Part 2:
Business studies draws on social sciences:
1. Philosophy (Research methods)
2. Psychology (Work and organisation, how and why people make certain decisions)
3. Sociology (How groups interact)
4. Economics (How we organize organisations, macro/micro)
, Lecture 2:
Chapter 1:
This chapter is about setting the scene:
- Understanding broad concepts
- All of these are part of context of businesses
Globalization:
- Connecting members of different societies
- Trade of goods and services between society
- Global circulation
Good effects of globalization: markets
1. Access to larger markets
2. Upscaling of organizations
3. Access to capital flows, technology and human capital
4. Cheaper imports and larger export
Bad effects of globalization:
1. Shift in power: International companies are now competing against local products
and services
2. Same-ness of production
3. Loss of cultural heritage: People are not buying their local products cause there are
now products that are cheaper because of mass production
4. Loss of traditional ways
5. Pollution: The industry of mass production
6. Urbanisation
Supply chain: Is the network of all individuals, organizations, resources, activities and
technology involved in the creation and sale of a product. (From the producer to the
consumer) (bedrijfskolom)
,Globalization makes a supply chain very long, resulting in that the consumer is far
removed from what happens in the supply chain → Abuse, mistreatment and slavery.
Social mobility: The relative changes of people from different social backgrounds moving
into given a social class
How easy or how difficult is it to move through a social class?
This chapter is relevant because the behaviour in an organization is dependent on:
- The worker (age, class, power, status)
- The conditions (type of job, type of contract, part-time)
- The wider content (Unemployment, aging, social mobility, industry)
Chapter 4:
Aim of this chapter: The history of management (first researches of management)
Intentional: towards a specific aim
Rational: in accordance with reason or logic
Functional: fitting for the particular aim
The management rationale:
1. Managers who hire the best employees
2. Deploy these employees in the way they can deliver the best performance
3. In order to fulfil the aims of the organisation
→ Organisation used as a machine
→ Assumption: workers cannot be trusted control human resources
Functionalism: The worker is selected
Frederick Winslow Taylor
- The first person to make management as a true science
- Clearly defined laws, rules and principles
, - Sees people as his laboratory
- Looking how people can be more efficient
Assumptions of Taylor:
- He has a negative view of workers
- Workers have reason to keep production low
- Managers have little knowledge on how production can be minimalized
- Result: Research (objective/rational) is needed about how can be executed as fast and
efficient as possible
The principle division of labour:
1. Large processes should be divided into smallest possible part (maximum
decomposition)
2. Efficiency by changing the process into short repetitive tasks
3. Division between direct versus indirect work mental versus manual.
→ White collar and blue collar work
→ Societal division based on status and class
4. Minimisation of skills and knowledge necessary
3 Tayloristic principles:
1. Work becomes separated from the skills of the workers
2. Thinking about work separated from executing work
3. The management is the only one who has knowledge about the work
Worldview of Taylor → Order and control
- Suitable worker is someone who does not understand work without the orders from
management (dependant)
- Selection of the most productive employee
- The dumber the better, this is because those workers will just do what you said
Henry Ford applies the principles of Taylor to the management of his car factory:
- Every process is divided into its smallest part possible
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