I.

The definition of management

The resources are limited and processes must meet all constraints. Therefore, processes need to be
carefully planned in order to perform properly at the highest level of efficiency and effective, detect
abnormalities, and measurements to the degree of completion. These efforts are generally referred to as
management.

In general, management defined as the pursuit of organizational goals efficiently, meaning to

utilize the company’s resources effectively, and effectively integrating the work of people by applying
four functions of management: planning, organizing, leading, and controlling the organization’s resources

II. Role of managers

1. Making Predictions: Predictions are an anticipation of the whole process and phenomena that
may occur in the future in the development of a management system. Predictions include the
advantages, disadvantages, and the factors of the external environment.
2. Planning: Planning, which is the most basic function of the management, is to make decisions
about goals, action plans and specific steps for a certain period of time.
3. Organizing: The organization is to identify legitimate role or duty. Organization is the effort to
unite, link the individual parts into a system, rhythmic operation as a unified system. An
organizational structure is considered reasonable when it follows the principle of unity in the
goal, and each individual contributes to the common goals of the system. An organization is also
considered effective when it is applied to accomplish system goals with minimal cost to the
organization.
4. Encourage: Encourage the development of human to utilize their endless possibilities. Therefore,
one of the management functions needs to identify the factors that motivate people to contribute
as efficiently and effectively as possible to the system. The motivating force could be trends,
dreams, needs, aspirations, and impulses for human beings.
5. Making adjustment: making adjustment is to correct any deviations that occur during the
operation of the system to maintain normal relations between the controller and the operator,
between the managers and employees. Making adjustment is also complex, because any disorder
in one part affects directly or indirectly the other parts of the system.
6. Examination: Examination is to properly evaluate the performance of the system, including the
measurement of deviations that occur during operation based on the planned objectives.
7. Evaluation: To provide management agencies with the information they need to properly evaluate
the situation of the operations and to decide on a new development.
III. The development of management theories
 There are two overarching management perspectives: historical and contemporary. The
first perspective includes three viewpoints: classical, behavioral and quantitative. The
contemporary includes systems, contingency, and quality management.
1) The Classical Viewpoint

The classical viewpoint has two branches: scientific management and administrative management.
The scientific management focus on applying the scientific studies to enhance the worker’s productivity.
The theory is pioneered by Frederick Taylor. The theory suggests that organizational tasks are carefully
identified and measured in order to standardized. He also offered four principles of science that could be
applied to management. Furthermore, Frank and Lillian Gilbreth suggests productivity could be improved
by conducting motion studies that break tasks into physical motions.

The second branch of classical viewpoint is administrative management. Henry Fayol is the
pioneer. The administrative management suggests managing the total organization. Henri Fayol identified
the four major functions of managements: planning, organizing, leading, and controlling. Max Weber
embellished the theory with his bureaucratic theory. His theory not only focused on dividing organization
into hierarchies but also well-established formal rules/procedures. He also suggests organization must
have a clear division of labor, impersonality and merit-based compensation.

2) The Behavioral Viewpoint

The viewpoint that emphasized the understanding of human behavior and their motivation toward
performance was pioneered by: Hugo Munsterberg who suggested that psychological researches could
contribute to the effort of maximizing the productivity by identifying the psychological conditions for
employees to do their best work. The second pioneer is Mary Parker Follett. She recommended that
organizations should be democratic in which employees and managers working together. Next, Elton
Mayo hypothesized a Hawthorne effect. He suggested that the attention from managers could contribute
to the worker’s overall performance.

The human relations movement suggested that the human relations directly affects worker
productivity. Among its pioneers were Abraham Maslow and Douglas McGregor. Abraham proposed a
hierarchy of human needs. In the other hand, Douglas McGregor proposed a Theory X (managers have
pessimistic view of workers) and Theory Y (managers have positive view of workers).

3) The Quantitative Viewpoint

Two approaches are management science and operation management. The management science
focuses on using mathematics method and tools to support problem solving and decision making process.
In addition, the operations management focuses on managing the production and delivery of an
organization’s products or services more cost effectively.
4) The System Viewpoint

The systems viewpoint considered the organization as a system of interrelated parts or collection of
subsystems that operate together to perform particular tasks in order to achieve a common goal. There are
four parts in the system: inputs, outputs, transformational processes, and feedback. A system can be open,
which continually interacting with the internal and external environment; or closed, which interaction
with environments is minimum to none.

5) The Contingency Viewpoint

The contingency viewpoint is evidence-based management. It translates principles based on best

evidence (internal and external factors of the current situation) into organizational practice, brings
rationality to the decision-making process.

6) The Quality Management Viewpoint

The quality-management viewpoint is concerned with the total ability of a product or service to meet
customer needs. Quality management has three aspects: quality control, quality assurance, and total
quality management. The quality control is the strategy for minimizing errors by managing each stage of
production. The quality assurance emphasis on the performance of workers, encourage employees to
achieve for “zero defects.” in production and delivery of product or service. The total quality management
is a comprehensive approach that focus on making continuous improvement of quality, training, and
customer satisfaction. The total quality management has four components: make continuous
improvement, get every employee involved, receive feedback and make adjustment from customers and
employees, and use accurate standards to identify and minimize/eliminate issues.
IV. Theories Comparison
Theory Scientific Viewpoint Human Relation System Viewpoint

Emphasis Key point Conducting scientific Human relations Consider the

studies to enhance directly affects organization as a
worker’s productivity worker productivity. system of interrelated
Ex: Select the best parts or collection of
workers for the job subsystems that
operate together to
perform particular
 tasks in order to
achieve a common
goal
Advantages Scientific studies  Easy to apply Provides an order and
provide standard to  Minimum efficient plan
select best workers cost Organization receive
that ensure the a good control
achievement of high Develop a
productivity coordination between
Products/services are departments
produced and
delivered at the
highest level. It leads
to the reduction of
operational and
material expenses.
Lower rate of
defective goods
Disadvantages Studies need to be No scientific It requires a complex
revised continuously evidences to ensure and comprehensive
Conducting studies is the effect on overall researches
time consuming and performance Over-conceptual
utilize many
resources. It affects
the ability of
organization to adapt
to the changes of
market and
production conditions
Compromises may be
made in order to
supply enough
workforce for
production line which
 negatively affect the
overall performance.

Most suited kind of Small to Medium Start-up companies Apple, Boeing

organization organizations
High-skilled required
jobs such as luxury
products. Example:
Allen Edmond, Vertu

V.Paul Evans-The affordable luxury shoemaker

Paul Evans is a New York-based company founded by Ben Earley and Evan Fript. The two
founders recognized the huge demand for luxury footwear at a lower price point. Meanwhile,
designers’ shoes can range from $500 to over $1200, Paul Evans offers the competitive products at
$399 without making any compromise. Their shoes are handmade in Italy with very fine Italian calf
leather. They reduce their cost by eliminating the middle man and minimizing the defective products.
They also have very little products stocking in their warehouse; their customers have to wait from 1 to
3 months to get their shoes. By doing so, Paul Evans have absolute control from material supply to
product stocking. Furthermore, they carefully select workers for their factory in order to produce high
quality products at minimum defect. In conclusion, the best management theory that suited Paul Evan
is Scientific management approach.