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Enterprise as a machine. It was believed that the industrial organization that emerged from the Industrial Revolution, the property of their creators and owners. Enterprises were presented as a machine whose function was to serve their creators, providing them with adequate value for money time and money. Therefore, the main if not sole purpose of such organizations is to create profit. In that view of the enterprise, its employees were viewed as replaceable machines or machine parts. Hence, their personal goals and features were considered insignificant. For people who have developed very simple repetitive tasks, as if they were destined for the machine.
Over time, the conditions that inspire the mechanical concept of the enterprise began to change. First, the growth of the potential of individual companies in general is confined to self-financing. Therefore, many private firms became public – joint-stock. Their property was dispersed among a large number of shareholders, most of which do not come into direct contact with the workers. Appeared Management (wage controls) that performs the wishes of shareholders. Secondly, the emergence of management separated from ownership, accompanied by increased social security and the economy, which reduced the threat of economic hardship for working people.
Under the new concept of an industrial enterprise is as an organism. That is, individual departments and divisions of the plant, as well as in the body the liver, heart, brain, are connected to each other and perform their functions. In this case, the company endowed with its own life and goals. Profits of an enterprise largely have been regarded as oxygen to a living organism: the need, but not the goal of life. In this case, managers should take full responsibility for their decisions. Workers, workplaces and society in which they worked, is constantly changing.
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It became apparent that the ratio of workers to their work has a significant impact on how much and how well they work. When the job is to give less satisfaction, output is declined sharply. With the introduction and spread of automation meaningfulness of work from a technical point of view has increased significantly. Investments in education and training of workers have become one of the major cost items that increase the cost of replacement workers. The more skills acquired business, the harder it becomes for the boss to tell how to do the job. Managers can only specify which product or outcome they want. Thus, improving the technical meaningfulness of work brought with it an increasing freedom of hired singers and dependence on their employers. Since the qualification of workers grew, they became less inclined to blindly obey, and the companies hired them. Therefore, their personal needs and requirements for the work became more and more concerning for employers who need their skills. In these circumstances it is not enough to consider the employee (or those working more than an engineer) just as a separate organ of the enterprise.
Organizations have existed before, but under the new concept of the notion there has been given the new insight into the enterprise. The organization is (1) a purposeful system that (2) is part of one or more of the targeted systems, and (3) part, which – people have their own purpose.
Nature of the impact on the enterprise of its elements depends on how it affects them, and exactly the same effect on it of systems of higher order depends on its impact on such systems. Fundamentally new element in the problems of management was the need to integrate and harmonize the objectives of individual enterprises and people working on it, as well as those systems, which include an enterprise to achieve the goal of the system. Lean production is the concept of logistics management, focusing on streamlining business processes with the highest market-oriented and subject to the motivation of each employee. Lean manufacturing is the foundation of a new management philosophy. The purpose of this production is to achieve a minimum cost of labor, minimum periods to create new products, to guarantee the supply of a product to the customer, high quality at minimum cost. In accordance with the evolution of the conditions of production there are developed scientific schools and directions of management.
All in all, it can be argued that management theories are developed in response to the problem facing managers at a particular stage in history, as sometimes different circumstances occur, which force management to change its principles, goals and approach. Certainly there are connections between management theory and the industrial scene, as along with the technological progress management faces new challenges, new requirements and new rules.