U1 Flashcards
An organizational process is the means by which management ?
rallies together labor resources, materials, technology, information, and people to achieve its business goals and objectives.
An effective organization is usually defined as?
an association which:
-ensures optimal use of its resources,
-minimizing production loss and disruption in the interaction between different organizational units
-and avoiding breakdowns in communication channels.
It is generally accepted that specialization and division of labor underlie the concept of?
organizational efficiency and business growth.
Historically, maximizing efficiency has led to the most important achievements in the ————————————— and its derivatives.
development of performance
Different models of enhancing and managing performance have led to an increase in ?
production efficiency, which has changed the very nature and quality of modern society and the global balance of power in the business world.
The methods for achieving high performance do not only consider ————- ——— (resource) processing, which contributes to the success of the——————– ————(output),
but also organizational activities and components, including using——————————————————————————————————————————.
optimal input
final product
technologies, a manufactured design, and a structure of work as well as a different influence of external factors and environment.
Performance measurement can be defined as a?
process by which businesses, governments, and other organizations set up certain criteria for measuring the quality of their activities based on organizational goals (i.e., standards).
It involves creating a simple but effective system for ?
determining whether organizations are able to meet their objectives.
Examples from business might include
increases in turnover and profit,
reductions in production costs,
and decreases in the time period required to process customer orders.
The reason for considering all these examples is?
to explain that the result can be measured quantitatively.
Effective performance measurement requires ?
quantitative evidence (for an association) to determine organizational progress toward achieving its goals.
Søren Kierkegaard once uttered the famous phrase:
“Life can only be understood backwards, but it must be lived forwards.”
What is true for life also applies to science and research. Hence, to understand the background of performance measurement theory-where it comes from and where it is going-we need to
-first look at a taxonomy of broad management theories based on a chronological approach.
This includes six main concepts, which we will specify and discuss in the following sequence:
=Theory of scientific management (1885–1920)
=Theory of administration (1920–1950)
=Human relations movement\/neoclassical management (1930–1950)
=Behavioral management theory (1950–present)
=Theory of quantitative management (1950–present)
=Strategic management theory (1970–present) and its modern manifestations such as ‘total quality management’, ‘competitive advantage strategy’, a concept of ‘customer relationship management’ and ‘consumer-oriented management’, etc. (2000–present).
These concepts will not only help you to understand performance measurement, but are also the foundation and background for other theories in management accounting and corporate finance.
Theories Before 1950
The first four theories of management from a chronological perspective are based on ?
behaviorist approaches to management.
Quantitative and strategic management concepts are based on?
quantitative analysis and assessment of effective management with the intent to achieve performance excellence.
Management practices have evolved throughout history. It is well known that different types of organizations already existed in ancient times. But before the 20th century, there was no —————- for explaining exactly what makes a management process —————and what improves performance ——————–.
clear-cut framework
effective
systematically
Theory of Scientific Management
Effective management and issues of high productivity in commerce and business organizations only became a subject of serious studies at the
20th century after the publication of F. Taylor’s ‘Principles of Scientific Management’.
Since that time, efficiency and performance in management have become?
an independent area of research and a recognized science.
Frederick Taylor and his theory of scientific management began the era of ————–management and ——————— in manufacturing.
He advocated for?
modern
efficiency
training the workforce
and developing ‘a hearty cooperation’ in the production process.
That alone already represented a significant improvement over the feudal human relations of the time.
At the dawn of the 20th century, Frederick Taylor accurately defined
poor administration
and inefficient or ill-directed management
as a ?
national loss.
Principles of efficient (rational) management in the manufacturing process laid the foundation for theories of ?
scientific management.
But the main focus of scientific management was on ?
the lowest level of the organization-a worker and his supervisor-where attention was directed towards how to make the work of this production unit more efficient.
The key elements in the theory of rational management were?
standardization, rationalization, specialization, and intensification of work.