Zorn Flashcards
normative theory
Based on intuition, what is good/bad and right/wrong
positive theory
Based on factual statements
products
goods (tangible) or services (intangible)
market
any place where sellers meet buyers; the potential for a transaction must be apparent
Monopoly
A market structure where one seller or producer is the sole supplier
Oligopoly
A market structure with a small number of firms, keeping each other from having significant influence
Monopolistic competition
An industry in which many firms offer products or services that are similar
perfect competition
A theoretical structure where there are no monopolies
empirical - functional management
Steering a company with a view to planning, implementation, and monitoring
academic management
teaching how to steer a company with a view to planning, implementation, and monitoring
institutional management
one or more persons who have the responsibility of steering a company with a view to planning, implementation, and monitoring
planning
defining targets and anticipating how to reach said goal
implementing
applying measures needed to reach said goal
monitoring (controlling)
reviewing and analyzing performance to identify success or issues
Homo economicus
a version of homo sapiens that acts to obtain the highest possible well-being for themselves
- a rational person who pursues wealth
- avoids unnecessary work
classical liberalism
- freedom of the individual as its central feature
- Liberty as a primary political value
- individualism
- toleration
- skepticism of power
Free Market
- economic exchange should be a voluntary activity between individuals
- The government should not intervene
Socialism
A system in which there is collective ownership and heavy emphasis on equality
Historical school of economics
- developed in germany
- understand/link historical context to economic state of a nation
marginal school of economics
- making judgement of value based on “one or more units”
Keynesianism
- government should intervene and stabilize the economy
social market economy
- centered around people
- intervention only when rights of others or functioning of the market is challenged
- individual responsibility
1776
“Wealth of nations” by adam smith
1848
“Communist Manifesto”
1936
“The general theory of employment, Interest, and money” by John Maynard Keynes
Abraham Maslow (1908-1970)
- Motivation is the result of needs being fulfilled
- Psychological, safety, social, esteem, self-actualization (pyramid)
Henri Fayol (1841-1925)
- managers: plan, organize, command, coordinate and control
- principles of management
Max weber (1864-1920)
- an organization must be hierarchical
- well defined rules
Frederik winston Taylor (1856-1915)
- Taylorism: determine the best way for the worker to work
- provide incentives for good performance
Peter Drucker (1909-2005)
- management is about humans
- define values, goals, vision, mission
- management must enable growth
George Alton Mayo (1880-1949)
higher motivation by relational factors, rather than monetary factors
Rise of Management
When big companies suddenly arose in the 19th century
- complexity
- need for coordination
Classical school of management (Taylorism)
- emphasis on efficiency (studies conducted)
- employee productivity and monetary rewards
- mass production
- criticism: dehumanization, exploitation, efficiency at the expense of quality
Classical school of management (Henri Fayol)
Identifications of principles
- Planning (examine future and come up with actions)
- Organizing (build up structure)
- Directing (maintain activity)
- Coordinating (unifying, harmonising)
- Controlling (conformity with policy)
criticism: assumption that economic reward is motivation
POSDCORB
Planning
Organizing
Staffing
Directing
Coordinating
Reporting
Budgeting
Human Relations - Hawthorne Experiments
1924 - 1932
1. illumination test (effect of lighting) -> inconclusive, effectiveness went up regardless
2. relay assembly test (evaluation of rest periods and working hours) + output based pay
3. Interviews -> inconclusive, too many outside factors
4. Bank wiring test
Hawthorne Legacy
- important experiments in industrial setting
- challenged prior assumptions about worker behavior
Mayo/Dickson/Roethlisberger
motivation: influence of social needs, relational factors
- managers as tolerant, democratic, participative leaders
- employees as unique socio-psychological being
Motivational Theories - Maslow
hierarchy of needs
1. breathing, food, etc.
2. security, property, etc.
3. friendship, family, etc.
4. self-esteem, achievement, etc.
5. creativity, acceptance, etc.
Motivational Theories - X and Y
X: close supervision, work/responsibility avoidance, desires money, need push to perform
Y: independence, seeks responsibility/work, self fulfillment -> motivation, self drive
Motivational Theories - Two factor theory
Motivators: achievement, growth, opportunity, recognition, responsibility
Demotivates: company policy, supervision, working conditions
Quantitative school of management
developed during WWII
- improve decision making with statistics, models and simulations
management science (forecasting, modeling), operations management (customer service, competition), MIS (organizing/processing data)
Contingency school of management
avoiding “one best way” -> “it all depends”
- situational differences
- optimal course of action is contingent
Quality school of management
aim: continual improvement, focus on customers
high priority: learning and experiencing
1. Organizational makeup (complex systems)
2. Quality of goods/services (customer requirements)
3. Employees working in teams
4. Developing openness and trust
Kaizen approach
method focused on creating continuous improvements
small positive ongoing changes deliver significant improvements
Reengineering approach
Creating big and fast change
Radical redesigning of business processes to achieve dramatic improvements
Sensing the need for change, seeing it coming, and reacting accordingly
Systems theoretical school of management
aim: come up with principles that apply to all types of systems
elements: inputs, transformation process, outputs, feedback
- encourages managers to view the bigger picture
Management by objectives
a model aimed at improving the performance of an organization by defining objectives agreed on by employers and employees
- having a say in goal setting -> better participation
Management by objectives - advantages and disadvantages
Advantages: higher motivation, better communication, clarity
Disadvantages: employee supervision, increased pressure, quantity over quality
Tools - S.M.A.R.T.
Specific - target an area of improvement
Measurable - quantify or suggest indicators of progress
Achievable - How can the goal be accomplished
Relevant - Why and what can be achieved
Time-bound - When should what be done?
Tools - PLM
concerns the life of a product in the market with respect to business costs/sales measures
Tools - BCG Matrix
cows, Stars, Dogs, Question marks
Tools - BSG (Balanced Scorecard)
strategic planning & management systems designed to improve internal and external communications and monitor performance
- communicate, align, prioritize, measure, monitor
-> Strategy Map
Business entity
A legally recognized organization that engages in commercial, industrial or professional activities with the aim of earning a profit
Issues to be considered when starting a business
taxation
know-how
location
logistics
capacity
etc.
