Leadership and Administrative DynamicsEckerd Fall 2010

AgendaMyers Briggs exercise

Read memos in class.Memo writing

• Bureaucracy• Scientific Management• Universal Management Principles• Classical Theories in modern organizations• Human Relations approaches• Human Resources Model• Open Systems• Contemporary Developments• Contingency Theories

Organization theories

• Judging• Perceiving

• Thinking• Feeling

• Sensing• Information

• Introvert• Extrovert

Where do I get energy? How do I

take in information?

How do I organize my

world?

How do I make

decisions?

• Judging• Perceiving

• Thinking• Feeling

• Sensing• Information

• Introvert• Extrovert

Work in groups or

Work alone

Facts or 30,000 feet in

the air

Solve the problem or

prefer processing

and flexibility

Business decision or

People decision

EXTREMES

• Pre-Scientific Management (Pre-1800s)• Classical Management (1800-1930)

• Administrative Theory/Universalism (Henri Fayol)• Scientific Management (Federick Taylor, Frank and Lillian Gilbreth, Henry Gantt-“Gantt

Chart”)• Structuralist School (Max Weber-“bureaucracy”)

• Neoclassical Management and Organization Theory (1930-1960s)• Human Relations School (Human Relations/Hawthorne Experiments)• Behavioral School (Abraham Maslow, Douglas McGregor, Rensis Likert, Chris Argyris,

Frederick Herzberg, David McClelland)

Modern Management and Organization Theory (1960-2000s)Management Science (OM, MRP, JIT, CI, TQM)Systems Theory (Peter Senge)(Subsystems, Open/Closed)Contingency Theory (Open Systems Planning, Organizational Design, Leadership)

CLASSICAL

• Context: factory work, under-educated workers. (assembly lines)

• People can be organized through measured steps to deliver the best outcome.

• Staff do not participate in decision making (to varying degrees).

• Hierarchical.• Informal peer leaders.• Routine jobs.• Division of labor.• Functional departments.• Hierarchical supervision.• Management by control.

• Administrative setting, well-educated professionals.

• People need to be challenged, work together, trust each other.

• Staff participates in decision making (to varying degrees).

• Flatter organizational structure• Formal teams.• Complex jobs.• Continuous learning.• Ecosystem is world-wide

MODERN

Theories compared

CLASSICAL MANAGEMENT

Early 20th Century thinking

Fayol

Weber

Taylor

Refined at the turn of the century, by Frederick Taylor (scientific management), Henri Fayol (principles and elements of management), and Max Weber (bureaucracy), this is the management philosophy that still dominates our organizational landscape.

Bureaucracy and Max Weber (I864-1920)

Formalized, hierarchical, specialized with a clear functional division of labor and demarcation of jurisdiction, standardized, rule based, and impersonal.

Professional, full-time administrative staff with lifelong employment, organized careers, salaries, and pensions, appointed to office and rewarded on the basis of formal education, merit, and tenure.

Normative structure where government is founded on authority, that is, the belief in a legitimate, rational-legal political order.

In 1847, a professor in political science at Heidelberg, Robert von Mohl, observed that:

"the privileged classes complained of loss of privileges, the commercial classes of interference in commerce, artisans of paperwork, scientists of ignorance,

statesmen of delay."

Weber

Legal guarantees against arbitrariness

Recruitment based on merit

Social and Economic differences can be mitigated through the law

Changes in human services decision making

Public administration is a “supermarket”

of services

Citizens/clients are “customers”

Flatter decision making, power

sharing internally and externally

Privatization

What are rules?• Rules can assist with interpretation of ambiguous worlds.• Rules define the world.

• roles, rights, obligations, interests, values, worldviews, and memory

• Rules can mean change.• Rules can fulfill the “invisible veil” Principle.• Rules need flexibility and discretion.• Rules are not inflexible, people are • inflexible.

Scientific Management

Taylor (1856-1915)•mass production• low cost, •acceptable quality•organizing large numbers of under-educated and/or non-English speaking immigrants•non-technical• rural workers for urban technical work.

Fayol (1841-1925)

• Planning• Organizing• Staffing• Budgeting• Coordinating• Controlling

• Fayol considered the need for staff to participatein decision making.

What do managers do? What do companies do?Production, Selling/marketingFinanceSecurityAccountingManagement

Fayol continued• 1. division of labor• 2. the establishment

of authority• 3. the enforcement of

discipline• 4. unified command,

one employee reports to only one supervisor

• 5. unity of direction• 6. subordination of

individual interests to the interest of the organization

• 7. fair salaries• 8. Centralized

authority• 9. Scalar hierarchy, in

which each employee is aware of his or her place and duties

• 10. a sense of order and purpose

• 11. Equity and fairness in dealings between staff and managers

• 12. stability of jobs and positions

• 13. development of individual initiative

• 14. esprit de corps

HUMAN RELATIONS

Mary Parker Follet (1868-1933)

Believed in the communities of creative practice and suggested that employees be considered an intrinsic part of the organization that allowed it to be more productive

• Elton Mayo•Western Electric experiments

• Conclusions•Group activity, collaboration and the role of informal teams.•Social world of adults•Belonging•Complaining•Social demands

Human Relations Approaches

BEHAVIORAL APPROACH

Abraham Maslow, Douglas McGregor, Rensis Likert, Chris Argyris, Frederick Herzberg, David McClelland

McGregor Theory X and Theory Y

Buying a pair of hands Building people

•Douglas McGregorHuman Resources Approach

Theory YTheory YTheory XTheory X

Work is NaturalWork is Natural

Self-Direction

Self-Direction

SeekResponsibility

SeekResponsibility

Good DecisionsWidely Dispersed

Good DecisionsWidely Dispersed

AvoidWork

AvoidWork

Must be Controlled

Must be Controlled

AvoidResponsibility

AvoidResponsibility

Seek SecuritySeek Security

Chris Argyris – classical organization structures lead to immature, dependent staff

Assumptions (values)

Action

Actual Results

Results Gap

Desired Outcome

DO

UB

LE

LO

OP

SIN

GLE L

OO

P

Argyris

•Teams COMMUNICATE more than individuals operating alone. •Leadership is key element to implementing and sustaining a learning environment.•Leaders are responsible for promoting an atmosphere conducive to learning•CREATIVE TENSION - Represents difference between the “vision” of where the organization could be and the reality of the current organizational situation.

Open Systems Peter Senge

Senge• Systems Theory is NOT a

prescriptive management theory• Attempts to widen lens

through which we examine and understand organizational behavior• The Learning Organization

• Synergy• Nonsummativity• Interdependence• Equifinality• Requisite Variety

• Emphasizes COMMUNICATION in the Learning Process

• Organizations cannot separate from their environment• Organizational teams or

subsystems cannot operate in isolation

Professional Bureaucracies (hospitals, universities)

Community-Based Organizations (small non-profits)

Total Quality Management

The Excellence Movement (In Search of Excellence)

Business Process Reengineering

Contemporary Developments

Taylor to TQMCustomer is always right

Upstream quality, not downstream fixing

Consistency in production

People work within systems not “how I think it is best to do it”

Continuous improvements of processes

Staff participate

Commitment from the top to the bottom

BPR (downsizing)

•Addresses silo “thinking” between functions. •Eliminates what is not needed.

Contingency Theory• There is no one best way to structure and

manage organizations.• Structure and management are contingent on

the nature of the environment in which the organization is situated.

• Argues for “finding the best communication structure under a given set of environmental circumstances.”

Memos