1. Course Overview - Principles of Management2

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Principles of Management

Prof A.K. Koźmiński, Dr P. Korzyński

Class schedule

• 10:15 – 11:30

• 11:30 – 11:45

11:45 – 12:45

Course Reguirements

• Participate actively in the class sessions: take

part in discussions

(it will enable you to prepare to an oral exam)

Course Reguirements

• Read carefully assigned book after each class

session

• Andrzej K. Kozminski, Dariusz Jemielniak The

New Principles of Management Peter Lang:

Frankfurt am Main 2013

Course Reguirements

• Prepare to oral exam (you will receive a list of

questions at the end of December 2015)

Course Requirements – to read

Grading System

• oral exam at the end of semester- 100%

Course Program

• Organization and management theory and

practice in historical perspective.

• Management functions, roles of managers and

leaders.

Course Program

• Formalization: mechanisms, merits and

pitfalls. Bureaucracy.

• Structures and structuring of organizations.

Resources and processes.

Course program

• External and internal, material and social

equilibrium

• People and motivation.

Information, knowledge and wisdom.

• Organizational culture.

Course program

• Change, development and strategy.

Innovation and entrepreneurship

• Organizational life cycle

Management and Organization

Theory as scientific discipline

• is characterized by two fundamental features:

practical and interdisciplinary character.

Practical character

• consecutive management theories

• schools of thought,

concepts and ideaswere driven predominantly by changing needs

and problems of business practice.

Practical character

• They are not "true" or "false" in logical sense

of the word.

• They are more or less appropriate in different

situations and environments in which

businesses and other organizations are

operating.

Practical character

• Management practice is eclectic and draws

simultaneously from different Management

and Organization theories.

Interdisciplinary character

Management draws among others on the work

• sociologists, anthropologists, psychologists,

• economists,

• engineers,

lawyers,• mathematicians, statisticians,

• political scientists and others.

Interdisciplinary character

• In this class we will be studying contemporary

approach to management but on the occasion

of this introductory lecture some historical

background will be provided.

• Old theories are not useless in contemporary

world. Different fragments of them are still

applicable in different sets of circumstances.

History of modern management

thought – 5 chapters

• Classical

• Human relations

Management science• Systems

• Contingency

• Resources dependences

Classical

Scientific management initiated by Frederic

Winslow Taylor (1856-1915) based on six key

ideas:

• observation,

• experiment,

• specialisation and stadardization,

• selection and training,

• payment by results,

•cooperation.

Classical

• Glibreth (1868-1924) basic

motions called therbligs

using film.

• A basic motion element is

one of a set of fundamental

motions required for a

worker to perform a

manual operation or task.

Classical

• Gantt bar graphs used to plan and sequence

events along a time line.

Classical

Max Weber (1864-1920) ideal-typical

bureaucracy. Principles:

• division of labour,

• organization of positions into hierarchy,

• people assigned to positions according to qualifications,

• decisions and actions recorded in writing,

•management and ownership separated,

• all are subject to rules and regulations

• procedures applied impersonally and equally to all to

ensure predictability.

Classical

Henri Fayol (1841-1925) 14 principles ofmanagement:

• division of work, authority and responsibility,

discipline, unity of command, unity of direction,

subordination of individual to group interest,

remuneration, centralization, scalar chain and

horizontal links Fayol's path, order, equity,

stability of tenure, business strength initiative

and entrepreneurship, esprit de corps.

Classical•

Rebel Mary Parker Follet (1868-1933) conflict,power, leadership.

Human Relations

• Roots: rising influence and power of trade

unions, industrial humanism

• B.Seebohm Rowntreer (1871-1954),

• social research Hawthorne Plant of Western

Electric (1924-1933); Relay Assembly Test

Human Relations

D. McGregor (1906-64)

• theory x: the average person dislikes works

and will avoid it if possible, most people must

be coerced, directed or threatened, the

average person in unambiguous, prefers

direction, avoids responsibility and desires

security.

Human Relations

D. McGregor (1906-64)

• Theory Y: expenditure of effort physical and

mental is natural, person will exercise self

control and self direction when committed to

task, is prepared to seek and accept

responsibility,

Management science

• Application of science physics, mathematics,

statistics. Born in the WWII and transfer to the

civilian life.

Management science

• Requires expression of problem in

mathematical terms (set of equations) and

optimization, enhanced by development of IT.

• Military consultants such as Lyndale Urwick

(1891-1983) moved to business consultancy.

Systems

• Unity of science and integrating approach to

organizations. Bertalanffy (50s) Common

patterns in different kinds of system ex.

• Organization as machine or living organism.

Systems

• Features of systems thinking: holism and

synergy effect, open systems in search of

equilibrium, hierarchy (systems subsystems),

significance.

Systems

• Sociotechnical systems (people, objectives

goals, structures, physical plant and

equipment).

Systems

• System and control cybernetics (Beer)

• feedback loops, self regulating systems, law of

requiste variety (Ashby)

• Chaos theory (Gleick)

muddling through (Lindblom),• thriving on chaos (Tom Peters)

• chaos uncertainty as opportunity.

Contingency

• No one best way, case by case.

• Links between organizational structure and

other variables such as: technology, strategy,

conflict.

• Search for excellence Peters and Waterman.

Contingency

• Excellence characteristics: bias for action,

close to customer, autonomy and

entrepreneurship, productivity through

people, hands on value driven managementstyle, simple form lean staff, simultaneous

loose tight properties.

• No quick fix management recipes like cookbook proof is in eating.

Resources and dependeces

• Unique configuration of resources decides

about competetive advantage

• the most important element for the

functioning of organizations is not so much

processing resources, but rather acquiring

Pfeffer & Salancik

The ones who have external control oforganizations:

• possess the necessary resources;

• are the owners of the necessary resources

• can control the accessibility of the resources;

• can control the ongoing utilization of the

resources (e.g. air traffic controllers);• create the rules based on which the access to the

resources is regulated.

Pfeffer and Salancik

• Organizations that operate in a volatile and

unstable environment more often adapt an

organic-adaptive strategic management style

(they dynamically adjust to changes)

• organizations that function in a relatively

stable environment, where changes occur

slowly, rather adapt a mechanistic model(formalized, bureaucratic, centralized).

Burns and Stalker

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