BUSİNESS MANAGEMENT - Deneme Sınavı - 8

The external environment comprises of
factors affect business organizations indirecty;

whereas internal environment affects directly.

General environment

Competitors, suppliers, and buyers

Organizational culture

Organizational decisions and actions
emphasize maintaining the status quo.

Innovation and risk taking

Deepest level; assumptions

Ethical egoism

Altruism

Corporate social performance

Organizations and their practices are shaped by social, political, economic, and technological forces.

Social forces refer to macro factors within social, cultural, and historical context.

The classical management theory involves several approaches: systematic management, scientific management, bureaucracy, and general administrative management.

According to the systematic management approach, these goals can be achieved through: 1. Careful definition of tasks and responsibilities, 2. Standardized methods for performing these tasks, 3. Effective means of gathering, sharing, and analyzing information, 4. Systems such as cost accounting, wage management, and production control to enhance organizational coordination and communication.

Henri Fayol (1841-1925) was the leading name in the general administrative management approach. Fayol played an important role in the history of management thought. He identified five managerial functions namely, planning, organizing, commanding, coordinating, and controlling.

Behavioral management theory focused on how managers should behave to motivate employees, encourage them to perform better, and improve their loyalty to the organization and its goals.

Statistics, linear programming, network analysis, decision trees, and computer simulations are among the quantitative tools and methods adopted by the quantitative management approach.

All open systems have five main aspects: inputs, transforming process, outputs, environment, and feedback.

In contrast to the classical management theory’s search for the best way to solve organizational problems, the contingency approach rejects the idea that there is a best way or a solution for all organizational problems. According to the contingency approach, managerial practices are shaped by contingent and situational circumstances. Actually, this approach emphasized an “if-then” relationships. In other words, “if” a contingent variable exists, “then” a manager would most likely to act accordingly. For example, if a manager is responsible for a group of inexperienced subordinates, then, according to the contingency approach, the manager should lead this group in a different way than if the subordinates were experienced. In general, this approach attempts to outline the conditions and situations in which various management tools and techniques have the best chance of success.17 An important advantage of the contingency approach is that it enables managers to analyze specific and situational issues before making their decisions. Basically, organizational structures and control mechanisms managers choose depend on the characteristics of the environment in which the organization operates. According to the contingency approach, the characteristics of the environment directly affect an organization’s ability to obtain resources. It should be noted that how managers design the organizational hierarchy, choose the control mechanism, and lead their employees are contingent on the characteristics of the organizational environment.18