Assignment # 01Principles of Management (4204)
Submitted To
Ms. Sadia AfrozeAssistant Professor
Department of Accounting & Information SystemsFaculty of
Business Studies, University Of DhakaSubmitted byDate of
Submission: 28.02.2015
Faculty of Business StudiesUniversity Of DhakaCritical
Evaluation of the Evaluation of Management TheoriesTheories are
viewpoints with which individuals understand their reality
encounters. Formally, a theory is a lucid gathering of presumptions
set forth to clarify the relationship between two or more
recognizable certainties. John Clancy calls such viewpoints
"undetectable forces" to underscore a few critical employments of
theories, the "inconspicuous" routes in which we approach our
reality. To start with, theories give a stable center to
comprehension what we encounter. A theory gives criteria to
figuring out what is important. To Henry Ford, a substantial and
consistent work power was one significant element as he estimated
about his business. At the end of the day, his theory of
administration included, not to mention a variety of other things,
this supposition about the supply of work. Second, theories empower
us to impart proficiently and subsequently move into more
unpredictable associations with other individuals. Envision the
dissatisfaction you would experience if, in managing other
individuals, you generally needed to characterize even the most
fundamental presumptions you make about the world which you live.
Since Ford and his chiefs completely comprehended Ford's theory
about assembling cars, they could cooperate effortlessly as they
confronted daytoday challenges. Third, theories make it possible
indeed, challenge us to continue finding out about our reality. By
definition, theories have limits; there is just so much that can be
secured by any one theory. When we are mindful of this, we are
better ready to inquire as to whether there are elective methods
for taking a gander at the world (particularly when our theories no
more appear to "fit" our experience) and to consider the outcomes
of receiving optionThe Classical Management PerspectiveThe
principal essential thoughts to rise are currently called the
classical management perspective. The classical management
perspective had two essential purposes. Scientific management
concentrated on representatives inside associations and on
approaches to enhance their profit. Noted pioneers of scientific
management were Frederick Taylor. Frank and Lillian Gilbreth, Henry
Gantt, and Harrington Emerson. Administrative management
concentrated on the aggregate association and on approaches to make
it more productive and successful. Prominent administrative
management theorists were Henri Fayol, Lyndall Urwick, Max Weber,
and Chester Barnard.Scientific ManagementScientific Management
theory arose in part from the need to increase productivity. In the
United States especially, skilled labor was in short supply at the
beginning of the twentieth century. The only way to expand
productivity was to raise the efficiency of workers. Therefore,
Frederick W. Taylor, Henry L. Gantt, and Frank and Lillian Gilbreth
devised the body of principles known as scientific management
theory.
Taylor contended that the success of these principles required
"a complete mental revolution" on the part of management and labor.
Rather than quarrel over profits, both sides should try to increase
production; by so doing, he believed, profits would rise to such an
extent that labor and management would no longer have to fight over
them. In short, Taylor believed that management and labor had a
common interest in increasing productivity.
Taylor based his management system on productionline time
studies. Instead of relying on traditional work methods, he
analyzed and timed steel workers' movements on a series of jobs.
Using time study as his base, he broke each job down into its
components and designed the quickest and best methods of performing
each component. In this way he established how much workers should
be able to do with the equipment and materials at hand. He also
encouraged employers to pay more productive workers at a higher
rate than others, using a "scientifically correct" rate that would
benefit both company and worker. Thus, workers were urged to
surpass their previous performance standards to earn more pay
Taylor called his plan the differential rate system.Contributions
of Scientific Management Theory The modern assembly line pours out
finished products faster than Taylor could ever have imagined. This
production Miracle is just one legacy of scientific management. In
addition its efficiency techniques have been applied to many tasks
in non-industrial organizations ranging from fat food service to
the training of surgeons.
Limitations of Scientific Management Theory Although Taylor's
method led to dramatic increase in productivity and higher pay in
number of instance. Workers and unions began to oppose his approach
because they feared that working harder or faster would exhaust
whatever work was available Causing layoffs.
Moreover, Taylor's system clearly meant that time was of the
essence. His critics objected to the "speed up" conditions that
placed undue pressures on employees to perform at faster and faster
levels. The emphasis on productivityand, by extension,
profitabilityled some managers to exploit both workers and
customers. As a result, more workers joined unions and thus
reinforced a pattern of suspicion and mistrust that shaded
labormanagement relations for decades.Administrative
ManagementThough scientific management manages the occupations of
individual employees, administrative management concentrates on
dealing with the aggregate association. Side by side with
scientific managers examining the persontask blend to build
effectiveness, different analysts were concentrating on
administrative management, the investigation of how to make an
organizational structure that prompts high productivity and
adequacy. Organizational structure is the arrangement of assignment
and power connections that control how employees use assets to
accomplish the association's objectives. Two of the most persuasive
perspectives in regards to the making of proficient frameworks of
organizational organization were produced in Europe. Max Weber, a
German educator of social science, built up one theory. Henri
Fayol, the French chief who added to a model of management, built
up the other. Alternate supporters to administrative management
were Lyndall Urwick (1891-1983), and Chester Barnard
(1886-1961).
The Behavioral Management PerspectiveThe behavioral school rose
incompletely on the grounds that the classical methodology did not
attain to sufficient creation proficiency and work environment
amicability. Individuals did not generally take after anticipated
or expected examples of conduct. The behavioral management scholars
writing in the first a large portion of the twentieth century all
upheld a topic that concentrated on how directors ought to by and
by act with a specific end goal to spur employees and urge them to
perform at abnormal states and be focused on the accomplishment of
organizational objectives. The "Management Insight" shows how
employees can get to be discouraged when directors don't treat
their employees legitimately. Hence there was expanded enthusiasm
for helping directors bargain all the more successfully with the
"individuals side" of their associations. A few scholars attempted
to fortify classical association theory with the experiences of
social science and brain research.The Human Relations Movement
Human relations is much of the time utilized as a general term
to portray the routes in which supervisors associate with their
employees. At the point when "representative management" animates
more and better work, the association has viable human relations;
when spirit and effectiveness crumble, its human relations are said
to be inadequate. The human relations development emerged from
right on time endeavors to efficiently find the social and mental
components that would make powerful human relations.Organizational
BehaviorOrganizational behavior is a Contemporary field
concentrating on behavioral perspectives on management. Mayo and
his partners spearheaded the utilization of the scientific strategy
in their investigations of individuals in the workplace. Later
scientists, all the more thoroughly prepared in the sociologies
(brain science, humanism, and humanities), utilized more modern
examination routines and got to be known as "behavioral
researchers" as opposed to "human relations scholars."
The behavioral researchers brought two new measurements to the
investigation of management and associations. In the first place,
they propelled a much more modern perspective of human creatures
and their drives than did Mayo and his peers. Abraham Maslow and
Douglas McGregor among others expounded on "acknowledging toward
oneself" individuals. Their work generated new pondering how
relationships can be usefully organized in associations. They
additionally discovered that individuals needed more than
"immediate" joy or prizes. In the event that individuals were this
mind boggling in the way they drove their lives, then their
organizational relationships expected to help that intricacy.
Second, behavioral researchers connected the strategies for
scientific examination to the investigation of how individuals
carried on in associations as entire substances. The fantastic
illustration is the work of James March and Herbert Simon m the
late 1950's. Walk and Simon created several recommendations for
scientific examination, about examples of behavior, especially as
to correspondence, in associations. Their impact in the improvement
of resulting management theory has been noteworthy and
continuous.The Quantitative Management PerspectiveThe third
significant school of management thought started to rise amid World
War II. Amid the war, government officials and researchers in
England and the United States attempted to help the military send
its assets all the more productively and successfully. These
gatherings took a portion of the numerical ways to management
created decades prior by Taylor and Gantt and connected them to
logistical issues amid the war. They discovered that issues with
respect to troop, gear, and submarine arrangement, for instance,
could all be explained through scientific investigation. After the
war, organizations, for example, DuPont and General Electric
started to utilize the same procedures for conveying employees,
picking plant areas, and arranging stockrooms. Essentially, then,
this perspective is concerned with applying quantitative procedures
to management. All the more particularly, the quantitative
management perspective spotlights on choice making, monetary
viability, numerical models, and the utilization of PCs. There are
two extensions of the quantitative methodology: management science
and operations management.Management ScienceThe management science
school picked up prevalence through two post bellum phenomena. To
begin with, the advancement of highspeed PCs and of correspondences
among PCs gave the intends to handling complex and largescale
organizational issues. Second, Robert McNamara executed a
management science approach at Ford Motor Company in the 1950s and
1960s. (Later, he brought the same way to his task as Secretary of
Defense in the Johnson Administration.) As McNamara's socalled
"Hotshots" proteges moved to management positions at Ford and
crosswise over American industry, the management science school
thrived. On the off chance that you end up meeting expectations m
an association where "crunching the numbers" is the focal way that
management choices are arrived at and defended, you can express
gratitude toward McNamara and his era.
Today the management science way to taking care of an issue
starts when a blended group of pros from significant controls is
brought into examine the issue and propose an approach to
management. The group builds a numerical model that shows, in
typical terms, all significant elements bearing on the issue and
how they are interrelated. By changing the estimations of the
variables in the model, (for example, expanding the expense of
crude materials) and breaking down the distinctive comparisons of
the model with a PC, the group can focus the impacts of every
change. Inevitably, the management science group presents
management with a target premise for settling on a
choice.Management science offered an entire better approach to
consider time. With advanced scientific models and PCs to crunch
the numbers, determining the future in view of the over a
significant time span turned into a famous action. Administrators
can now play with the "imagine a scenario where the future
resembles this?" inquiries that past management theories couldn't
deal with. In the meantime, the management science school gives
careful consideration to relationships as such in associations.
Numerical displaying has a tendency to disregard relationships as
information, underlining numerical information that can be
generally effectively gathered or evaluated. The feedback is along
these lines that management science advances an accentuation on
just the parts of the association that can be caught in numbers,
missing the significance of individuals and
relationships.Operations ManagementOperations management is to a
degree less numerical and factually complex than management science
and can be connected all the more straightforwardly to managerial
circumstances. In reality, we can consider operations management as
a manifestation of connected management science. Operations
management methods are by and large concerned with helping the
association create its items or administrations all the more
effectively and can be connected to an extensive variety of
issues.The Systems PerspectiveRather than dealing separately with
the various segments of an organization, the systems approach to
management views the organization as a unified, purposeful system
composed of interrelated parts. This approach gives managers a way
of looking at the organization as a whole and as a part of the
larger, external environment. Systems theory tells us that the
activity of any segment of an organization affects, in varying
degrees, the activity of every other segment.
Production managers in a manufacturing plant, for example,
prefer long uninterrupted production runs of standardized products
in order to maintain maximum efficiency and low costs. Marketing
managers, on the other hand, who want to offer customers quick
delivery of a wide range of products, would like a flexible
manufacturing schedule that can fill special orders on short
notice.
Systems oriented production managers make scheduling decisions
only after they have identified the impact of these decisions on
other departments and on the entire organization. The point of the
systems approach is that managers cannot function wholly within the
confines of the traditional organization chart. They must mesh
their department with the whole enterprise. To do that, they have
to communicate not only with other employees and departments, but
frequently with representatives of other organizations as well.
Clearly, systems managers grasp the importance of webs of business
relationships to their efforts. The Contingency PerspectiveThe
contingency approach (some of the time called the situational
approach) was created by managers, specialists, and scientists who
attempted to apply the ideas of the real schools to reallife
circumstances. At the point when systems very powerful in one
circumstance neglected to work in different circumstances, they
looked for a clarification. Why, for instance, did an
organizational advancement project work splendidly in one
circumstance and come up short wretchedly in an alternate.
Supporters of the contingency methodology had a consistent response
to all such inquiries: Results vary on the grounds that
circumstances contrast; a system that works for one situation won't
essentially work in all cases. As per the contingency approach the
chief's errand is to recognize which method will, in a specific
circumstance, under specific circumstances, and at specific time,
best add to the achievement of management objectives. Where
laborers need to be urged to build productivity, for instance, the
classical scholar may endorse another worksimplification plan. The
behavioral researcher might rather try to make a mentally spurring
atmosphere and suggest some methodology like employment
enrichmentthe mix of assignments that are diverse in degree and
obligation and permit the laborer more noteworthy self-rule in
deciding. At the same time the chief prepared in the contingency
methodology will ask, "Which system will work best here?" If the
specialists are incompetent and preparing open doors and assets are
restricted, work improvement would be the best arrangement.
Nonetheless, with gifted specialists determined by pride in their
capacities, a jobenrichment system may be more compelling. The
contingency approach speaks to a vital turn in present day
management theory, on the grounds that it depicts every set of
organizational relationships in its one of a kind
circumstance.Explain How Environmental Factors Affect A
CompanyEvery organization has some specific strategies to run the
business perfectly. Strategy is the direction for an organization
which shows the way to reach the goal. No organization can achieve
their goal without specific strategies. So the different strategies
are taken to establish the business in this competitive age.
Strategic planning is one of them and its effectiveness varies on
what type of organization and what are their mission, vision and
target. The success of organization depends on its perfect
strategic planning. It is an initial and main step towards the
survival and success in any business organization. There is some
multicultural organization in the world which has to face some
controllable and uncontrollable factors. As we know, the other
names of these factors are internal and external factors. Before
formulating strategic planning, the organizations need to consider
internal and external factors. Internal factors are something such
as management, machine, material, material, money and man power
that can be controlled or operated by the organization. On the
other hand, external factors are uncontrollable. Now, we are
passing the age of globalization. Most of the global issues are
influenced to the organizational strategy formulations which are
uncontrollable.External Factors affecting an organization:
External factors are very important for organization as in many
cases it have been revealed that the success of organization
depends on its external factors. All external factors affecting a
company which are mentioned here customers, shareholders,
government, culture, weather and so on. We can see some macro or
external factors in this global business which is uncontrollable
for any multinational or other business organizations.
Political factors:
Political and legal factors influence the development of the
organization or industry. These factors shape the rules of
competition, operational costs (minimum wage safety requirements
and consumer law) and the presence of various lobby groups. The
important political factor is local legislations regarding foreign
ownership, cross-ownership and concentration. In March 2006,
Mcdonalds Board of Directors adopted a Political Contributions
Policy that formalized our long-standing practices regarding
contributions to political parties, candidates for public office
and political organizations. The policy recognizes that it may be
in the company's best interests to make political contributions.
For those cases, the policy is intended to ensure that
contributions are made in a manner consistent with the law and the
company's core values. In UK, the new coalition government came
which changing the immigration policy. These change making up to
non-European workers to come and work in UK. Its impact directly
affecting the Mcdonalds. Basically, those workers are hard working,
skilled, and cheap and root level worker. Absence of them will
create a problem for Mcdonalds.
The policy reiterates the provision in the Standards of Business
Conduct that requires advance approval of political contributions,
and it establishes guidelines for reviewing requests. Under the
policy, management reports semi-annually to the Board's Audit
Committee on political contributions that have been made. Political
contributions made in the U.S.
Economic factors:
The economic factor has a crucial importance for the
organization or industry development. Mcdonalds has achieved
economic scale. We know the development of an organization depends
on its economical condition and it is earned through maximizing
profit and minimizing cost. Mcdonalds is trying to achieve
that.
Social factors:
The demand trends are shaped by the following major factors:
demographic shifts, attitudes and beliefs and fashion cycles.
Demographic shifts create different place markets; whereas fashion
cycles togetherwithattitudes formation create necessary growth for
the market. Mcdonalds has a Corporate Responsibility Committee
which acts in an advisory capacity to the Companys management
regarding policies and strategies that affect Mcdonalds role as a
socially responsible organization, such as issues related to
product safety, workplace safety, employee opportunities and
training, diversity, the environment and sustainable supply chain
initiatives.
Technologicalfactors:
Technological factors affect the wayindustry players compete.
The introductionofimproved technological
solutionsallowsthecompanies to reduce cost of operations, increase
the manufacturing capacity and quality. Mcdonalds brought a
radically change in Technological System in his company from the
crew room to the board room. In till, they using computerized
counting machine. They introduced e-business besides this system of
Customer service, energy saving to minimize fuel, recycling waste
and so on.
Environmental factors:
The most important thing is to analyze the possible environment
of organization. Environmental factors can change the out look of
organization. Environmental factors play an important part in the
success of the business as it affect input manufacturing capacity.
Mcdonalds is trying to create sound environment in his every
restaurant for customers and its employees. It is seeking ways to
improve their environmental performance. Efficiency and innovation
are natural by-products of thinking green. After all, when they
conserve energy, produce less waste and minimize resources used by
our suppliers, they use less and spend less. So it is always
forward to make sure its sound environmental factors for all
classes of people. It focused three areas such as Energy
conservation Find further ways to enhance energy efficiency in its
restaurants to facilitate save money and reduce its environmental
impacts on sustainable packaging and waste management regular
exploring ways to reduce the environmental effects of its consumer
packaging and waste in its restaurant operations green building
design develop its strict building standards to include further
opportunities for environmental efficiencies and modernization in
the design and construction of its restaurants
Legal factors:
There are legal confinements on many aspects of organizations
activities. Mcdonalds is very aware of legal issues in his company.
Such as: laws against discrimination, health and safety at work,
regulation of monopolies and restrictive practices, laws governing
labour relation including strikes and pickets, employment and
redundancy law as well as United Kingdom statue and common law and
regulations of the European community have to keep in view. In this
global credit crisis period, external factors are main significant
experience for any multinational organizations to perform business
and survival in the competitive business area.Internal environment
affecting an organization:
The internal environment is the environment that has a direct
impact on the business. Here there are some internal factors which
are generally controllable because the company has control over
these factors. It can alter or modify such factors as itspersonnel,
physical facilities, and organization and functional means, like
marketing, to suit the environment. The important internal factors
which have a bearing on the strategy and other decisions of
internal organization are discussed below.Suppliers
An important force in the micro environment of a company is the
suppliers, i.e., those who supply the inputs like raw materials and
components to the company. The importance of reliable
source/sources of supply to the smooth functioning of the business
is obvious.
Customer
The major task of a business is to create and sustain customers.
A business exists only because of its customers. The choice of
customer segments should be made by considering a number of factors
including the relative profitability, dependability, and stability
of demand, growth prospects and the extent of competition.
Competition not only include the other firms that produce same
product but also those firms which compete for the income of the
consumers the competition here among theseproducts may be said as
desire competition as the primary task here is to fulfill the
desire of the customers. The competition that satisfies a
particular category desire then it is called generic
competition.Marketing Intermediaries
The marketing intermediaries include middlemen such as agents
and merchants that help the company find customers or close sales
with them. The marketing intermediaries are vital links between the
company and the final consumers.
Financiers
The financiers are also important factors of internal
environment. Along with financing capabilities of the company their
policies and strategies, attitudes towards risk , ability toprovide
non-financial assistance etc. are very important.
OwnersThe owners of a business are, of course, the people who
have legal property rights to that business. Owners can be a single
individual who establishes and runs a small business, partners who
jointly own the business, individual investors who buy stock in a
corporation, or other organizations.Board of Directors
A corporate board of directors is a governing body elected by
the stockholders and charged with overseeing the general management
of the firm to ensure that it is being run in a way that best
serves the stockholders' interests. Some boards are relatively
passive. They perform a general oversight function but seldom get
actively involved in how the company is really being run. But this
trend is changing, as more and more boards are carefully
scrutinizing the firms they oversee and exerting more influence
over how they are being managed. This trend has in part been
spurred by numerous recent business scandals. In some cases, board
members have been accused of wrongdoing.
