Organization and Management

• Management is composed of people and processes that are responsible for the overall operation of the business.
• Industrial Revolution

  • 1750 - 1850

  • Birthplace: London, England

  • transition from hand production methods to the use of different machines and the development of machine tools
• Evolution of Management Theories

  • Scientific Management Theory

  • Administrative

  • Behavioral

  • Management Science Theory

  • Organizational Environment Theory
• Scientific Management

  • The systematic study of the relationships between people and tasks for redesigning the work process for higher effectiveness

  • Defined by Frederick Taylor in the late 1800s
• Frank and Lilian Gilberth

  • studied fatigue caused by lighting, heating, and the design of tools and machines
• Administrative Management

  • The study of how to create an organization and administration designed to ensure efficiency and effectiveness
• Max Weber

  • Developed the concept of bureaucracy as a formal system of organization and administration designed to ensure efficiency and effectiveness
• Management as Science

  • 1910-1940

  • Focused on increasing productivity and efficiency through standardization, division of labor, centralization, and hierarchy

  • A very "top down" management with strict control over people and process dominated across industries
• Functional Organizations

  • 1950-1960

  • saw the emergence of functional organizations and the Human Resource (HR) movement

  • managers began to understand the human factor in production and productivity and tools such as goal setting, performance reviews, and job descriptions were born
• Strategic Planning

  • 1970

  • focus shifts from measuring functions to resource allocations and tools like Strategic Planning, Growth Share Matrix, SWOT Analysis
• Lean Six Sigma: DMAIC

  • Define

  • Measure

  • Analyze

  • Improve

  • Control
• Six Sigma

  • a set of management techniques intended to improve business processes by greatly reducing the probability than an error or defect will occur
• Process Optimization

  • 1990

  • benchmarking and business process reengineering became popular in the 1990s

  • TQM, Six Sigma, and Lean remained popular, and a more holistic, organization-wide approach and strategy implementation took the stage with tools such as Strategy Maps and Balanced Scorecards
• Big Data

  • 2000s

  • organizations started to focus on using technology for growth and value creation
• Hard Skills - uses IQ (Intelligence Quotient-left brain)

  Soft Skills - uses EQ (Emotional Quotient-right brain)
• Hard Skills are rules where the rule stays the same regardless of circumstance, while Soft Skills are rules that change depending on the circumstance
• Hard Skills can be learned in schools or training. Most soft skills are not directly taught in school and have to be learned during interaction with people.
• Iceberg Theory

  • originated from the writing style of Ernest Hemingway

  • also known as the "theory of "omission"

  • believed that the deeper meaning of a story should not be evident on the surface, but should shine implicitly

  • what can be seen among the employees is the surface/"hard skills"

  • what you see is not the whole thing