Internal business environment - part 4 (broad theories)

Question 1

Systems - basis

Answer 1

• holistic approach
• less of a management theory and more a tool to analyse and design the workflow of the organisation
• numerous factors need to be considered

Question 2

Systems - factors based from

Answer 2

• interdependence - reliance on others in organisation
• synergy - system dynamics must work in harmony
• employee relations - encourage collaborative working with management
• control mechanisms - frequent supervision and quality assurance to review system and components
• information - use employee focus groups and quality circles

Question 3

Contingency - description

Answer 3

there is no single best choice of management approach, manager’s best choice depends on particular situation

Question 3

Contingency - advantages

Answer 3

• no single method is best
• lots of variables need to be taken into account - size, type, tech, staff, finance
• takes into account external business environment
• helps organisation change to adapt to PESTEC

Question 4

Contingency - disadvantages

Answer 4

• managers forced to be very flexible
• not all managers able to adapt approaches

Question 5

Classical management - description

Answer 5

• viewed organisation as a machine and tried to make it efficient
• workers were motivated by money
• there was a best way to perform tasks to maximise workers’ efficiency
• managers should manage and workers should work
• achieve standardisation by dividing jobs into small tasks

Question 6

Classical management - advantages

Answer 6

• still used in manufacturing industries which standardise processes to limit waste and reduce costs
• division of labour can maximise output by using resources efficiently and is used by many labour intensive production facilities
• standardisation is used today by many large multinational firms to ensure customers receive a consistent experience from any outlet eg McDonalds

Question 7

Classical management - disadvantages

Answer 7

• most firms today encourage flexibility in the workforce and allow staff to multi-skill as specialisation is boring and repetitive
• now that financial times easier than in Taylor’s day, most employees not only financially motivated
• higher staff turnover when viewed as a machine, dehumanising and unvalued

Question 8

Contingency - factors concerning

Answer 8

• size
• type
• tech
• staff
• market
• finance

Question 9

Systems theory - three elements

Answer 9

• technical factors - physical environment, equipment
• economic factors - efficiency of technical and social mix
• social factors - relations/attitudes within the group