Académique Documents
Professionnel Documents
Culture Documents
Theories of Management
Page 1
Theories of Management
Theories of Management
Mechanistic organizations
discourage creativity and innovation,
conformity, compliance, and strict adherence to
standards are rewarded
encourage people to keep their place and obey orders
rather than to take an interest in, challenge, and
question what they are doing
In the extreme may erode
of the human spirit and capacity
Page 3
for spontaneous action
Theories of Management
straightforward task
stable environment
precision in outputs is valued
clear accountability is desirable
human machine parts are compliant
Page 4
Theories of Management
Theories of Management
Theories of Management
Theories of Management
Contextu
al
Factors
Strategy
Environment
Orgl Tech
Size
Orgl
Culture
Uncertai
nty
(The need to
process
information)
Organizati
on
Structure
(The capacity
to process
information)
Page 8
Behavi
or
Organizati
on
Outcomes
, e.g.
Innovation
Adaptability
Efficiency
Commitment/
Satisfaction
Economy
Leadership
Leadership
Individual
Individual &
& Org.
Org.
Outcomes
Outcomes
The
The Organization
Organization
Competitors
Industry
Demographics
Government
Teams
Teams
Natural Environment
Workers
Workers
(non-leaders)
(non-leaders)
Trends
External Environment
Page 9
Customers
Strategy, Organization
Design,
and Effectiveness
Organization Theory and
Design
Eleventh Edition
Richard L. Daft
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
11
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Organizational Purpose
Strategic intent - organizations energies and
resources are directed toward a focused,
unifying, and compelling goal
Mission
Competitive Advantage
Core Competence
12
Operating Goals
Overall Performance
Resources
Market
Employee Development
Innovation and Change
Productivity
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
13
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Organizational Operating
Goals
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
16
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
FIVE FORCES of
Competitive Power
Supplier Power:Prices UP? This is driven by the number of suppliers of each key
input, the uniqueness of their product or service, their strength and control over you,
the cost of switching from one to another, and so on. The fewer the supplier choices
you have, and the more you need suppliers' help, the more powerful your suppliers
are.
Buyer Power:Prices Down? Again, this is driven by the number of buyers, the
importance of each individual buyer to your business, the cost to them of switching
from your products and services to those of someone else, and so on. If you deal with
few, powerful buyers, then they are often able to dictate terms to you.
Competitive Rivalry:Number and capability of your competitors. Many or Few differentiation.
Threat of Substitution:This is affected by the ability of your customers to find a
different way of doing what you do Uniqueness? If substitution is easy and
substitution is viable, then this weakens your power.
Threat of New Entry:Power is also affected by the ability of people to enter your
market. Cost and Time? Protection?. If you have strong and durable barriers to entry,
then you can preserve a favorable position and take fair advantage of it.
Reprinted by permission ofHarvard Business Review. From "How Competitive Forces Shape Strategy " by Michael E. Porter, March 1979.
Copyright 1979 by the Harvard Business School Publishing Corporation; all rights reserved.
Porters Competitive
Strategies
Differentiation strategy to distinguish
products or services from others in the
industry
Low-Cost Leadership increase market
share by keeping costs low compared to
competitors
Organizations may choose to focus broad or narrow in
reaching multiple markets.
18
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Porters Competitive
Strategies
19
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Defender
Analyzer
Reactor
20
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Organiza
tion
Design
Outcome
s of
Strategy
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Contingency Factors
Affecting Organization
Design
23
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Assessing Organizational
Effectiveness
Effectiveness takes into consideration a range of
variables at both the organizational and departmental
levels.
Efficiency relates to the working of the organization and
amount of resources used to produce output.
Measuring Effectiveness:
The Goal Approach
The Resource-Based Approach
The Internal Process Approach
The Strategic Constituents Approach
24
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Indicators of Organizational
Effectiveness
Pick the
three most
important
in your
judgment.
WHY?
25
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Approaches to Measuring
Organizational Effectiveness
26
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
An Integrated
Effectiveness Model
Competing values model tries
to balance concern with various
parts of the organization
The human relations
emphasis incorporates the
values of an internal focus and
flexible structure
EVALUATION goal versus competition -GE
27
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Four Approaches to
Effectiveness Values
28
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
29
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Design Essentials
Organization exist for a purpose
Strategic intent includes competitive
advantage and core competence
Strategies may include many techniques
There are models to aid in the development
of strategy
Organizational effectiveness must be
assessed
No approach is suitable for every organization
what do you need to take into account?
30
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.