Managers should only focus on managing while workers should only focus on working
Types of payment systems
Piece-rate system
Management
The process of coordinating and overseeing the work performance of individuals working together in an organization to efficiently and effectively accomplish their chosen aims or goals
Time studies
Stopwatch timing is used to measure each production stop
All administrative decisions, acts, or rules will be recorded in writing
Bureaucratic and administrative management introduced in the US
After World War II or WWII
Frederick Winslow Taylor introduced the 14 universal principles of management
There are 7 elements in elements of bureaucratic management
Qualification-based hiring
People selected for jobs based on technical qualifications
First Therblig
Searching
Figurehead
Perform ceremonial duties like greeting company visitors, speaking at the opening of a new facility, or representing the company to a community
Leader
Motivates and encourages workers to accomplish organizational objectives
Managers
Supervise, sustain, uphold, and assume responsibility for the work of others in their work group
Frontline managers
Hold positions like office manager, shift supervisor, or department manager
Liaison
Managers who deal with people outside their unit
Monitor
Managers scan their environment for information, actively contact others for information, and receive a great deal of unsolicited information
Business environment
All internal and external factors that affect how a company functions including employees, customers, management, supply and demand, and business regulations
Formal planning
Specifies objectives to be achieved within a time frame
PEST Acronym
Political
Economic
Social
Technological
Industry
Companies or producers offering the same services with the same purpose or satisfaction
Tactical objectives
Goals specific to major divisions or departments
Quantitative
Applies mathematics to data in order to predict the future
Strengths and weaknesses
State of the art equipment (Strength)
High turnover of employees (Weakness)
Old facilities (Weakness)
Trusted brand name (Strength)
Poor after-sales service (Weakness)
Opportunities and threats
Propensity of customer loyalty (Opportunity)
Fast response to customer inquiries (Strength)
Increasing sales (Strength)
Criminality rate is increasing (Threat)
Centralized
Objectives and plans are done by top management with the help of planning specialists that are part of a central planning department
Establishment of planning premises
The second step in planning
Integration
Achieved with coordination, communication, and collaboration as it involves linking parts of the enterprise into a whole
Corporation
A separate legal entity consisting of at least 5 individuals and treated by law as a unit
Network organization
A collection of independent, mostly single-function enterprises that collaborate on a good or service
Sole proprietorship
An individual who owns all the assets, and the simplest business form
Staff functions
Specialized or professional skills that support the line departments