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1、LEADERSHIP and CHANGE (1) ORGANISATIONAL STRUCTURE & MANAGEMENT and ORGANISATIONAL CHANGE,Leadership and Organisations 6BUS1001,Len Ryder,ORGANISATIONAL STRUCTURE & MANAGEMENTLEADERSHIP and CHANGE (1),PREAMBLE (click on the speaker icon below),ORGANISATIONAL STRUCTURE & MANAGEMENTLEADERSHIP and CHAN
2、GE (1),Leading change is one of the greatest challenges for leaders. Change can be inconvenient, painful and downright scary. Even when a change appears to be good for individual employees as well as the organisation, it can lead to decreased morale, lower commitment and diminished trust if not hand
3、led carefully. Some of the most difficult changes are those related to Organisational STRUCTURE and CULTURE. Changing the Organisational Structure involves redefining positions and responsibilities, re-engineering the company, redesigning jobs, departments and divisions or downsizing the organisatio
4、n. Daft, 2008,ORGANISATIONAL STRUCTURE & MANAGEMENT,ORGANISATIONAL STRUCTURE & MANAGEMENTTHE CLASSICAL APPROACH,The Classical Approach to organisation, structure and management places an emphasis on formal structures, rules, hierarchies and common principles or organisation. The Classical Approach i
5、s generally associated with the work of: F.W.Taylor (1911) - Scientific Management Henri Fayol (1916) - Management Functions Max Weber (1947) - Bureaucracy,ORGANISATIONAL STRUCTURE & MANAGEMENTTHE CLASSICAL APPROACH,1. The Principles of Scientific Management (Taylorism)Frederick F. Taylor (1911) Dev
6、elop a science for each element of a mans work, which replaces the old “rule-of thumb” method. Scientifically select and then train, teach, and develop the workman, whereas in the past he chose his own work and trained himself as best he could. Managers heartily cooperate with the men so as to insur
7、e all of the work being done in accordance with the principles of the science which has been developed. There is an almost equal division of the work and the responsibility between the management and the workmen. The management take over all work for which they are better fitted than the workmen, wh
8、ile in the past almost all of the work and the greater part of the responsibility were thrown upon the men. Embodied in the above are: Replacement of the old rule-of-thumb method by a more scientific measurement of work derived from time-and-motion studies. Standardisation of small work. Sub-divisio
9、n of labour each act preceded by preparatory acts by other workers (Specialisation) Work planned by managers in advance Workers given detailed and written instructions on what to do and how to do the work. Higher wages from increased output (money being a motivator). Alignment of workers ability to
10、the task. Selection, training and development of workers Division of work between management and workers elimination of the boss and the duty of management to help workers. Consequently, Management is a true science, resting upon clearly defined laws, rules and principles e.g. Factories, Call Centre
11、s,ORGANISATIONAL STRUCTURE & MANAGEMENTTHE CLASSICAL APPROACH,2. The Functions of ManagementHenri Fayol (1916) Planning - gather all information, define the task and make a workable plan Organising - brief the team, explain the plan, allocate tasks, set standards Commanding - monitor changes, assess
12、 the situation, make decisions, provide leadership Co-ordinating - recognise individuals contributions, ensure all component tasks are working in harmony, encourage, discipline, motivate Controlling - maintain standards, ensure all actions are towards objectives.,ORGANISATIONAL STRUCTURE & MANAGEMEN
13、TTHE CLASSICAL APPROACH,3. BureaucracyMax Weber (1947) Weber states that a bureaucratic organisation is technically the most efficient form of organisation possible. the bureaucratic organisation becomes typical of all the institutions of modern societies. (Pugh & Hickson, 1996) Characteristics Job
14、specialisation: jobs are broken down into simple, routine and well-defined tasks Authority hierarchy: Positions are in a hierarchy of authority, with each position under the authority of a higher one with a clear chain of command Employment and career: all personnel selected and promoted on the basi
15、s of their technical qualifications and offered a full-time career supported by thorough and expert training Recording: Activities and decisions are recorded in writing that form the organisational memory (the files) Impersonal Rules and Procedures: all employees are equally subject to rules and pro
16、cedures that ensure reliable and predictable behaviour,ORGANISATIONAL STRUCTURE & MANAGEMENTTHE HUMAN RELATIONS APPROACH,Moved the focus away from the idea that workers were simply a part of the production process and emphasised the fact that people work better if they are treated like human beings
17、Mayo (1927) Hawthorne Experiments McGregor (1960) Theory X & Theory Y,ORGANISATIONAL STRUCTURE & MANAGEMENTTHE HUMAN RELATIONS APPROACH,1. Hawthorne ExperimentsElton Mayo (1927) Experiments carried out at the Hawthorne plant of Western Electric in Chicago Employees raised their performance after the
18、ir working conditions were discussed with them extra attention given to them and the apparent interest shown in them by management Workers appeared to welcome the opportunity to have someone to talk to about their feelings and problems in a friendly atmosphere This placed the “Human elements” into t
19、he management of people. It demonstrated the need to see work processes as a collective co-operative activity rather than an individual, isolated one motivated by money. (“These studies gave substance to a growing suspicion that the Classical view of organisations as being peopled by machines motiva
20、ted by money was badly flawed” Burns, 1996),ORGANISATIONAL STRUCTURE & MANAGEMENTTHE HUMAN RELATIONS APPROACH,2. Theory X & Theory YDouglas McGregor (1960) The way managers manage people at work often depends upon their attitudes towards them. These attitudes are derived from assumptions they make a
21、bout human beings generally. Douglas McGregor suggested that managers operate under one of two sets of contrasting assumptions and what they believed about people can influence them to behave in that way: Theory X people only work because they have to. They dislike responsibility and must be directe
22、d, rewarded or punished and strictly controlled Theory Y people have a psychological need to work, look for fulfilment in it and welcome responsibility.,Theory X & Theory Y,Theory X The average person dislikes work and will avoid it he/she can. Therefore most people must be forced with the threat of
23、 punishment to work towards organisational objectives. The average person prefers to be directed, to avoid responsibility, is relatively unambitious, and wants security above all else. Theory Y Effort in work is as natural as work and play. People will apply self-control and self-direction in the pu
24、rsuit of organisational objectives, without external control or the threat of punishment. Commitment to objectives is a function of rewards associated with their achievement. People usually accept and often seek responsibility. The capacity to use a high degree of imagination, ingenuity and creativi
25、ty in solving organisational problems is widely, not narrowly, distributed in the population. In industry the intellectual potential of the average person is only partly utilised.,(requires an Authoritative Management style),(requires a Participative Management style),ORGANISATIONAL STRUCTURE & MANA
26、GEMENTTHE SYSTEMS APPROACH,Views organisations as a system of inter-related activities Enables key elements of organisations to be studied individually, in relation to other elements and how they interact with the external environment Systems can be open or closed ,ORGANISATIONAL STRUCTURE & MANAGEM
27、ENTTHE SYSTEMS APPROACH,Closed System,INPUTS Labour Technology Finance Materials Premises Management skills,OUTPUTS Goods Services Ideas Information,organisation,?,FEEDBACK LOOP,ORGANISATIONAL STRUCTURE & MANAGEMENTTHE SYSTEMS APPROACH,External Influences,Inputs,Outputs,Open System,ORGANISATIONAL ST
28、RUCTURE & MANAGEMENTOrganisational Structures,“The way an organisation is configured into work groups, and the reporting and authority relationships that connect individuals and groups together” Brooks (1999) “The sum total of the ways in which it divides its labour into distinct tasks and then achi
29、eves co-ordination between them” Mintzberg (1979) “Good organisation structure does not by itself produce good performance. But a poor organisational structure makes good performance impossible no matter how good the individual managers may be. To improve organisation structure will therefore always
30、 improve performance” Drucker (1989),ORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational Structures,Types of Organisational Structures: Divisional Structures (Divisionalisation) Functional Structure (Functionalisation) Matrix Structure Handys Structures,ORGANISATIONAL STRUCTURE & MANAGEMENTOrganisat
31、ional Structures1. Divisional Structures,There are 3 forms of Divisional structure: (1)Geographic when managers organise divisions according to the area of the country or world in which they operate. - Jones, et al, 1998,Divisional Structures (Geographic),Geographic,The Divisions do not accurately r
32、eflect Virgins structure for illustration purposes only.,ORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational Structures1. Divisional Structures,There are 3 forms of Divisional structure: Geographic Product when managers organise divisions according to the type of goods or services they provide Jones
33、, et al, 1998,Divisional Structures (Product),Geographic Grouping,Product Grouping,ORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational Structures1. Divisional Structures,There are 3 forms of Divisional structure: Geographic Product Customer (or Market) when managers organise divisions according to t
34、he types of customers they focus on. Jones, et al, 1998,Divisional Structures (Customer),B T,BT Retail,BT Global Services,BT Wholesale,Openreach,Customer Grouping,ORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational Structures1. Divisional Structures,Characteristics of Divisions Organisations may be
35、structured with the focus on geography, products (or services) & customers (or market) Each Division within a company is self-contained Divisional Managers have responsibility for their business-level strategy and to compete in their own market-place Each Division has a complete set of Functions Div
36、isionalisation is a form of Decentralisation.,ORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational Structures1. Divisional Structures,Disadvantages is more wasteful of resources . it must duplicate personnel and equipment or lose the advantages of specialisation (Mintzberg, 1983) Cannot take advantag
37、e of economies of scale (Mintzberg, 1983) Divisions within the same company could end up trying to market to the same customers (Mills & Friesen, 1986) Divisional organisations often drift into a hodgepodge of centralised and decentralised activity (Peters & Waterman, 1982),ORGANISATIONAL STRUCTURE
38、& MANAGEMENTOrganisational Structures2. Functional Structure,Companies, (and Divisions), organise their working activity around teams. The most common team-structure is based on Functions e.g. Production, Marketing, Sales, Human Resources, R&D, Finance, Customer Services, etc.,Functional Structure,F
39、 u n c t i o n s,Functionalisation,Functional Structures,ORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational Structures3. Matrix Structure,ORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational Structures4. Handys Structures (Handy, 1993),Web Structure Organisation built around the founder/owner with p
40、ower centralised in the hands of a few key individuals Greek Temple Organisation based upon functional specialisms and defined roles, common in a bureaucracy,Handys Structures (contd),Net A matrix in which project teams are co-ordinated by line and function emphasis is upon the task Cluster Relative
41、ly independent and self-supporting individuals e.g. professional practitioners,ORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational StructuresCentralisation,Centralisation refers to the degree to which the right to make decisions and evaluate activities is concentrated. (Koufteros & Vonderembse, 1998
42、) Advantages Easier implementation of a common policy for the organisation as a whole Provides a consistent strategy across the organisation Makes for easier co-ordination and management control Prevents sub-units becoming too independent Improves economies of scale Reduces overhead costs Allows for
43、 more stringent control,ORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational StructuresDecentralisation,Decentralisation is when a relatively large number of decisions are taken in the divisions or operating units. People in the operating units work as they think best, provided they deliver the resul
44、ts expected by corporate level and keep within some broad guidelines. e.g. The Branch Managers of the local supermarket stores having freedom over pricing and promotional activities. Advantages Allows more flexibility in meeting local needs: Divisional or Branch managers have local expertise Can res
45、pond more rapidly to customer needs, market forces, competition and environmental change Consequently, improved level of customer service Gives local managers more scope and improves motivation Gives them greater challenges, autonomy, job satisfaction and improves morale Stimulates innovation and pr
46、omotes entrepreneurship Provides for better staff recruitment and retention Tailors conditions of service to local needs Formulates pay/benefits strategy according to local situation,ORGANISATIONAL STRUCTURE & MANAGEMENTOrganisational StructuresFactors Influencing Structure,Power Culture values, bel
47、iefs & attitudes Leadership style Size of the business Scale and complexity of the organisation Technology Nature of the market Staff Skills strengths & weaknesses of key personnel,ORGANISATIONAL CHANGE,Change is necessary if organisations are to survive. Leaders in organisations, from small compani
48、es to major corporations and government agencies, have had to reconceptualise almost every aspect of how they do business to meet the changing needs of customers or clients, keep employees motivated and satisfied, and remain effective and competitive in a complex, global environment. Daft, 2008 “Whe
49、n the rate of exchange outside exceeds the rate of change inside, the end is in sight”. Jack Welch (Former Chairman & CEO, General Electric),ORGANISATIONAL CHANGETypes of Organisational Change,Business Process Re-engineering (BPR) Delayering Mergers & Acquisitions (M&As) Demerging Downsizing Outsour
50、cing,ORGANISATIONAL CHANGEOrganisational Change,Kotters 8-Step Change Model (Kotter, 1996) Step 1: Establishing a Sense of Urgency Help others see the need for change and they will be convinced of the importance of acting immediately Step 2: Creating the Guiding Coalition Assemble a group with enoug
51、h power to lead the change effort, and encourage the group to work as a team Step 3: Developing a Change Vision Create a vision to help direct the change effort, and develop strategies for achieving that vision. Step 4: Communicating the Vision for Buy-in Make sure as many as possible understand and
52、 accept the vision and the strategy,Kotters 8-Step Change Model (contd),Step 5: Empowering Broad-based Action Remove obstacles to change, change systems or structures that seriously undermine the vision, and encourage risk-taking and nontraditional ideas, activities, and actions. Step 6: Generating Short-term Wins Plan for achievements that can easily be made visible, follow-through with those achievements and recognize and reward employees who were involve
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