1.

Approaches to the
Organisation
Management and Strategy
 Types of Organisation
Company Voluntary Public
Organisation Service
Goals Maximum Profit to Help members or help Serve society / The
owners others. Promote ideas public / public good

Ownership Investors / Members The State or Society

Shareholders

Workforce Employers and Members and Employees

employees employees

Financing Sales Subscription, Public funding – Tax /

Public funding PRSI / EU

Examples Tesco, Bank of Credit Union, Garda Siochana,

Ireland, Builder Greenpeace, Sports Schools, Hospitals
Club
 Organisation in a Business
Context
Set the People working
boundaries to the together to Organisation refers
organisation and achieve a goal to the way in which
to decide whether people are grouped
or not one and the way in
individual is in or which they operate
out to carry out the
activities of the
business

Key elements of the organisation

The goals of the business and the way they are
formulated - ownership and control - size - social
structure - organisational structure
Who wants the Company to Exist?
Financial
institution
s Customers
Suppliers

Leaders Company Community

Employees Owners

Power Model by Mintzberg

The Classic Approach to
Organisation
Management and Strategy
Main Approaches to Organisation
 Classical Approach to Management
Principles of management
Hierarchy
Planning of work Technical requirements

The need for people to

Specialisation act together with unity of
action

Need for discipline Purpose an structure

Coordination
Need a clear Assumes rational
understanding and logical
of the purpose behaviour
of the
organisation
 Scientific Management
Co-operation with workers is to
ensure work is carried out in
prescribed way FW Taylor

All job processes

There is a best
should be analysed
machine for each
into discrete tasks to
job and a best
working method find the ‘one best’
way to perform each
task

Scientific selection,
training and
development of Division of Labour
workers
 Bureaucracy
Tasks are allocated
Rules &
as official duties
regulations

High level of
Max Webber specialisation

Clear Division
Employment is based
of Labour on technical qualifications
 Criticism of Bureaucracy
Over-emphasis on
rules and procedures, Lack of flexibility
record keeping and and stifling of
paperwork initiative

Position and
responsibilities can
lead to officious Impersonal relations can
bureaucratic
behaviour lead to stereotyped
behaviour and lack of
responsiveness to
individual incidents or
 Human Relations Approach

Importance of the Social

informal factors at
organisation and work and the
the satisfaction of behaviour of
individuals’ needs employees
through groups at within an
work organisation

Elton Mayo
Hawthorne
experiments
Human Relations Approach – The
Criticisms

Weak methodology of
Hawthorne experiments
Adoption of a
management
approach

Insufficiently Ignoring the role of

the organisation
scientific
within society
 The Systems Approach
mpts to reconcile the classical and human relations approac
Inter-relationships
of structures &
behaviour Examines the range
Examines the
of variables within
total work of the
the organisation
organisation

Viewed The importance

within its of multiple
channels in
total interaction is
environment emphasised
The Systems Approach

Inputs and processes

may be modified as a
result of feedback
 The Contingency Approach
Nature of tasks No one best way
The structure of
an organisation is
dependent on

Environmental
influences
 Post Modernism

A more recent view

of organisations
and management

Rejects a rational,
systems approach and
accepted explanations of
society and behaviour

Places greater emphasis on the

use of language and attempts to
portray a particular set of
assumptions or versions of the
truth
 Comparing Theories of Organisation
Approach to Scientific Human Systems Contingency
Organisation management relations
Bureaucracy
Nature of Rational allocation Arrangements Minimising Adaptation to
solution of work for efficient to evoke co- communications environment to
specialisation and operation burden meet customers
authority structure needs

Means Principles drawn Work group Decision-analysis Going for cost

from experience participation in and leadership and
decisions communication special know-how
systems

Factors Work loads, Individual Communication Analysis of key

studied responsibility, needs, group channels, decision- variables and
specialisation behaviour making strategy

Background Military, Psychology, Mathematical Organisation

influence engineering, sociology economics, theorists:
classical economics operational J. Woodward
research, systems Burns & Stalker
engineering
 Japanese Thinking
1960s – Western Zero Defects
1970 & 80s -
management lacked
many sought to
curiosity about
emulate the
competition from Japan,
characteristics
with British and
of Japanese
European managers
management
obsessed by American
examples

TQM JIT

Japanese methods have produced:

 high levels of teamwork
 an atmosphere of innovative ideas
 a willingness to continually improve
(Kaizen)
FIGURE 1.1