Bedrijfskundige vaardigheden/Business skills 2de bachelor TEW
Becoming a master manager:
A competing values approach
Introduction: The competing value approach to management
Effective manager & leader = Managerial leader
→ Tasks:
▪ Establish climate for existing relationships between people
▪ Guide organization’s efforts to adapt, change & grow
▪ Make sure that right tasks are identified & accomplished
The evolution of management models
Models = Beliefs/Viewpoints about what manager should do
= Representations of more complex reality
→ Disadvantage: Can blind us to other aspects
Early 20th century (1900-1925)
= Roaring/Golden Twenties → Characterized by:
▪ Rich resources
▪ Cheap labour
▪ Laissez-faire policies
▪ Technological advancements
▪ Shrinking agriculture
Models:
▪ Social Darwinism: Believe in survival of the fittest
▪ Taylor: Father of scientific management, 1 best way & time & motion studies
▪ Rational Goal Model:
❖ Symbol: $ or € → Why? Criteria of organization effectiveness: Productivity & profit
❖ Means-end (= doel) assumption: Clear direction leads to productive outcomes
❖ Emphasis: Goal clarification, rational analysis & action taking
❖ Organizational climate: Rational economic, all decisions are driven by considerations of “the
bottom line” (= hoofdgedachte)
❖ Managers: Decisive & task oriented
❖ Culture: Market
❖ Action imperative: Compete
❖ Example: Iemand die 80% effectief werkt moet vervangen worden door iemand die 100%
effectief werkt ongeacht zijn situatie
▪ Internal Process Model:
❖ Now called “professional bureaucracy”
❖ See: Fayol’s general principals of management blz. 5
❖ See: Characteristics of Weberian bureaucracy blz. 6
❖ Symbol: Pyramid → Why? Criteria of effectiveness: Stability & continuity
❖ Means-ends assumption: Routinization leads to stability
❖ Emphasis: Definition of responsibilities, measurement, documentation & record keeping
❖ Organizational climate: Hierarchical, all decisions are taken on existing rules, structures &
traditions
❖ Managers: Technically expert & highly dependable, focus on coordinating & monitoring
workflows for efficiency & effectiveness
1
,Bedrijfskundige vaardigheden/Business skills 2de bachelor TEW
❖ Culture: Hierarchy
❖ Action imperative: Control
Early to mid-20th century (1926-1950)
Stock market crash of 1929, Great Depression & World War II
→ Fundamental changes:
▪ Unions
▪ Consumer goods
▪ Labour-saving machines
▪ Recreation
▪ Pay attention to needs of people who worked for them
▪ “Informal” organization
▪ Hawthorne studies: Levels of lighting → Attention being shown to workers by researchers was
stimulating them
Models:
▪ Human Relations Model:
❖ Symbol: Circle → Why? Emphasis on openness & equality
❖ Means-ends assumption: Involvement results in commitment
❖ Key values: Participation, conflict resolution & consensus building
❖ Key emphasis: Commitment, cohesion & morale
❖ Organizational climate: Clan-like, team-oriented, decision-making is characterized by deep
involvement
❖ Managers: Empathetic & open to employee opinions → Key activities: Mentoring
individuals & facilitating group & team processes
❖ Culture: Clan
❖ Action imperative: Collaborate
Late to mid-20th century (1951-1975)
Shock of oil embargo in 1973 & Vietnam War
→ Fundamental changes:
▪ Stagnation & huge government debt in the US
▪ Rise of Japan
▪ Service economy
▪ Television
▪ Computer
▪ Man on the moon
▪ Money, recreation & self-fulfilment
▪ Knowledge-intense organizations
Management by objectives = MBO
Management information system = MIS
Contingency theory - Appropriateness of Managerial Actions Varies with Key Variables:
▪ Size: Hoe groter onderneming, hoe groter coördinatieproblemen
▪ Technology: Afhankelijk van technologie zullen organisatiestructuur, leiderschapsstijlen, …
verschillen
▪ Environment: Afhankelijk van omgeving zullen organisatiestructuur, leiderschapsstijlen, …
verschillen
▪ Individuals: Afhankelijk van mensen waarmee men werkt zullen managers hun stijl moeten
aanpassen
2
,Bedrijfskundige vaardigheden/Business skills 2de bachelor TEW
Models:
▪ Open Systems Model:
❖ Criteria of organizational effectiveness: Adaptability & external support
❖ Symbol: Amoeba → Why? Emphasis on organizational flexibility & responsiveness
❖ Means-ends assumption: Continual adaption & innovation lead to acquisition &
maintenance of external resources
❖ Key processes/Emphasis: Political adaption, creative problem solving, innovation &
management of change
❖ Organizational climate: Innovative, “adhocracy”, risk is high, decisions are made quickly
❖ Manager: Innovative, creative & expected to use power & influence to initiate & sustain
charge in organization
❖ Culture: Adhocracy
❖ Action imperative: Create
Late 20th century (1976-1999)
▪ Focus on “both-&” assumptions
▪ How to manage in world where nothing is stable?
▪ Fall of Berlin Wall, USSR disintegrated → New global economy, complex & fast-changing world
▪ Integrative thinking, “organizational learning” & “systems thinking”
▪ How do all parts & whole of system fit together?
▪ Self-direct & self-organize in continual learning process
Early 21th century (2000-today): Paradox, connectivity & sustainability
Using CVF to cope with complexity, ambiguity & paradox
Emergence of Internet
▪ Connectedness = People, organizations, societies, civilization & environment are all interdependent
(= allemaal afhankelijk zijn)
▪ Sustainability = Business leaders need to think about profitability, people, society & environment
6 key drivers of change:
1. People are living longer
2. Rise of smart machines & systems
3. Increases in computational world → Availability of big data
4. Emergence of new media technology that relies on visual communication
5. Super structured organizations → Enable coordinated activity on massive scale
6. Rise of globally connected world in which US & Europe no longer dominate
3
, Bedrijfskundige vaardigheden/Business skills 2de bachelor TEW
→ Need for new model with new skills: Sense making, social intelligence, adaptive thinking, cross-cultural
competency, computational thinking, new media literacy, design mind-set & virtual collaboration
World of volatility, complexity, ambiguity & paradox → Need: Sustained organizational effectiveness
The competing values framework (CVF)
“Both-&” assumptions: Contrasting behaviours are needed at the same time
Integrating ideas about effectiveness
Models seem to carry conflicted messages: Each model has a conceptual opposite
Use of models as subdomains of organizational effectiveness
Decentralization & differentiation Centralization & integration
4
Becoming a master manager:
A competing values approach
Introduction: The competing value approach to management
Effective manager & leader = Managerial leader
→ Tasks:
▪ Establish climate for existing relationships between people
▪ Guide organization’s efforts to adapt, change & grow
▪ Make sure that right tasks are identified & accomplished
The evolution of management models
Models = Beliefs/Viewpoints about what manager should do
= Representations of more complex reality
→ Disadvantage: Can blind us to other aspects
Early 20th century (1900-1925)
= Roaring/Golden Twenties → Characterized by:
▪ Rich resources
▪ Cheap labour
▪ Laissez-faire policies
▪ Technological advancements
▪ Shrinking agriculture
Models:
▪ Social Darwinism: Believe in survival of the fittest
▪ Taylor: Father of scientific management, 1 best way & time & motion studies
▪ Rational Goal Model:
❖ Symbol: $ or € → Why? Criteria of organization effectiveness: Productivity & profit
❖ Means-end (= doel) assumption: Clear direction leads to productive outcomes
❖ Emphasis: Goal clarification, rational analysis & action taking
❖ Organizational climate: Rational economic, all decisions are driven by considerations of “the
bottom line” (= hoofdgedachte)
❖ Managers: Decisive & task oriented
❖ Culture: Market
❖ Action imperative: Compete
❖ Example: Iemand die 80% effectief werkt moet vervangen worden door iemand die 100%
effectief werkt ongeacht zijn situatie
▪ Internal Process Model:
❖ Now called “professional bureaucracy”
❖ See: Fayol’s general principals of management blz. 5
❖ See: Characteristics of Weberian bureaucracy blz. 6
❖ Symbol: Pyramid → Why? Criteria of effectiveness: Stability & continuity
❖ Means-ends assumption: Routinization leads to stability
❖ Emphasis: Definition of responsibilities, measurement, documentation & record keeping
❖ Organizational climate: Hierarchical, all decisions are taken on existing rules, structures &
traditions
❖ Managers: Technically expert & highly dependable, focus on coordinating & monitoring
workflows for efficiency & effectiveness
1
,Bedrijfskundige vaardigheden/Business skills 2de bachelor TEW
❖ Culture: Hierarchy
❖ Action imperative: Control
Early to mid-20th century (1926-1950)
Stock market crash of 1929, Great Depression & World War II
→ Fundamental changes:
▪ Unions
▪ Consumer goods
▪ Labour-saving machines
▪ Recreation
▪ Pay attention to needs of people who worked for them
▪ “Informal” organization
▪ Hawthorne studies: Levels of lighting → Attention being shown to workers by researchers was
stimulating them
Models:
▪ Human Relations Model:
❖ Symbol: Circle → Why? Emphasis on openness & equality
❖ Means-ends assumption: Involvement results in commitment
❖ Key values: Participation, conflict resolution & consensus building
❖ Key emphasis: Commitment, cohesion & morale
❖ Organizational climate: Clan-like, team-oriented, decision-making is characterized by deep
involvement
❖ Managers: Empathetic & open to employee opinions → Key activities: Mentoring
individuals & facilitating group & team processes
❖ Culture: Clan
❖ Action imperative: Collaborate
Late to mid-20th century (1951-1975)
Shock of oil embargo in 1973 & Vietnam War
→ Fundamental changes:
▪ Stagnation & huge government debt in the US
▪ Rise of Japan
▪ Service economy
▪ Television
▪ Computer
▪ Man on the moon
▪ Money, recreation & self-fulfilment
▪ Knowledge-intense organizations
Management by objectives = MBO
Management information system = MIS
Contingency theory - Appropriateness of Managerial Actions Varies with Key Variables:
▪ Size: Hoe groter onderneming, hoe groter coördinatieproblemen
▪ Technology: Afhankelijk van technologie zullen organisatiestructuur, leiderschapsstijlen, …
verschillen
▪ Environment: Afhankelijk van omgeving zullen organisatiestructuur, leiderschapsstijlen, …
verschillen
▪ Individuals: Afhankelijk van mensen waarmee men werkt zullen managers hun stijl moeten
aanpassen
2
,Bedrijfskundige vaardigheden/Business skills 2de bachelor TEW
Models:
▪ Open Systems Model:
❖ Criteria of organizational effectiveness: Adaptability & external support
❖ Symbol: Amoeba → Why? Emphasis on organizational flexibility & responsiveness
❖ Means-ends assumption: Continual adaption & innovation lead to acquisition &
maintenance of external resources
❖ Key processes/Emphasis: Political adaption, creative problem solving, innovation &
management of change
❖ Organizational climate: Innovative, “adhocracy”, risk is high, decisions are made quickly
❖ Manager: Innovative, creative & expected to use power & influence to initiate & sustain
charge in organization
❖ Culture: Adhocracy
❖ Action imperative: Create
Late 20th century (1976-1999)
▪ Focus on “both-&” assumptions
▪ How to manage in world where nothing is stable?
▪ Fall of Berlin Wall, USSR disintegrated → New global economy, complex & fast-changing world
▪ Integrative thinking, “organizational learning” & “systems thinking”
▪ How do all parts & whole of system fit together?
▪ Self-direct & self-organize in continual learning process
Early 21th century (2000-today): Paradox, connectivity & sustainability
Using CVF to cope with complexity, ambiguity & paradox
Emergence of Internet
▪ Connectedness = People, organizations, societies, civilization & environment are all interdependent
(= allemaal afhankelijk zijn)
▪ Sustainability = Business leaders need to think about profitability, people, society & environment
6 key drivers of change:
1. People are living longer
2. Rise of smart machines & systems
3. Increases in computational world → Availability of big data
4. Emergence of new media technology that relies on visual communication
5. Super structured organizations → Enable coordinated activity on massive scale
6. Rise of globally connected world in which US & Europe no longer dominate
3
, Bedrijfskundige vaardigheden/Business skills 2de bachelor TEW
→ Need for new model with new skills: Sense making, social intelligence, adaptive thinking, cross-cultural
competency, computational thinking, new media literacy, design mind-set & virtual collaboration
World of volatility, complexity, ambiguity & paradox → Need: Sustained organizational effectiveness
The competing values framework (CVF)
“Both-&” assumptions: Contrasting behaviours are needed at the same time
Integrating ideas about effectiveness
Models seem to carry conflicted messages: Each model has a conceptual opposite
Use of models as subdomains of organizational effectiveness
Decentralization & differentiation Centralization & integration
4
