Historical perspectives (p. 26):

‘Classical perspective’ – sought to apply rational calculations to turn organisations into efficient, well-oiled machines.

Scientific management – (Winslow Taylor): decisions about orgasniaations & job design should be based on a ‘scientific’ study of individual situations to determine which method of doing a job delivers the greatest output.

(based upon closed systems way of thinking)

Administrative principles (subsystem of classical perspective)

Design & function of orgasnaitaion as a whole

Bureaucratic organsiataions (grew from admin. Principles) – emphasised designing & managing organsiataions on impersonal, rational basis w. clearly defined authority & responsibility.

Hawthorne studies:

Series of experiemnst at Chicago electrical company. Conclusion:  positive treatment of employees (acknowledging work etc.) improved motivation & productivity. Laid groundwork for subsequent work examining the ‘human side’ of enterprise.

Don’t forget the context

Be careful when applying a principle that works in one situtation to another, not all organisational systems are the same.

Contingency: What structure or system is appropriate or effective depends on the particular circumstances/context of its design.

Contemporary Organisational Design

To a great extent hierarchical, bureaucratic structure still exists. Numerous challenges prompt a challenging of traditional forms of thinking. World of uncertainty. Can’t measure, predict, control in trad. Ways.

Shift: vertical hierarchies to flexible, decentralised structures, emphasise horizontal collaboration, info. sharing, adaptability.

Many managers are re-designing their companies to be Learning organisations:

Communication

Collaboration

Everyone is engaged in solving problems.

Equality

Open information

Little hierarchy

Culture of adaptability & participation.

Efficient performance vs. Learning Organisation

Examined in terms of:

1. structure

2. Tasks

3. Systems

4. Culture

5. Strategy

Most common organsiataional structure is based on classic principles

· Works well in stable environments – cost –effifcient, in depth skill-development

· Hierarchy of authority

· Sensible mechanism for supervision & control

In learning organisation:

· Structure is around horizontal work flows

· Vertical hierarchy is flattened

· Self-directed teams = fundamental working unit

Tasks vs. Roles

Task: narrowly defined piece of work assigned to a person. Broken down into specialised parts. Knoweldge is centralised @ top of organisation.

Role: part of a dynamic social system.

Discretion & responsibility

Formal control systems to shared info.

Competitive to collaborative strategy

Rigid to Adaptive Culture

In a more adaptive culture, characteristic of a learning organisation, there is, in principle, a greater emphasis upon openness, equality, continuous improvement & change. People are encouraged to become aware of the whole system.

Climate in which people feel safe to experiment

Encourages learning.