Management Perspectives
rupali
Week2_L2_MGMT6012.pptxMGMT6012 Management Perspectives Week 2
T3 2019
Our Diversity -ARGENTINA -AUSTRALIA -BRAZIL -CHILE -CHINA -COLOMBIA -EGYPT -HUNGARY -INDIA -LEBANON -NEPAL -NIGERIA -PHILLIPINES -SRI LANKA -TAIWAN -MISCELLANEOUS
Our Strengths
Learner (Strategic Thinking)
Responsibility (Executing)
Discipline (Executing)
Relator (Relationship Building)
Focus (Executing)
Achiever (Executing)
Maximiser (Influencing)
Consistency (Executing)
Deliberative (Executing)
Analytical (Strategic Thinking)
Management Theories and Fashions -The science of management is very old – armies have been coordinated, tribes led and pyramids built. -Plato’s writings from 350 BC talk about listening to the customer, specialisation, promotion of organisational culture, universal training and shared goals. -The emergence of management as a formal academic discipline is relatively recent in comparison, and the pioneers of modern management are considered to be Frederick Taylor, Henry Fayol and Lillian and Frank Gilbreth.
Management Theories and Functions Henri Fayol (1841-1925) identified five management functions: -Planning: deciding on future actions -Organising: arranging resources for specified tasks -Commanding: leading, guiding and directing staff -Coordinating: supervising and sharing information -Controlling: monitoring outcomes and taking corrective action where needed
Management Theories and Fashions Frederick Taylor – from the 1890’s to 1915 observed the inefficiencies of most manual operations performed in manufacturing organisations. Taylor developed a system of studying how the most efficient workers performed, then introduced their methods as the standard for all workers. This approach was the Scientific Management approach. Taylor also emphasised the need to share the benefits of any productivity improvements with the workers who generated them.
Management Theories and Fashions Frank and Lillian Gilbreth – During Taylor’s time in the steel industry Frank Gilbreth was applying ‘time and motion studies’ to the building industry, starting with brickwork and then concreting. These studies timed the movements made when performing tasks as a means of optimising effort and time expended. Frank married Lillian who was a psychologist and industrial engineer. They had twelve children, and it was Lillian who applied the time and motion studies to their home life, searching for efficiencies so that women could discover easier ways of doing housework to enable them to seek paid employment outside the home.
Management Theories and Fashions Following the deaths of Taylor in 1915 and Frank Gilbreth in 1924 it was Lillian who expanded the theories, integrating psychology into scientific management. Lillian was to become a consultant for companies such as Johnson & Johnson and retailers Macy’s, assisting them with both management and marketing strategies. Lillian’s work contributed to other areas of management including fatigue study (ergonomics), workplace wellbeing and work simplification. Lillian also worked with General Electric to re-design the kitchen and refrigerator, and she created the first desk with IBM. She passed away in 1972, aged 94.
Management Theories and Fashions Quality Management or TQM (1980’s) - a commitment to product and service quality to ensure consistency. Quality planning, quality assurance, quality control and quality improvement. Improvements are made by measuring and improving processes, not exhorting employees. Knowledge Management (1990’s) – organisations benefit when knowledge is shared amongst staff and systems. This sharing of knowledge transforms information and intellectual property into lasting and tangible value. Core Competencies (1990’s) – a belief that organisations should focus on areas they are good at (strengths) and outsource the rest. The core competencies are identified as a result of collective learning across the organisation and create the competitive advantage.
Management Theories and Fashions Balanced Scorecard (1990s) - a framework that identifies and integrates non-financial measures with financial measures to determine the performance of the organisation. Triple Bottom Line (late 1990’s) – an accounting framework with a strong focus on the ethical behavior of corporations, with overall performance based on three measures - the environment, society expectations and economics. Six Sigma – a statistical approach to improve the quality of a process and minimise any variations or defects. Created in the 1980’s at Motorola and made successful by Jack Welch at General Electric in the 1990’s.
| Customer perspective: How should the firm appear to customers? Concentrates on customers concerns about time, quality, performance and service Examples could be on-time deliveries and customer rejection rates | Business Process perspectives What must a firm excel at? What should be focused internally to meet with customer expectations Control measures will depend on core competencies, cost, skills and productivity |
| Innovation and Learning How can a firm improve constantly and improve the value creation? - Look forward; see how the company can do to satisfy future market Performance measures include time-to- market new products and the revenue from the same | Financial Perspective - How do firms create value for shareholders - The traditional reporting perspective must not be overlooked - Market share and sales growth are included; - Measure like value-added and shareholder value analysis must be included |
Triple Bottom Line: 1) People: One way of looking at people is ‘the employees’, who need their proper wages, humane working conditions; the other way of looking at ‘People’ is the Community. What do you give back to the community? 2)Planet: Firms trying to reduce their ecological footprints by reducing waste, effective use of resources, using renewable energy 3) Profit: Every business wants to earn profit; this said, it cannot be opposed to people and planet; IKEA: an example that sells recycled products
Corporate governance requires risk to be addressed in a structured manner. Risk can be: - Environmental risk: complex production processed such as use of toxic chemicals that can harm the environment - Operational risk: errors may occur at every stage of production; when you are forced to control the cost, then - Quality risk: failing to design properly, not following policies and procedures and failing to support customers can be risky to the business - Reputational risk: reputation and brand name are very important because customers buy based on the trust; protecting the reputation is vital - Intellectual Property Risk: more difficult to manage than physical assets; can be more easily stolen - Financial reporting risk: not providing clear and accurate information, misreporting information can cause a business very heavily
Risk Management System- helps in: - Risk identification - Risk classification: can be insignificant, minor, moderate, major, catastrophic - Measuring and monitoring risk - Managing risk such as: avoidance, reduction, transfer and acceptance
Management Theories and Fashions -A manager will always be looking for ideas and theories to deal with the constant changes and challenges. A manager should look closely at what is published and promoted and ask the following: -Does it address problems which are important to my organisation? -Do the proposed practices seem reasonable, given my own experience of management? -What evidence is put forward to support the claims of the new ideas? How feasible are the new practices?
Causes and consequences of managerial failure in rapidly changing organisations -Management of change is now critical to organisational survival. -Organisations are now forced to constantly adapt to remain competitive and survive. -Managers at all levels must respond and improve performance they need results. -Business success or failure has been linked to the competence and performance of managers. -Many managers do not have the expertise or capability to change.
Causes and consequences of managerial failure in rapidly changing organisations -Previous studies have focused on the success and failures of CEO’s. In one study the five major causes for CEO failure were: choosing to ignore change, pursuing the wrong vision, being too closely connected to the company, exhibiting executive arrogance, relying on past formulas for success. -This study focuses on managers at all levels - 1040 managers from 100 organisations all experiencing ‘large scale organisational change’ - 22% were top level managers, 40% middle managers, 38% frontline managers. -What are the top 10 reasons for managerial failure?
Causes and consequences of managerial failure in rapidly changing organisations Ineffective communication skills/practice 81% Poor work relationships/interpersonal skills 78% Person/job mismatch 69% Fail to clarify direction/performance expectations 64% Failing to adapt and break old habits quickly 57% Delegation and empowerment breakdown 56% Lack of personal integrity and trustworthiness 52% Unable to develop cooperation/teamwork 50% Unable to lead/motivate others 47% Poor planning practices/reactional behavior 45%
An extract from Gareth Morgan’s Images of Organisation Morgan encourages readers to look at organisations in a different way in an attempt to better understand them. Morgan proposes eight metaphors to capture the different types of organisations that exist. Think about your organisation for Assignment One and analyse it according to the different metaphors drawn from Morgan’s Images of Organisations. Discuss your organisation and metaphor on the Discussion Forum, and how this metaphor may impact on the behaviour and operations of the organisation.
Morgan’s Images of Organisations
Morgan’s Images of Organisations Machine view which dominates modern management thinking and which is typical of bureaucracies – we structure and rationalise everything that we do. (things need fixing when going gets tough) Organismic view which emphasises growth, adaptation, satisfaction of needs and environmental relations. (adapt to grow and survive; moving to a more biological view than mechanistic view) Images of the brain see organisations as information processors focused on organisational learning. Organisations as cultures based on values, norms, beliefs, rituals and so on. (rigidity can trap people) In political organisations interests, conflict and power issues predominate. (important role that power plays). Some organisations are psychic prisons in which people are trapped by their mindsets (unconscious). Organisations of flux are continually moving and can adapt, transform and change. Some organisations are instruments of domination with the emphasis on exploitation and imposing your will on others.
Management’s Three Eras Introduces organisations as machines – refer to Morgan’s Images of Organisations. Three ‘ages’ of management since the industrial revolution: Execution – mass production, efficiency, consistency, predictability Expertise – theories of management, information, knowledge Empathy – meaningful experiences, equality, valuing staff and customers
