION DRIVEN RESULT ORIENTED CUSTOMER DRIVEN ENTERPRISING ANTICIPATORY DECENTRALIZED MARKET ORIENTED
GENDER AND DIVERSITY PERPETUATING MALE
REALITY ACKER-1992– GENDER DIVISIONS– SYMBOLS AND IMAES– INTERACTIONS– DEMANDS FOR GENDER-
NEUTRAL BEHAVIOR ORG CULTURES THAT
ARE BARRIERS TO PERFORMANCE – WORKFORCE 2000 –
1987– MANAGING DIVERSITY IS
A CRUCIAL COMPETENCY
Example: Groupthink
The mode of thinking that persons engage in when concurrence seeking becomes so dominant in a cohesive in-group that it tends to override realistic appraisal of alternative courses of action.
Example: Groupthink
Symptoms of groupthink:– An illusion of invulnerability;– Collective construction of rationalizations that
permit group members to ignore warnings or other other forms of negative feedback;
– Unquestioning belief in the morality of the in-group;– Strong, negative stereotyped views about the
leaders of enemy groups;– Rapid application of pressure against group
members who express even momentary doubts about virtually any illusions the group shares;
Example: Groupthink
Symptoms of groupthink (contd.):– Careful, conscious, personal avoidance of
deviation from what appears to be a group consensus;
– Shared illusions of unanimity of opinion; And.– Establishment of mind guards – people who
“protect” the leader and fellow members from adverse information that might break the complacency they shared about the effectiveness and morality of past decisions.
Example: Groupthink
Incidents of groupthink at the federal level:– The 1941 failure to prepare for the Japanese attack on Pearl
Harbor.– The 1950 decision during the Korean War to send General
Douglas McArthur to the Yalu River.– The 1961 decisions to allow an American-sponsored
invasion of Cuba by expatriate Cubans trained by the CIA to overthrow the government of Fidel Castro.
– The 1965 decision to introduce American ground troops into Vietnam.
– The 2001 failure to anticipate the terrorist attacks on the World Trade Center and the Pentagon.
– The 2003 decision to invade Iraq.
Organizational Behavior
The study of organizational behavior comprises those aspects of behavioral sciences that focus on the understanding of human behavior in organizations.
Classic model: authoritarian and militaristic.
Organizational Behavior: Major Themes
McGregor’s humanistic model. Group dynamics. Organization development. The impact of personality on organizational
behavior. The impact of bureaucratic structure on
organizational behavior. Motivation. The future of organizations.
Organizational Behavior
Douglas McGregor’s (1960) humanistic model:– Organizations are created to serve human ends;– Organizations and people need each other
(organizations need ideas, energy, and talent; people need careers, salaries, and work opportunities);
– When the fit between the needs of the individual and the organization is poor, one or both will suffer (exploitation by one or the other or both).
– A good fit between individuals and organizations benefits both because people gain meaningful satisfying work.
Organizational Behavior
When confronted with change, classical model assumes no concern for workers.
By contrast, modern behaviorists assume that organization will:– Minimize fear of change by inclusion of many in
decision-making process;– Minimize negative impacts of change on vulnerable
workers;– Coopt formal and informal leaders; and– Find alternatives for those workers for whom
change is negative.
Organizational Behavior
Group dynamics– Organizations involve the development of formal and
informal work groups built around specializations.– Groups develop norms (shared beliefs, values, and
assumptions) and expect conformity through reward and punishment.
– Norms generate organizational stability, but can lead to overconformity.
– When a group becomes institutionalized, the norms become the basis for a cohesive group and an organizational subculture.
Organizational Behavior
Group dynamics (contd.).– Group dynamics is the subfield of organizational
behavior concerned with the nature of groups, how they develop, and how they interrelate with individuals and other groups.
– Primary groups (face-to-face interaction)• Formal (task-oriented).• Informal (socially-defined). Critical to the functioning of
the organization.
Organizational Behavior
Organization development.– All organizations need constant change
and renovation.– O.D. is planned organizational change.– O.D. is not a philosophy, but a strategy for
increasing organizational effectiveness.– Art, not science.– Large scale, not incremental.
Organizational Behavior
The impact of personality.– Personality can impact performance
(Hippocrates’ four humors, 500 BC).• Sanguine (optimistic and energetic).• Melancholic (moody and withdrawn).• Choleric (irritable and impulsive).• Phlegmatic (calm and slow).
– Mismatches are commonplace in organizations.
The Impact of Bureaucratic Structure on Behavior Each organization has structures that define the
unique ways that labor is divided, how specialized roles and functions are coordinated, how information flows among people and groups, and how the system of controls (task measurement, evaluation, and change) is to work.
Structure is only one of the forces that affect behavior. Others include peer group pressure, group norms, social and technical aspects of work tasks, and internal and external cultures.
The Impact of Bureaucratic Structure on Behavior The structures of a bureaucracy are
inherently conservative. Common complaint is slowness of response.
But slowness reflects legal mandates. As government increased in size,
bureaucratic organizations provided an ideal structural model. Allowed control from the top.
But, also stifled initiative.
The Impact of Bureaucratic Structure on Behavior Bureaucratic dysfunctions.
– Inherently dysfunctional and and pathological over the long run.
– Blind conformance and double binds.• Catch-22.
» There was only one catch and that was Catch-22, which specified that a concern for one's safety in the face of dangers that were real and immediate was the process of a rational mind. Orr was crazy and could be grounded. All he had to do was ask; and as soon as he did, he would no longer be crazy and would have to fly more missions. Orr would be crazy to fly more missions and sane if he didn't, but if he was sane he had to fly them. If he flew them he was crazy and didn't have to; but if he didn't want to he was sane and had to. Yossarian was moved very deeply by the absolute simplicity of this clause of Catch-22 and let out a respectful whistle. "That's some catch, that Catch-22," he [Yossarian] observed. "It's the best there is," Doc Daneeka agreed (Joseph Heller, Catch-22).
The Impact of Bureaucratic Structure on Behavior Bureaucratic dysfunctions.
– Depersonalized relations.– Power derived from position. – Advantages of bureaucracy.
• Order, predictability, stability, professionalism, consistency.
– Disadvantages of bureaucracy.• Rule-bound, over-procedural, protection of
authority and influence.
The Impact of Bureaucratic Structure on Behavior Bureaucratic impersonality.
– Three virtues.• Increases organizational effectiveness by
ensuring distance from critical decisions.• Reduces personal and emotional
considerations in decisions.• Even-handed rule application.
– Vices.• May sacrifice substantive justice for procedural
justice.
The Impact of Bureaucratic Structure on Behavior Bureaucrat bashing.
– Focus: alleged incompetence and secular humanism.
– Reality: Satisfactory treatment the norm rather than the exception.
– Reality: Public performance not inferior to private performance.
– Reality: American bureaucratic performance vastly superior to performance in other countries.
Motivation
Hawthorne experiments – Workplaces are predominantly social institutions. Direct challenge to economic models of motivation.
Maslow’s needs hierarchy.
Motivation
Motivation – hygiene theory.– Herzberg, Mauser, Snyderman.– Determinants of job satisfaction.
• Achievement, recognition, work itself, responsibility, and advancement (Job content - motivations). Internal
– Determinants of job dissatisfaction.• Company policy and administration, supervision,
salary, interpersonal relations, and working conditions (job environment – hygiene). External.
Motivation
Toward a democratic environment.– A more participatory management style.– Three stratagems for a more democratic
working environment.• Symbolic.• Management-initiated.• Management-union initiated.
Motivation
Douglas McGregor.– Theory X.
• The average human being has an inherent dislike for work.
• Most people must be coerced or threatened with punishment to get them to put forth adequate effort.
• People prefer to be directed and wish to avoid responsibility.
• RESULT – Hierarchy and military organization.
Motivation
Douglas McGregor.– Theory Y.
• The expenditure of physical and mental effort in work is as natural as play or rest.
• A person will exercise self-direction and self-control in the service of objectives to which he is committed.
• Avoidance of responsibility, lack of ambition, and emphasis on security are generally consequences of experience, not inherent human characteristics.
• The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organizational problems is widely, not narrowly, distributed in the population.
Motivation
Assumptions about behavior can be self-fulfilling prophecies.
However, public organizations have difficulty developing coherent philosophies because of conflicting goals and objectives.
The Future of Organizations
Postbureaucratic organizations.– Bennis – Temporary society (adaptive
organizations).– Toffler – Adhocracy.– However, hierarch still dominates, still
serves a purpose in bringing order out of chaos.
The Future of Organizations
Postmodernism.– What is really changing organizations is
postmodernism: increasing complexity and unpredictability.
– Primary source: information technology.• Instant access to information eliminates the
need for multiple levels of hierarchy.
– Power arising from technology – Technocracy.
The Future of Organizations
Themes of postmodernism.
MODERNIST POST-MODERNISThierarchy anarchydesign chancecentering dispersalreason and rational science can find us the answerers not possible, live with the incomprehensibleworld is logical, orderly not so, world is disorderlyobjective truths via science not so, are multiple interpretations
seriousness, depth, austere autonomy
superficiality, playfully embrace commerce, commodity, fashion, style (eg., playful reference to past architectural styles, juxtapose them
DIFFERENCES BETWEEN MODERNISM AND POST-MODERNISM
183
New Approach to Management
Success accrues to those who learn how To be leaders To Initiate change To participate in and create organizations
– with fewer managers
– With less hierarchy that can change quickly
184
Management and Organization
Management philosophies and organization forms change over time to meet new needs
Some ideas and practices from the past are still relevant and applicable to management today
185
Historical Perspective
Provides a context or environment Develops an understanding of societal impact Achieves strategic thinking Improves conceptual skills
Social, political, and economic forces have influenced organizations and the practice of management
186
Forces Influencing Organizations and Management
Social Forces - values, needs, and standards of behavior
Political Forces - influence of political and legal institutions on people & organizations
Economic Forces - forces that affect the availability, production, & distribution of a society’s resources among competing users
187
Management Perspectives Over Time
1930Humanistic Perspective
19901890Classical 1940
1950
2000Systems Theory
2000
2010The Technology-Driven Workplace
1990
2010The Learning Organization
1970Contingency Views
2000
1980Total Quality Management
2000
1940Management Science Perspective
1990
20101870
Exhibit 2.1, p.44
188
Classical Perspective: 3000 B.C.
● Rational, scientific approach to management – make organizations efficient operating machines
● Scientific Management● Bureaucratic Organizations● Administrative Principles
189
Scientific Management: Taylor 1856-1915
General Approach Developed standard method for performing each
job. Selected workers with appropriate abilities for
each job. Trained workers in standard method. Supported workers by planning work and
eliminating interruptions. Provided wage incentives to workers for
increased output.
190
Scientific Management
Contributions Demonstrated the importance of compensation for performance. Initiated the careful study of tasks and jobs. Demonstrated the importance of personnel and their training.
Criticisms Did not appreciate social context of work and higher needs of
workers. Did not acknowledge variance among individuals. Tended to regard workers as uninformed and ignored their ideas
191
Bureaucracy Organizations
Max Weber 1864-1920 Prior to Bureaucracy Organizations
– European employees were loyal to a single individual rather than to the organization or its mission
– Resources used to realize individual desires rather than organizational goals
Systematic approach –looked at organization as a whole
Ethical Dilemma: The Supervisor
192
Bureaucracy Organizations
Positions organized in a hierarchy of authority
Managers subject to Rules and procedures
that will ensure reliable predictable behavior
Personnel are selected and promoted based
on technical qualifications
Administrative acts and decisions recorded
in writing
Management separate from the ownership of the organization
Division of labor with Clear definitions of
authority and responsibility
Exhibit 2.3, p. 49
193
Administrative Principles
Contributors: Henri Fayol, Mary Parker, and Chester I. Barnard
Focus: – Organization rather than the individual– Delineated the management functions of planning,
organizing, commanding, coordinating, and controlling
194
Henri Fayol 1841-1925
Division of labor Authority Discipline Unity of command Unity of direction Subordination of
individual interest Remuneration
Division of labor Authority Discipline Unity of command Unity of direction Subordination of
individual interest Remuneration
Centralization Scalar chain Order Equity Stability and
tenure of staff Initiative Esprit de corps
Centralization Scalar chain Order Equity Stability and
tenure of staff Initiative Esprit de corps
14 General Principles of Management
195
Mary Parker Follett 1868-1933
Importance of common super-ordinate goals for reducing conflict in organizations– Popular with businesspeople of her day– Overlooked by management scholars– Contrast to scientific management– Reemerging as applicable in dealing with rapid change in
global environment
Leadership – importance of people vs. engineering techniques
Ethics - Power - Empowerment
196
Chester Barnard 1886-1961
Informal Organization– Cliques– Naturally occurring social groupings
Acceptance Theory of Authority– Free will– Can choose to follow management orders
197
Humanistic Perspective
Emphasized understanding human behavior, needs, and attitudes in the workplace
●Human Relations Movement
●Human Resources Perspective
●Behavioral Sciences Approach
198
Human Relations Movement
Emphasized satisfaction of
employees’ basic needs as the key to
increased worker productivity
199
Hawthorne Studies
Ten year study Four experimental & three control groups Five different tests Test pointed to factors other than illumination for
productivity 1st Relay Assembly Test Room experiment, was
controversial, test lasted 6 years Interpretation, money not cause of increased output Factor that increased output, Human Relations
200
Human Resource Perspective
Suggests jobs should be designed to
meet higher-level needs by allowing
workers to use their full potential
201
Physiological
Safety
Belongingness
Esteem
Self-actualization
Abraham Maslow’s Hierarchy of Needs
Based on needs satisfaction
1908-1970
Chapter 16 – Maslow in more detail
202
Dislike work –will avoid it Must be coerced, controlled,
directed, or threatened with punishment
Prefer direction, avoid responsibility, little ambition, want security
Do not dislike work Self direction and self control Seek responsibility Imagination, creativity widely
distributed Intellectual potential only
partially utilized
Douglas McGregor Theory X & Y
Theory X Assumptions Theory Y Assumptions
1906-1964
203
Douglas McGregor Theory X & Y
Few companies today still use Theory X
Many are trying Theory Y techniques
Experiential Exercise: Theory X and Theory Y Scale
204
Behavioral Sciences Approach
Applies social science in an organizational context
Draws from economics, psychology, sociology, anthropology, and other disciplines– Understand employee behavior and
interaction in an organizational setting– OD – Organization Development
Sub-field of the Humanistic Management Perspective
205
Management Science Perspective
Emerged after WW II Applied mathematics, statistics, and other
quantitative techniques to managerial problemsOperations Research – mathematical modeling
Operations Management – specializes in physical production of goods or services
Information Technology – reflected in management information systems
208
Contingency View of Management
Exhibit 2.6, p. 59
Successful resolution of organizational problems is thought to depend on managers’ identification of key variations in the situation
at hand
209
Elements of a Learning Organization
Learning Organization
Open Information
Empowered Employees
Team-Based Structure
Exhibit 2.7, p. 61
210
Types of E-Commerce
Business-to-Consumer B2C Selling Products and
Services Online
Business-to-Business B2B Transactions Between
Organizations
Consumer-to-Consumer C2C Electronic Markets
Created by Web-Based Intermediaries
Exhibit 2.8, p. 63
Classical organizational theory espouses two perspectives:
Scientific management – focusing on the management of work and workers
Administrative management - addressing issues concerning how overall organization should be structured
Major contributors to the Classical Organizational Theory:
Scientific Management:»Frederick Taylor
Administrative Management:»Henri Fayol »Luther Halsey Gulick»Max Weber
Frederick Taylor•Taylor is born in Pennsylvania on March 20, 1856•After studying in Europe, he plans to go to Harvard, but does not pass the entrance exams•Instead Taylor works as a pattern maker at a pump manufacturing company in Philadelphia•Later, he studies mechanical engineering at Stevens, finishing in just three years.
Taylor identifies two people as having influenced him:
John Griffith teaches Taylor how to be an appreciative, respectful, and admirable working mechanic
• Lucian Sharpe impresses Taylor with his focus, concentration, and task commitment
Midvale Steel Company Taylor begins working for the Midvale steel
Company in 1878. While there he succeeds in doubling the work
of his men, is soon promoted to foreman As foreman, he begins studying productivity as
a means of measuring of manufacturing. Later he becomes the chief engineer at
Midvale.
Ingenuity and Accomplishments Creates systems to gain maximum efficiency
from workers and machines in the factory. Focuses on time and motion studies to learn
how to complete a task in the least amount of time.
Becomes consulting engineer for many other companies
Publishes—The Principles of Scientific Management
Key Points of Scientific Management 1. Scientific Job Analysis – observation, data
gathering, and careful measurement determine “the one best way” to perform each job
2. Selection of Personnel – scientifically select and then train, teach, and develop workers
3. Management Cooperation – managers should cooperate with workers to ensure that all work is done in accordance with the principles of the science that developed the plan
4. Functional Supervising – managers assume planning, organizing, and decision-making activities, and workers perform jobs
Henri Fayol
Engineer and French industrialist In France works as a managing director in
coal-mining organization Recognizes to the management principles
rather than personal traits While others shared this belief, Fayol was the
first to identify management as a continuous process of evaluation.
Fayol’s 5 Management FunctionsFundamental roles performed by all managers: Planning Organizing Commanding Coordinating Controlling
Additionally Fayol recognizes fourteen principles that should guide the management of organizations.
Fayol’s 14 Principles:1. Division of Work —improves efficiency through a
reduction of waste, increased output, and simplification of job training
2. Authority and Responsibility—authority: the right to give orders and the power to extract obedience – responsibility: the obligation to carry out assigned duties
3. Discipline—respect for the rules that govern the organization
4. Unity of Command—an employee should receive orders from one superior only
5. Unity of Direction—grouping of similar activities that are directed to a single goal under one manager
6. Subordination of Individual Interests to the General Interest—interests of individuals and groups should not take precedence over the interests of the organization as a whole.
7. Remuneration of Personnel—payment should be fair and satisfactory for employees and the organization
8. Centralization—managers retain final responsibility – subordinates maintain enough responsibility to accomplish their tasks
9. Scalar Chain (Line of Authority)—the chain of command from the ultimate authority to the lowest
10. Order—people and supplies should be in the right place at the right time
11. Equity—managers should treat employees fairly and equally
12. Stability of Tenure of Personnel—managerial practices that encourage long-term commitment from employees create a stable workforce and therefore a successful organization
13. Initiative—employees should be encouraged to develop and carry out improvement plans
14. Esprit de Corps—managers should foster and maintain teamwork, team spirit, and a sense of unity among employees
Luther Halsey Gulick(1892-1992) A specialist in municipal finance and
administration Gulick works with the Institute of Public
Administration, professor of municipal science and administration at Columbia, and serves on Franklin D. Roosevelt’s Committee of Government Administration
Expands Fayol’s five management functions into seven functions:
1. Planning - developing an outline of the things that must be accomplished and the methods for accomplishing them
2. Organizing - establishes the formal structure of authority through which work subdivisions are arranged, defined, and coordinated to implement the plan
3. Staffing - selecting, training, and developing the staff and maintaining favorable working conditions
4. Directing - the continuous task of making decisions, communicating and implementing decisions, and evaluating subordinates properly
5. Coordinating - all activities and efforts needed to bind together the organization in order to achieve a common goal
6. Reporting - verifies progress through records, research, and inspection; ensures that things happen according to plan; takes any corrective action when necessary; and keeps those to whom the chief executive is responsible informed
7. Budgeting - all activities that accompany budgeting, including fiscal planning, accounting, and control
Max Weber(1864-1920)
German sociologist Weber first describes the concept of
bureaucracy – an ideal form of organizational structure
He defines bureaucratic administration as the exercise of control on the basis of knowledge
Weber states, “Power is principally exemplified within organizations by the process of control”
Weber uses and defines the terms authority and power as:
Power: any relationship within which one person could impose his will, regardless of any resistance from the other.
Authority: existed when there was a belief in the legitimacy of that power.
Weber classifies organizations according to the legitimacy of their power and uses three basic classifications:
Charismatic Authority: based on the sacred or outstanding characteristic of the individual.
Traditional Authority: essentially a respect for customs.
Rational Legal Authority: based on a code or set of rules.
Weber recognizes that rational legal authority is used in the most efficient
form of organization because:
A legal code can be established which can claim obedience from members of the organization
The law is a system of abstract rules which are applied to particular cases; and administration looks after the interests of the organization within the limits of that law.
The manager or the authority additionally follows the impersonal order
Membership is key to law obedience
Obedience is derived not from the person administering the law, but rather to the impersonal order that installed the person’s authority
Weber outlined his ideal bureaucracy as defined by the following parameters:
A continuous system of authorized jobs maintained by regulations
Specialization: encompasses a defined “sphere of competence,” based on its divisions of labor
A stated chain of command of offices: a consistent organization of supervision based on distinctive levels of authority
Rules: an all encompassing system of directives which govern behavior: rules may require training to comprehend and manage
Impersonality: no partiality, either for or against, clients, workers, or administrators
Free selection of appointed officials: equal opportunity based on education and professional qualification
Full-time paid officials: only or major employment; paid on the basis of position
Career officials: promotion based on seniority and merit; designated by supervisors
Private/Public split: separates business and private life
The finances and interests of the two should be kept firmly apart: the resources of the organization are quite distinct from those of the members as private individuals.
(a) A tendency to a leveling of social classes by allowing a wide range of recruits with technical competence to be taken by any organization
(b) Elite status because of the time required to achieve the necessary technical training
(c) Greater degree of social equality due to the dominance of the spirit of impersonality or objectivity
Common Criticisms of Classical Organizational Theory
Classical principles of formal organization may lead to a work environment in which:
Employees have minimal power over their jobs and working conditions
Subordination, passivity and dependence are expected
work to a short term perspective Employees are lead to mediocrity Working conditions produce to psychological failure
as a result of the belief that they are lower class employees performing menial tasks
Activity:Activity:
•Break into four groups: Taylor, Fayol, Gulick and WeberBreak into four groups: Taylor, Fayol, Gulick and Weber
•Refer to the power point notes you have been given to examine a Refer to the power point notes you have been given to examine a classical organizational theorist’s principles classical organizational theorist’s principles
•Consider what you discussed about each principleConsider what you discussed about each principle
•Analyze how the theorists beliefs exist, don’t exist, or are modified Analyze how the theorists beliefs exist, don’t exist, or are modified within today’s educational world within today’s educational world
•Please have someone take notes on your work Please have someone take notes on your work
•Lead a discussion of how your theorist’s ideas relate to the current Lead a discussion of how your theorist’s ideas relate to the current system of educational administration system of educational administration