Management Theories and Organizational Functions Explained

Management Theories and Principles

Key Figures in Management

Taylor: American industrial engineer who applied the scientific method to human work, aiming to achieve cooperation between workers and management. He advocated for a clear division between management and workers and providing a stipend.

Fayol: French engineer and economist known for principles such as division of labor, authority and responsibility, discipline, unity of command and direction, and subordination of particular interest to the general team spirit.

Core Management Functions

Planning

The objective is to decide what to achieve, including actions and responsibilities. Key steps include:

1. Determine the mission and the main objectives.
2. Develop the strategy.
3. Implement the plan.

Strategic Management

Involves the formulation and implementation of a strategy using different types of analysis, including internal, external, and SWOT analysis. SWOT is a management tool that allows for a clear and quick assessment of a company's internal situation.

Control

The responsible party monitors whether the results align with the established objectives. This includes understanding staff motivation and comparing results. Both are necessary for effective strategic management of organizations.

Financing

Involves gathering the financial means necessary to meet the expenses of the company. Types of financing include:

• Retrieval time (short, long)
• Source (internal, external)
• Ownership (self-employed)

Prima Broadcast

Refers to issuing shares at a price higher than the nominal value (VN), with the difference being the premium.

Factoring

A type of contract where a company assigns its customer debts to another party for collection.

Discount Shopping

The interest charged by the bank on the nominal value (VN) of the effects.

Leadership Styles

Leadership

The exercise of influence and power by a leader within a group. The leader tries to motivate people to act through deep motivation.

Autocratic (X)

The leader makes decisions without consulting subordinates, tending to be dogmatic and expecting blind faith. Policies often involve employees being threatened and obligated to perform repetitive tasks with simple routines and working procedures.

Democratic (Y)

The leader involves subordinates in the decision-making process, considering their views and ideas. They tend to be objective and supportive to facilitate cooperation. Policies include self-direction and control for employees, ensuring they are informed and their input is heard.

Recruitment and Labor Relations

Recruitment

The process of diagnosing the strengths and weaknesses of each candidate, in addition to their competence and limitations. The aim is to find the best person to perform a specific job. This involves:

1. Combination of methods (tests, interviews)
2. Analysis of the job
3. Post-interview assessment

Strike

A labor dispute that occurs between a group of workers within the labor relations. A strike is illegal when it goes beyond mere pressure and involves serious or deliberate actions. Illegal strikes include those with political interests, novatory strikes, or those involving occupancy of space or irregular work.

Incentives

Include money (addressing primary and secondary needs), job enrichment (more tasks and responsibilities, and self-control), and APO (employee evaluations based on comparing results with objectives).

Organizational Structure

Linear Structure

In this structure, all members of the company report to a superior, who gives the orders. The chain of command is very clear, and it is difficult to bypass it. This method is simple and fast but can be discouraging.

Organizational Functions

Involve dividing labor and coordinating the various work units to ensure the attainment of objectives.