Marketing and management

Chapter 2 - Models of Management

Why study models of management?

●Model/theory: represents a complex phenomenon, identifying the major elements and relationship.

Pfeffer and Sutton

●Why managers ignore evidence ?

• Trust on personal experience
• Prefer to use method/solution that worked before (also for famous companies)
• Susceptible to consultants who promote their solutions
• Rely on dogma, myth
• Uncritically imitate practices that appear to have worked well for famous companies

Alan Fox

●Relationship between managers and employees

●Unitary perspective: organizations aim for common interests

●Pluralist perspective: division of labour creates groups with different interests

●Radical perspective: vision of labour sustains unequal social relations (will keep managers and employees in conflict)

Gareth Morgan

●Different metaphors to represent organisation (machines, political system, …)

Critical thinking helps improve mental models:

Working effectively depends on being able and willing to test the validity of a theory/model, and to use the experience to:

• Identify and challenge assumptions
• Recognise the importance of the context
• Imagine and explore alternatives
• See limitations

The competing values framework

Quinn[pic 1]

Quinn:

●Successive models of management complement each other

●Managers become trapped in their own style and organisation’s values —> framework suggests value in different strategies.

Four underlying philosophies:

• Rational goal: maximising output
• Human relations: developing people
• Internal process: consolidation, continuity
• Open systems: expansion, change

● self awareness: a persons understanding of their preferred reaction to people and situations.

Frederick Taylor

●Scientific management: create a science of factory production

●Maximum prosperity for employer and employee by nurse that worker reaches maximum efficiency

●Principles

• Use scientific methods to determine best way of doing a task
• Select best person to do the job (physical, mental qualities)
• Train, teach, develop worker (precisely defined procedures)
• Provide financial incentives (ensure worker follows procedures)
• Centralise responsibility of planning and organising to manager
• Keeping record and control stock to support manufacturing

Frank and Lilian Gilbreth

●Reek down each component, improve it and reorganise it more efficient

●Psychological aspect of scientific management enables individuals to reach their potential (workers gain del-respect and pride)

Operational Research

●Scientific method of providing managers with quantitative basis for decisions regarding the operations under their control

●Cannot consider human and social uncertainties (OR contributes to analysis, only part of the solution)

Principles of a rational goal model

●Systematic work methods

●Detailed division of labour

●Centralised planning and control

●Low-involvement employment relationship (e.g. using temporary staff)

●Goal: maximization of output

●Values: direction, goal clarity, productivity, accomplishment

...