Welcome Guest
Thursday
09.09.2010
19:41 GMT

All-about-business.info

Site menu
Section categories
Business Ideas [66]
All Business Ideas
Marketing [53]
All about marketing
Management [56]
All About Management
Investments [24]
All about investments
Online Business [36]
All about Online Business
Search
Site friends
  • Create your own site
  • Statistics

    Total online: 0
    Guests: 0
    Users: 0
    Main » Articles » Management

    Organisation and Behaviour Management Theory
    Management theory can be traced back hundreds of years, however it
    only started to surface systematically at the start of the nineteenth
    century along side the emergence of large industrial movement and the
    allied problems with management and structure of larger industrial
    companies. There are four main frames in which management theories are
    fixed around.
    These are Classic, Human Relations, System and
    Contingency.

    Classic theory sees the organisation as a formal structure and places
    emphasis on planning of work, technical requirements of the
    organisation, the principals of management and rational and logical
    behaviour. A clear perceptive of the purpose of the organisation is
    seen to be an essential in order to understand how the methods of
    working the organisation use and thus how to improve them. The
    classical writers Mooney and Reiley set out a number of principals
    that are common to all types of organisation. These are:

    * The principle of co-ordination – the unity of people to work
    together, the exercise of authority and the need to keep a tight
    control over employees.

    * The Scalar principle – the hierarchy of organisation and the
    process of delegation

    * The functional principle – specialisation and the distinction of
    different kinds of duties.

    The classical writers have been criticised for being too rigid and not
    taking into account the different personalities of organisations.
    Classical writers are also regarded as an out-of-date approach,
    however it does highlight important factors such as the technical and
    structural factors of the business. There are two main components of
    classical theory. These are scientific management and bureaucracy.

    Scientific writers/theorists concentrate mainly on improving
    management in order to improve productivity. F W Taylor is seen to be
    the ‘guru’ of the scientific management theorists. Tailors view was
    the way to improve productivity was to work out the one best method to
    do the job in hand. Taylor devised away in which he could breakdown
    the job into different parts. These parts are then timed and
    rearranged in order to create the most efficient way in which the job
    can be done. Taylor set out guidelines for managers to follow and are
    summarised in the following points

    * The development of a true science for each person’s work;

    * The scientific selection, training and development of the workers

    * Co-operation of the workers to ensure work is carried out in a
    prescribed way;

    * The division of work and responsibility between management and the
    workers.

    Taylor’s most famous study is with a company called Bethlehem Steel
    Cooperation where they employed men to load 12 ½ tones of pig iron
    each, a day. After Taylor was appointed management consultant,
    productivity for each person went up 380% to 47 ½ tons each per day.

    The other half of classical theory is bureaucracy and is mainly found
    in large organisation. The importance of bureaucracy means that it is
    often studied separately from classical management, which the ideas
    are taken from practical experience. However bureaucracy takes a more
    theoretical view.

    Whilst studying the power and authority of organisations, a German
    sociologist, Webber came across, something that he called ‘
    Bureaucratic Structures’. Weber stated that bureaucratic organisations
    have always been in purely technological superior over other forms of
    organisations.

    Weber did not define bureaucracy but however did attempt to identify
    the main characteristics, which were later summarised by Stuart as
    Specialisation, Hierarchy of Authority, Systems of Rules and
    Impersonality.

    · Specialisation – Applies more to the job than the worker, this being
    because a worker may leave however the job will remain

    · Hierarchy of Authority – Distinctive difference between the
    management and the workers, also between different levels of
    management. There are clearly seen in such organisations as the
    police.

    · Systems of rules – this creates an efficient and impersonal
    organisation. The rules are relatively stable but however can change.
    These rules need to be known by the employees in order for them to
    hold a job in bureaucracy.

    · Impersonality – privileges allocated and the use of authority should
    consider with the system of rules already in place.

    Prior to the 1920’s the main emphasis in business was on the
    structure. However as the depression moved forward the emphasis
    changed and turned its attention on behavioural and social side of
    business.

    A turning point came in ‘Hawthorne experiment’ this experiment took
    place in Western Electric between the years of 1924 to 1932. The
    Hawthorne Experience was under taken by a team of researchers among
    which was Elton Mayo who was the main person behind the experiments.
    The Hawthorne Experiments consisted of four phases. These phases were
    Illumination Experiment, The Relay Experiment, The Interview Program
    and Bank Wiring.

    Illumination Experiment measured the affect on light intensity has on
    productivity. The workers were split into to two groups, a control
    group were the light remained constant and experimental group were the
    lighting was changed. The experiment was found inconclusive. This was
    due to the unapparent relationship between the lighting and
    productivity in the experimental group. However productivity did
    increase in the control group, which was strange as none of the
    working conditions changed. With these two anomalies, it was obvious
    that there was more than one contributing factors to increasing
    productivity. The illumination experiment, lead to further experiment
    being carried out.

    The relay experiment took place in a factory an involved the assembly
    of telephone relays. There were six women chosen for the experiment,
    two of which were friends and the others chose at random. The
    experiment was split up into thirteen sectors of which the working
    conditions were changed, such as hours of work, refreshment
    provisions, etc. the observers of the experiment adopted a friendly
    manner to the subjects. They kept them up to date with the experiment,
    but more importantly they listened to their complaints, which in turn
    lead to an ongoing increasing level of productivity.

    The interview programme was an experiment of simply listening to the
    workforce. In order to gain the information of the workforce the
    experiment interviewed 20000 employees. The interviewers questions
    were originally set, however the employees felt some of these
    questions to be unrelated and that they didn’t just want to talk about
    there working conditions or supervision. These to factors and the
    limited information gathered by the set questions lead to a more open
    end of interviewing technique were the employees talked about a
    variety of things such as home life. Unfortunately the interviews had
    to be stopped due to depression.

    The final experiment took place in bank wiring room. The experiment
    looked at 14 men and the subgroup that had a risen from these men. The
    group was formed with natural leaders rising. The group also managed
    to make there own norms and behaviour. Although these men were given
    financial incentive if they increased the expected workload they
    refused and settled for a target well below there capability. This
    showing that group pressure was stronger than the financial incentives
    that the company had to offer.

    These experiments noted that the workforce go to work in order to
    satisfy a variety of needs and not just monetary needs. Human
    relations approach looks at the people rather than the organisation
    and recognises the work organisation as a social organisation and the
    importance of the group.

    Contingency theory reverts back to the structure of the business
    rather like the classical approach. It states that the structure has
    significant influence on the organisational performance. The
    contingency approach also highlights that different structures suit
    different companies. The success and the structure of the business is
    set upon the nature of the task. The best structure and system of
    management is then based upon the contingencies of that situation of
    each individual organisation.

    The company that I have looked at is Tesco. Tesco has a human
    relations approach to business. The management is rather informal and
    the company knows the importance of keeping their workforce happy.
    Tesco achieves this by giving worker benefits such as:

    * 10% discount off all items in store.

    * Discounted staff meals.

    * Free Tea and Coffee.

    Tesco also understand the need to listen to there staff. They have
    staff reviews after one month of a new employee starting and then
    every six months thereafter. In the reviews the section manager of the
    employee review the work of the employee and asks about the employee
    needs and if they have any problems. However this does not mean that
    an employee has to wait for six months before bring up any problems.
    The managers are easy to talk to and keep the staff motivated.

    Tesco has a flat hierarchical structure containing five levels from
    store manager to General assistant (see appendix A). Only having five
    levels means that the section managers have large spans of control
    with each having between 15 and 30 employees in there control. Tesco
    has also adopted the use of functional grouping into there structure.
    This allows the different sections of Tesco to specialise in there
    tasks. E.g Produce – specialising in fresh fruit and vegetables.
    Functional grouping creates a cohesive work group; this means that
    there is a strong sense of a team with in the different sectors.
    However this is also a draw back, having a strong team through
    individual departments creates hostility between the departments such
    as ‘It’s not my job to do that’.

    Tesco organisation culture is that of a role culture, this is the type
    of culture where businesses have strict hierarchy and set roles within
    the organisation that employees are expected to follow. Individualism
    is discouraged which means staff have to work in teams helping each
    other. The use of role culture in Tesco is based upon the fact that
    power authority and respect is obtained through the position of each
    individual within the company’s hierarchy.

    In order to improve Tesco the problem of the individual section teams
    need to be addressed. The improvement of this may come from the
    structure of the organisation. However the structure of the
    organisation is extremely hard to change. I think that Tesco should be
    able to correct this problem by making people aware of it. They should
    encourage people to help on other departments with in store. However
    they have started this by creating ‘relief checkout personnel’ I feel
    this could extend to other parts of the organisation. This will also
    make Tesco staff multifunctional.

    APPENDIX A

    [IMAGE]

    Section managers


    General Assistant

    [IMAGE]

    Team Leaders

    [IMAGE]

    Bibliography

    www.swin.edu.au/lib/infogate/management.htm

    Mullins, L.J, Management and organisational behaviour, 5th Edition,
    1999, FT Pitman Publishing, London.
    Category: Management | Added by: Antonio (15.06.2009)
    Views: 98 | Rating: 0.0/0 |
    Total comments: 0
    Name *:
    Email:
    Code *: