Handbook Organisation and Management

Acknowledgements 5
About the authors 8
Introduction 18

1 The evolution of organisation and management 21
1.1 Introduction 22
1.2 Origins of the field of study 23
1.3 Development of trade and emergence of multinational enterprises 24
1.4 Schools of thought and personalities 25
1.5 Events prior to the Industrial Revolution (400 B.C.–1900 A.D.) 27
1.6 Frederick Taylor and Scientific Management (ca. 1900) 28
1.7 Henri Fayol and General Management (ca. 1900) 31
1.8 Max Weber and bureaucracy theory (ca. 1920) 32
1.9 Elton Mayo and the Human Relations movement (ca. 1945) 32
1.10 Rensis Likert (and others) and Revisionism (ca. 1950) 34
1.11 Kenneth Boulding and the system approach (ca. 1950) 35
1.12 Paul Lawrence and Jay Lorsch and the contingency approach (ca. 1965) 36
1.13 Modern recent organisational theories 37
Summary 56

Part A Organisations and their environment 59
Focus on sustainability creates a noticeable connection CEO Martijn Hagens about Vattenfall 60
2 Environmental influences 65
2.1 Organisations 66
2.2 Parties 67
2.3 External factors 70
2.3.1 Environmental factors 70
2.3.2 Technological factors 73
2.3.3 Demographic factors 79
2.3.4 Economic factors 81
2.3.5 Political factors 85
2.3.6 Societal factors 89
2.4 Corporate Social Responsibility 90
2.4.1 Social enterprises 91
2.4.2 Sustainable development 93
2.4.3 CSR Policy 100
2.4.4 CSR Principles 100
2.4.5 Approaches of CSR 103
2.4.6 Dutch CSR organisations 106
2.4.7 International CSR 108
Summary 111

3 Strategic Management 115
3.1 Introduction 116
3.2 The future-proof organisation 116
3.3 The classical approach to Strategic Management 121
3.3.1 Situational analysis 121
3.3.2 Strategy formation 139
3.3.3 Planning and implementation 152
3.4 Critical comments on the classic approach to Strategic Management 156
3.5 Strategic Management in the 21st century 157
3.5.1 Strategy model of Hamel and Prahalad   157
3.5.2 Strategy formation in times of disruption and innovation 163
3.5.3 Start-ups and the ‘Lean’ Strategy Process 165
3.6 Strategic Management and Business Intelligence 168
3.7 Types of collaboration 171
3.7.1 Collaborative organisational forms 171
3.7.2 Alliances: motivating factors and the keys to success 178
3.8 Collaboration between competitors and partners 181
3.8.1 Collaboration between competitors 181
3.8.2 Collaboration between non-competitive organisations 181
3.9 Mergers and acquisitions 183
3.9.1 The motives behind mergers and acquisitions 184
3.9.2 Dutch Consumer & Market Authority 186
3.9.3 Problems associated with mergers and acquisitions 189
3.9.4 After the merger 190
Summary 192

4 Digital transformation 197
4.1 Introduction 198
4.2 Phases of digital transformation 199
4.3 Key technologies for digital transformation 201
4.3.1 Mobile internet 201
4.3.2 Cloud technology/Cloud computing 202
4.3.3 Internet of Things 204
4.3.4 Artificial Intelligence (AI) 205
4.3.5 Advanced robotics/Robotisation 205
4.3.6 3D printing 207
4.3.7 Virtual and Augmented Reality 207
4.3.8 Big data 209
4.4 The impact of digital transformation 209
4.4.1 The financial sector 210
4.4.2 The retail industry 210
4.4.3 The healthcare industry 211
4.4.4 The automobile industry 212
4.4.5 The agriculture and nutrition industry 213
4.4.6 The manufacturing industry 213
4.4.7 Transport and logistics 213
4.5 Conditions for successful digital transformation 215
4.6 The acceleration of digital transformation and new developments 217
Summary 222

5 Internationalisation 225
5.1 Introduction 226
5.2 Five forms of economic integration 229
5.3 International organisations 234
5.4 International Management 239
5.4.1 Stage model theory of internationalisation (Uppsala model) 240
5.4.2 Born Globals 242
5.4.3 Basic forms of international organising 242
5.4.4 Outsourcing 245
Summary 250

PART B PEOPLE AND ORGANISATION 253
What’s worse: losing some business or disowning what you believe in?
CEO Ryan Gellert about Patagonia 254
6 The future of work 259
6.1 Introduction 260
6.2 Emerging disruption 260
6.2.1 The Fourth Industrial Revolution 260
6.2.2 New technologies 262
6.2.3 Organisational lifespan 263
6.3 The future of jobs 264
6.4 New competences 268
6.5 New jobs 271
6.6 A lifetime of learning 273
6.7 Learning or stagnating in the 21st century 276
Summary 278

7 Human Resource Management 281
7.1 Introduction 282
7.2 Recruitment 286
7.3 Career development 289
7.4 Learning and development 293
7.4.1 An L&D function for the 21st century 294
7.4.2 Learning programme quality 296
7.5 Assessment 297
7.6 Reward 299
7.6.1 Job rating 300
7.6.2 Reward determination 301
7.7 Offboarding 304
7.8 Talent Management 307
7.9 Agile Human Resource Management 309
7.10 Work methodology 2.0 312
7.10.1 The new way of working 312
7.10.2 Hybrid work 315
7.11 Diversity and inclusion 318
Summary 322

8 Individuals and groups 325
8.1 Introduction 326
8.2 Motivation 326
8.2.1 Alderfer’s theory 328
8.2.2 McClelland’s theory 328
8.2.3 Vroom’s expectancy theory 330
8.3 Personality 330
8.3.1 Enneagram 331
8.3.2 Myers-Briggs Type Indicator 336
8.4 Attitude 337
8.5 Motivating people 339
8.5.1 Motivating by means of financial incentives 339
8.5.2 Motivation by means of task design 339
8.5.3 Motivating by setting high objectives 340
8.6 Emotional intelligence 341
8.7 Overloading, stress, stress prevention, and burnout 343
8.7.1 Overloading 343
8.7.2 Stress 344
8.7.3 Stress prevention 346
8.7.4 Burnout 347
8.8 Intuition and creativity 350
8.8.1 Intuition 350
8.8.2 Creativity 351
8.9 Groups and teams 355
8.9.1 Formal and informal groups 355
8.9.2 Horizontal, vertical and mixed groups 355
8.9.3 Virtual teams 355
8.9.4 Self-governing teams 356
8.10 Characteristics of groups 358
8.10.1 Stages of group development 358
8.10.2 Group cohesion 359
8.10.3 Group standards 360
8.11 Team Management and characteristics of successful teams 360
8.11.1 Belbin Team Roles 361
8.11.2 Team personality styles 363
8.11.3 High Performance Teams 364
8.11.4 RealDrives 366
8.11.5 Viewing Groups as Tribes 368
8.11.6 Team intelligence 369
8.11.7 Psychological safety 370
8.12 Organisational conflict 376
Summary 380

9 Leadership and management 383
9.1 Introduction 384
9.2 Management 385
9.2.1 Managerial activities 385
9.2.2 Managerial roles 388
9.2.3 Top-level managers 390
9.2.4 Middle management 392
9.2.5 Managers in government 393
9.3 Decision-making 395
9.3.1 Decision-making in organisations 396
9.3.2 Rational Decision-making Process 399
9.3.3 Non-rational Decision-making Processes   403
9.3.4 Aspects of decision-making 405
9.3.5 Design Thinking 414
9.3.6 Decision-making tools and techniques 415
9.4 The manager’s informational roles 421
9.5 Leadership in theory and practice 426
9.5.1 Managers and power 426
9.5.2 Leadership 431
9.6 Leadership styles 432
9.6.1 Classifying leadership according to employee participation and ability to make decisions 432
9.6.2 X-Y theory 435
9.6.3 Leadership diagram 437
9.6.4 Three-dimensional Leadership model 438
9.6.5 Situational Leadership 439
9.6.6 Contingency Leadership 443
9.6.7 Transformational Leadership 447
9.6.8 Self-Leadership 449
9.6.9 Agile Leadership 452
9.6.10 New Relationship-oriented Leadership 452
9.6.11 Adaptive Leadership 453
9.6.12 Dialogical Leadership 454
9.7 The manager as an individual 457
9.7.1 Career 457
9.7.2 Leisure activities 459
9.7.3 Entrepreneurship 461
9.8 Positive Leadership in the 21st century 462
9.8.1 Optimism and positivity 465
9.8.2 Emotional and social intelligence 467
9.8.3 Developing trust 468
9.8.4 Mindfulness 469
9.8.5 Commitment and flow 470
9.8.6 Learning from one’s strengths 471
9.8.7 Using Appreciative Inquiry 472
Summary 474

PART C STRUCTURE AND ORGANISATION 479
Attention to sustainability is in our genes
CEO Jan-Joost Bosman about Koninklijke Auping 480
10 Processes and Control 485
10.1 Introduction 486
10.2 Business Processes 486
10.2.1 Transformation Process   486
10.2.2 Types of Business Processes 488
10.2.3 Business Process Management 493
10.2.4 Business Processes and added value 497
10.2.5 Business Processes and quality 499
10.3 Lean Six Sigma 504
10.3.1 Six Sigma 505
10.3.2 Lean Management 508
10.3.3 Combining Lean Management and Six Sigma: Lean Six Sigma 512
10.3.4 Supply Chain Management (SCM) 513
10.4 Management levels and specific tasks 516
10.4.1 Hierarchical layers 516
10.4.2 Board of Commissioners 519
10.5 Introduction to Corporate Governance 523
10.5.1 Development of the Corporate Governance Code in the Netherlands 526
10.5.2 Corporate Governance abroad 527
10.6 Organisational Management methods 528
10.6.1 Methods directed towards individual employees 529
10.6.2 Methods directed towards the organisation as a whole 532
10.6.3 Process-oriented methods 538
Summary 544

11 Structuring 549
11.1 Introduction 550
11.2 Task division and coordination 551
11.2.1 Vertical task division 551
11.2.2 Horizontal task division 554
11.2.3 Authority, Responsibility and Delegation 558
11.2.4 Span of control 560
11.2.5 Organisational diagram 562
11.3 Organisational structures 563
11.3.1 Mechanistic and organic organisational systems 563
11.3.2 Line organisation 565
11.3.3 Line and staff organisation 567
11.3.4 Functional and line-staff organisation 567
11.3.5 Line-staff-committee organisation 569
11.3.6 The matrix organisation 569
11.3.7 Project-Based Organisation (PBO) 572
11.3.8 Internal project organisation 573
11.4 Divisional organisation 574
11.5 Mintzberg and organisational structures 579
11.5.1 Organisational properties 579
11.5.2 Organisational forms 583
11.6 Developments in organisational structuring 589
11.6.1 Agile organisation 590
11.6.2 Horizontal organisation 599
11.6.3 Holacracy 604
11.6.4 Other organisational structure trends 607
11.7 Communication and consultation structures 612
Summary 615

12 Culture 619
12.1 Introduction 620
12.2 Typologies of organisational culture 627
12.2.1 Group Process and organisational culture approach 627
12.2.2 Harrison and Handy’s typology 628
12.2.3 Sanders and Neuijen’s typology 630
12.2.4 Typology according to professional culture 630
12.2.5 Schein’s three-layer model 633
12.2.6 Kets de Vries and Miller’s typology 634
12.2.7 Quinn and Rohrbaugh’s typology 636
12.3 Cultural change 637
12.4 International cultural models 639
12.4.1 Hofstede’s cultural model 640
12.4.2 The GLOBE-cultural model 645
12.4.3 Trompenaars’s cultural model 647s
12.5 Doing business in other cultures 650
12.5.1 The Netherlands 650
12.5.2 Germany 651
12.5.3 India 652
12.5.4 France 653
12.5.5 The United Kingdom 654
12.5.6 United States of America 655
12.5.7 China 656
12.5.8 Brazil 657
12.5.9 Japan 658
12.6 Ethics 659
12.6.1 Introduction business ethics 659
12.6.2 Sources of ethical conduct 661
12.6.3 Responsibility and Integrity 661
12.6.4 Approaches to Ethics 662
12.6.5 Company code 664
Summary 668

13 Organisational change and development 671
13.1 Introduction 672
13.2 Nine global trends of organisational influence 672
13.3 Effectiveness and successful organisations 676
13.4 Organisational development 677
13.5 Organisational growth models 679
13.5.1 Scott’s growth model 679
13.5.2 Greiner’s growth model 680
13.6 Change Management 682
13.6.1 Lewin’s change model 682
13.6.2 Ezerman’s change strategies 683
13.6.3 Belasco’s empowerment model 685
13.6.4 Kotter’s change model 686
13.6.5 Reitsma and Van Empel’s change model 689
13.6.6 De Caluwé’s colours model 690
13.6.7 The McKinsey influence model for behavioural change in organisations 692
13.6.8 Resistance to change, what can you do about it? 695
13.7 Organisational change versus organisational development 696
13.8 Reorganisations 697
13.9 Organisational consultancy 699
13.9.1 Organisational consultancy models 699
13.9.2 Characterisation of consultancy relationships 701
13.10 Organisational studies 702
Summary 703

Sources and literature 706
Source reference for figures and tables 715
Index of Persons 718
Business index 720
Illustration acknowledgements 730