IB - Module 1

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systems approach
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Katz & Kahn; firms as living organisms; firms are made up of interdependent parts which can only be understood by analysing them all together; we may analyse them in three categories inputs, processes, outputs
contingency approach
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relationship between the organisation and its environment; business activities and the way they are organised are products of the environment in which they operate
bureaucratic management
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Max Weber; organisations as hierarchies; formal rules, division of labour, systematic pay structure, authority of position; i.e. banks, armies, universities
scientific management
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Frederick Taylor; organisations as machines; standardisation of tasks; separation of thinking and doing; scientific analyses of work; i.e. doctors, nurses, helpers
human relations
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organisations as social systems; attention improves the output; Elton Mayo found out that informal relations, social groups, team spirit raise productivity
1st principal of systems approach: permeability
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organisations as open systems; informations and resources flow in-n-out of organisations; context is dynamic, so companies need to be opened
2nd principal of systems approach: holism
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parts of the company interact and are interdependent; the whole systems consists of many subsystems
3rd principal of systems approach: entropy
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beware the mess; get the system back in order; equilibrium
4th principal of systems approach: equifinality
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not all ways of organising are equally good
Business activities
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1. Innovation, 2. Marketing, 3. Operations, 4. Human Resource management, 5. Finance and accounting
Network theory
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Organisations as networks; strong ties - tight groups, in which people share the same kind of information
strong ties in network theory
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tight groups, in which people share the same kind of information
weak ties in network theory
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more unique information shared between group members
Setbacks for scientific management
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1. Not thinking enough about people, 2. Carelessness, demotivation
Examples of Closed organisations
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NASA, military, Hollister
Examples of open organisations
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fast-fashion companies, Netflix, Charity
Strategical business context
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strategy comprises a set of objectives and methods of achieving those objectives
orzganizational business context
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organisation refers to the way in which people operate to carry out the activities of the business
environmental business context
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the economy, state, technology, labour
Taylorism
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study of how specialisation affects people
homo economicus
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human is a rationally calculating machine, who is narrowly self-interested, desires to possess wealth, mainly motivated by money
Hawthorne effect
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when you know you are under observation, you act differently; attention motivates people

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