Criticisms of Two Factor Theory to Management The two-factor result is observed because it is natural for people to take credit for satisfaction and to blame dissatisfaction on external factors. Job satisfaction does not necessarily imply a high level of motivation or productivity.
Chris Agyris Chris Agyris focuses on the interpersonal relationships that exists with organizational structures and includes the effects of personality and social interaction on the positive results of a business or work group.
NEW DEVELOPMENTS The Systems Approach (Katz and Kahn) The contingency school (Burns and Stalker) William Ouchi’s Theory Z
The Systems Approach What Is a System? A collection of parts operating interdependently to achieve a common purpose Systems Approach Posits that the performance of the organization as a whole is greater than the sum of the performance of its parts Seeks to identify all parts of an organized activity and how they interact Four major concepts underlie the systems approach
Four Major Concepts underlying the Systems Approach Specialization: a system is divided into smaller components allowing more specialized concentration on each component. Grouping: to avoid generating greater complexity with increasing specialization, it becomes necessary to group related disciplines or sub disciplines.
Four Major Concepts underlying the Systems Approach Coordination: as components and subcomponents of a system are grouped, it’s necessary to coordinate the interactions among groups. Emergent properties: dividing a system into subsystems (groups of component parts within the system), requires recognizing and understanding the “emergent properties” of a system; that is, recognizing why the system as a whole is greater than the sum of its parts i.e. the outcome of working as a whole.
Systems Approach The systems approach views the organization as a unified, powerful system composed of interrelated parts. This approach urges managers not to look at separate parts of the organization but rather to look at it as a whole and as part of the larger whole environment
Contingency Theory Assumes there is no one best way to manage. The environment impacts the organization and managers must be flexible to react to environmental changes. The way the organization is designed, control systems selected, depend on the environment. Different situations require different managerial responses Suggests that each organization is unique The appropriate managerial behavior for managing an organization depends (is contingent) on the current situation in the organization.
Theory Z - Japanese Management" style Theory Z - Japanese Management" style William Ouchi (1980s) researched the cultural differences between Japan and USA. USA culture emphasizes the individual, and managers tend to feel workers follow the Theory X model. Japan culture expects workers to be committed to the organization first and thus behave different from the USA workers. Theory Z focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job. Promotes stable employment, high productivity, and high employee morale and satisfaction.
Characteristics of Theory Z Characteristics of Theory Z Long-term employment Collective responsibility Collective decision-making Slow evaluation and promotion – promotion within. Moderately specialized careers Concern for a total person, including their family
HOME WORK New Trends in management – Reengineering, Total Quality Management, MBWA, MBO, ROM, McKinsey 7-approach