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The Captivity of the Principles and Functions of Classic Management, and Contemporary Innovative Management Assoc. prof. Gheorghe SĂVOIU PhD Assoc. prof.Maria Carmen MANEA University of Piteşti Abstract This paper isfocused on the idea that principles represent, in any science, fundamental theses or expressions, basic ideas underpinning any scientific theory, any practicai system or efficient organization. A set of fundamentals of general economics are always behind any principled and theoretical developments of practically all sciences branching from the vital and so generous tree of economics. The principles of the modern market economy, in their deeply axiomatic and comprehensive capacity, through a statement worthy of the terse spirit ofGreek classicism, but also adequate to today's scientific teminology, have been formulated by James D. Gwartney and Richard L. Stroup in remarkable and perennial wording. Contemporary management has become, and is expanding, as innovative management in compliance with classic managerial principles and functions, while also developing further principles and constantly adapting to the new global and the new economic realities. Key words: management principles, management functions, innovative mangement, managerial innovation. The principles formulated by James D. Gwartney and Richard L. Stroup rebuild, easily and in all simplicity, in only ten major precepts, its actual mechanism. Thus, starting from the fundamental dynamic principie "incentives matter", and from the fact that "nothing comes free", the rest connects naturally, redefming transactions, absolute and relative advantages, as well as their role in "voluntary exchange [that] promotes economic progress", the liberalization of exchange and the efficiency of approach by "transaction costs are a barrier to the exchange, and reduce these barriers will help to promote economic progress", alongside of the Revista Română de Statistică Trim III/2013- Supliment 199 natural correlations of the type of "real income growth is dependent on the increases in real output", factorially dividing the same real income, as in the expression "the four sources of real income growth remain upgrading the workers' skills, capital formation, technological progress and better economic organization", and the simple causal relationship that incorporates it: "the income is the pay obtained for having provided services desired by the others ", withut omitting the purpose of economic activities, as "profits orient the economic enterprises towards those activities that increase wealth", and then revealing the importance of price as the invisible hand of the economy, in the sense given by the father of that science, Adam Smith, author of "The Wealth of Nations", the "principie of the invisible hand harmonizes self-interest with the general welfare", and ending with the threat of cyclical recession, which lurks anywhere, anytime, by emphasizing the importance of forecasting and the economic impact of decision, through the statement that "the commonest source of error in economics is ignoring the side effects and long-term consequences. " The diversity, and the principle-oriented and the functional captivity of contemporary management The evolution of management, as a science initially deriving from applied market economy, naturally assumed a plurality of practicai manifestations, which overlapped chronologically; the diversely weighted eclecticism technology-people is the main cause of this distinct pattern of evolution of theories, which gives it a substance apparently lacking consistency or interdisciplinary connections, although it is clear that its contemporary approach is a integrative, holistic, multi-theoretical and scientific. The managerial principles are, by contrast, the evidence of the coherent, temporally evolutionary and integrative character, in the multidisciplinary plane, and bring together fundamental elements and laws, on which management is based as a scientific theory. The number of managerial principles that should underpin the activities of organizations has been placed within a fairly wide range, right from its synthetically enumerative debut, the lower limit being that of the principie management quadrilateral of Frederick Taylor, which combined the development of the science of individual work, through the detailed analysis of each constituent (each 'movement' or duty of the job description), followed by carefully identifying the optimal method of transposition and generalization in the practice of the organization, with a rigorous selection and training of workers (the staff), with the extended mutual cooperation, methodological and substantive, between manager and workers (the subordinate group), and an additional internai division of 200 Revista Română de Statistică Trim. III/2013 - Supliment labour, a new structural split of activities and a novei funcţional assignment of responsibilities between managers and workers (or groups of subordinates), while its upper limit reached not less than 14 general principles of management and management, enunciated by Henri Fayol namely the division of labour (or division of work), authority, discipline, unity of command, unity of direction, subordination of individual interest, remuneration, centralization, scalar chain, order and adequacy of resources (or order), equity, stability of functions and personnel (i.e. stability of tenure), stimulating initiatives (or iniţiative), team spirit and organization membership (or esprit de corps). Over the course of almost one hundred years, many of the early management principles would disappear, others would apparently change their form, but not their essence, appearing by new names, and many others would add to the already historic fund of the remaining managerial principles. The diversity of manageial principles, as a fundamental feature of contemporary economic management, extends methodically and covers an increasing area, while the new principles, accents and changes of perspective can be described as being relevant features of contemporary management. New principles, contemporary accents and shifts of perspective in management Some of the new features related to principles and some of the original accents appeared in modern management are described briefly below: − diversification of incentives and careful time monitoring (Henry Gantt), − raţional authority, the basis of the organization, formal/legal power invested in the manager, the hierarchy of authority and responsibility, using the written memory of the organization, impersonal rules and procedures that are however applied uniformly, continuity centred on formal structures and positions, the split between management and the owners of the organization (Max Weber ), − the importance of common major objectives in reducing conflicts in the organization, encouraging employees rather than controlling them (Mary Parker Follett), − the potential presence of the informai organization in the formal organization, freedom of will and choice of the authority (Chester I. Barnard), Revista Română de Statistică Trim III/2013- Supliment 201 − motivation as a result of satisfaction of personal economic needs, of social needs, job satisfaction (Elton Mayo), − the importance of ensuring the Hawthorne effect, whereby workers enjoy special attention: they will get better results thanks to the very fact that they are treated in this way, and improving human relationships, relationships that are the best approach to labour productivity growth (Richard Daft) − the managers' ability to identify the key variables (or contingencies) of a specific organizational situation (Richard Daft) − amplifying the importance of designing the posts so as to meet the individuals' higher order needs, providing employees the opportunity to fully utilize their full potential, reducing the influence of "hygienic or maintenance" factors, which result in dissatisfaction and are extrinsic to the job. as well as increasing the influence of "motivating or growth" factors, which generate satisfaction and are intrinsic to the job (Abraham Maslow, Frederick Herzberg), − the increase of the weight of psychology and sociology in analyzing motivation, communication, leadership and the full spectrum of human resources (Doulgas McGregor, Rensis Likert, Chris Argyris), − exacerbation of systemic significance, alternating, in point of importance, the integrality, hierarchy, dynamism, purpose and adaptability of management (Herbert Simon, Peter Drucker, Michael Porter, Charles Handy), − the more generalized perspective of using mathematical and statistical concepts and methods, addressing, in a mathematized manner, the forecasting and organization functions, the functions of research and development, production and trade (Alan Kaufmann, John von Neumann, Oskar Morgenstern), − amplification of the iterative and cyclical nature of the management process (Harold Koontz), − the increased significance of challenges in the environment of the organization, the increased importance of the group / team (Noel Tichy) − generalizing the importance of quality (Joseph Juran, Edward Deming, Kaoru Ishikawa, Genichi Taguchi), − excellence of performance (Tom Peters. Robert Waterman), 202 Revista Română de Statistică Trim. III/2013 - Supliment − the perspective of sustainable development and environmental protection, − extended meanings of re-engineering and e-management, − conceptual enhancing of managerial organizational culture, − emphasizing ethics (ethics of the possible, of responsibility, of persuasion, of rules), − the perspective of integrating social responsibility, as well as social sensitivity, among the criteria of the organization, − highlighting the importance of informai elements, − new emphasis placed on economy-orientedness, efficiency, efficacy and effectiveness, etc. Modern management principles have been, and are continually being redefined, among many others by Peter Drucker, a leading management theorist, Nobel Prize winner for economics, by shifting the emphasis on performance: setting the business objectives, the organization of production and labour, motivation and communication, establishing performance measurement methods, and continuous development of employee performance. Very much like the principles, the functions of the science of management are captive to the functions of the economy, even when the general economy could be restricted to a limited number of functions. In a funcţional abstract presentation of the economy, some of its descriptive and defining functions would be: - the function of demand, where demand, as the dependent variable, is in direct or inverse relationship with various factors (price of the product, available income, prices of substitutable products, prices of complementary products, number of consumers), - the function of production, in keeping with which there is always a quantifiable relationship between production and resources, between outputs and inputs, based on the relative constancy in time of a certain development stage of technology, - the supply function, in relation to which the relationship is described between the quantitative supply, as a resulting outcome, and a series of factors or independent variables, such as product price, the price of labour, the capital factor price, the price of other competing products that can be obtained with the same factors (human resources and capital), the number of companies that produce the product, - the consumption function, as funcţional relationship between incomes and consumption expenditure, Revista Română de Statistică Trim III/2013- Supliment 203 - the saving function, which is complementary to the function of consumption (savings represents the excess of income over consumption expenditure), after which the average growth of savings usually surpasses the average income growth. and in the case of revenue decrease, an increase in the share of consumption expenditure occurs in an higher proportion, - the household utility function, which describes the household consumption behaviour, as a compound consumption structure, etc. On a theoretical plane, the functions of management are defined as variable activities that depend on one or more independent variables sizes, and in practicai terms, as activities in interaction with other special activities by their nature and direction, which the manager or management team do continuously, in a hierarchical, structured manner, for the efficient management of the organization's system. The dependency of the management functions on the practicai organization of the company, business or enterprise is the result of the interplay between compartmentalization, the structure and the hierarchy of the organization, which are translated into specific management functions, assuming that functions are variables resulting from the iniţial project of management of the organization (in the primary management model), and the independence of the managerial functions, in relation to the same practicai organization, is the result of the restructuring of the primary project. Two trends characterize the recent approaches to managerial functions, the first consisting of excessive multiplication, by the gradual addition of new features, from setting the goals, continuing with motivation, exchanging views, plan formulation and exercising control, structuring tasks and decision-making, communication of criticai information, resource allocation, conflict resolution, delegation of authority, directing the changes, measurement of results, training the people, innovation and even decentralization; and the second, which follows a trend of systematic reduction, either by regrouping, to only four functions, namely planning, including also decision making, organizing in order to achieve business performance, leadership (or leading), to which are added motivation (or motivating), as well as control (or controlling) - after Justin Longeneker and Charles Pringle, or by reducting to only two functions, deemed essential, such as the supple and flexible organization and decreasing the size of the compartments of the organization, including the management one, in the opinion of Sarah Freeman and Kim Cameron, or restricting everything to a single function, which is to mobilize the energies of the economic unit to meet the tasks known and defined. the way that Peter Drucker was able to 204 Revista Română de Statistică Trim. III/2013 - Supliment define the essential attribute of management, by using a single, yet maximally concentrated principie. Functions of management after Henri Fayol In its contemporary meaning, innovation or the innovative function of management must complete the set of the classical functions. being a more pragmatic solution, or else a solution able to provide a more rapid management of the organization, transformed into an innovative entity adapted to the global system of resources and uses. Innovation efforts become a practicai innovation in terms of management in relatively fewer situations in relation to expectations, and when they fail, particularly in managerial processes, the cause is the disparity of managerial decision or the cultural managerial gap between the aspirations of the manager and the ability of the organization or entity to understand and apply innovative management ... Roy Rothwell, in his book entitled "Managing Innovation and Change", published in 1991 and reprinted in 2002, 2003 and 2004, makes a retrospective analysis the innovative process, especially the industrial one (adapted and integrated into the educaţional process in this synthesis), identifying as many as five successive generations that have contributed to the maturation of both the process itself, and its management: a) the generation of the managers in the first two postwar decades (the first generation of "technology push", focusing less on the new concept of research and development, "R&D", which was the beginning of the implementation of large-scale industrial innovation); b) the generation of the second half of the 1960s, and also that of the 1970s (a generation faced with the first rationalizations of technological and financial change, as well as an increase in the importance of long-term "R&D", but also in the innovative management processes, according to the relatively late opinions Revista Română de Statistică Trim III/2013- Supliment 205 in relation to the original staging, i.e. those of Daft, R. L. & K. E. Weick, in 1984, who identify, in practice, four specific entities in relation to the relationships developed, from those that initiate an "undirected long-term perspective or view", to those benefiting from „conditioned" strategies, to the evolved alternative of the entities capable of "managerial insights with strategic impact", and. finally, those able to "adopt original management strategies); c) the generation of the 1980s (the innovative axis now describes managerial innovation itself as a network of adaptation to the internai and externai environment of the entity, bringing together companies and organizations, as well as academic and research communities, in an administrative context - according to Rothwell and Zegveld, in 1982 and 1985); d) the 1990s generation (where the dominant processes are computer-assisted management processes, focused on simulations and databases, innovative managerial technologies, etc., as in Rothwell's book published in 1992); e) the new generation, after the year 2000 (where internet communication, social groups and networks become important managerial components in the process, whose significance is greater and greater, and the new information solutions, focused on tablets and integrated phones, will probably be gradually assimilable, management space and time will be dilated, thus resizing the new innovative managerial processes). Whatever the number of the principles and however they may be defined, very much like the management functions, the are not tantamount to immutable laws or strict temporal sequences of activities, but rather sets in keeping with the approach to the organization as a system, neither can all be mandatory, or regrouping, within the same principie or function, requirements or management activities in strict temporal succession within the management process. Quite on the contrary, the selected principles and the adapted functions are needed in any approach to the organization, company or entity as a system, but in an innovative manner, combining and clarifying, through continuous adaptation to the internai and externai environment, forecasting, operaţional, commensuration and interpretation activities, which can be found in the three corresponding phases of the management process, which emphasizes the durability or sustainability of a function, as a process and a principie. "Change is the law of life. Those who look only to the past or preseni are certam to miss the future" said, 60 years ago, none other than John Kennedy. Modern systems management involves a practiced capability to practically overcome problems by means of compromise, too, and implicitly has an innovative management component. Promoting creative and 206 Revista Română de Statistică Trim. III/2013 - Supliment innovative approaches in various areas of human activity, and contributing to a better preparation of any organization for the present and future challenges of a globalized world, and for the knowledge society, where the innovative management process dominates over the lifetime or demography of the companies, organizations, associations, according to the famous formulation of the "life-long learning", which will naturally be valid in future management, too. Bibliography Daft, R. L. & Weick K. E. 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