Class 2 - Organizational Theory and Mgmt (ch 2)

Class 2 - Organizational Theory and Mgmt (ch 2) - Chapter 2...

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Unformatted text preview: Chapter 2 Chapter Organizational Theory and Organizational Management Management 1 Chapter 2… Chapter Introduces literature on administrative and Introduces organizational theory and behavior as it relates to public management to Authors, concepts and terms Discusses classical and neo-classical theories of Discusses management management Notable scholars Max Weber – bureaucracy Frederick Taylor – assembly line approach Herbert Simon – challenges to these approaches Mary Parker Follett, Abraham Maslow, Douglas Mary McGregor – human side of organizations McGregor Classical Management Movement Movement Frederick Taylor Frederick Optimizing Productivity Frank and Lillian Gilbreth Efficiency Experts Max Weber Bureaucratic Models Luther Gulick, Lyndall Urwick, Henri Fayol POSDCORB, Principles of Management Frederick Taylor Frederick The Principles of Scientific Management (1911) The (1911) Revolutionized ideas behind optimizing productivity 4 principles are hallmark of classical management principles period of Public Administration period • Adoption of laws and formulas to determine the most Adoption efficient ways to complete efficient • Studying capability of workers • Fusion of work procedures and specialized training • Equal division of labor and responsibility Productivity and efficiency are the primary ends • Elements of principles are the means to these ends Frank and Lillian Gilbreth Frank Taught productivity and efficiency Studied how to reduce the number of Studied motions worker would need to complete a task and industry fatigue complete Studies led to redesign of machinery operated Studies by factory workers by Efficiency studies led to current day studio Efficiency apartment designs apartment Used many of their theories in their home Used to ‘manage’ the 12 children! to 5 Max Weber & the Weberian Bureaucracy Bureaucracy Bureaucratic models have strict Bureaucratic hierarchical components with centralized authority authority Bureaucracies are jurisdictional with little Bureaucracies flexibility Uniform and impersonal Ties to Taylorism Contingent on technical expertise and Contingent appropriate training appropriate Division of responsibilities Efficiency is key 6 Luther Gulick & Lyndall Urwick, POSDCORB – built on principles of POSDCORB Taylor and Weber Taylor Planning Organizing Staffing Directing Coordinating Reporting Budgeting Responsibilities of Chief Executive Framework for designing and running Framework most effective organizations most 7 Henri Fayol Henri 14 Principles of Management Believed these to be universal and Believed applicable to any type of organization applicable Most important • • • • • Specialization Unity of Command Line of Authority (Scalar Chain) Authority Unity of Direction 8 Henri Fayol Henri Division of Work Authority Discipline Unity of Command Unity of Direction Individual Interest vs. Individual Common Interest Common Compensation of Compensation Workers Workers Centralization Line of Authority Line (Scalar Chain) (Scalar Order Equity Stability of personnel Stability tenure tenure Initiative Unity of Workers Urwick’s version of Fayol’s Principles Principles Objective Specialization Coordination Authority Responsibility Definition Correspondence Span of Control Balance Continuity Brownlow Commission Brownlow Principles of Gulick, Urwick and Fayol Principles were put into action! were Commission established by Congress Commission in 1936 in Classical management principles Classical applied to public sector applied Reorganization of White House staff Consolidation of agencies Alterations to fiscal system Civil Service reform – focus on Civil qualifications. qualifications. 11 Neo-Classical School Neo-Classical Herbert Simon Herbert Skeptical of Classical Management Theories Robert Merton Challenges Weberian Model Phillip Selznick Incorporation of informal organizations Chester Barnard Stresses important of monetary and nonmonetary incentives Herbert Simon’s Skepticism Herbert Classical Management Principles are Classical not grounded in empirical scientific research. research Not defined, quantified or measured. Too subjective! Alternative Fact-Value Dichotomy Fact-Value Highly criticized • Robert Dahl, Dwight Waldo – values, Robert morality and ethics are important in PA morality 13 Robert Morten’s Challenge Robert Challenges Weber’s Model of Challenges Bureaucracy Bureaucracy Fails to account for tension between Fails bureaucracy and democratic principles bureaucracy Transparency and citizen participation not Transparency included included Requires behavior too programmed to Requires adapt to changes – ‘trained incapacity’, groupthink, depersonalization groupthink, Administrative bureaucracy vs democratic Administrative governance recurring conflict in PA! governance 14 Philip Selznick Philip Inclusion of informal organizations in Inclusion formal ones formal Personal Relationships Organization co-optation – bringing new or Organization outside elements into leadership or decision making structure making Can be a positive element or create Can resistance to overall goals resistance 15 Chester Barnard Chester Must recognize importance of monetary and Must non-monetary incentives. non-monetary Money is only part – workers have needs that Money when addressed foster cooperation and loyalty loyalty Types of incentives Material Inducements Personal nonmaterial opportunities Ideal benefactions Habit and attitude conformity Opportunity for participation Associated attractiveness Condition of communion 16 The Human Side The Mary Parker Follett Exercising authority Hawthorne Experiments Human Systems Theory Abraham Maslow & Douglas McGregor Theories of motivation Rensis Likert & Chris Argyris Participative work groups and human Participative conditions within organized settings conditions Mary Parker Follett Mary Authority should be exercised in an Authority impersonal way impersonal Depersonalized authority derived from Depersonalized scientific management view of workers as machines machines Effective leadership is critical Unify individuals, resolve conflicts, demand Unify performance and delegate authority performance Brought human elements into classical Brought theories theories 18 Hawthorne Experiments Hawthorne Emergence of Human Relations Theory Examined the social-psychological Examined factors of the workplace factors Workers are more productive when managers Workers pay attention to them pay Challenges Taylor’s thoughts that increased Challenges wages will increase cooperation and productivity Recognizes the social aspect of organizations Recognizes the complexities of adding the human element. element. 19 Abraham Maslow Abraham Maslow’s Hierarchy of Needs Hallmark of Human Relations Movement Five fundamental needs • Physiological needs to sustain life (Shelter, Food, Physiological Clothing) Clothing) • Safety (personal security and world order) • Need for love (acceptance, affection, sense of Need belonging) belonging) • Esteem Needs Esteem Strong, Confident and Autonomous Prestige and Appreciation • Self actualization (Individual happiness) Undermines importance of money to focus on Undermines 20 social and psychological needs social Douglas McGregor Douglas One of most influential organizational One humanists humanists Theory X Individuals dislike work and avoid whenever Individuals possible possible Require intense supervision Motivations are economic factor, threats and Motivations punishment punishment Aligns with classic Weberian theory – quasimilitary approach Focus on external controls Hinder individual capabilities and discourage Hinder personal responsibility and accountability personal 21 Douglas McGregor Douglas Theory Y Assumes individuals enjoy work and embrace Assumes responsibility responsibility Capable of self-direction and don’t need to be Capable micromanaged micromanaged Possess skills needed to creatively solve Possess complex problems complex Relies on self-direction This theory offers more realistic assessment This when accounting for human nature Recognizes the delegation of authority, job Recognizes enlargement and participation enlargement 22 Douglas McGregor Douglas To sum it up… “The difference between theories X and Y is The the difference between treating people like children and treating them as mature adults!” adults!” 23 Rensis Likert & Chris Argyris Rensis Likert - Creation of participative Likert workgroups that allow colleagues to develop relationships in the workplace. develop Argyris – emphasizes importance of Argyris human conditions within an organization human Formal organizational structure and individual Formal often in conflict often • Encourages mediocre performance Development of the “organization man or Development woman” woman” • “sell-out” for job security, successful “bureaucrats” Technical experts 24 • Often have difficulty conforming to the bureaucracy Human Relations Movement… Human …overall critical of classic overall management theory such as Taylorism because of the failure to account for social and emotional impacts on workers…treated as cogs, not people. not 25 Contemporary Organizational Theories Theories Structural Theory Systems Theory Worker interests coincide with organization goals Organizational Culture Quality Circles Organizational Economic Theory The parts are the important piece of the whole Japanese Management Physical structure/design determines success The ‘personality’ of the organization National Performance Review Public organization performance Structural Theory Structural Assumes organizations are rational Assumes and function to accomplish specific goals and objectives goals Grounded in classical management Grounded theory/principles theory/principles Mechanistic and organic systems 27 Structural Theory Structural Mechanistic Systems Weberian and best for stable environments Roles and responsibilities clearly defined Communication is formal, top-down Hierarchical organizational structure Authoritative decision-making process Focus on ability to efficiently repeat Focus procedures procedures 28 Structural Theory Structural Organic Systems Best for environments that are instable and Best change frequently change Roles and responsibilities flexible Communication informal Workers of different ranks exchange ideas Horizontal organizational structure Decisions made based on knowledge, Decisions experience and expertise experience Emphasizes adaptability and innovation 29 Henry Mintzberg Henry Notable Systems Theorist 5 fundamental parts of organizations Operating core • Frontline workers Strategic apex • Upper-level or executive leadership Middle line • Middle management – supervises operating core, Middle takes direction from strategic apex takes Technostructure • Analysts responsible for training, standardizing Analysts procedures, planning procedures, Support staff • Public relations, legal aids, mailroom, custodial 30 Systems Theory Systems Organization is comprised of Organization interconnected parts that are designed to focus on a different goal. focus Focuses on inputs, outputs, feedback Focuses mechanism mechanism Cyclical in design Assumes organizations constantly change to Assumes respond to environment and intrarespond organizational changes Organizations must be adaptable. 31 Japanese Management Japanese Deming philosophy Everyone should plan, collect data, analyze, Everyone construct the work and keep the circle going to maintain quality to The Quality Circle • Increased effectiveness and productivity correlates Increased to employee commitment and participation. to • A small group of employees who perform similar small tasks and meet regularly and voluntarily to solve problems. problems. The person closest to the work knows the problems best Focus on operational issues – workflow, bureaucratic Focus rigidity, organization, staffing, communication, etc rigidity, THESE ARE NOT UNIONS!!! 32 Japanese Management Japanese The Quality Circle The Potential Benefits • Better information – it now comes from those Better closest to the problem closest • Better decisions – employees are more committed Better when they made the decision when • Time efficiency – more involved in all efforts • Organizational tensions decrease – ‘win-win’ Organizational attitude attitude • Organizational mission/purpose more clearly Organizational defined defined • Career development and personal growth 33 Organizational Economic Theory Organizational Focuses on ensuring managers and Focuses rank-and-file employees work for betterment of the organization. betterment Principle-agent theory Organization’s ‘bottom-line’ must be achieved Challenge – principles and agents motivated Challenge by self-interests by Principles often lack information on agents Ways theory addresses these challenges: • Monetary compensation • Implementing oversight mechanisms 34 Organizational Culture Organizational Examples Behavioral regulations group norms/values mission of organization formal rules Climate and environment Shared skills and modes of thinking 35 National Performance Review National Reinventing Government Movement Stems from focus on public pressure on Stems government for greater effectiveness government More discretion for public administrators Central element is competition as means to Central improve government performance improve • Specifically with respect to policy management, Specifically regulation, enforcement, prevention, etc. regulation, 36 For next class For Chapter 3 – Managing Human Chapter Resources Resources NEXT CLASS - Policy Paper Statement NEXT due due 37 ...
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