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6 key elements of the theory of management and control of organizations (Scientific Management) are (1)
Scientific analvsis of the activities that should be carried out, and the time and motion studies to be used. (The results can be used to standardise and normalise the production process and machines and materials used.)
6 key elements of the theory of management and control of organizations (Scientific Management) are (5)
Use of careful selection processes to obtain the best person for the job.
According to Weber, major organisations have the following characteristics: (1)
a clearly and definitively implemented division of tasks
a vertical alliance
a collaboration between different links along an industry or sector.
Customs union
a common trade policy is adopted. The revenue from import duty is divided between Member States using an agreed formula.
Prescriptive aspect
advice about recommended organisational design and course of action.
guerrilla strategy
aims at destroying the balance of the market leader by means of brief attacks from different angles: by lowering of prices and intensive promotion campaigns, for example
According to Weber, major organisations have the following characteristics: (9)
all data is recorded in writing so that complete control of all aspects is possible; the power of officials, even senior ones, is bound by documented guidelines.
Internal approach Complete picture
all functional areas are investigated, and the results subsequently related, thus providing a complete picture of the organisation.
Core activity
an activity of particular focus for the enterprise.
strategic intent
an obsessive desire within the organisation to become the market leader within a period of ten years, give or take. However, there may well be a gap between the aspirations of the enterprise and its available means.
According to Weber, major organisations have the following characteristics: (6)
recruitment based on ability and knowledge instead of relying on favouritism and having the right contacts;
Buyers
set competitors against each other and, in doing so, try to reduce prices
competitive innovation
taking a fresh look at products, markets, competition, and the use of resources.
head-on attacks
the challenger fights the market leader with those marketing instruments that work well for the market leader
contingency theory
the choice of management technique deriving from a theory of organisational behaviour is strongly influenced by the circumstances in which an organisation finds itself. The art is in discovering which circumstances require the application of which techniques. One of the most important thing is the relationship between an organization and its surroundings.
Differentiation strategy(2)
the emphasis of this strategy is on achieving a competitive advantage by focusing products or services on specific customer requirements.
Undifferentiated strategy
the emphasis of this strategy is on developing a product or service and putting on the market, all the while ensuring the costs remain as low as possible. The quality of the product or service certainly also remains of importance under this strategy.
Economic union
the monetary policy and financial government politics are also in harmony. This step requires that cent institutions, such as a single Central Bank, be implemented.
diagonal alliance
which is a collaboration between different sectors.
Some ways of doing so are ( Resource leverage )
1. Concentrating means on strategic intent. Many resources are lost unnecessarily on administrative tasks and/or are spread out across a large number of activities often not of strategic interest. 2. Integrating resources and experiences. This can be done by collaborating with other enterprises and/or by creating a mentality which focusses on learning potential. 3. Looking for additions from other available means. Resources from the past can often be applied to the development of new products. 4. Conserving means for other purposes. Available knowledge can be applied to different products. Honda keeps its knowledge of motors up to date by using it on cars, motorcycles, chain saws, motorboats, snow scooters etc. 5. Earning back investments as soon as possible. This is only possible if the resources have contributed to the development of successful products.
Frederick Taylor (C.1900) 1
1. First to suggest a systematic, coherent approach to determining the manner in which factories should be organised
Within the European Union, there is a common internal market. This common market is based on four economic freedoms:
1. Freedom of movement of goods; 2. Freedom of movement of services; 3. Freedom of movement of capital; 4. Freedom of movement of people.
There are three competitive strategies that market followers can implement:
1. Imitating market leader strategy as closely as possible. The market follower copies the market leader in activities such as segmentation and the use of marketing mix instruments (price, product, promotion, and place). 2. Imitating market leader strategy but at a certain remove. The follower may adopt a certain degree of differentiation in some areas. 3. Mimicking market leader administration in certain areas, but using one's own strategies in others.
Direction - five tasks (1)
1. Planning or anticipating: setting up of an action plan for the future.
Portfolio management
1. Reflecting the activity portfolio in the matrix. 2. Analysing the portfolio. This refers to the balanced structure of the portfolio, the vision of the future, and the question of whether it will remain possible to fund the various activities (SBUs) now and in the future. 3. Choosing an SBU strategy. As a result of the analysis, the organisation must make decisions with regard to desired development of BUs within the portfolio
Some characteristics of strategic intent are:
1. being consistend with the objectives of the enterprise; 2. expressing the collective will; 3. radiating a winner mentality; 4. providing impetus to activities within the organisation.
Strategy - to consider
1. strategies dependent on the organisation's market share; 2. strategies dependent on the extent of turbulence in the environment: 3. expansion strategies (the product-market matrix); 4. Michael Porter's generic competitive strategies; 5. Treacy and Wiersema's value disciplines; 6. Blue Ocean Strategy.
Management activities - six independent management activities:
1 technical: 2 commercial; 3 financial; 4 security (understood to mean the safety of people and possessions); 5 accounting; 6 direction.
In practice, diversification has a number of drawbacks:
1. After diversification, organisations might find themselves with components that are scarcely connected. This hampers positive synergy and increases bureaucracy. 2. Diversification should be the last option used to escape from a weak competitive position. Diversification can only be successful if the enterprise holds a powerful position. 3. The key goal of spreading risks through diversification is seen mostly in financial terms, without considering interactions between new and existing activities.
Structural factors
For instance, the degree of concentration and the possibilities of entering the sector. Entrance possibilities depend on such factors as economies of scale, product differentiation, the required level of investment and the possibilities of entry into the existing distribution channels.
Strategic factors
For instance, the readiness to cooperate and the degree of uncertainty about the strategies of competitors.
Competitive analysis
He analysed the competitive environment according to the industry to which an enterprise belongs.
Results
Here, the focus is on the financial attractiveness of the various business activities. Profitability (current and potential) and the strategic perspective are both important in this approach.
Resource leverage
If the available resources needed to reach an ambitious obiective are insufficient, they should be made more productive.
Strategy
If the present strategy fails to reach the goals, other strategies should be developed: for example, developing new products, entering new markets, choosing other sales channels, increasing efficiency or collaborating with a new partner
Henri Fayol (C. 1900)
In Europe (1841-1925), who first developed a coherent set of guidelines regarding the way organisations should manage their operations as a whole.
Frederick Taylor (C.1900) 2
Rather than having managers fulfil the role of slave drivers, Taylor proposed they adopt a broader view of their tasks within the organisation: planning, coordinating, overseeing, and verifying results.
6 key elements of the theory of management and control of organizations (Scientific Management) are (2)
Extensive division of labour and workforce training, with each task and operation clearly prescribed; this results in worker routine, leading to improved production standards.
A process-oriented alliance
is a collaboration that does not focus on a product but on a process (way ot working or thinking)
hedge the market
it attacks the market leader on a lot of fronts using various marketing instruments. These may include attacks in the form of better products, lower prices, greater numbers of distribution points, and more advertising activity.
systems approach
management should tackle organisational problems consistently. That is to say: if a decision needs to be made, management
Organisations exhibit clear differences in their market share. On this basis, the following types of organisations can be identified:
market leaders; challengers; followers; specialists.
a horizontal alliance
means a collaboration within the same link of the industry or sector;
Differentiation strategy
means the organisation chooses to distinguish itself from other organisations in the same industry through its products or services.
an offensive alliance
means working from an organisations strengths, such as technology or distribution
ideal bureaucracy
not just a description of an organisation, but also a theoretical model helpful to the study of organisations.
interdisciplinary
organisational behaviour contains many elements that have originated with other sciences.
detensive alliance
places the emphasis on detending a particular market or competitive position.
According to Weber, major organisations have the following characteristics: (7)
promotion and reward based on objective criteria and procedures;
6 key elements of the theory of management and control of organizations (Scientific Management) are (6)
Financial rewards for adhering to prescribed methods and targets in order to reduce production costs.
Cost leadership
This competitive strategy entails offering products or services at the lowest possible price.
Customer Intimacy
This discipline centres on the relationship with customers or buyers.
Complete political and economic union
This is the situation where independent states or countries merge completely. Example: format of the United States of America.
Max Weber
(1864-1920) studied government organisations and large businesses from a sociological perspective.
Position strengthening
A 'stronghold' can be built around the product through unique features, low pricing, a high distribution density, or powerful advertising
Immunisation
A possible option is diversification: for example, penetrating new markets with new products, primarily looking for relationships in a new business area and/or new production techniques(concentric diversification) The main motive for diversifying is to spread the risks, making the organisation less sensitive to changes in the environment.
Kenneth Boulding (1910 -1993)
According to this theory, all activities in an organisation are closely connected with each other.
decentralisation:
An increase in the adaptability of organisations can be gained by this. that is, by using smaller organisational units with shorter decision-making processes and communication lines.
Incubator
An incubator is a company that supports new companies in their start and expansion efforts
Common market
Based on a customs union, it removes the barriers in the field of production factors.
Henry Mintzberg (b. 1939)
Canadian Henry Mintzberg continues to stand out with his remarkable contributions to the fields of organisational structure, management, and strategic planning.
According to Weber, major organisations have the following characteristics: (4)
Carefully defined authorities and responsibilities;
6 key elements of the theory of management and control of organizations (Scientific Management) are (3)
Close and friendly working relationships between managers and workers.
multidisciplinary
Combining all of the contributions from these fields in order to undertake and complete a study or project does not make
Direction - five tasks (3)
Commanding: ensuring full employee participation.
Adaptation
This strategy relates to an organisation's to adapt itself to changing circumstances - or, in other words, its flexibility The organisation can be flexible in many areas, including the following: 1. products; 2. production processes; 3. organisational structure; 4. financing; 5. information retrieval systems.
Direction - five tasks (5)
Controlling: ensuring that the results conform to the planning.
Direction - five tasks (4)
Coordinating: aligning each activity to the plan.
Coworking
Coworking is a work method characterised by collaborations in a physical location in order to solve certain problems or issues.
Crowdfunding
Crowdfunding is a financial form which does not rely on the involvement of financial intermediaries like banks
Product Leadership
This value discipline centres on the product or services.
Operational Excellence
Designing all business processes as efficiently and effectively as possible is the most important angle and challenge.
Substitutes
Enterprises within an industrial sector compete with other industrial sectors if these produce substitute products.
focus strategy.
In the case of a narrow competitive reach (narrow target reach), the organisation does not focus on the target group as a whole, but only on certain buyer groups or segments. This means that, within the market, the focus is on particular buyer groups.
Competitive advantages
Its advantage may be based on costs, image, or unique product features.
6 key elements of the theory of management and control of organizations (Scientific Management) are (4)
Managers are held responsible for seeking and analysing appropriate working methods and for creating optimum conditions for production. Formerly, this was left to the implementation phase.
Free trade zone
Mutual trade agreements are entered into only by those countries that wish to participate. As a result, the trade policy for members is not harmonised Example: NAFTA (North American Free Trade Agreement).
New entrants
New entrants to the sector try to gain market share at the expense of present suppliers.
Followers
Not all organisations strive to become market leaders. Since the market leader is more powerful in a number of areas, attacks have little chance of success in most situations. they can give their product or service a special feature to retain customers or obtain a share of new customers
Direction - five tasks (2)
Organising: structuring the organisation using people and resources.
Challengers
The aim of these organisations is to become market leaders. 1. Attack the market leader head on; 2. Attack the market leader from the side; 3. Hedge the market leader in; 4. Attack the market leader indirectly; 5. Use a guerrilla strategy.
Partial approach
The term 'partial' or 'singular approach describes a situation where an internal audit only investigates a limited number of functional areas within an organisation.
Attacking the flanks
There is an adage that states the best defence is a good offence, which suggests there is wisdom in attacking one's competitor. The market leader tries to discourage attacks from competitors by using directional marketing.
Market leaders
These organisations have the largest market share and function as a beacon to other organisations Market leaders aim to: Increase the total market: Defend their own market share; Expand their market share.
Specialists
are organisations that focus on small market niches. They are active in parts of the market that are out of reach for other organisations because of their unusual character.
Qredits Angel investors
are private individuals interested in investing in new companies. Qredits are foundations whose goal is to help start-up companies secure financing.
Direction
attempted targeted nercuasion'
Manipulation
can be defined as the full or partial recovery of earlier loss of influential power
According to Weber, major organisations have the following characteristics: (3)
carefully defined authorities and responsibilities;
An attack from the flanks
challenger uses the marketing instruments or other strong points of its own organisation that are less developed in the market leader's organisation.
Core compentencies
consider the enterprise as a set of core competencies. This is a collective learning process that coordinates different production skills and integrates production possibilities.
Descriptive aspect
description of the behaviour of organisations. including motives and consequences
General Management theory
directed at organisations other than industrial enterprises. thought it should be possible to formulate principles that applied wherever people worked together, and that these principles could and should form the basis for a field of study.
attack the market leader indiractly
entering markets in which the market leader does not operate. The final goal is to build new strongholds via new markets and or new products.
start-ups
fast-growing enterprise that is able to meet a certain market need.
According to Weber, major organisations have the following characteristics: (2)
hierarchical command structure;
According to Weber, major organisations have the following characteristics: (5)
impersonal relationships between officials (position is placed over person);
According to Weber, major organisations have the following characteristics: (8)
implementation of activities according to clearly laid down procedures;
Product of process oriented
is a collaboration in order to manufacture a particular product or service.
