Principles of Bussiness

1. Principles of Bussiness Ph.D. Eng. Katarzyna Jach Katarzyna.jach@pwr.edu.pl http://ksz.pwr.edu.pl/kadra/katarzyna.jach/ Meeting hours: • Wednesdays: 10.00 – 12.00 43 P2 • Fridays: 10.00 – 12.00 415c B1

2. Literature • Robbins S.P., DeCenzo D.A.: Fundamentals of management: essential concepts and applications http://lib.myilibrary.com/Open.aspx?id=462973 • Griffin R.W., Management, all editions • Barringer B., Preparing Effective Business Plan: An Entrepreneurial Approach, Pearson 2015

3. Lectures’ agenda • Manager and management • The model of organization • The enterprise on the market • Business environment of organization • Entrepreneurship and other attributes of businesspeople • Enterprise cycle of life • Chosen problems of business management • Case studies • The final test (last lecture) The main goal: to show main management functions and problems and to prepare you to think about your own business

4. Passing the course • Presence • 5 timesduringsemester, eachtime for 15% • Max. 75% = 4.0 • Individual and groupactivity (max. 15% for each) • Home work • Questions answering • Group or individual tasks • Presentations ~15 min • Tests • Final test (lastlecture) ifyouare not satisfied

5. Todaymaingoal • Main goals of organizations • Main parts of organization • Main management functions • Key management perspectives

6. Contemporary world is a world of organizations • Organizations are the essence of modern societies. It is manifested by their ubiquity and necessity in our lives. • overcoming the limits of our abilities as individuals, allow us to achieve objectives which would be difficult or even impossible to achieve without them • support development of knowledge and ensure continuity of knowledge • create our careers … • significantly affect the environment What to do to make organizations satisfy our needs more effectively? It requires good management!

7. Homework Describe in groups the organization of your choice according to the model of organization • Group 3-4 people • Give one example for each relations • Deadline: writtenworks – 20.10; ifyouwish to present – 17.10

8. There are different organizations, but all of them have the same key features Management functions: • planning • organizing • leading • controlling

9. The Historical Roots of Contemporary Management Practices • The practice of management can be traced back thousands of years, but the study of management did not begin until the nineteenth century • Key perspectives in management theory: • The Classical Management Perspective • The Behavioral Management Perspective • The Quantitative Management Perspective • The Systems Perspective • The Contingency Perspective • New Wave Perspective

10. The practice of management can be traced back thousands of years…

11. The Classical Management Perspective: scientific management Steps in scientific management (by F. Taylor): • Develop a science for each element of the job to replace old rule-of-thumb methods • Scientifically select employees and then train them to do the job as described • Supervise employees to make sure they follow the prescribed methods for performing their jobs • Continue to plan the work, but use workers to get the work done Taylor implemented a piecework pay system. Perspective focused on improving the performance of individual workers F. Taylor (1856-1915), Others: F. Gilbreth (1868-1924), L. Gilbreth (1878-1972) H. Gantt (1861-1919) H. Emerson (1853-1931) Max work specialization

12. Frederick Taylor (1856-1915) • Research for work capability • Work time measurement • Scientific method of work organizing • Scientific management • 1903 – Shop Management • 1911 – Scientific Management

13. The research of shoveling Purpose: Load optimization Shovel shape optimization Method: searching for the best relation between load weight and workers’ capacity 13

14. The research of shoveling • Shovel type related to shoveled material • Optimal load 10 kg± 1 kg • Tools supplied by employer

15. Frank and Lillian Gilbreth „Time and Motion Studies". • Improving efficiency by eliminating unnecessary steps and actions • Chronocyclography • Example: bricklaying

16. Therblig – classification of work activities

17. Motion analysis • reduction the number of motions in bricklaying from 18 to 4.5, allowing bricklayers to increase their productivity from 120 to 350 bricks per hour

18. Model T and fordism Fordism is the manufacture of standardized products in huge volumes using special purpose machinery and unskilled labor. Model T H. Ford (1863-1947)

19. Ford’sassemblyline Because of assembly lineintroduction, production time of the car was reduced from 12.5 hours to 93 minutes!

20. The Classical Management Perspective: administrative management • Perspective focused on managing the total organization. Principles of management  Managerial functions  H. Fayol (1841-1925)  Ideal Bureaucracy, set of guidelines for structuring organizations in the most efficient manner M. Weber (1864-1920)

21. The Behavioral Management Perspective • Workers respond primarily to the social context of the workplace, incl. social conditioning, group norms, and interpersonal dynamics. • A basic assumption of the human relations movement was that the manager's concern for workers would lead to increased satisfaction, which would in turn result in improved performance. E. Mayo (1880-1949) Others: M. Parker Follett (1868-1933) H. Munsterberg (1863-1916) A. Maslow (1908-1970) D. McGregor (1906-1964) Perspective emphasizes individual attitudes and behaviors, and group processes. Western Electric Company Hawthorne

22. Hawthorneeffect • a study to see if their workers would become more productive in higher or lower levels of light • the workers' productivity improved when changes were made • Results • The productivity gain occurred as a result of the motivational effect • the effect of working in groups had on the individual

23. The Quantitative Management Perspective • Perspective applies quantitative techniques to management • There are two branches of quantitative approach: • Operations Management: concerned with helping the organization more efficiently produce its products or services • Management Science: focuses specifically on the development of mathematical models

24. The Systems Perspective • Perspective perceives organization as an open system (asystem is an interrelated set of elements functioning as a whole) • By viewing organizations as systems, managers can better understand the importance of their environment and the level of interdependence among subsystems within the organization. Managers must also understand how their decisions affect and are affected by other subsystems within the organization. Feedback

25. The Contingency Perspective Contingency perspective suggests that appropriate managerial behavior in a given situation depends on, or is contingent on, a wide variety of elements (vs. universal perspectives, which means an attempt to identify the one best way to do something) Four popular contingency variables: • Organizational size • Routineness of task technology • Environmental uncertainty • Individual differences

26. New Wave Perspective Fascination with the successful achievements of organizations in practice.

27. Integrative framework of management perspectives

28. Contemporary Management Challenges • Challenges for management in a global, unpredictable, dynamic and complex environment • Change, adaptability and resiliency - increasing demand on developing organizations’ learning capability • Outsourcing • Knowledge workers • Information technology development • Corporate sustainability

29. The Changing Organization

30. Organization and Management Science is aninterdisciplinary field