BA Hons.Business Management.Managing Organisations: Systems Theory and Scientific Management

Wm Morrison's Supermarkets PLC• Fourth Largest Supermarket

Retailer in the UK.• Focus of Fresh and Value.• Founded in 1898 in Bradford.• Acquisition of Safeway in 2004.• Joined the FTSE 100.

• Own supply chain.• Prepare fresh food in store• Visions and Values

TEST

Systems Theory• Firms are seen as living

organisms.• Adapting to their environments as

they change.• Components of the systems are

interdependent from one another, but cannot be understood unless examined as whole.

• Interaction-influence model.• Activities are a product of their

environments, not the other way around.

• Socio-technical perspective.

• A sum of a series of interactions involving organisation aspects, environmental aspects and business activities.

• Environmental inputs, internal process and eventual outputs.

Systems Theory DiagramInput Transformation Output

Raw Materials Manufacturing Finished Products & Customer Satisfaction

Customers Market Research Strategies (MRS)

MR Data

Stakeholders(Opinions, expectations)

Stakeholder engagement

Improved CSR objectives and practices

Labour Training and Development

Qualified trainees/ employees

FeedbackMeasurement of success

Environmental influences

PoliticalSocialEconomicTechnologicalLegalEnvironmental

Outputs from other systems

Environmental influences

PoliticalSocial

EconomicTechnological

LegalEnvironmental

Inputs into other Systems

Environmental influences

PoliticalSocial

EconomicTechnological

LegalEnvironmentalInputs and Outputs into and out

of other systems

5

Scientific Management• Founded by F.W.Taylor. (1856-

1917)• Often criticized but to remember

that he was studying this around time of major industrial changes

• ‘Father of Scientific Management’• Increasing levels of output by

monetary incentives as a motivator as well as formal organisation structures.

• ‘One Best Way’ to carry out a job. • Ford Motors Manufacturing Plant

and Pig Iron Experiment.

Hand Washing Procedure●

Counter Merchandising Procedures●

Special/Additional Merchandising Procedures●

Food Preparation●

Packaging Procedures

Change Management‘A structured process and a set of tools for leading the people side of change’

An organisation can perform effectively only through interactions of the external environment of which it is part. The structure and functioning of the organisation must therefore reflect the nature of the environment. Changes are normally implemented as a result of the recognised need to respond to the new challenges or opportunists presented by that environment. *

The two main roles here are;

• Modifying the behavioural patterns of members of the organisation and

• Improving the ability for the organisation to cope with changes in its environment

Why Resistance Exists?Change in ingrained habitsChange in behaviours

Fear of job securityInsufficient resourcesEmployee perceives more work with less reward

Feel they will suffer

Lack of communicationChange has poor introduction

Maslow’s Hierarchy of Needs*

...leading the people side of change’....

Kotter’s 8 Stages of Change Management

Change Management StagesIncrease Urgency

Build the Guiding Team

Get the Vision Right

Communicate the Buy-In

Empower the action

Create Short-Term Win’s

Don’t Let Up

Make Changes Stick

leading the people side of change...

Optimisation Plan●

Stakeholder Engagement●

Employee Engagement●

Corporate and Social Responsibility Practices

It is unusual for any change not to attract some resistance. Even with foresight, pre-planning all the apparent logic behind the need to change, you should expect some resistance as the norm. Recognise and welcome it as a healthy response and an opportunity to openly debate possibilities and treat resistance as a powerful ally in facilitating the learning processPhillip Atkinson - ’Managing resistance in change’

ConclusionThe System Approach is seen as a living organism whereby a business system interacts and adapts to its environment as it changes and the systems outputs are products of their environment.

Scientific management is derived from ‘one best way to do a job’ and that the people within the systems are seen as a part of the production process (or machines).

The Management of Change can be seen as an extension of the systems approach in that change management looks at the environmental influences, and adapts the business to those changes, but deals with the ‘people concerns’ of those changes internally.

Anglia Ruskin University

ReferencesMullins, L.J., 2007. Management and Organisational Behaviour: 8th ed. Harlow: Prentice Hall.*

Class Notes

Wm Morrison Supermarkets PLC, 2009. Annual Report and Financial Statements 2009.[Online]Available at: http://www.morrisons.co.uk/[Accessed 16th September 2009]

Wm Morison Supermarkets PLC, 2009. Corporate and Social Responsibility Report 2009. [Online] Available at: http://www.morrisons.co.uk[Accessed 16th September 2009]