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530 Organisation & Management
Assignment Two (23%)
1.1. Provide a brief historical outline of the development of management philosophies from the late 1800’s to the present day using the following three era’s to group the philosophies:
In the classical period, 1800s to 1920s, there are some people who left their mark in this period of time. The first person is Henry Laurence Gantt. He focuses on the application of scientific analysis, improve the work efficiency. He can contribute a gant chart and tasks, the bonus system. Gantt Charts allow people to understand the task and required time to complete a task. This theory is more focused on task, because it is to see how long can complete a certain task without considering other factors, could affect the production or accomplishment of goals. His task and bonus system helps to make employees exert efforts to achieve greater results or higher production, because he let them know their task, guarantee rate per hour. In addition, the workers also induced bonuses promised to work hard whether meet the specific goal. The system is still tracking until now because managers find the really effective employees to work hard, to achieve a goal.
Another theory was established at the classical period was the Time and Motion Study by Frank and Lillian Gilbert. They worked with Frederick Taylor. Their research, in order to determine the best way to accomplish a certain task. Frank began his observations as an apprentice to a bricklayer. He made observations and found ways to complete the task faster and research by identifying the basic action they lay a brick and isolation it. This made him does job easier than before. He told other bricklayer who worked together about his study and they followed his suggestions were also could lay more bricks. Frank and Lillian continued to studies and later on used motion picture camera to time the tasks and capture the necessary movements that are involved. It focused on the task, increase production and helped the workers to reduce unnecessary movements that workers usually incorporate in their tasks. It also working now, because the managers still thinks of ways to increase the output
In the Neo-Classical approach, the theories that were e more focused on the human aspect or the workers, not just the task. Philosopher more interested in how to motivate employees to work hard, or how to support the workers better. They believed that if workers are happy could make them work better. Mary Parker Follet who became known during this time is because she believed that if workers partners particularly in making big decisions also let the employees to be more responsible for their actions because their are worth. In partnership with the manager. Since when, the group network is uses the different groups in different parts of the organization have equal affect the outcome. This made the managers and the workers more concrete. In order to achieve this goal, different groups were established different communication channels to ensure that the different groups are working together to achieved common goals of the organization. Follet management style is the focus of people rather than the task, but it also makes the people to work harder to increase production. Large
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Organization structure is decomposed into different group allowed to assign responsibility and accountability, and to ensure that everyone thinks they are a part of the organization, they are valuable members. Until now, in the huge communication is an important aspect of a big company.
Elton Mayo also became known during this time because of his Hawthorne study. The atmosphere significantly affected their productivity. He came up with the Hawthorne Effect research shows that the chosen for the study or the observation performed as expected. Several experiments were conducted to put forward some conclusions. The first being monetary incentives are not as effective as the attitude or the group atmosphere in raising productivity. The second conclusion was social norms, group standards, and attitudes have a greater impact on the workers’ productivity. His studies focused on people. Improve productivity; they need pay attention to the needs of the people. Even now, some companies give priority to the needs of the employees to ensure that the company runs smoothly and high production.
The modern theory of the combination of different methods. It the quantitative method of digital, the Systems Approach which was on the different systems or components when put together would comprise the entire unit, and the Contingency Approach was more on the fall back plan or believe there is no single system or approach to managing an organization.
The Systems Theory first started when the work of Katz and Kahn “The Social Psychology of Organization” appeared and James Thomson’s “Organization in Action”. System theory to explain different elements of organization are intertwined, connection in the whole process. The elements may be of different but all these elements are connected and intertwined.
Another form of modern and contemporary management is the total quality management in the form of a few people, but one of them is Edward. Deming. If the Quantitative management focus on the numbers, this one would focus on the quality. This form of management emphasizes to provide high quality goods and services. This will reduced the time fixed goods and services, because this form of management to ensure good quality or service provided to clients or customers of the type and quality, this would make them come back more or duplicate services. This is very important to the companies and organizations today. Deming proposed that management is placed in a continuous feedback loop known as the Deming cycle, managers can continuously monitor process organization can improve and improved.
1.2. The following functions underpin Fayal’s Administrative theory of Management:
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i) Explain what a manager should undertake at each stage.
ii) Explain the benefits of working through each stage.
Planning: in this stage, the manager should construct a plan of action for the future. The manager should have the foresight so as to prepare for the coming time and not be caught unaware. A good thought of plan could lead to a smooth achievement of an objective. Working well in this stage would reduce the problems could encountered in other stages.
Organizing: At this stage, the manager should make available resources plan into action. The plan would not be realized that if the resources are not available. If done well, the task of achievement would be faster and more fluent, because the goal of the task can be achieved, if all the materials and resources to implementation plan.
Coordinating: This is the part that manager make sure everyone knows what others are doing, to ensure that they would be able to adapt in the whole. Information should be shared to everyone and that the problems are solved promptly, in order not to hinder the target achievement. If the manager does this well, there would be no misunderstanding, harmonious interaction between all the workers even if they are all working in the different parts of the plan.
Controlling: This is the part of the manager where he controls the direction of the whole system. He makes corrections and modulation to ensure that everything is going to right direction and the workers do not stray or deviate from the plan. If the manager controls all goes well, the plan would be in the right direction without delay to repair parts.
Leading: this is where the manager leads, selects and evaluates the workers who are able to perform a task, ensure the target to complete. Choosing the right person for a particular job is crucial, if the task is right to do.
- Briefly explain the contingency theory of management.
Another form of Management theory is famous in the contemporary or the modern time is the Contingency Approach takes into account all the methods could be utilized by the organization. This method emphasized that there is no single universal system that can be solved and management of the organization or company. There should always have a back plan. This is both orientated to the task and employees.
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ii) List five typical contingencies a company may have to contend with.
A company’s warehouse could have too much inventory. In this situation, the company should have planned to avoid goods getting spoiled. Discount the items and sale the inventory items or as gift to staffs if it is possible.
The company's warehouse may suddenly a low stock or may even run. Companies should have a plan, if this specific warehouse running low stock, the company's next warehouse should have the stock ready to ship in a slight notice.
If the company’s communication system crashes, the company should have ways on how the information could be sent to the employees and leaders. An automatically generated memo that could be sent to all the workers to let them check their email or bulletin boards for relative notice or memos could be sent to everyone to make sure that everyone is aware the communication system has crashed.
If the company has problems with the goods or services, the company should have plan on how to fix the problems. There should be a group of people analyzing the trend and give projections, this team should be able to respond to these changes fast.
The company could also have problems with the employees when the employees suddenly lag on the productions. The company should have back plans on how the employees and recharged. Team building and all the staff go out for a while with all the staff could build strong relationships and brighten the atmosphere in the workplace.
2.1 Evaluate the following types of organizational structure: Mechanistic and Organic.
In your evaluation address the following:
- The main differences between mechanistic and organic type organization.
- The use of hierarchy and departmentalism
- Centralization versus Decentralization
- Lines of communication
- Decision making models
- Span of control
- Application in relation to conditions/environment
In an organic organization structure, free flow of information. Members share information freely, not limited structure and authority. Information can be either a vertical or horizontal. Members also practice large span of control. This type of structure is scattered. Power is not fully focused on a person but distributed to several companies or groups of individuals and organizations; so the onus falls on different
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groups and individuals, not just a single person. This is a cross-functional and cross-hierarchical structure; therefore, it does not follow the pyramid hierarchy. But it will be like flattery pyramid because power allocated to different organization or person. The structure would best be declared by a cloud that manifest that the power comes not from a single figure but the whole distribution. This structure is cross-functional as well. The functions of the different groups or departments are intertwined and complementing each other and not one lower than the others.
In the management of the mechanical structure rather than the management of the organic structure, there is a clear chain of control. The structure of authority and power can be clearly seen. They have a narrow span of control. Responsibility and the responsibility fall on a minority or leader. This is clearly visible pyramid. In the organic structure by a cloud, this mechanistic structure can best be illustrated by a pyramid. It has a very strict departmentalization and each department strict adherence to what to do and finish it. Each department has a high specialization. Therefore, in this form of structure can see the power and each department's mission is to do what.
2.2 List and explain three advantages of:
In a mechanistic organization employees are assigned in a particular area because of their specializations. People who work in specific areas or departments more accustomed to do so they become better and experienced. In each group or regional departments can easily assess, because they can clearly see that their job is to do what is responsible for a particular area. Therefore, assessment and monitoring can be done easily and improvement can be done.
In a mechanistic structure of an organization, Decisions require a shorter period of time, because there will be fewer people involved in this process. In the organization not everyone will have the opportunity to participate in the decision-making process.
An organic organization provides a more relaxed atmosphere employees or members of the group. It encourages all members a good working atmosphere.
Organic groups also encourage everyone to speak freely. Therefore, in this type of organization new and innovative idea is easy to hear and rebound. They did not experience tedious meeting to listen to the opinions of the members of the organization.
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Organic organization also encourage each member is responsible for their actions. Because this type of organization members to provide more freedom, it will also promote accountability for their own behavior. Everybody take responsibility for their actions.
2.3 List and explain three disadvantages of:
A mechanistic organization
In a mechanistic organization, there may be fewer new and innovative ideas heard because the workers or the employees may depend solely on what managers, leaders and supervisors decide.
In a mechanistic structure, there may be a lack of communication between different areas or departments of each department of the organization or group focus only on their own department and the organization as a whole.
In a mechanistic structure of organization, There may be competition between different departments. Different departments can compete with each other, because some task duplication of other departments.
Organic structure of management
They may take longer to make a decision. Because there are a lot of people involved in the decision-making process, this may take a longer time and more may be boring.
The workers or the employees may become lax and not be as productive If they have too much freedom. Rather than using the freedom to make wise decision, they may spend unproductive and simply play.
Power or authority is distributed to a few individuals or groups; It may be wondering who is close to a particular problem.
3.1 i) What organizational structure is in use at Davenport Construction?
Organic organizational structure is using at Devonport Construction.
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ii) Draw a diagram to illustrate the current structure.
3.2 Use the following headings to evaluate the current structure of the company:
Centalisation/ Decentralisation: Davenport Construction Company is dispersed. The decisions are not made by the founder James Sun. Decision are now being made by his children Dianne, Alan, and Kai who are all executive manager roles, at same time, also doing the tasks big or small for the company. The company is small but would like to expand and grow.
Coordination and Quality Assurance: The managers of Davenport Construction Company are stretched thin and they are unable to deliver quality service to their clients. With the increase of the number of complaints, the company is taken unfinished work or job, failed to meet the deadline. The company is also very poor in coordination with other organizations such as suppliers. Davenport company often force suppliers to restock supplies in a very short notice, this can avoid this kind of situation with the supplier coordination, davenport earlier so that suppliers can run out before to prepare materials.
Mechanistic/ Organic: davenport Construction Company is an Organic Structure. It is a small company and the people who are employed there are mostly people that Alan, Dianne, and Kai know or related with. Relevant to the managers or knowing the manager people reduce the boundaries between managers and employees. The information could easily be relayed to the managers. The rules and regulations are not very strict and rigid.
Span of Control: In Davenport Construction Company, the managers, Dianne, Alan, and Kai have expanded the scope of control. They decide what to do and when they decide to do things, they can take action. Their control thing reaches far. Their job description and the scope of each is vague exercise control a lot of things, or big or small.
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Formal/ Informal: The company is not a very formal organization form. The scopes and responsibilities of the managers are stretching them so thinly and the customers’ satisfaction has suffered. The managers hire people they know personally or are related with instead of looking for people who actually meet the qualifications required to complete task. Davenport Construction Company is a family business with the managers enjoy personal encounters their clients that some of their jobs suffered.
3.3 i) Recommend a different organizational structure for Davenport Construction:
Davenport Construction Company would benefit much from a Mechanistic Structure of organization with Kai being the CEO, Alan and Dianne can be division managers. They would be able to monitor contracts well, coordinate with other organizations better, learn to prioritize and delegate task and simply guide and facilitate how they want the organization to go and where they want the organization to go. And also prepare backup plan when make decision. Change the employees if necessary, like the people who do not follow the plan.
- Use a diagram to illustrate the proposed structure.
- Provide a rationale for the change in structure based on your evaluation of the company which includes at least five key advantages for Devonport Construction.
1) Find staffs that good at project indifferent areas.
2) In different area the staff has their own opinion and knowledge to make the work going under the holistic process.
3) Do not let personal project influence others.
4) Has competition between projects and between staffs.
5) Have deadline to control the project and the managers has response to holistic project.
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