Management Theories and Practices Overview

Management Problems

Issues in management have existed since ancient times.

Industrial Revolution

Transition from manual labor to machine-based production.

Second Industrial Revolution

Late 19th century advancements in technology.

Technological Advancements

Examples include gas, electricity, and internal combustion engine.

Third Industrial Revolution

Shift from mechanical technology to digital technology.

Transistor Invention

1947 invention that enabled electronics miniaturization.

Modern Computers

Developed from advancements in electronics post-1947.

Fourth Industrial Revolution

Started around 2011, focuses on digitalization and automation.

Digitalization

Integration of digital technology into everyday life.

Connectivity

Enhanced interlinking of devices and systems globally.

Merging Worlds

Integration of physical, digital, and biological realms.

Artificial Intelligence (AI)

Technology that changes how people live and work.

Internet of Things (IoT)

Connects physical objects to the internet.

Robotics

Machines performing tasks humans cannot, like pollution removal.

Data Analytics

Transforms asset maintenance through data insights.

Systematic Management

Efficient operations through defined roles and standardization.

Scientific Management

Focuses on efficiency through task optimization.

Fredrick Taylor

Pioneer of scientific management principles.

Time and Motion Studies

Analyzes tasks to find efficient movement patterns.

Piece Rate System

Compensation based on production quantity.

Administrative Management

Management as a profession, emphasizing senior perspectives.

Fayol's Functions of Management

Planning, organizing, commanding, coordinating, controlling.

Human Relations

Studies psychological impacts on workplace performance.

Hawthorne Effect

Increased productivity from informal group dynamics.

Maslow's Hierarchy of Needs

Motivational theory based on human needs.

Bureaucracy

Organizational structure emphasizing rules and hierarchy.

Quantitative Management

Uses mathematical models for decision-making.

Organizational Behavior

Examines interactions affecting organizational performance.

McGregor's Theory X

Assumes employees are inherently lazy.

McGregor's Theory Y

Assumes employees are self-motivated and responsible.

Systems Theory

Views organization as interrelated parts working together.

Contingency Perspective

Management approach varies based on situational factors.

Key Performance Indicator (KPI)

Metric measuring progress towards business goals.

External Environment

Factors outside organization affecting its performance.

Demographics

Characteristics of populations influencing management decisions.

Economic Factors

Interest, inflation, and unemployment affecting business.

Sociocultural Issues

Trends in behavior impacting organizational reputation.

Technological Innovation

Creates new products and alters operational methods.

Globalization

Increasing interconnectedness of global markets and cultures.

Environmental Uncertainty

Lack of information to predict future conditions.

Empowerment

Sharing power to enhance employee confidence.

Organizational Culture

Shared assumptions and practices within an organization.

Strong Culture

Widely shared values and goals among members.

Weak Culture

Diverse values leading to confusion and misalignment.

Global Village

Boundaryless world for goods and services.

Multinational Corporation (MNC)

Operates in multiple countries with centralized management.

Transnational Organization

Ignores country of origin for efficiency.

Parochialism

Close-mindedness towards different cultures and practices.

Cultural Dimensions

Framework for understanding cultural differences.

Corporate Social Responsibility

Business commitment to societal good beyond profit.

Sustainability

Meeting needs without compromising future generations.

Ethics

Principles defining right and wrong conduct.

Ethical Behavior

Actions aligning with ethical principles and standards.

Morality

Personal beliefs about right and wrong.

Values

Core beliefs guiding behavior and decision-making.

Personality

Individual traits influencing ethical choices.

Organizational Culture

Shared values and norms within a company.

Decision Problem

Situation requiring a choice among alternatives.

Decision Criteria

Factors considered when making a decision.

Weighting Criteria

Assigning importance to decision factors.

Alternatives

Different options available for decision-making.

Heuristics

Mental shortcuts used in decision-making.

Rational Decision Making

Objective and logical approach to decisions.

Bounded Rationality

Limited ability to process all information.

Satisficing

Choosing a solution that meets minimum criteria.

Intuitive Decision Making

Relying on gut feelings rather than analysis.

Structured Problem

Clear and familiar issues with defined solutions.

Unstructured Problem

Ambiguous issues requiring creative solutions.

Programmed Decision

Routine decisions handled with established procedures.

Nonprogrammed Decision

Unique decisions needing tailored solutions.

Group Decision Making

Decisions made collectively by a group.

Advantages of Group Decisions

Diverse perspectives and increased solution acceptance.

Disadvantages of Group Decisions

Time-consuming and risk of groupthink.

Big Data Analytics

Analyzing large data sets for decision-making.

Ethical Leadership

Leading by example in ethical behavior.

Code of Ethics

Document outlining expected ethical standards.

Ethics Training

Education on ethical practices and decision-making.

Decision Implementation

Putting a chosen decision into action.

Evaluate the Decision

Assessing if the decision solved the problem.

Planning

Primary management function to achieve organizational goals.

Objectives

Decisions on what the organization aims to achieve.

Overall Strategy

Framework for accomplishing organizational objectives.

Hierarchy of Plans

Comprehensive structure to coordinate organizational activities.

Formal Planning

Structured approach to enhance organizational performance.

Higher Profits

Increased financial returns from effective planning.

Return on Assets

Profitability measure relative to total assets.

Strategic Management

Process of developing organizational strategies.

Strategies

Plans for achieving business objectives and competition.

Organizational Performance

Effectiveness of an organization in achieving goals.

External Analysis

Assessment of threats, opportunities, and competition.

Internal Analysis

Evaluation of strengths, weaknesses, and resources.

Core Competencies

Unique strengths that provide competitive advantage.

Formulating Strategies

Creating corporate, business, and functional strategies.

Implementing Strategies

Executing developed strategies within the organization.

Evaluating Results

Assessing effectiveness and necessary adjustments of strategies.

Growth Strategy

Expansion of markets or products offered by organization.

Concentration

Focusing on a single market or product.

Vertical Integration

Control over supply chain stages.

Horizontal Integration

Expansion into similar markets or products.

Diversification

Entering new markets or industries.