HISTORICAL PERSPECTIVE

ORGANISATION & MANAGEMENT

Historical Perspective

Overview of Organization & Management Course

  • Academic year: 2025/2026

Contextual Issues in Society

  • Sonal Mucha/Connected Society: Discusses the influence of technology and social changes on management and organization.

  • Artificial Intelligence: Impacts job markets, leading to job disappearances.

  • Cryptocurrencies: Discussed as a significant investment area with implications for traditional finance.

  • Self-driving Cars: Highlighted as reducing risks associated with accidents.

  • Demographic Shifts: Increasing elder population, decreasing birth rates affecting workforce dynamics.

  • Economic Concerns: Discussion on inflation, recession, and economic bubbles, including references to the political climate and social issues.

  • Mental Health: Rise in anxiety and depression linked to contemporary pressures.

  • Environmental Concerns: Focus on reducing carbon emissions and addressing global warming.

Individual Case Study

  • Ernestina's Profile:

    • Lives in Chile, is 42, and has two children.

    • Background: Separated from partner, faced financial hardships.

    • Entrepreneurial aspirations: Passionate about sewing and baking.

  • Challenges Faced:

    • Business failure due to saturated competition and market saturation.

    • Factory closures impacting employment opportunities._

Historical Perspective Overview

Focus Areas

  1. Defining the Field of Study

  2. Founding Fathers of Management Theories

  3. Relevance of Taylorism Today

Structure of Discussion

  • Introduction and conclusion sections throughout the presentation.

Introduction to Organization & Management

Course Perspective and Aims

  • Contrast with typical business courses focused on single functions (e.g., marketing, finance).

  • Transversal Approach:

    • Relevant for all functions and management levels.

    • Addresses key managerial concerns:

    • Transforming organizational culture and structure.

    • Decision-making processes.

    • Conflict resolution and management of power dynamics.

  • Course Objectives:

    • Understanding diversity and complexity in management through:

    • Theoretical frameworks.

    • Real-life managerial contexts.

    • No fixed solutions are provided; the focus is on enhancing managerial intelligence and self-judgment.

Importance of Analyzing Complex Organizations

  • Insights from Audencia & Essec report (2014):

    • Professional trajectories are shaped by advanced competencies beyond technical skills.

    • Important to develop a nuanced understanding of organizational phenomena.

Perspectives on Human Resource Management

  • Areas of study include formal policies, practice, systems, and evaluation within organizations.

  • Central focus on how organizations are structured, coordinated, and transformed.

Behaviors in Organizational Contexts

  • Exploration of psychology and group behavior as foundational elements in management studies.

Analytical Lenses in Management

Three Key Lenses of Analysis

  1. Strategic Lens: Focuses on competitive and operational strategies in organizations.

  2. Political Lens: Examines power dynamics, influence, and conflict.

  3. Cultural Lens: Analyzes organizational culture and its impact on performance.

Course Objectives

  • Understanding for Action:

    • Improve understanding of organizations:

    • Characterization of organizational forms and cultures.

    • Development of analytic skills to grasp organizational mechanisms such as power and incentives.

  • Enhance Managerial Skills:

    • Formulate diagnoses and propose strategic actions.

    • Anticipate unintended consequences of decisions and structural changes.

Individual vs Organizational Performance

  • Understanding performance in organizations: ext{Perf(orga)} = ext{Perf}(i)

    • Where $i$ represents individual contributions in an organization of $n$ individuals.

    • Illumination of factors affecting the difference between organizational performance and the sum of individual performances:

    1. Quality of Cooperation (interdependencies and complementarity)

    2. Culture

    3. Structure

    4. Decision-making Processes

    5. Organizational Choices

Defining the Field of Study

Concepts & Definitions

  • Definition of Organization:

    • Talcott Parsons (1964): "An organization is a set of social units essentially meant to reach specific objectives."

    • Daniel Katz & Robert Kahn (1966): "Organizations are open systems consisting of activities interwoven with individuals."

    • Edgar Schein (1970): "An organization is the rational coordination of activities of a certain amount of people…"

    • Howard Aldrich (1979): "An organization is a set of activity systems oriented toward an end and maintaining their frontiers."

    • Henry Mintzberg (1989): "The organization defines itself as a collective action in search of a common mission."

  • Role of Management:

    • Management is the art of conducting an organization and ensuring its efficient operation (Thiétard, 1960).

    • Defined as processes utilized by those in charge to influence the organization's direction (Mintzberg, 1979).

A Brief History of Organization Theory

Founding Fathers and Their Contributions

  1. Adam Smith (1776):

    • Formalized division of labor in "An Inquiry into the Nature and Causes of the Wealth of Nations".

  2. Max Weber (1864-1920):

    • Analysis of bureaucracy and rational-legal authority in "Economy and Society" (1922).

    • Identified three types of legitimacy:

      • Traditional: Authority based on customs.

      • Charismatic: Authority based on leader's charisma.

      • Rational-Legal: Authority based on fair and impersonal rules (the basis for bureaucracy).

  3. Frederick Winslow Taylor (1856-1926):

    • Developed principles for rational operations and the concept of Scientific Management, including:

      • Observation, standardization, and task division.

  4. Henri Fayol (1841-1925):

    • Published "Administration Industrielle et Générale" (1916). Identified six functions of management: technical, commercial, financial, security, accounting, and administrative.

Taylorism Today

Impact of the Fourth Industrial Revolution

  • Explains how current industrial changes reflect patterns from previous industrial revolutions.

  • Recognizes potential for technological advancement to dehumanize labor markets.

  • Automation risks losing up to 50% of jobs; highlights failures in protecting human welfare during crises.

Digital Taylorism: Modern Application of Taylor’s Principles

  • Revitalizes Taylor’s emphasis on scientific management integrated with digital technology applied across various sectors, including:

    • Service, knowledge, and managerial roles.

  • Highlights a shift where managers become comparable to "widgets" in a technology-driven landscape.

  • Example Case - Amazon (2016):

    • Use of employee tracking wristbands in warehouses to monitor productivity.

    • Introduction of penalties and rewards based on productivity metrics.

Conclusion

  • The course coverage includes:

    • Evolution of organization and management research.

    • Understanding contributions from founding theorists.

    • Analysis of contemporary relevance of Taylorism in modern contexts.