Organizational Culture and

Management
 Organizational Culture
• A system of shared meanings that result in
the way we do things around here.
– values
– norms
– attitudes
– beliefs
– managerial style
 Philosophical Influences in
Management
• The Classical School

• The Human Relations School

• The Human Resources School

 Classical School of Management
Assumptions
1. Work is inherently distasteful to most people.
2. What workers do is less important than what they earn
for doing it.

Policies
1. Manager’s task is to supervise and control.
2. Break tasks down into simple, repetitive components.

3. Establish detailed work routines and procedures.

 Human Relations School of
Management
Assumptions
1. People want to feel useful and important.
2. People desire to belong and be recognized as
individuals.

Policies
1. Manager’s task is to make workers feel useful and
important.
2. Keep workers informed and listen to their objections to
manager’s plans.
3. Allow workers to exercise some self-direction and control
in routine matters.
 Human Resources School of
Management
Assumptions
1. Work is not inherently distasteful. People want to contribute to
meaningful goals that they have helped establish.
2. Most people can exercise far more creative, responsible, self-
direction than their job currently allows.

Policies
1. Manager’s task is to coach and utilize untapped human
resources.
2. Create an environment that allows workers to contribute to the
limits of their abilities.
3. Encourage full participation on important matters, continually
broadening worker self-direction and control.
 McGregor’s Management Theories
Theory X assumes people… Theory Y assumes people…
truly dislike work want to work
must be coerced into will exercise self-control
working are motivated to achieve goals
prefer close supervision are imaginative and creative
avoid responsibility are boxed in by conventional
have little ambition jobs
value security the most
 Theory Z - Ouchi
Combined American and Japanese management
practices together to form Theory Z, having the
following characteristics:
– long-term employment
– collective decision-making
– individual responsibility
– slow evaluation & promotion
– implicit, informal control with explicit, formalized
measures
– moderately specialized career paths
– holistic concern for the employee, including family.
 Maslow’s Hierarchy of Needs
Higher Order
ACTUALIZATION

ESTEEM

SOCIAL

SAFETY
Lower Order
PHYSICAL
Herzberg’s Two Factor Theory
Hygiene Factors Motivators
salary challenge
company policy autonomy
physical facilities advancement
administration recognition
working conditions