2. By the end of this class you will have:
Gained understanding of the systems view of
organisations and the implications for managers of
taking a systems view
The role and function of management
3. One way of viewing an organisation: a
systems view (the value of studying snails!)
A system:
Is a collection of inter-related parts that function to achieve a
common purpose e.g a snail
Can be viewed as ‘open’ systems that interact with their
environments (so does a snail) e.g comes out when it rains
Transforms resource (inputs) into outputs (products,
knowledge, goods and services) (a snail chews up my flowers)
and leaves ‘feedback’ ie a tell-tale silver trail
Feedback from the environment tells an organisation how
well it is meeting the needs of customers and society (the
snail? Too hot, hides in the shade too cold, hibernates under a
rock, too dry (dies), danger, goes into its shell)
4. Goal and values Technical
Managerial
Structural
subsystem
Psychosocial Structural
5. Looking for the similarities and differences: Gallagher’s
and the University
History: Gallaghers, 1930s , University 1950s
Founding ‘fathers’ (why not founding mothers?)
Have stated purpose and vision
Strategies
Structure
Resources
Both have grown
Both have diversified
So they have similarities but major differences
6. What constitutes the inputs, processes
and outputs of both organisations?
Make a list of the inputs at the University
What sort of processes do they use? How do they turn
these inputs into outputs?
What are the outputs?
What sort of feedback does the University need?
How does it use this feedback? For what purpose?
But what are differences with Gallaghers?
Who owns and controls each?
Shareholders and stakeholders
7. Implications of taking a systems view
Everything is dependent on everything else e.g
management style and employee satisfaction
Everything is related to everything else
You cannot change one part (e. g technology) without
affecting other sub-parts of the organisation
Organisations have to overcome negative entropy to
prevent themselves running down., How?
Feedback is essential for system survival
8. Why has management become so
important?
Attained the status of a religion. Why?
Managers often highly paid especially CEOs
Students clamour to have ‘management’ in their
degrees. Why?
Efficient and effective management of organisations,
public, private , not for profit
Why did management become so important?
9. The history of management: three
revolutions
The Agricultural Revolution 16th century England
The Industrial Revolution 18th century England
The Knowledge Revolution 20th century, western
developed nations e.g. USA
The next revolution???
10. What do managers actually do?
Is it a contextual or universal activity i.e. the same in
Hamilton as Shanghai? How does culture infleunce
mangement?
Does managerial work differ at different levels? e.g.
senior or lower levels
What are the major challenges facing managers in the
21st century?
12. Raises more questions than answers….
What do these labels actually mean e.g. planning?
Do all managers engage in all of these activities or only
some?
Do managers at different levels engage in more or less
of these activities?
Can the messy world of managing be neatly
compartmentalised under these headings?
In attempting to simplify the complex, we need to be
very careful…….
13. Managing is ‘results-orientated’
Managers are concerned about efficiency and
effectiveness:
Effectiveness (goal attainment)
◦ measure of task output or goal accomplishment
◦ direct line to ultimate customer service and satisfaction
Efficiency (input/output ratio)
◦ measure of the resource cost associated with goal
accomplishment
◦ measure of outputs realised compared to inputs
consumed
14. How do managerial assumptions affect
employee behaviour: Enter Theory X and Y
Manager’s beliefs about people influence their
style of managing i.e people are basically good
Assumptions about people as well as what makes
a business successful
Our beliefs have consequences for how we behave
and the expectations others have of us
Beware unintended consequences
15. McGregor’s Theory X
Management's responsibility is to its shareholders, to
improve the company's "bottom line."
Employees are another resource to be used to meet
this goal.
People are basically unwilling to work in the best
interests of the company, cannot handle responsibility,
and must be tightly controlled, prodded, and
pressured to get their work done.
Managers are ‘policemen’
Sounds negative but…..
16. Theory Y on the other hand
Management should create conditions that enable
and encourage employees to attain their own goals by
working toward the goals of the organization.
Employees are inherently ready to accept
responsibility, do a good job, and work in the best
interests of the company.
It is management's responsibility to create the
conditions that will allow employees to develop their
fullest potential.
17. What are the major challenges
facing?
No. 1: the Climate Crisis
Rapidly changing business environment
Rapid technological change e.g. ‘twitter’
Developing skills needed e.g. managing ‘GEN-Yers’
Time pressures
Stress from pressure to achieve results
18. (Challenges cont)
Ethical issues
Globalisation
Managing knowledge
Diversity in the workplace
Speed of change & innovation
19. Week Two: Summary
Where have we got?
What should you know?
What should you be reading?
Read the chapters in the texts
Read the outline in preparation for your tutorial and the
possibility of a quiz…soon
Go back and view the videod lecture
20. The funnel analogy: wide at the
top, narrowing down
Starting broad: what is management?
how did it develop?
the management process
what is it that managers actually do?
Is management universally the same, Birmingham or
Bejing?
Two paradigms: universalistic (looking for the best
way) vs contextual (it all depends)
21. Managing in the New Zealand context
Twenty five years ago major changes happened in
Aotearao New Zealand; 4th Labour Government
Why should we be bothered with this ‘history’?
Led to twenty years of continuous change
Affected all aspects of society: economic, political,
social, technological and demographic
Shaped management practices
Read Chpts 1 & 2. in Jones Context book
The first ‘quiz’ is likely to be drawn from this
22. The global context: globalisation and
management
What is meant by globalisation?
What has driven globalisation?
How has it affected management practices?
How is it affecting management and organisations in
New Zealand?
What do these companies have in common:
Fisher & Paykel, BNZ,
23. 1984: Was Orwell Right?
By the end of the 1970s, New Zealand’s economy was in bad
shape
Low economic growth
High inflation
Negative balance of payments
Low productivity
Growing overseas debt
Worst performing economy in the OECD country
Unemployment was 4.6%
Inflation 18%
Mortgage rates hit 23%
24. Managing in the 1970s and early
80s
Industries protected by tariffs
Agricultural protection and subsidies
Highly regulated economy
Inefficient government departments
Time for change
25. 1984: Labour Government
Second Labour Government 1984-7
David Lange and Roger Douglas
‘Rogernomics’
De-regulation of the economy
Devaluation of the dollar
Lower corporate taxes
Two goals: economic growth and low inflation
Rogernomics: ‘consistent application of free market
doctrine to almost every aspect of New Zeland life.’
26. The results?
Government regulations and subsidies for
manufacturing and farming were abolished
State and local body enterprises were to be turned into
profit-making enterprises
Import restrictions and quotas abolished
Government subsidies to agriculture abolished
Monetary policy became the guiding principle
Not just theory; put into practice
27. The changes
Floated the dollar
Abolishing import restrictions (end of car assembly)
Reduction in tariffs (some companies closed or went
off shore)
Encouraged foreign investment
Restructuring of ownership of public departments e.g.
Post Office into Telecom
Many old established companies bought up by
overseas interests e.g BNZ
28. (cont p. 11)
Reform of the public sector
Establishment of SOE e.g. NZPost
Reform of the health sector (p.12)
Reform of education (p.12)
But one sector escaped relatively untouched; the
labour market
29. The effects of the reforms are argued to have
been
A more open economy
Organisations forced to become more competitive
A more diverse society e.g. arrival of many Asian peoples
A great deal of pain for many ordinary people e.g firm
closures
Emphasised the need for more effective management of
organisations and the economy.
‘Accountable management’ became the catch-cry in
schools, hospitals, universities, churches, voluntary
organisations as well as companies
Management seen as a critical competitive advantage
