principles of management Flashcards
normative vs positive theory
normative: value judment, what is right and wrong
positiv: how it really is
need want demand
need thirsty
want cola
demand want + purchasing power
market
place where seller and buyer meet with intention of doing business
forces of supply and demand meet
marshalls cross
x quantity y price
if y decreases x increases
if y increases supply increases
always strive for equilibrium
market economy vs state directed economy
market: individuals responsible for actions
state directed: collective vory responsible for collective decision
management skills
technical: monitoring, system analysis
social: make people do what you want them to
conceptual: transfer complex problems into management concepts
german speaking way vs english
german:
porphyrian tree (knowledge organisation, one assumption at top beneath derived from this one)
english:
see a problem and organize your knowledge to solve it
classical liberalism representatives
adam smith jean baptiste say david ricardo thomas robert malthus friedrich list johann heinrich von thüne
adam smith
founder of classical liberalism
government should not intervene, economy works on its own
jean baptiste say
says law: products are paid for with product
only produce something to buy something else —> demand and supply in equilibrium
today safe money not spend directly —> doesn‘t work
david ricardo
comparative advantage
thomas malthus
population grows more than food production
decrease gap:
preventice checks (one child policy)
positive check: god given natural disaster
friedrich list
only trade with other countries if you are a developed country otherwise can not handle price pressure
market has to be big enough for product otherwise high costs
thünen
thünens rings
character of profits sold depending on distance of production site to place where it is sold
management-new challenges
personal communication not enough to coordinate anymore
bigger companies
higher specialisation
taylorism
scientific management (efficiency movement)
government is riddled with inefficiency
-workers have only physical and economical needs
-workers don‘t want to be efficient because efficiency means less workers more machine, keep own interedt by being inefficient
solutions
- develop one way of doing something
- select train and develope workers
- split responsibility (taken away from worker)
- workers should only do one task
marginal school of management
marginal utility: utility form consuming one more product
marginal revenue: revenue from selling one more
marginal costs: costs from producing one more product
marginal product: additional output from 1 additional input
keynism
basic idea:
in good time government should not intervene but in bad it should
-in regression increase government spending because people do not spend enough because no money
-problem: hard to decrease allowances, tax reduction etc afterwards as people got used to it
social market economy
way in between
production is liberal, distribution under government control
acticr measures to help poor: more tax for richer
henry fayol
technical accounting commercial security financial management -planning -organising -directing -coordination -monitoring
henry fayol- principles
division of work (same effort more efficient)
unity of command (only one subordinate)
esprit de corp (teamwork fundamental)
gulick on basis of fayol
- planning, organising, staffing
- directing
- coordinating
- reporting
- budgeting
fayol vs taylor
fayol wider horizon not just money or equity into consideration
-for taylor human is a machine and informal organizations not considered
two parts of neoclassical theory
human relations - roethlsbergers hawthorn and mayo
behaviourial management theory
hawthorn experiments and effect
- illumination (effect of light on productivity)
- interviews (learn about attitudes)
- relay-assembly test (effect of breaks)
- bank wiring test (influence of relationships)
effect:
manipulating your own behaviour when being observed to meet social acceptable opinions
behavioural management theory
only fulfill psychological needs to reach economic target
in favour of: flexible orgas, job build around capabilities
maslows hierarchy of needs
very bottom needs to survive and only if needs met you can go to next layer and fullfill those
—> bullshit also a starving person wants love
two factor theory
if demotivators are eliminated motivaters can lead to job satisfaction
contemporary school of management theories
quantitative theory
contingency theory
qualtiative theory
system-theoretical approach
quantitative school of management
use quantitative methods to help with management decisions
contingency school of management
everything depends there is not one right way
qualitative school of management
concentrate on improvement and qualtiy of goods and services
employee work in a team in an environment of openess and trust
kaizen: change for the better
learn from mistakes to improve
reengineering approach
big radical changes very expensive in short run
system theoratical school of management
organizations are open systems that always interact with environment
input
trhoughput
output
feedback
modern management tools
management by objectives
balanced score cart
porters five forces
value chain analysis
management by objectives
set objectices and goals together with employee by applying smart criteria
- more motivation of employees
- more pressure to perform
balanced score card
financial view not enough
-customer, learning and growth, internal business processes
what do managers do -mintzberg (folklore and fact)
less planning than fayol says more acting no system in managers tasks 3 roles interpersonal -figurehead (representative) -leader (hiring and training) -laison (networking)
informational
- monitor (scan for info)
- disseminator (tell organisation)
- spokesperson (official statements)
decisional
- entrepreneur (initiate change)
- disturbance handler
- resource allocator
- negotiator
what do managers to tengblad
10 out of 13 propostions of mintzberg still valid but
meetings with subordinates and workload and transportation time increased
while desk work, meetings with supplier and clients decreased
what do managers do john kotter
agenda setting and networking
general managers john kotter
general managers often highle specialised have skills in common: motivated desire for status skill for developing relationships intuition analytical skills
what skills do managers need katz
technical skill (understanding activities) human skill (communicate, work in team) conceptual skill (solve complex problems)
what skills do managers need gosling and mintzberg
reflectice - manage yourself analytic - manage orga collaborative - manage relationships action - manage change worldy - manage world beyond your kwn
managers vs leader abraham zaleznik
manager: impersonal, passive, reaches target but not because he wants, takes compromises, no risk, part of organisation
leader: acitve, personal, takes risk, tries new approaches, seperate from orga
what makes a leader goleman
self reflection self regilation empathy social skill motivation
classical school criticism
one set of principles can not manage all orgas
assumption that people only motivated by economic award not appropriate anymore
