Assignment 1

I. The definition of management

Management is defined as the pursuit of organizational goals efficiently, meaning to utilize the
company’s resources effectively, and integrating the work of people well by applying four functions of
management: planning, organizing, leading, and controlling to the organization’s resources. The resources
are limited and processes must meet all constraints. Therefore, processes must be carefully planned in
order to perform properly at the highest level of efficiency and effective, detect abnormalities, and
measurements to the degree of completion.

II. Role of managers

1. Making Predictions: Predictions are anticipation of the whole process and phenomena that may
occur in the future development of a management system. Predictions include the advantages,
disadvantages, and the factors of the external environment.
2. Planning: Planning, which is the most basic function of management, is to make decisions about
goals, action plans and specific steps for a certain period of time.
3. Organizing: The organization is to identify legitimate role or duty. Organization is the effort to
unite and link the individual parts into a unified system. An organizational structure is considered
effective when it follows the principle of unity in the goal, and each individual contributes to the
common goals of the system. An organization is also considered effective when it accomplishes
system goals with minimal cost to the organization.
4. Encourage: Encourage the development of people to utilize their endless possibilities. Therefore,
one of the management functions must identify the factors that motivate people to contribute as
efficiently and effectively as possible to the system. The motivating force could be trends,
dreams, needs, aspirations, and impulses.
5. Making adjustments: making adjustments is to correct any deviations that occur during the
operation of the system to maintain normal relations between the controller and the operator,
between the managers and employees. Making adjustments is also complex, because any disorder
in one part directly or indirectly affects the other parts of the system.
6. Examination: Examination is to properly evaluate the performance of the system, including the
measurement of deviations that occur during operation based on the planned objectives.
7. Evaluation: To provide management agencies with the information needed to properly evaluate
the situation of the operation and decide on a new development.
III. The development of management theories
 There are two overarching management perspectives: historical and contemporary. The first
perspective includes three viewpoints: classical, behavioral and quantitative. The contemporary
includes systems, contingency, and quality management.

1) The Classical Viewpoint (1911-1947)

The classical viewpoint has two branches: scientific management and administrative management.
Scientific management focuses on applying the scientific studies to enhance the worker’s productivity.
The theory is pioneered by Frederick Taylor. The theory suggests that organizational tasks are carefully
identified and measured in order to be standardized. He also offered four principles of science that could
be applied to management. Furthermore, Frank and Lillian Gilbreth suggests productivity can be
improved by conducting motion studies that break tasks into physical motions (1).

The second branch of classical viewpoint is administrative management. Henry Fayol is the
pioneer. The administrative management suggests managing the total organization. Henri Fayol identified
the four major functions of management: planning, organizing, leading, and controlling. Max Weber
embellished the theory with his bureaucratic theory. His theory not only focused on dividing organization
into hierarchies but also well-established formal rules/procedures. He also suggests that organization must
have a clear division of labor, impersonality and merit-based compensation.

2) The Behavioral Viewpoint (1913-1950s)

The viewpoint that emphasized the understanding of human behavior and their motivation toward
performance was pioneered by: Hugo Munsterberg who suggested that psychological research could
contribute to the effort of maximizing productivity by identifying the psychological conditions for
employees to do their best work. The second pioneer is Mary Parker Follett. She recommended that
organizations should be democratic in which employees and managers work together. Next, Elton Mayo
hypothesized a Hawthorne effect. He suggested that the manager’s attention could contribute to the
worker’s overall performance.

The human relations movement suggested that human relations directly affects worker productivity.
Among its pioneers were Abraham Maslow and Douglas McGregor. Abraham proposed a hierarchy of
human needs. On the other hand, Douglas McGregor proposed Theory X (managers have pessimistic
view of workers) and Theory Y (managers have positive view of workers) (2).

3) The Quantitative Viewpoint (1940s-1950s)

Two approaches are management science and operation management. The management science
focuses on using mathematics method and tools to support problem solving and decision making process.
Operations management focuses on managing the production and delivery of an organization’s products
or services more cost effectively.
4) The System Viewpoint (1960s-present)

The systems viewpoint consideres the organization as a system of interrelated parts or collection of
subsystems that operate together to perform particular tasks to achieve a common goal. There are four
parts in the system: inputs, outputs, transformational processes, and feedback. A system can be open,
which continually interacts with the internal and external environment; or closed, in which environmental
interaction is minimal to none.

5) The Contingency Viewpoint (1960s-present)

The contingency viewpoint is evidence-based management. It translates principles based on best

evidence (current internal and external factors) into organizational practice, brings rationality to the
decision-making process.

6) The Quality Management Viewpoint (1960s-present)

The quality-management viewpoint is concerned with the total ability of a product or service to meet
customer needs. Quality management has three aspects: quality control, quality assurance, and total
quality management. Quality control is the strategy of minimizing errors by managing each stage of
production. Quality assurance emphasizes on the performance of workers and encourages employees to
achieve for “zero defects.” in production and delivery of product or service. Total quality management is
a comprehensive approach that focuses on making continuous improvements in quality, training, and
customer satisfaction. The total quality management has four components: make continuous
improvement, total employee involment, receive feedback and make adjustments according to customers
and employees, and use accurate standards to identify and minimize/eliminate issues.

IV.The Evolution of Business Enviroment

The evolution of management theory has shaped the business enviroment in many different ways.
Organizations create more economic, ecological and societal impact than ever before. Companies across
industries become more ec-friendly. They adapt to the new technologies that utilize considerable less raw
material while reduce the negative effect to the enviroment. Organizations also become more attractive
the talented people. They continuously learning and motivating innovation of new product and services.
Furthermore, companies develop the knowledege base and core competences for the future market.
In addition, companies pay more attention to media and activities that affect the perception of
customers. They respond quicker to crisis at the higher degree. For example, Apple had the solution for
the battery crisis on previous versions of iPhone quicker than Samsung did with Note 7’s battery
explosive issue. On the other hand, organizations make improvemnt on developing relations with
comminities. They become socially and enviromentally responsible by only making investment but also
putting real effort. For example, Dell has lauch a recycle program in which allow customer to trade-in
their old computer components such as motherboard, graphic card…and get discount for the new one.
After sorting, Dell will extract metals such as gold, silver and recycle them, turn them into jewelry and
sell it for much less. Those effort not only reduce the carbon foortprint but also promote the innovation of
new material technologies.
IV. Theories Comparison
Theory Scientific Viewpoint Human Relation System Viewpoint

Emphasize Key  Conducting scientific  Human  Consider the

point studies to enhance relations organization as a
worker’s productivity directly system of
 Ex: Selecting the best affect interrelated parts or
workers for the job worker collection of
productivity. subsystems that
operate together to
perform particular
tasks in order to
achieve a common
goal
Advantages  Scientific studies provide a  Easy to  Provides an order
standard to select the best apply and efficient plan
workers ensuring the  Minimum  Organization
achievement of high cost receives a good
productivity control
 Produce and deliver goods  Develops a
and services at the highest coordination
level. It leads to the between
reduction of operational departments
and material expenses.
  Lower rate of defective
goods
Disadvantages  Studies need to be revised  No scientific  It requires complex
continuously evidence to and comprehensive
 Conducting studies is time ensure the research
consuming and utilizes effect on  Over-conceptual
many resources. It affects overall
the ability of organizations performance
to adapt to the changes of
market and production
conditions
 Compromises may be
made in order to supply
enough workforce for
production lines which
negatively affecting the
overall performance.
Most suited  Small to Medium Start-up companies Apple, Boeing
kind of organizations
organization  Highly-skilled jobs such as
producing luxury products.
Example: Allen Edmond,
Vertu

V. Paul Evans-The affordable luxury shoemaker

Paul Evans is a New York-based company founded by Ben Earley and Evan Fript. The two
founders recognized the huge demand for luxury footwear at a lower price point. Meanwhile,
designer’ shoes can range from $500 to over $1200. Paul Evans offers competitive products at $399
without making any compromise. Their shoes are handmade in Italy with very fine Italian calf leather.
They reduce their cost by eliminating the middle man and minimizing the defective products. They
warehouse very little products; their customers have to wait from 1 to 3 months to get their shoes. By
doing so, Paul Evans has absolute control from material supply to product stocking. Furthermore,
they carefully select workers for their factory in order to produce high quality products at minimum
 defect. In conclusion, the best management theory that best suits Paul Evans is the scientific
management approach.

References:

1) Angelo Kinicki Brian K. William. (2016). Management: A Practical Introduction (7th ed.). New York, NY: Mc
GrawHill Education.
2) Angelo Kinicki Brian K. William. (2016). Management: A Practical Introduction (7th ed.). New York, NY: Mc
GrawHill Education.