Business Management

Functional scope: Management covers tasks like planning, organizing, staffing etc. in a work divided organization with the purposwe of delivering performance

Social scope: Management describes all executives as a whole, who have authority in an organization to issue instructions, with the purpose of influencing behavior - manager must be a leader 

Mental scope: Through leadership management shapes spontaneous and beneficial order in a complex and dynamic environment by means of vision, values, goods and creativity

Efficiency: Doing things right
Effectiveness: doingt the right things

Management comprises of planning, organizing, staffing, leading, or directing and controlling an organization (a group of one or more people or entities) for the purpose of accomplishing a goal

Management of an organization is the process of establishing objectives and goals of the organization periodically, designing the work system and the organization structure, and maintaining an environment in which individuals, working together in groups, accomplish (purpose) their aims and objectives and goals of the organization effectively and efficiently 

A management model represents a more complex reality which aims to identify the essential elements and the relationship between them. No model offers a complete solution, so management problems has to be examined from several perspectives to be understood.

it is the choices made by a company's top executives regarding how they define objectives, motivate effort, coordinate activities and allocate ressouraces. In other words, how they define the work of management

Human relations model
Open system model
Rational goal model
Internal process model

- Stressing productivity, direction and goal clarity --> maximising output

Break a jobe by one man into several small steps

A single worker now performed each of these steps repetitively. This greatly reduced the overview over their work but, because each was able to specialize, output increased dramatically. 

he believed that this wsa one of the key ways in which the new industrial system was increasing wealth of the country

- Stressing productivity, direction and goal clarity --> maximising output

He analyized the advantages of division of labor:
- Lowers training costs
- Reduces labor costs because of lower salaries for the unskilled workers
- Saves the time of moving between jobs
- Increases their specialized skills 

- Stressing productivity, direction and goal clarity --> maximising output

Eliminate unnecessary motions time could be saved and output increased

- Use scientific methods to find best way of doing a task
- Select best person for the job
- Train them to follow defined procedures
- Provide financial incentives
- Shift responsability for planning from worker to the manager
 

- Stressing productivity, direction and goal clarity --> maximising output

Towards consolidation, continuity

He established 14 principles to run an organization efficiently:
Division of work, authority and responsibility, discipline, unity ofcommand, unity of direction
etc....
 

Towards consolidation, continuity

Proposed diffeent characteristics found in effective bureaucracies that would effectively conduct decision-making, control resources, protect workers and accomplish organizational goals. He observed that bureaucracy brought routine to office operations just as machines had to production 

towards development of human resources

repetitive tasks under close supervision devalued human creativity.

To achieve results, managers should not manipulate their subordinates but train them in using power responsibly. Managers should give workers a chance to grow capacity or power for themselves

towards development of human resources

Effect on output when changing defined environmental factors. Work conditions like lighting at work, place, working houts, length of breaks, provisions and other factors...

Hawthorne Experiment: In general, productivity increased with each change in work conditions 

towards expansion, change

It stresses the reciprocal interrelationship between humans and machines and to foster the program of shaping both the technical and the social conditions of work, in such a way that efficiency and humanity would not contradict each other any longer

towards expansion, change

a complex system arises when an organization act on their available information without knowing (uncertainty) how these actions may affect their environment nor how the reaction of the enivronment affect them

Linear: The organisation is a closed system. Generally whit it decides to do will take place without too much disrupting from outside events
The environment is stable enough for management to understand it sufficiently well to develop a relevant detailed strategy.
There are defined levers within an organization that cause a known response when applied (cut stuff numbers)

Non linear (the opposite)
Organisation is a complex open svstem
The environment is chaning too rapidly for management to understand it
Actions lead to unexpected consequences, ehich can be either positiver or negative

- balance sheet < 2 Mio resp. / 5 / 10 MIO
- Headcount less than 50 
- Import und Export products and services but do not invest outside of the home country

Import and Export their products and services but do not invest outside of their home country

Are managed from their home country, but have significant production and marketing operations in many other countries. The major decision are made by the managers in the home country 

They operate in many countries and delegate many decisions to local managers. They use local knowledge to build the businesses, while still projecting a consistent company image

They operate in many countries and delegate many decisions to local managers. They use ocal knowledge to build the business, while still projecting a consistent company image. 

Are mostly small and medium sized companies. They are a business organization, from inception seeks to derive significant competitive advantage from use of resources and sale of outputs in multiple countries 

Born again global firms are well - established organizations that have previously focused on their domestic markets, but which suddenly embrace rapid and dedicated internationalization (Google, Skype)

They work in many countries, securing resources and finding markets in whichever country is most suitable. Production or service processes are perfomed, and integrated, across many global locations - as are ownership, control and top management

- State ownership: Government ownership (assets belonging to a body of government) or public property (owned by government but avaliable for public use)
- Personal ownership: assets and property belonging to an individual
- Common ownership: Assets and property that are held in common by all members of society
- Collective owneship: Assets and property that belong to a collective group of owners (such as shareholders) own productive property that is used by emplyees usually for the purpose of generating a profit. 
 

For what purpose the company exist and on what they focus - values

Goal what a company have 

Forming an alliance in which the partners agree to form a separate, independent organization for a specific business purpose

tasks are grouped into departmenrs based on similar skills and expertise - such aws production, finance, marketing, or information service. This structure is suitable for stable environment with routine technologies where interpendence between departments is less needed and functional specialization is emphasized!

advantages: simple & comprehensible structure, use of specializing effets and expert knowledge, functional departments are well defined and easily controllable, commong professional interests support good internal relations

disadvantages: many interfaces between departements create a lot of problems of coordination, Conflict over priorities, risk of department egoism and suboptimal performance, work overload for the management because of coordination demands, overspecialization, limited possibilites for human resource development

Transporting physical products or delivering services across national boundaries
 

Defintion: Is the degree to which tasks are divided among separate people or departements