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Text A. History of management theories




Views on management have changed substantially over the past century particularly in the past few decades.

Scientific Management Theory (1890 - 1940)

At the turn of the century, the most notable organizations were large and industrialized. Often they included ongoing, routine tasks that manufactured a variety of products. The US highly prized scientific and technical matters, including careful measurement and specification of activities and results. Management tended to be the same. Frederick Taylor developed the scientific management theory. Tasks were standardized as much as possible. Workers were rewarded and punished. This approach appeared to work well for organizations with assembly lines and other mechanistic, routinized activities.

Bureaucratic Management Theory (1930 - 1950)

Max Weber embellished the scientific management theory with the bureaucratic theory. Weber focused on dividing organizations into hierarchies, establishing strong lines of authority and control. He suggested organizations develop comprehensive and detailed standard operating procedures for all routinized tasks.

Human Relations Movement (1930 - today)

Eventually, unions and government regulations reacted to the rather dehumanizing effects of these theories. More attention was given to individuals and their unique capabilities in the organization. A major belief included that the organization would prosper if its workers prospered as well. Human Resource departments were added to organizations. The behavioral sciences played a strong role in helping to understand the needs of workers and how the needs of the organization and its workers could be better aligned. Various new theories were spawned, many based on the behavioral sciences.

Text B. Contemporary theories in management

Contemporary theories of management tend to account for and help interpret the rapidly changing nature of todays organizational environments. As before in management history, these theories are prevalent in other sciences as well.

Contingency Theory

Basically, contingency theory asserts that when managers make a decision, they must take into account all aspects of the current situation and act on those aspects that are key to the situation at hand. Basically, its the approach that it depends. For example, the continuing effort to identify the best leadership or management style might now conclude that the best style depends on the situation. If one is leading troops in the Persian Gulf, an autocratic style is probably best (of course, many might argue here, too). If one is leading a hospital or university, a more participative and facilitative leadership style is probably best.

Systems Theory

Systems theory has had a significant effect on management science and understanding organizations. First, lets look at what is a system? A system is a collection of part unified to accomplish and overall goal. If one part of the system is removed, the nature of the system is changed as well. For example, a pile of sand is not a system. If one removes a sand particle, youve still got a pile of sand. However, a functioning car is a system. Remove the carburetor and youve no longer got a working car. A system can be looked at as having inputs, processes, outputs and outcomes. Systems share feedback among each of these four aspects of systems.

Lets look at an organization. Inputs would include resources such as raw materials, money, technologies and people. These inputs go through a process where theyre planned, organized, motivated and controlled, ultimately to meet the organizations goals. Outputs would be products or services to a market. Outcomes would be, e.g. enhanced quality of life or productivity for customers/clients, productivity. Feedback would be information from human resources carrying out the process, customers/clients using the products, etc. Feedback also comes from the larger environment of the organization, e.g., influences from government, society, economics, and technologies. This overall system framework applies to any system, including subsystems (departments, programs, etc.) in the overall organization.

System theory may seem quite basic. Yet, decades of management training and practices in the workplace have not followed this theory. Only recently, with tremendous changes facing organizations and how they operate, have educators and managers come to face this new way of looking at things. This interpretation has brought about a significant change in the way management studies and approaches organizations.

The effect of systems theory in management is that writers, educators, consultants, etc. are helping managers to look at the organization from a broader perspective. Systems theory has brought a new perspective for managers to interpret patterns and events in the workplace. They recognize the various parts of the organization, and, in particular, the interrelations of the parts, e.g., the coordination of central administration with its programs, engineering with manufacturing, supervisors with workers, etc. This is a major development. In the past, managers typically took one part and focused on that. Then they moved all attention to another part. The problem was that an organization could, e.g., have a wonderful central administration and wonderful set of teachers, but the departments didnt synchronize at all.

Chaos Theory

As chaotic and random as world events seem today, they seem as chaotic in organizations, too. Yet for decades, managers have acted on the basis that organizational events can always be controlled. A new theory, chaos theory, recognizes that events indeed are rarely controlled. Many chaos theorists (as do systems theorists) refer to biological systems when explaining their theory. They suggest that systems naturally go to more complexity, and as they do so, these systems become more volatile (or susceptible to cataclysmic events) and must expend more energy to maintain that complexity. As they expend more energy, they seek more structure to maintain stability. This trend continues until the system splits, combines with another complex system or falls apart entirely. Sound familiar? This trend is what may see as the trend in life, in organizations and the world in general.

 

5.

Taxation

Accru accrued taxes   acumulated-earnings tax ad valorem tax assessed tax capital gains tax chain-store tax   death and gift tax = legacy tax inheritance tax deferred taxes digressive tax   direct tax employment tax equalization tax estate tax   excess profits tax excise tax franchise tax general property tax general sales tax graded tax graduated tax hidden tax = indirect tax highway tax import turnover tax imposed tax income tax on corporations income tax on individuals lumpsum tax luxury tax matured tax motor vehicle tax multiple stages tax net worth tax payroll tax = wage tax receipts tax = transaction tax retail sales tax severance tax stamp tax stock transfer tax tonnage tax undistributed profit tax use tax wealth tax withholding tax   tax in kind after taxes before taxes exempt from taxes to exempt from taxes liable to tax = subject to tax to abate a tax = to cut down tax to abolish a tax to charge a tax to collect taxes to deduct taxes to dodge taxes = to evade taxes to be fully or partly exempt from to impose a tax = to lay a tax = to levy a tax to kick against taxes to withhold taxes to introduce new excise duties to be zero-rated to waive tax transparency of the systems of company taxation a taxable entity the current favorable tax position equitable taxation flat tax flat taxation multiple taxation taxation of costs tax-collector tax-dodger taxpayer tax avoidance tax evasion tax authorities the tax burden on company profit the marginal rate the average tax rate tax loophole   tax allowance tax concessions concessional taxation to allow tax credit relief tax liability companies liable to tax   taxable profits to apply % tax rate to tax on imputed income   be subject to double tax double tax value added tax (VAT) non-deductible VAT be entitled to reclaim VAT tax break to reinstate the tax to extend tax break to to be eligible for a tax break preferential tax treatment tax haven (a country which imposes low rates of personal and corporate taxes) to shelter ill-gotten gains , 1) o; 2) , ,   (. , ) , (.. )      

6.

Banking

account savings ~ settlement ~ giro account to handle an ~ to hold an ~ with bank business bank = credit bank incorporated ~ (.) = joint stock (.) ~ clearing ~ collecting ~ insured ~ member ~ (.)   mutual savings ~ (.) overseas ~ (.)   payees ~ payers (paying) ~ retail bank trustee savings ~ nonbank (.)   banking bill   bankable = discountable bill after date ~ ~ at sight = demand ~ time / term ~   outstanding ~ = unpaid ~ bank / bankers ~ due ~ overdue ~ unexpired (past-due) ~ renewal ~ uncollectable ~s   wage ~ bills receivable   bill of exchange   bill of lading to borrow ~ on mortgage borrower mortgage ~ national ~   borrowing easy ~   ~ short to lend long   charge to charge at a moderate charge charges all charges included bank ~s extra ~ extra ~s handling ~ incurred ~s interest ~s loan ~ to clear   to clear an account clearing currency     convertible ~ hard ~ counterfeit ~ pegged ~   debenture     bearer ~ registered ~ debt to run into debts be out of debts to cancel ~s to collect a ~ to incur ~s to meet ~ to recover a ~ to settle a ~ active ~ due ~ preferential / preferred ~ residual ~ unified ~ = consolidated ~ floating ~ debtee debtor loan ~ poor ~ defaulting ~ to defray (expenses) to deposit ~ at short notice   to deposit as security on deposit to pay a ~ to verify ~s   deposit a ~ with an overdraft feature call ~ = demand ~ = sight ~ checkable ~   time ~ = fixed ~ general ~ interest - bearing ~ household demand ~   idle ~   overseas ~ depositor   disbursement discount     ~ rate discountable bill draft sight ~ time ~   to lend ~ on collateral lending concessional ~   nonbank cash ~ unsecured ~ lender lender of last resort     loan bad ~ collateral ~ disbursed ~ external ~ internal~ = domestic ~ instalment ~ overnight ~ personal ~ public ~ secured ~ soft ~ loanable money money supply   to check ~ overdraft   to have an ~ unauthorized ~   payable payables payee payer prompt ~ slow ~ payment   advance ~ due ~ = in due course to effect ~ to enforce ~ to suspend ~ upon ~ cash down ~ down ~ pay-down   in-lieu ~   lump-sum ~   ate ~ = overdue ~ outstanding ~ (public) welfare payments   social security ~ remittance = transfer to redeem a bean = to meet ~ redemptiondate reserve requirements   safeguard (against smth) saver   shortfall of savings household savings to settle (settlement)   to settle indebtedness statement   ~ of accounts to withdraw (withdrawal)     ~ a deposit wholesale services swap swap industry swaps clearance c , ( ) ()     ( ) - ( ) ( ) ( ) - , ; ; . 1) ; ; ( ); 2) , ; 3) ; 4) , ( ) ( ) , ; / ; , , ; ( ); ; / ; () () 1) ; 2) ; 3) , 1) ; 2) (); 3) , , ; /   / , ( ) / ; ; , , , ; ; : , , ( ) 1); 2); 3) ; , ( ) , ; ; , ( ) 1) ; 2) , , - , ; 1) (, ); 2) ( ); ; , (, , ) , ; (); (); ; , ( ) , ( ) ( , ..) () (.) (); , / , ; ; , ; ; 1) ; 2); ; /;

7.

Management

acquisition , agenda appointment , , assignment ( ), benefit , , ; ; , ; , capital employed career ladder career path cash flow , chartered accountant/CPA ; competitive edge conglomerate ; , , consolidation ; ; cost-efficient cross-border culture clash customercentric delayering drive economies of scale , entity , , ; experiential , expertise , ; flop , flow chart ; ; ; - freelancer , funding , headquarters , - ingenuity , , intangible assets integrity interpersonal misunderstanding online ordering outlook outsourcing panel interview , pitfalls , , populace production facilities , ; , rank , , red tape , retailer , rival , spouse , stamina , , subordinate , , subsidiary , sweatshop , tax incentives vocational watchword , , affiliation brainstorming , break-even analysis ; carrying costs ; coercive power/coercion cost-benefit analysis debt capital reverse delegation departmentalization ; filtering flat organization foreign assembly foreign freight forwarder gap analysis grievance procedures gross profit - peer group , , indirect cost factors input , , ; ; internal audit inventory approach job simplification laissez-faire licensee lifetime employment managerial grid () mediation off-the-job training on-the-job training operating budget operations research ordering costs performance contract , pilot-testing remuneration . , retained earnings safety stock self-imposed tasks , sequential order sexual harassment slack time smoothing , soldiering , tuition reimbursement program validated export license variable costs to articulate dissatisfaction performance appraisal . government involvement heterogeneity in management to make a turnaround assets estimates writedown target-oriented , to throw , to be committed to rules entrepreneurial zeal , dressdown Fridays Take your time ! to mean smth at the bottom line to collaborate collapse , to exemplify , to exploit , to opt for to oversee , to reimburse , to recruit to relocate , , to replicate to turn down , to bring the problem down to earth frame of reference , to put it another way to impede communication , a heated discussion to underscore the need for , to capitalize on smth. , to turn to advantage to be engaged in squabbles to make smb into managers - to tackle the questions to be assessed on ones performance - , to groom young trainee managers an unanimity to be confined to to be within the control

8.

Marketing

adoption curve adoption process (-) brand sponsor brand switcher buying intentions survey cash cows ( ) cents-off retail price cold pig ( ) convenience products corporate identity ; ; cost-conscious shopper , sampling , deceptive pricing demonstration reel , demarketing ( ) detail man , diffusion of innovation discriminating buyer , disposable income high-elasticity customers epistolary opinion research expectancy-value model fair value line ( ) friend-of-a-friend generic brand () ( , .. , , , , ) idea advertising ( , ) idea screening reference group () , .. , perception perishable goods repeat rate lagging sales , label copy law of retail gravitation order flow pattern marketing intelligence , marketing mix marketable commodities me-too product -, markup pricing , media buy , optional pricing reseller markets package enclosure penetration strategy place utility positioning , post-purchase behaviour ( , , ..) price lining augmented product , , product portfolio , media test medium user , promotion mix pull strategy ( , , , ) push strategy ( , , , ) reliability sales script ( , ) sales killer specialty products store brand variety store variable pricing CIF (cost, insurance, freight) , , , deterrence strategies , drive time , - export constraints fulfillment house , joint ownership leveraged marketing , market acceptance () counterfeiting product adaptation , dual rate ( ) trade shows ,

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