Management perspectives & organisational behavior. Flashcards
Define management
The attainment of organisational goals in an effective and efficient manner through planning, organising, leading and controlling organisational resources (Daft and Benson, 2016, p.6.)
Define process management?
The process of achieving desired results through other people.
What are the 3 steps of process management?
1) Inputs - info, raw material, labour, assets, services etc.
2) Managing inputs into outputs
3) Outputs - finished products, profit, reputation, info etc.
What is social construction management?
Thinking about what people do in an organisation (what roles mean).
What are the reasons for management theory?
- Growth of large organisations.
- Growth of new tech.
- Control complexity.
- No other theory.
- Practical experience valued.
What did Henri Fayol do?
Invented management as a separate activity.
- Administrative theory
A founding father of modern management techniques:
– System approach
What is meant by division of work (Fayol)?
Efficiency from task specialisation.
What is meant by authority (Fayol)?
Managers right to command
What is meant by discipline (Fayol)?
Ensuring obedience
What is meant by unity of command (Fayol)?
Single line manager
What is meant by scalar principle (Fayol)?
Authority runs from top of hierarchy to bottom
What is meant by unity of direction (Fayol)?
Each objective has one manager and one plan
What is meant by interest subordination (Fayol)?
Organisational interests/ goals over individual interests.
What is meant by remuneration(Fayol)?
Fair pay to motivate but not unreasonably high.
What is meant by centralisation (Fayol)?
sufficient to ensure accountability
What is meant by order(Fayol)?
People and materials in right place at right time.
What is meant by equality of treatment (Fayol)?
Managers should be fair and kind to subordinates
What is meant by stability of employment (Fayol)?
Avoidance of inefficient employee turnover
What is meant by opportunity for initiative (Fayol)?
freedom to originate and execute a plan
What is meant by espirit de corps (Fayol)?
Promoting team spirit to build unity.
What is the criticism for administrative management (Fayol)?
- Not research based
- Assumes stable environment
- Assumes managers right to manage
- Underestimates conflict
- Assumes universality
How relevant is Fayol today?
Laid down the foundation.
What are the 2 fancy definitions for bureaucracy? (Weber)
“A system of admin based upon organisation into bureaus, division of labour, hierarchy of authority”
“Any administration in which action is impeded by unnecessary official procedures”
What is the simple def of bureaucracy? (Weber)
An organisation being managed on a rational basis.
-Appointed officials, formal structures, with records.
What are the 6 points to an ideal bureaucracy?
- Division of labour
- Hierarchy position
- Management rules and procedures
- Separate owners and managers
- Records kept
- Personnel selected and promoted by qualifications
What are the 3 key concepts of bureaucracy? (Weber)
Formalisation:
- Written rules and procedures (direct and regulate)
- Organisational chart
Instrumentalism:
- Organisation as machine to achieve purpose
- Means to an end (done only to get something out of it)
Rational legal authority:
- Legitimate authority based on position, no person
Advantages of bureaucracy?
- Accountability for actions
- Consistency of operations
- Transparency (good for governmental organisations)
Disadvantages of bureaucracy?
- Rules, paperwork
- Initiative stifled and lack of flexibility
- Tech experts may abuse power
- Impersonality = inhuman
- Bureaucracy + holocaust
What are the common Objections to Bureaucracy?
Popular: impersonal, regimented, form filling, expensive
Ethical: Denies emotions, passion, morality, dehumanisation.
Economic: uncompetitive, unflexible
What was Frederik W Taylor’s theory?
Scientific management: systematic method of determining best way to do job and specifying skills needed -> precise procedures
What are the 5 different aspects to the scientific management method (Taylor)?
- Standard method
- Standard method training
- Workers selected on measured ability
- Work planned
- Wage incentives for increased output
Advantages of scientific management theory? (Taylor)
- Earn more money (potentially)
- Safe and effective work method
- Training
- Increase efficiency
Disadvantages of scientific management theory? (Taylor)
- Not everyone motivated by money
- Leads to quantity over quality
- Treats workers as resources
- Measured society
Why do organisations exist?
- Enlarge scale of industrial activity.
- Satisfy needs of individuals.
- Increase efficiency.
- Achieve economies of scale (savings in cost gained by increase level of production)
- Pool and conserve knowledge.
- To provide ind. security within a thriving economy.
- Get things done
Define organisation
A group of people working together to achieve a common objective, with a formal agreement in place.
- Hierarchy with an opportunity to move up.
- A normative order controlled via management.
- Controlled performance?
Define anthropomorphism?
Giving human traits to non human entities e.g. Kellogg’s tiger.
Define sole trader?
1 exclusive owner of a business
What are the advantages of a sole trader?
- Low cost and easy to set up.
- Full control retained.
- Very little financial reporting.
What are the disadvantages of a sole trader?
- Full liability for debt.
- If sued may go bankrupt.
- Pay more in tax.
- Lacks credibility in market.
What is a partnership?
Formal agreement made by 2+ parties
What are the advantages of a partnership?
- Same as sole trader, but with more heads.
- Greater potential to raise finance.
What are the disadvantages of a partnership?
- Same as sole trader, but affects all partners.
- Risk of disagreements between partners.
- Can be messy to wind up.
What are the advantages of a limited liability partnership?
- Flexibility.
- Adv of partnerships + limited company.
What are the disadvantages of a limited liability partnership?
- Profit taxed as income.
- Partners must disclose income.
What is a limited liability partnership?
People only liable for money they invest.
What is a limited liability company (LLC/LTD)
Liability linked to investment in company.
What are the advantages of a limited liability company?
- Less personal financial exposure.
- Favourable tax regime.
- Lends credibility to business -> opportunity to work for corporate clients.
What are the disadvantages of a limited liability company?
- Administration and regulatory demands heavier.
- Limited access to capital.
- Annual accounts and financial reports public domain.
What is a public limited company?
Liability limited to share face value?
What are the advantages of a public liability company?
- Raise more finance
- More media attention
What are the disadvantages of a public liability company?
- No restrictions on share ownership.
- Increased regulation.
- Share prices may fluctuate.
- Managers may lose control of business.
What is a multinational corporation?
e.g. Apple
Define SME
Small/medium sized enterprise.
<250 people
turnover <5 millions euros
Define cooperative
Owned and controlled by members, equality.
Define staff ownership
Employees own majority stakes.
Define Mutual society
No external shareholders, owned by members
Define not for profit organisations
Owners don’t earn profit
Define franchise
Supplier allows operator to use their trademark and to distribute supplier’s goods (operator pays fee)
Define social enterprises
No shareholder, invests profits in services
What are the characteristics of a private sector company?
- Owned and financed by individuals, partners or shareholders.
- Main aims = profit, market standing
What are the characteristics of a public sector company?
- Government created
- Provide public services
- Main goal is to be effective, not profit
What is a strategic orientation organisation?
What are they aiming to do?
Focuses on:
Product/service quality
Sales/profit
Relationship
What is a prime beneficiary organisation?
Who is first to benefit?
Focuses on:
Members
Owners
Customers
Society
What is organisational structure?
Defines how activities are directed toward the achievement of organisational aims: