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Title: In agreement with this pluralism a phenomena evolves naming theoretical jungle'


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  • In agreement with this pluralism a phenomena
    evolves naming theoretical jungle.
  • Is there, can there be, a track way through this
    jungle? Yes. But in the condition that we
    recognize that management is a practical
    knowledge ranging from motion study to cultural
    anthropology. Each of these are in the different
    stage of development.

3
The pattern of Management
  • Regarding this fact, can we arrange this
    knowledge in a kind of pattern. We Suggest yes.
    in doing so we refer to management definition. It
    consists in getting things done for, with, and
    through people.
  • Therefore knowledge about managing break down
    in two categories.

4
categories
  • Knowledge about the things to be done, the work
  • Knowledge about the people who do the work. but
    as we recognize the behavior of people
    individually regarded is affected by membership
    of social groups of all kinds such as family.
  • Thus the knowledge of Management can be divided
    into four segments

5
Knowledge about the work
  • 1.1 Knowledge about the tasks we ask people to
    perform
  • 2.1 Knowledge about the relationships between the
    tasks we ask member of a group to perform

6
2. Knowledge about the people
  • 1.2 Knowledge about the behavior of individual
    person
  • 2.2 Knowledge about the behavior of individual
    person as influenced by their membership in a
    social groups of all kinds.
  • Each of these four categories bearing on total
    activity of managing depends on a different range
    of underling science.

7
Knowledge about the tasks we ask people to
perform
  • This knowledge about the tasks of individuals
    was developed from the engineering
    sciences-mathematics, physics, mechanics,
    mineralogy, etc. That is, F. W. Taylor started
    analyzing and measuring exactly what was involved
    in the task of an operator on a lathe. From these
    first studies, the applied science we call
    industrial or management engineering has
    developed.

8
Knowledge about the relationships between the
tasks
  • This Knowledge developed out of the economic
    sciences-geography, statistics, law, and the
    subject which used to be described as commerce.
    From these studies have developed
  • a whole range of applied techniques-organizatio
    n and methods, cost accounting, management
    accounting, budgetary control, and a whole range
    of new techniques centering around the use of
    computers.

9
Knowledge about the behavior of individual person
  • This Knowledge about the behavior of
    individuals was developed out of the
    psychological sciences. But, these are
    comparatively modern studies. It was only in the
    last quartile of the 20th century that Freud and
    Adler in Austria and Jung in Switzerland began to
    develop psychology out of physiology, initially
    out of psychopathology, the study of the abnormal
    mind. The first book known to the writer on the
    application of modern psychology to industrial
    problems was the late Hugo Munsterberg's
    Psychology and Industrial Efficiency.
  • It was closely followed by Lillian B.
    Gilbreth's The Psychology of Management.
  • Pending the development of an adequate
    science of individual psychology, managers filled
    in with a series of empirical techniques
    described as industrial relations and personnel
    management

10
Knowledge about the behavior of individual person
as influenced by their membership in a social
groups of all kinds.
  • It was not till some 25 years later, following
    on the Hawthorne
  • Experiments, that attention really began to
    concentrate on human
  • behavior in groups. These studies depended on
    a series of so-called "behavioral
    sciences"-anthropology, social psychology,
    sociology, and political theory, leading up to
    political science. Accompanying the development
    of these sciences was
  • a whole body of empirical techniques
    described broadly as
  • employee relations, customer relations, trade
    union relations,
  • and public relations.
  • Therefore knowledge about managing break down
    in four categories. Management, therefore,
    considered as a body of knowledge, rests on four
    groups of underlying sciences-the engineering
    sciences, the economic sciences, the sciences
    dealing with individual physiology and
  • psychology, and the so-called "behavioural"
    or social sciences

11
  • These four groups of sciences are at very
    different stages of development and
    sophistication. this development can be explained
    by the essence of scientific method, then we
    argue that management with its constructing
    sciences is a incomplete science.

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The essence of scientific method
  • According to Henry Chatelier, the French
    physicist a scientific method involves SIX steps
  • Definition
  • Analysis
  • Measurement
  • Hypothesis
  • Experiment
  • proof

14
  • It is characteristics of much of the criticism
    of earlier writer on management that the first
    two steps in this rescript are conspicuously and,
    apparently deliberately, omitted.

15
Ambivalence in defining organization
  • In American texts the term "organization" used in
    two incompatible meanings.
  • First of all, it is used to mean the structure of
    positions or posts into which total activities
    necessary to any human system of collaboration
    are subdivided.
  • At the counterpoint, it is used to mean a system
    of human collaboration regarded as a whole.

16
  • Scientific management
  • The nature of relationship between management and
    labor

17
Scientific management
  • An essential element of Taylors philosophy of
    management, as the name of movement implies, was
    a scientific approach to managerial decision
    making.
  • The name was intended to contrast his approach
    with the unscientific one that characterized
    traditional management practices.
  • By scientific Taylor meant Based on proven facts
    (research and experiment ) rather than on
    tradition, rule of thumb, guesswork, precedent,
    personal opinion or hearsay.
  • The aim of Taylor was to forge a mental
    revolution in management.

18
relationship between management and labor
  • At the turn of the century, management and labor
    strife was widespread, and violence was uncommon.
    And a large number of radical labors were
    advocating violent overthrow of the capitalist
    system.
  • Taylor argued that this view is false, that, in
    root, the interest of both parties is the same.
    both of them would benefit from higher
    production, lower costs, provided that management
    approached its job scientifically.
  • He believed that there would be no conflict over
    how to divide the pie as long as the pie were
    large enough.

19
  • However, the relations of management and labors
    are now amicable than they were at the turn of
    century, but the all conflict has not been
    eliminated.
  • One reason for this is that no matter how big
    the pie is, there still can be disagreements over
    how to divide it up.
  • Taylor didnt anticipate this fact that as the
    pie got bigger, aspiration would rise accordingly.

20
Taylors techniques
  • Time and motion study
  • Standardized tools and procedures
  • The tasks
  • Money bonus
  • Individualized work
  • Management responsibility for training
  • Scientific selection
  • Shorter working hours and rest pauses

21
Time and motion study
  • Before Taylor, there is no objective method for
    determining how fast a job should be done.
  • Most managers simply used past experience as a
    guide.
  • Taylors solution was to break down the work task
    into its constituent elements or motions to
    eliminate wasted motions so the work would be
    done in the one best way
  • Time study now is used routinely in
    industrialized countries.

22
Problems of Time and motion study
  • Subjective elements
  • Resistance to time study because of lack of trust
    in management

23
Standardized tools and procedures
  • Before scientific management every worker had
    its own tool box. This result in inefficiencies,
    because the proper way werent used or even
    owned.
  • Taylor strongly emphasized on standardization in
    designing and using the tools.
  • Standardization was based on scientific methods
    to reach optimized results.
  • This principle like the time study is now well
    accepted.
  • This principle has been extended beyond the
    sphere of tool use to include other types of
    organizational procedures.
  • Also this technique has evolved in human
    engineering.

24
The tasks
  • Taylor advocated that each worker be assigned a
    specific amount of work, of a certain quality,
    each day based on the results of time study. this
    assigned quota he called task.
  • The term Task was equivalent to the term goal.

25
Money bonus
  • Taylor claimed that money was the what the worker
    wanted most and argue that the worker should be
    paid from 30 percent to 100 percent higher wages
    in return for learning to do his job in
    accordance with scientific management.
  • Although, the money has been attacked by Hawthorn
    studies and social scientists, Taylor claimed
    that the money is the most important thing worker
    would want.

26
Individualized work
  • Taylor was a staunch advocate of individuals as
    opposed to group work, as well as individualized
    rewards, because he believed that group work and
    reward undermined individual productivity, due to
    such phenomenon as systematic soldiering.
  • This Taylors view is opposition to today
    advocates of group work.
  • Nevertheless, his warning about the dangers of
    group work, have proven to have some validity.

27
Management responsibility for training
  • In line with his emphasis on scientific
    management approach, Taylor argued employees
    shouldnt learn their skills haphazardly from
    more experienced workers who may not be using the
    one best way but from management experts who
    are familiar with the job.
  • Now, there are no doubt that training is the one
    of the most important responsibilities of
    managers.
  • Furthermore, the objective evaluation of training
    program is becoming increasingly common.

28
Scientific selection
  • Taylor advocated selecting first class (high
    aptitude) men for a given job, because their
    productivity would be several times greater than
    that of average man.

29
Shorter working hours and rest pauses
  • Taylors experiments determined that fatigue
    would be reduced and more work would be
    accomplished if employees were given shorter
    working hours during the day in proportion to the
    difficulty of work

30
Criticism of Taylor
  • View of work motivation
  • Social factors
  • Authoritarianism
  • Specialization of labor
  • Men as machine
  • Exploitation of workers
  • Antiunionism

31
View of work motivation
  • Taylor is frequently criticized for his
    oversimplified view of human motivation.
  • He did claim that what workers want most was
    money.
  • Taylor believed that men wouldnt work or follow
    directions
  • unless they attained some payment, personal
    benefit from it.
  • This assumption is fully in accord with tenets of
    Expectancy Theory.

32
Social factors
  • The Hawthorn studies were supposed to represent a
    great enlightenment. They allegedly discovered
    the influence of human relations or social
    factors on worker motivation.
  • It has been claimed that this conclusion refuted
    Taylors alleged assumption that workers respond
    to incentives as isolated individuals.

33
Authoritarianism
  • Authoritarianism means belief in obedience to
    authority simply because it is authority,
    obedience for the sake of authority.
  • Such a doctorine is in total contradiction to
    everything Taylor stood for.
  • First and foremost, he stood for obedience to
    fact- to reason, to proofs, to experiment. It was
    not the rule of authority, he advocates but the
    rule of knowledge. there is only one master, one
    boss namely, knowledge.
  • Taylor didnt advocate participation by his
    uneducated, manual workers because they didnt
    have requisite knowledge to do their jobs in the
    one best way. So we can not knew him as a
    authoritarianist

34
Specialization of labor
  • There is a little doubt that Taylor emphasized
    maximum specialization not only for workers, but
    also for foremen and managers as well.
  • His argument was traditional one, that
    specialization decreases learning time and
    increases competence and skills.
  • To evaluate the criticism that Taylor emphasized
    specialization, one must ask
  • how much emphasis is overemphasis?
  • Advocates of job enrichment argue that
    overspecialization leads to boredom and low
    morale and lack of motivation, because of
    underutilized mental capacity?
  • However Taylor argued for matching of men and
    their jobs in accordance with their capacities.
    Those who do works that require low mental
    capacity should be people who have low mental
    capacity and vise versa.

35
Men as machine
  • This usually refers to scientific managements
    requirements of complete uniformity for a given
    job with respect to times and motions used by the
    workmen.
  • As noted earlier, he wasnt against workers
    suggestions provided they first mastered the best
    way.
  • The alternative to treating men as machine was
    the prescientific method of management, which
    allowed men to choose tools and methods based on
    their opinions and feelings rather than on
    knowledge.
  • It is forgotten that standardization included
    redesign of machines and equipments in order to
    enable men to become more skilled at the tasks
    they performed.
  • Taylor rather than treating men as machines,
    helped to develop science of matching men with
    machine.

36
Exploitation of workers
  • During Taylors lifetime was claimed that his
    system was explosive, because although under
    scientific management worker might improve his
    productivity by around 100 percent, his pay was
    increased by a lesser amount.
  • Taylor refuted this argument
  • He pointed out, that increase in productivity
    wasnt caused by worker only, but also by
    management. It was by management who discovered
    better techniques and redesigned new jobs at some
    cost to themselves. Thus they deserved some
    benefits as well.

37
Antiunionism
  • The criticism that Taylor was antiunion is true
    in only one sense. Taylor foresaw no need for
    unions once scientific management was
    established, especially because he saw the
    interests of managers and workers the same.
  • Under this conditions, the belief that unions are
    unnecessary didnt indicate lack of concern for
    employee welfare.
  • The leaders of scientific management movement,
    including Taylor, showed great concern about the
    effects of company policies on employee well
    being.

38
Fayol
  • He was a top manager and believed that there can
    be some universalistic principles which underlie
    management.
  • He like Taylor had a view on which organizational
    performance depends upon implementing management
    principals arising from experiences.
  • but unlike Taylor who approached management from
    a bottom-up viewpoint, he suggested principles
    from a top-down one.

39
Principles
  • Division of work
  • Authority And Responsibility
  • Remuneration of Personnel
  • Stability of Tenure of Personnel
  • Unity of command
  • Unity of Direction
  • Unity of Management
  • Discipline
  • Order
  • Span of control
  • Hierarchy
  • Justice
  • Centralization

40
Common points of administration theorists
  • There was disagreements between Administration
    Theorists like Fayol and Gulik, however, they
    agreed with each other in some points.
  • They agreed upon 2 managerial works, named
    division of labor and departmentalization or
    grouping

41
Division labor
  • Both Fayol and Gulic believed that if the work
    divided into its essential activity and each
    person being responsible of these activities,
    then performance is increased.

42
departmentalization
  • Other shared principle is departmentalization
    which refers to integrating homogenous activities
    (tasks) or works into same departments. Through
    this principle, it is possible to manage and
    coordinate works and workers efficiently.

43
Critics of Administrative Theory
  • The most horrible critics against Administrative
    theory, especially its claim concerning the
    existence of universal principles underlying
    management.
  • These attacks mostly was from Simon who believed
    that in best condition, this idea is unnecessary,
    and in the worse one, is misleading.

44
Simons idea
  • Simon in his influential article The Proverbs
    of Administration asserts that administrative
    principles are like proverbs. A fact about
    proverbs that greatly enhances their quotability
    is that they always occur in a mutually
    contradictory pairs.
  • look before you leap, but, he who hesitates is
    lost.
  • He believed that if proverbs is a matter of
    rationalizing behavior it is ideal. But if one
    seek to use proverbs as the basis of scientific
    theory, the situation is less happy. thus this is
    both convenience and serious defect, depending on
    the use of it.

45
  • He claims that most of propositions that make up
    administrative theory share, this defect of
    proverbs.
  • In line with his asserts, he focuses on four
    shared principles and tries to uncover their
    contradictions.
  • According to him although these pairs lead to
    apposite organizational recommendations, but
    there is nothing in the theory to indicate which
    one is correct to apply.

46
Some accepted principles
  • Administrative efficiency is increased by
    specialization of tasks among groups
  • Administrative efficiency is increased by
    arranging members of group in the determinate
    hierarchy of authority.
  • Administrative efficiency is increased by
    limiting the span of control
  • Administrative efficiency is increased by
    grouping the workers

47
  • He proves that each pair of these principles is
    mutually exclusive

48
Weber
  • Weber is one of most famous sociologists around
    the world. His idea, in general relate to
    establish some mechanisms in social sciences in
    order to minimize researchers bias and to
    increase research objectivity.
  • In line of his concerns he introduced a concept,
    named Ideal Type. This concept dont refer to a
    favorite condition, nor to an average, but it
    concerns to a pure, abstract construct that must
    be compared against empirical data.
  • So Ideal Type of bureaucracy is not an ideal
    and favorite arrangement, but is a typical
    organization which is the consequence of
    rationalization of society.

49
Characteristics of bureaucracy
  • It consists of a formation of offices with each
    office having a specified span of control and
    specified duties and responsibilities.
  • The offices are organized into a hierarchy with
    which lower office under the control and
    supervision of higher one.
  • Operations are governed by a system of rules and
    consist of the application of these rules to
    particular cases.
  • Each office is occupied by an official who
    conducts himself in a formalistic impersonality.
  • The occupancy of each office is based on
    technical competency

50
Critics to Weber
  • Psychological pathologists
  • Methodological critics
  • Other critics

51
Psychological pathologists
  • Merton
  • R. Grice

52
Gouldners critic
  • Gouldner asserts that bureaucracy has
    orientations, especially toward obedience from
    rules, that make individuals conservative. In
    fact, Bureaucracy deteriorates innovation.

53
R. gris
  • R. Grice, like Gouldner, asserts that
    accomplishing goals in modern organizations need
    them to use some tools and mechanisms which are
    apposite to mental growth of an individual.
  • He believed that each person moves from
    immaturity to maturity. The latest phases of this
    growth require mental independence, but
    organizational requirements overwhelm this
    feeling. Thus organizational men are immature
    creatures.

54
Methodological critics
  • Scott and others showed that Weber has mistaken
    in setting the bureaucracy concept, in that,
    this concept has two contradictory bases. In the
    one hand, Weber asserts that the most important
    factor that causes employing a person into a job
    is his technical competency( personal base of
    power). On the other hand, he claims that the
    only true base of power is position.

55
Others critic
  • Merton asserts that most of social phenomenon
    have dual function latent and manifest one.
    Manifest functions are those which we prefer to
    occur or ones which that arrangement
    intentionally has been set to accomplish them.
  • Latent functions are those which we dont prefer
    to occur. They are dysfunction.
  • Merton believed that bureaucracy is not an
    exception. It has some dysfunctions. It was
    established to accomplish goals fast and
    carefully. But as time goes on, it shows some
    dysfunctions. For example, rules and regulations
    are set in accordance with these goals, but
    bureaucrats only want to obey rules. In these
    conditions rules replace with goals. It is that
    Merton, called it as goal displacement. These
    conditions are in contrast with bureaucracy goals.

56
Organizational structure
57
  • Within recent years, organizational analysts
    have realized that there is no one best way to
    organize and that not all organizational
    structures are equally effective. Rather,
    organizations come to be viewed as open systems
    that must be designed so as to handle best their
    respective contingencies. As a consequences,
    considerable researches have been directed toward
    isolating factors upon which an organizations
    structure may be contingent.

58
  • although, majority of variables have been
    identified, a vast majority of studies have
    focused on the respective role of size,
    technology, and environment.

59
Dimensions of structure
  • Formalization
  • Complexity
  • Centralization
  • Administrative intensity

60
Formalization
  • Formalization is described as degree to which
    rules and procedures within a system are
    specified.

61
Complexity
  • complexity refers to degree or extent of
    differentiation within a given system, where
    differentiation may be horizontal, spatial,
    vertical or personal in nature. Thus complexity
    includes the number of hierarchical levels (
    vertical ), the number of functions ( horizontal
    ), the number of operating sites ( spatial), and
    the degree of personal expertise ( personal)

62
Centralization
  • centralization is defined as the locus of
    formal control or power within a system. It
    encompasses such factors as the locus of decision
    making authority, the hierarchy of authority,
    autonomy and participative decision making.

63
Administrative intensity
  • administrative intensity, also referred to as
    supportive or administrative component, is a
    measure of personnel within a system. It has been
    expressed as the ratio of administrative
    personnel to total or production labor, or simple
    counts of administrative personnel

64
Technology and structure( Woodwards study)
  • Contemporary interest in technology as a
    determinant of structure began with Woodward's
    studies. When no relationship was found between
    the use of classical management principles and
    firm success, she allocated the 100 varied
    English organizations to categories along a scale
    of technical complexity. Woodward defined three
    levels of increasing technological complexity
    unit and small batch production, large batch and
    mass production, and process production. Using
    this scale, she found a linear relationship
    between technical complexity and various measures
    of administrative intensity and vertical
    differentiation, but a curvilinear relationship
    to others, such as span of control of first line
    supervisors. In general, firms at the extremes of
    technological complexity (unit and continuous
    process) had organic management system
    structures, whereas those at the center were more
    mechanistic. Firms closer to the median scores
    for structure in their technological grouping
    were economically more successful than firms
    above or below the median. Thus, she concluded
    that success depended on the appropriateness of
    an organization's structure for a particular
    operations technology -the "technological
    imperative". Subsequent research by Zwerman and
    Blau et al. supported Woodward's findings.

65
Technology and structure( Perrows study)
  • Perrow offers a conceptual framework for the
    comparative analysis of organizations that
    considers technology to be the major structural
    determinant. Defining technology as the actions
    an individual takes upon an object so as to bring
    about a change in that object, Perrow proposes
    two dimensions in technology
  • the number of exceptions encountered and the
  • degree to which search procedures are
    analyzable.
  • Together, these dimensions determine four
    technology types
  • craft, routine, engineering, and nonroutine.
    Considering routine and nonroutine technologies
    to be the extremes, Perrow maintains that control
    and coordination methods will vary with
    technology type. Routine technologies allow for
    greater bureaucratization of an organization's
    structure, whereas nonroutine technologies
    require greater structural flexibility.

66
Perrows typology of technology
67
summary
  • This brief review of the technology literature
    points up several issues. First, there is no
    unanimity that technology affects organizational
    structure. Although some studies found strong
    relationships, others did not. This inconsistency
    may stem partly from the types of technology
    considered. Many studies that found weak
    relationships between technology and structure
    focused exclusively on operations technology,
    even though these same writers argued that
    organizations may employ more than one type of
    technology. Although the impact of operations
    technology may be slight in some organizations,
    this is not to say that other technologies or
    combinations of technologies could not explain
    the remaining variance in an organization's
    structure as well as or better than size. Second,
    there is little consistency in how technology is
    measured and few have offered validation of their
    measure(s). This problem may stem from the lack
    of consensus as to what technology is. Third, the
    impact of technology is likely to be selective,
    affecting some structural dimensions more than
    others. Fourth, as Blau et al. indicate, the
    assumption that there is a linear relationship
    between technology and structure may be invalid.
    Finally, most researchers suggest that technology
    per se determines structure -although Thompson
    and Reeves and Woodward suggest that it is not
    the technology per se, but the nature of the
    interdependency created by a technology that is
    important in determining an organization's
    structure.

68
Size and structure
  • In addition to research focusing on the
    relative importance of size versus technology as
    determinants of an organization's structure,
    considerable
  • work has been concerned exclusively with the
    influence of size alone, particularly as it
    relates to structural components of complexity
    and administrative intensity. Most research on
    size has centered on this latter relationship.
    The basic assumption that underlies research
  • on administrative intensity is that
    increases in size (number of people) lead to
    increases in control and coordination
    requirements. Based implicitly
  • on administrative management theory, the
    argument is advanced that increases in the number
    of personnel at lower levels will result in
    disproportionate increases in the number of
    administrative personnel. This is due to the
    need to maintain optimal spans of control and the
    belief that only administrative personnel perform
    control and coordination functions. Therefore, in
    what is referred to as Parkinson's Law, the
    proportion of the containing organization given
    over to the administrative component will
    increase disproportionately with increases in
    organization size.

69
Terrien and Mills
  • In a study of California school districts,
    Terrien and Mills found that the administrative
    component increased with size regardless of
    school type (elementary, high, and unified).

70
Blau schoenherr study
  • Blau and Schoenherr, based on their analysis
    of employment security agencies, argued that size
    influences both complexity and administrative
    intensity, but that the effect of size on
    administrative intensity is greater. Since
    administrative intensity decreased with size,
    even though it increased with structural
    differentiation, they concluded that the direct
    effect of size to reduce administrative intensity
    must be greater than the indirect effects of
    size, through structural differentiation, to
    increase it

71
Summary
  • This review points out several issues.
    First, although larger organizations generally
    have smaller administrative intensities than
    smaller organizations, recent findings raise
    serious questions as to why. Size may not be the
    only factor that influences administrative
    intensity. Moreover, since administrative
    intensity is not a homogeneous construct, the
    relationship between its various dimensions and
    the contingency variables identified here are not
    clear. Nor is the relationship of administrative
    intensity to the structural dimensions of
    formalization, centralization and complexity.
    Second, there is no consensus as to how size
    should be measured. Although most researchers
    have used some count of system members, others
    have not
  • Finally, the relationship between size and
    structure is not clear. Although some have found
    strong relationship and argue for its causal
    nature, others have found no such relationship or
    have argued for its being a consequence rather
    than a cause .

72
Environment and structure
  • One of the most widely discussed and least
    understood concepts in the field of
    organizational analysis today is the relationship
    between the organization and its environment. To
    date, much of the theoretical and empirical work
    on this issue has focused on the uncertainty
    element. Most researchers and theorists emphasize
    that organizations must adapt to their
    environment if they are to maintain and/or
    increase their effectiveness. The problem has
    been how "best" to describe the environment

73
Burns stalker study
  • Burns and Stalker suggested that the stability of
    an organization's environment is important in
    determining an organization's structure. They
    distinguished between two types of
    organizations-organic and mechanistic. The latter
    was found better suited to stable environments
    because of its greater centralization and
    formalization. The organic structure, with lower
    centralization and formalization, was found
    better suited to more dynamic environments. Child
    also found environmental stability to be related
    to organizational structure and effectiveness

74
Burns stalker model
static
dynamic
organic
mechanistic
75
Lawrence Lorsch study
  • Lawrence and Lorsch considered environmental
    uncertainty to be a key variable.
    Operationalizing uncertainty by measuring the
    clarity of information, the degree to which
    cause-effect relationships are known, and the
    time span of definitive feedback, they
    characterized an organization's environment as
    diverse if a wide range of uncertainty was
    perceived among its different parts, and
    homogeneous if the range was narrow. Using a
    sample of ten firms from three industries, they
    found that in successful organizations, each
    organization subunit met the demands of its
    subenvironment. In diverse environments, subunits
    were more differentiated than those in
    homogeneous environments. In this case,
    differentiation refers not only to differences in
    formal structure, but also to differences in the
    cognitive and emotional orientation of subunit
    members.

76
summary
  • This brief review of the environmental literature
    points up several issues. First, in few studies
    has the term environment been thoroughly
    discussed or made explicit. Second, most
    researchers, in treating the environment as the
    "cause" of organization uncertainty, preclude the
    possibility of viewing particular environmental
    characteristics as dependent variables and thus
    subject to manipulation by the organization.
    Third, the impact of environmental uncertainty on
    internal operations of the organization is likely
    to be confined to managers at the institutional
    level or in boundary spanning positions. Fourth,
    there remains the problem of how environments
    become known to managers.

77
Organizational culture
78
Organizational culture
  • Organizational culture has been defined as
    patterns of shared values and beliefs over time
    which produce behavioral norms that are adopted
    in solving problems (Owens 1987, Schein 1990).
    Schein (1985) has also noted that culture is a
    body of solutions to problems which have worked
    consistently and are therefore taught to new
    members as the correct way to perceive, think
    about, and feel in relation to those problems. In
    fact, these shared philosophies, assumptions,
    values, expectations, attitudes, and norms bind
    an organization together (Kilman et al. 1985).
    Thus, the set of integrated concepts becomes the
    manner or strategies through which an
    organization achieves its specific goals. It can
    therefore be postulated that an organization's
    collective culture influences both the attitudes
    and subsequent behaviors of its employees, as
    well as the level of performance the organization
    achieves.

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  • Schein (1990) has noted that culture is thought
    to permeate the organization on at least three
    fundamental levels. At the surface, one may
    observe visible artifacts of the organization,
    that is, its structure, technology, rules of
    conduct, dress codes, records, physical layout,
    stories, and rituals. Beneath this dimension is a
    second level, organizational values, and,
    finally, underlying assumptions about the nature
    of organizational "reality" that are deeper
    manifestations of values. Of course,
    investigating processes of culture at the latter
    level is more difficult, as they cannot be
    directly observed and measured.

80
Systems of culture
  • Allaire and Firsirotu (1984) have also suggested
    that three interrelated sets of systems help
    identify organizational culture
  • The first is a sociocultural system
  • organizational belief system
  • collective individuals

81
sociocultural system
  • is composed of the perceived functioning of
    formal organizational structures, strategies,
    policies, and management practices relative to
    the work structure in the organization. Because
    these activities have been consistently
    successful, they become regular practice. This
    aspect of organizational culture reflects the
    orientation of classical management theory toward
    the goals of the organization and how tasks must
    be best organized to meet those goals (Mackenzie
    1986, Thompson 1967). Leaders make important
    decisions about the work structure of
    organizations that fundamentally shape how
    workers go about doing their jobs. In managing
    the core technology of the organization, leaders
    help crystyalize production goals, achieve more
    certainty in how to achieve goals, and develop
    strategies to organize the work force to
    translate goals into outcomes (Bossert et al.
    1982, Mackenzie 1986, March and Simon 1959).

82
organizational belief system
  • embodies the myths, values, and idealogies of the
    organization. Researchers have suggested that
    developing this aspect of culture is a powerful
    function of organizational management. Leaders
    attempt to clarify values and to define the
    organization's purposes. This domain emphasizes
    communication of goals and production results,
    both internally and externally (Heck, Larsen, and
    Marcoulides 1990 Reynolds 1986). For example,
    Bolman and Deal (1984) have noted the
    "mythological" roles often played by leaders as
    ceremonial heads of organizations, in an effort
    to clarify role esponsibilities, teach
    organizational values, and promote the
    organization's mission. These symbolic behaviors
    may represent attempts to transmit organizational
    values at deeper levels of inculturation.

83
  • one co-effect of the socialization of
    organizational values is organizational climate,
    or the perceptions held by participants as to the
    nature of the organization. Employees have a
    variety of perceptions about how well the work
    environment of the organization is functioning
    including the quality of social interactions,
    recognition of their work-related efforts, the
    types of communication channels open to them,
    access to technology and resources, and demands
    or stress placed upon them by the organization.
    Besides managing the core technology of the
    organization, leaders also may have some impact
    on building a productive organizational climate
    through the emphasis of particular sets of
    organizational values, and the amount of effort
    expended in this domain is predictive of
    organizational outcomes (e.g., Heck et al. 1990,
    Owens 1987). Part of the leader's role in
    managing this subsystem may also include
    "buffering" the organization from outside
    influences, so that goals may be attained and
    input from the environment is channeled
    constructively.

84
collective individuals
  • The last domain of culture suggested by Allaire
    and Firsirotu (1984) is the collective
    individuals, with their unique experiences,
    belief systems, goals, and personalities. While
    such attitudes and values may be at least
    partially shaped by the organization's belief
    system, individuals may be thought of as
    possessing a wide range
  • of perceptions about social, political, and
    work-related issues. Though the goal is to
    socialize employees to perpetuate the
    organizational culture, the process does not
    always have uniform effects on individuals.
    Fuller et al's (1982) concept of organizational
    efficacy further suggests that management
    behavior may to some extent be
  • constrained by the often divergent goals,
    attitudes, and decisions of individual workers.
    The attitudes and values of employees
    individually, as well as about organizational
    climate, therefore, may be important variables
    that affect organizational performance.

85
Dimensions of culture
  • power Distance
  • Uncertainty Avoidance
  • Individualism, Collectivism
  • Masculinity and its opposite pole Femininity

86
power Distance
  • can be defined as the degree of inequality among
    people which the population of a country
    considers as normal from relatively equal (that
    is, small power distance) to extremely unequal
    (large power distance)

87
Uncertainty Avoidance
  • it can be defined as the degree to which people
    in a country prefer structured over unstructured
    situations. Structured situations are those in
    which there are clear rules as to how one should
    behave. These rules can be written down, but they
    can also been unwritten and imposed by tradition.
    In countries which score high on uncertainty
    avoidance, people tend to show more nervous
    energy, while in countries which score low,
    people are more easygoing.
  • A (national) society with strong uncertainty
    avoidance can be called rigid one with weak
    uncertainty avoidance, flexible. One way of
  • describing countries where uncertainty
    avoidance is strong, is to say that in these
    countries a feeling prevails of "what is
    different, is dangerous." In weak uncertainty
    avoidance societies, the feeling would rather be
    "what is different, is curious".

88
Individualism, Collectivism
  • Individualism, is the degree to which people in
    a country prefer to act as individuals rather
    than as members of groups. The opposite of
    individualism can be called Collectivism, so
    collectivism is low individualism. In
    collectivist societies a child learns to respect
    the group to which it belongs, usually the
    family, and to differentiate between in-group
    members and out-group members (that is, all other
    people). When children grow up they remain
    members of their group, and they expect the group
    to protect them when they are in trouble. In
    return, they have to remain loyal to their group
    throughout life. In individualist societies, a
    child learns very early to think of itself as "I"
    instead of as part of "we". It expects one day to
    have to stand on its own feet and not get
    protection from its group anymore and therefore
    it also does not feel a need for strong loyalty.

89
Masculinity and Femininity
  • is the degree to which values like
    assertiveness, performance, success and
    competition, which in nearly all societies are
    associated with the role of men, prevail over
    values like the quality of life, maintaining warm
    personal relationships, service, care for the
    weak, and solidarity, which in nearly all
    societies are more associated with the role of
    women. Women's roles differ from men's roles in
    all countries but in some societies, the
    differences are larger than in others. If the
    differences are large, the dominant values are
    "masculine," and the society can be called
    "tough" to its people it becomes a performance
    society. In a masculine society, even the women
    have fairly tough values, but not as much as the
    men. If in a country the differences between
    women's roles and men's roles are relatively
    small, the dominant values are more "feminine,"
    and the society is more "tender" to its people
    it becomes a welfare society. In a feminine
    culture, even the men have fairly tender values.
    One consequence of the fact that in masculine
    countries the values of men and women are more
    different than in feminine countries, is that
    women's values differ less across countries than
    men's values.

90
Culture and organizational models
91
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92
  • From the four dimensions of national cultures
    Power Distance and Uncertainty Avoidance affect
    both the way in which people organize themselves
    and the way in which they write about organizing.
    The two dimensions cover the two crucial
    questions which have to be answered in any effort
    at organizing. Power Distance deals with who will
    decide what Uncertainty Avoidance with
    establishing predictability of outcomes, with the
    need for structures and rules. Both questions are
    culturally subjective other things being equal,
    in countries with smaller Power Distances, the
    leaders as well as those led will function best
    with a wider spread of decision power than in
    countries with larger P.D.s in countries with
    stronger Uncertainty Avoidance, all will need
    more structure and rules than in countries with
    weaker U.A.

93
Cultures and Organization Theories
  • Not only the people within organizations, but
    also those writing about organizing are children
    of a culture they grew up in families, went to
    schools, and worked for employers. Their
    experiences represent the material on which their
    thinking and writing has been based. As stated
    earlier, organization theorists are as perfectly
    human and as culturally biased as other mortals.
    For each of the four quadrants of the P.D. X U.A.
    matrix I have selected a classical author who
    described organizations in terms of the model
    belonging to his corner of the diagram the
    pyramid, the machine, the market, or the family.
    The four are approximate contemporaries all were
    born in the mid-19th century.

94
Pyramid Fayol
  • In Fayol's conception the authority is both in
    the person and in the rules (the statute). We
    recognize the model of the organization as a
    pyramid of people with both personal power and
    formal rules as principles of coordination.

95
Machine Weber
  • Max Weber (1864-1920) was a German academic with
    a university training in law and some years'
    experience as a civil servant. He became a
    professor of economics and a founder of German
    sociology. In his own design for an organization
    Weber describes the bureaucracy. The word
    nowadays has a distinctly negative connotation,
    but to Weber it represented the ideal type for
    any large organization. In Weber's conception the
    real authority is in the rules. The power of the
    "officials" is strictly delimited by these rules.
    We recognize the model of the organization as a
    well-oiled machine which runs according to the
    rules.

96
Market Taylor
  • Frederick Winslow Taylor ( 1856-1915) was an
    American engineer who, contrary to Fayol, had
    started his career in industry as a worker. He
    attained his academic qualifications through
    evening studies. From Chief Engineer in a steel
    company he became one of the first management
    consultants. Taylor was not really concerned with
    the issue of authority at all his focus was on
    efficiency. He proposed to split the task of the
    first-line boss into eight specialisms, exercised
    by different persons. Thus, every worker would
    have eight
  • bosses, each with a different competence.
    This part of Taylor's ideas was never completely
    implemented, although we find elements of it in
    the modern matrix organization in which an
    employee has two (or even three) bosses, usually
    one concerned with productivity
  • and one with technical expertise.

97
  • In the conception of Taylor and Follett the
    authority is neither in the person nor in the
    rules, but, as Follett puts it, in the situation.
    We recognize the model of the organization as a
    market, in which market conditions dictate what
    will happen.

98
Family Sun yat -sen
  • Sun Yat-sen (1866-1925) is a scholar from the
    fourth quadrant of the Power Distance X
    Uncertainty Avoidance matrix, from China. He
    received a Western education in Hawaii and Hong
    Kong and became a political revolutionary. As
    China started industrialization much
  • later than the West there is no indigenous
    theorist of industrial organization contemporary
    with Fayol, Weber, and Taylor. However, Sun was
    concerned with organization, albeit political. He
    wanted to replace the ailing government of the
    Manchu emperors by a modern Chinese state. He
    eventually became for a short period nominally
    the first President of the Chinese Republic.

99
Sun's design for a Chinese form of government
represents an integration of Western and
traditional Chinese elements. From the West, he
introduced the "Trias Politica" the Executive,
Legislative, and Judicial branches. However,
unlike in the West, all three are placed under
the authority of the President. Two more Branches
are added, both derived from Chinese tradition
and bringing the total up to five the
Examination Branch (determining access to the
Civil Service) and the Control Branch, supposed
to audit the government. This remarkable mix of
two systems is formally the basis of the present
government structure of Taiwan, which has
inherited Sun's ideas through the Kuomintang
party. It stresses the authority of the President
(large Power Distance) the legislative and
judicial powers, which in the West are meant to
guarantee Government by Law, are made dependent
on the ruler and paralleled by the examination
and control powers which are based on Government
of Man (weak Uncertainty Avoidance).
100
Organizational cultures and performance
101
Organization structure
  • This construct reflects the structure and
    operational processes of an organization. As
    conceived in this study, the construct includes
    the relative size and complexity of the
    administrative hierarchy, as well as whether the
    organization is primarily manufacturing or
    service-oriented. The construct is measured by
    the complexity evident in the organization's
    resource and communication flow patterns (XI
    Complexity), the extent of breadth and depth
    evident in the organization's hierarchy (X2
    Sophistication), and the relative focus of the
    organization with respect to its output
    (X3Product/Service Line).

102
Task organization
  • This construct represents the typical strategies,
    policies, and actions used by the organization in
    achieving its production goals. The construct is
    measured by the diversity and intensity of
    methods used in selecting new employees (Yl
    Selection), the quality and diversity of methods
    used in judging employee performance (Y2
    Evaluation), the propriety of criteria and
    practices for renumeration (Y3 Compensation),
    the extent that members are dedicated to
    performing their organizational koles (Y4
    Performance), the extent that managers take
    personal interest in the welfare and performance
    of their employees (YS Mentoring) and utilize
    effective methods of selecting decision-making
    alternatives (Y6 Decision Making),

103
Organization climate
  • This construct is described by the perceptions of
    workers about a variety of conditions concerning
    the work environment. It is measured by the
    awareness among employees of the nature of the
    organization's output as a blend of product and
    service (Y8 Industry Role), the opinion among
    employees of the ease with which communications
    and resources are transmitted among the
    organization's elements (Y9 Flow Mechanisms),
    the perceptions among employees of the quality of
    interactions and recognition within and across
    organizational levels, as well as how the needs
    of individuals are a concern to the organization
    (Y10 Organizational Life), the awareness among
    employees of the organization's use of available
    technology and adoption of new ideas (Y11
    Technology), and the perceptions of how much the
    organization exerts pressures on individuals yet
    is sensitive to the effect of stress (Y12
    Stress).

104
Organization values
  • This construct or latent variable (the terms can
    be used interchangeably) describes the
    principles, idealogies, and values that an
    organization holds as desirable in the practice
    of serving its clients. It is measured by the
    emphasis the organization places on risk-taking,
    and its acceptance of occasional failure as a
    result (X4 Risk), the emphasis the organization
    places on protecting its employees in the
    workplace (XS Safety), the emphasis the
    organization places on productivity and
    efficiency (X6 Efficiency), on integrity and
    orderliness of performance (X7 Professionalism),
    on rapid response to expanding market
    opportunities, advertising, public image, and
    community service (X8Marketing Image), and on
    creating new outputs and improving existing ones
    (X9 Research Development).

105
Employee attitudes
  • This construct reflects the beliefs of employees
    about a variety of issues related to social,
    political and organizational concerns, some of
    which may be influenced by the organization and
    some of which may be separately determined. In
    the present study, it is measured by the extent
    that employees resent recent organizational
    policies in acceptance of minorities (Y13
    Prejudice/Tolerance), regard nationalism as
    important (Y14 Nationalism), regard common
    courtesy and punctuality as important work
    attributes (Y15Social Amenities), regard
    dedication and commitment to the organization as
    important (Y16 Commitment), and the extent to
    which employees perceive that management involves
    them in the decision-making process (Y 17
    Involvement).

106
Organization performance
  • This construct reflects the extent of goal
    achievement in the organization's workforce,
    capital, marketing, and fiscal matters. It is
    measured by the extent of sales fulfillment, as
    measured by gross revenue relative to the value
    of the product (or service) line (Y18 Volume),
    the extent of penetration into the organization's
    potential customer base (Y19 Share), the extent
    of revenue surplus over expense resulting from
    organizational operations (Y20 Profit), and the
    extent of surplus in relation to risk, as
    measured by gross profit relative to assets and
    equity invested (Y21 Return).
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