Semester Two, 2016

MGMT1001 Managing Organisations and People

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TABLE OF CONTENTS

LECTURE 01 – WHAT IS AN ORGANISATION? ..................................................................... 2

LECTURE 02 – FOUNDATIONS OF MANAGEMENT THEORY ................................................. 3

LECTURE 03 – PERSONALITY, PERCEPTION AND ATTITUDES ............................................. 11

LECTURE 04 – UNDERSTANDING GROUPS & TEAMS ....... ERROR! BOOKMARK NOT DEFINED.

LECTURE 05 – COMMUNICATION ................................... ERROR! BOOKMARK NOT DEFINED.

LECTURE 06 – DECISION MAKING ................................... ERROR! BOOKMARK NOT DEFINED.

LECTURE 07 – LEADERSHIP ............................................. ERROR! BOOKMARK NOT DEFINED.

LECTURE 08 – HUMAN RESOURCES MANAGEMENT ........ ERROR! BOOKMARK NOT DEFINED.

LECTURE 09 – STRATEGIC MANAGEMENT ....................... ERROR! BOOKMARK NOT DEFINED.

LECTURE 10 – MANAGING IN A GLOBAL ENVIRONMENT . ERROR! BOOKMARK NOT DEFINED.

LECTURE 11 – SOCIAL RESPONSIBILITY AND ETHICS ........ ERROR! BOOKMARK NOT DEFINED.

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LECTURE 01 – WHAT IS AN ORGANISATION?

Organisation – a deliberate arrangement of people to accomplish some specific purpose. It occurs

when people work together to achieve a desired goal.

TYPES OF ORGANISATIONS (EXAMPLES)

• Social

• Government

• Business

• Sporting

CLASSIFYING ORGANISATIONS

• Size – small, medium or large.

• Industry – e.g. finance, mining, telecommunications.

• Geographical Location – e.g. local business, Australian, multi-national corporation.

• Ownership – e.g. not-for-profit, listed corporation, membership.

CHARACTERISTICS OF AN ORGANISATION

• Distinct Purpose expressed in terms of a set of goals

that the organisation hopes of accomplish.

o Future-oriented want to exist in the future,

so aim to maximise profit & returns for shareholders.

• Each organisation is composed of people who work to achieve the goals of the organisation.

o Remuneration & benefits (e.g. annual bonus, employee discount).

• Every organisation develops a deliberate structure so that their members can do their work.

o Can be open & flexible (contemporary) or more traditional and task-orientated.

o Physical environment.

o Rules & boundaries.

CONTEXT OF ORGANISATIONS & MANAGEMENT NOWADAYS

• Technological change new products, new methods, outsourcing, offshoring.

o Businesses “open” 24/7, due to websites and email.

• International division of labour.

• Changing conception of time & space “work anywhere, anytime” approach.

• Changing demographics.

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LECTURE 02 – FOUNDATIONS OF MANAGEMENT THEORY

Manager – somebody who coordinates and oversees the work of other

people, so organisational goals can be accomplished.

ORGANISATIONAL LEVELS (TYPES OF MANAGERS)

FIRST-LINE MANAGERS

• Manage the work of non-managerial

employees who are directly involved with

producing an organisation’s products or

servicing the organisation’s customers.

Examples: supervisors, shift managers, office managers, team leaders, forepersons.

MIDDLE MANAGERS

• Responsible for managing the work of first-line managers.

• Manage change.

• Include all levels of management between the first-line level & top level of the organisation.

Examples: regional manager, department head, project leader, store manager.

TOP MANAGERS

• Responsible for making organisation-wide decisions and establishing the goals & plans that

affect the entire organisation.

Examples: managing director, chief executive officer, chief operating officer, chairman of the board.

WHAT DO MANAGERS DO?

Management involves coordinating & overseeing the work activities of others so that their activities

are completed efficiently & effectively.

• Efficiency – getting the most output from the least amount of inputs (effort).

• Effectiveness – doing the ‘right things’ – those work activities that will help an organisation

reach its goals.

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MANAGEMENT FUNCTIONS

• Planning involves setting goals, establishing strategies for achieving those goals, and

developing plans to integrate & coordinate activities.

• Organising involves arranging & structuring work that employees do to accomplish the

organisation’s goals.

o Allocating resources to achieve goals.

• Leading involves working with & through people to accomplish organisational goals.

o Resolving conflict between group members.

• Controlling involves monitoring, comparing and correcting work performance.

o Actual performance must be compared to previously set goals.

Traditionally (Fayol), “leading” was split into commanding & coordinating.

MANAGEMENT ROLES (MINTZBERG)

• Interpersonal – involve people and other duties that are ceremonial & symbolic in nature.

• Informational – involve receiving, collecting and disseminating information.

• Decisional – managerial roles that revolve around making decisions.

MANAGEMENT SKILLS (KATZ)

• Technical – knowledge of and proficiency in a certain (specialised) field.

o Important for low-level managers.

• Human – the ability to work well with other people individually and in a group.

o Important for all managers.

• Conceptual – the ability to think and to conceptualise about abstract & complex situations.

o Important for top managers.

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IS THE MANAGER’S JOB UNIVERSAL?

Managers largely perform the same tasks across different organisational levels, areas, types and size.

In cross-national transferability however, there are major differences in preferred managerial

practices between countries in this area, the manager’s job is less universal.

HOW IS THE MANAGER’S JOB CHANGING?

• Changing workplaces

• Ethical issues

• Security threats

• Changing technology

• Global economic and political uncertainties

MANAGERIAL CONCERNS

• Customer service employee attitudes & behaviours impact customer satisfaction.

• Social media these forms of communication are becoming important & valuable tools in

managing.

• Innovation important for organisations to be competitive.

• Sustainability as business goals are developed.

o A company’s ability to achieve its business goals and increase long-term shareholder

value by integrating economic, environmental & social opportunities into its business

strategies.

VALUE OF STUDYING MANAGEMENT

• Universality of Management – the reality that management is needed in all types & sizes of

organisations, at all organisational levels, in all organisational areas and in organisations in all

countries around the globe.

• The reality of work you will either manage or be managed.

• Managing yourself there is a greater need to take greater control of our own actions in

the new types of organisations that are developing.

• Challenges & Rewards of being a manager.

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EVOLUTION OF MANAGEMENT THEORY

CLASSICAL APPROACH

First studies of management which emphasises rationality and making organisations & workers as

efficient as possible.

PRINCIPLES OF SCIENTIFIC MANAGEMENT (FREDERICK W. TAYLOR)

Scientific Management – an approach that involves using scientific methods to define the ‘one best

way’ for a job to be done.

1. Use scientific methods to find the best way to do a job.

2. Scientifically select, train and develop the workers.

3. Ensure cooperation from the workers by offering incentives.

4. Allocate work & responsibilities to workers and managers.

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FRANK & LILLIAN GILBRETH

• Primary contribution was finding efficient hand-and-body motions and designing proper

tools & equipment for optimising work performance.

• Therbligs – a classification system for labelling basic hand motions.

GENERAL ADMINISTRATIVE THEORY (FAYOL & WEBER)

An approach to management that focuses on describing what managers do and what constituted

good management practice.

HENRI FAYOL

• Five functions: planning, organising, commanding, coordinating, controlling.

• 14 principles of management fundamental rules of management that could be taught in

schools and applied in all organisational situations.

o Division of work

o Authority

o Discipline

o Unity of command

o Unity of direction

o Subordination

o Remuneration

o Centralisation

o Scalar chain

o Order

o Equity

o Stability of tenure

o Initiative

o Esprit de corps

MAX WEBER

Bureaucracy – a form of organisation characterised by division of labour, a clearly defined hierarchy,

detailed rules & regulations, and impersonal relationships.

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QUANTITATIVE APPROACH

• The use of quantitative techniques to improve decision making.

o Involves applications of statistics, optimisation models, information models and

computer simulations to management activities.

• Total Quality Management (TQM) – a philosophy of management driven by continual

improvement and responding to customer needs & expectations.

ORGANISATIONAL BEHAVIOUR (OB) APPROACH

• Field of study concerned with the actions (behaviours) of people at work.

• The early advocates contributed various ideas, but all believed that people were the most

important asset of the organisation and should be managed accordingly.

THE HAWTHORNE STUDIES (1920s)

• Provided new insights into individual & group behaviour.

• Initially wanted to examine the effect of various illumination levels in a factory on worker

productivity. Found that as the light intensity increased, worker output decreased.

• Dramatically impacted management beliefs about the role of people in organisations, leading

to a new emphasis on the human behaviour factor in managing.

HUMAN RELATIONS MOVEMENT AND BEHAVIOURAL SCIENCE THEORISTS

• Human Relations Movement – the belief that a satisfied worker will be productive.

• Behavioural Science Theorists – psychologists & sociologists who relied on scientific method

for the study of organisational behaviour.

MASLOW’S HIERARCHY

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MCGREGOR’S THEORY X & THEORY Y

Theory X Theory Y

• The average employee is lazy, dislikes work and will do as little as possible.

• Managers should closely supervise employees to ensure they work hard.

• Managers should create a strict work culture and implement a system of rewards & punishments to control employees.

• Employees are not inherently lazy – will do what is good for the organisation.

• Managers must create a workplace that provides opportunities for workers to exercise initiative & self-direction.

• Managers should decentralise authority and ensure they have the resources to achieve organisational goals.

CONTEMPORARY APPROACHES

SYSTEMS THEORY

• System – a set of interrelated & independent parts arranged in a manner that produces a

unified whole.

o Closed System – systems that are not influenced by (and do not interact with) the

environment.

o Open System – systems that interact with their environment.

• An organisation takes in inputs (resources) from the environment and transforms or

processes these resources into outputs that are distributed into the environment.

• Decisions & actions taken in one organisational area will affect others (vice-versa).

• Managers must ensure that all the interdependent units are working together in order to

achieve the organisation’s goals.

• Helps managers to recognise that organisations are not self-contained, but instead rely on

their environment for essential inputs and as outlets to absorb their outputs.

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CONTINGENCY THEORY

• All organisations are different, face different situations (contingencies) and require different

ways of managing.

• There are no simplistic or universal rules for managers to follow.

• Popular variables: organisation size, routineness of task technology, environmental

uncertainty, individual differences.

CURRENT TRENDS AND ISSUES

• Globalisation

o Managers are not constrained by national borders.

• Ethics

• Workplace Diversity

o A workforce that is more heterogeneous in terms of individual characteristics.

• Entrepreneurship

• Learning Organisations & Knowledge Management

o Organisations that have developed the capacity to learn, adapt & change

continuously.

o Cultivating a learning culture where organisational members systematically gather

knowledge and share it with others in the organisation to achieve better

performance.

• Sustainability

o The responsibility of all organisations to ensure that their operations use all forms of

capital – human, natural, financial – in such a way that stakeholders receive value

and that the capital required by future generations is maintained.

o Businesses assess their performance using environmental, social & economic

factors.

▪ Previously, the bottom-line was only financial.

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LECTURE 03 – PERSONALITY, PERCEPTION AND ATTITUDES

FOCUS OF ORGANISATIONAL BEHAVIOUR

• Individual – attitudes, personality, perception, learning, motivation.

• Group – norms, roles, team-building, leadership, conflict.

• Organisational Aspects – structure, culture, human resource policies & practices.

GOALS OF ORGANISATIONAL BEHAVIOUR

• Explain why employees engage in some behaviours.

• Predict how employees will respond to various actions.

• Influence how employees behave.

IMPORTANT EMPLOYEE BEHAVIOURS

• Absenteeism – the failure to report to work.

• Employee Productivity – a performance measure of both efficiency & effectiveness.

• Turnover – the voluntary & Involuntary permanent withdrawal from an organisation.

• Organisational Citizenship Behaviour (OCB) – discretionary behaviour that is not a part of an

employee’s formal job requirement but which promotes the effective functioning of an

organisation.

• Job Satisfaction – an individual’s general attitude towards their job.

• Workplace Behaviour – any form of intentional behaviour that has negative consequences

for the organisation or individuals within the organisation.

ATTITUDES AND JOB PERFORMANCE

Attitudes are evaluative statements – either favourable or unfavourable – concerning objects,

people or events and they reflect how individuals feel about something.

• Cognitive Component – beliefs, opinions, knowledge and information held by a person.

• Affective Component – the emotional or feeling part.

• Behavioural Component – intention to behave in a certain way towards someone or

something.

Job-related attitudes can be linked to having a positive effect on employee behaviours.

• Job Satisfaction – a person’s general attitude towards their work.

• Job Involvement – the degree to which an employee identifies with their job, actively

participates in it, and considers their job performance to be important to self-worth.

o Highly involved employees strongly identify with and genuinely care about their

work.

• Organisational Commitment – the degree to which an employee identifies with a particular

organisation & its goals, and wishes to maintain membership in that organisation.

o Perceived organisation support the organisation values the employee’s

contribution and cares about their well-being.