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The main effects of the Internet on businesses can be mentioned as follows: • Fast access to quality information – anytime and anywhere. • The Internet became an integral part of almost all business functions. • Effective development of new products and services.
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Social, political, economic, and technological forces.
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Social forces refer to macro factors within social, cultural, and historical context.
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Unemployment rates, fiscal policies and legislations, inflation rates, interest rates, and general economic conditions such as crises, stagnation, and recession are among the major economic factors.
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The oldest known practices date back to 8,000-3,000 BCE.
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The classical management theory involves several approaches: systematic management, scientific management, bureaucracy, and general administrative management.
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The systematic management approach focused on operational economy adequate staffing, inventory management that meets customer requirements, and organizational control.
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The systematic management approach is an attempt to build specific procedures and processes to systematize organizational activities and ensure coordination.
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1.Develop a science for each element of the job to replace old rule-of-thumb methods 2.Scientifically select employees and then train them to do the job as described in step 1 3.Supervise employees to make sure they follow the prescribed methods for performing their jobs 4.Continue to plan the work, but use workers to get the work done
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General administrative management approach focused on organizational management.
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According to Fayol, there are six activities directly involved with industrial projects. 1. Technical: Activities related to production, 2. Commercial: Activities related to buying, selling, and exchange, 3. Financial: Activities related to search for, and optimum use of capital, 4. Security: Activities related to securing property and individuals, 5. Accounting: Activities related to quantitative/statistical analysis, 6. Managerial: Activities related to planning, organizing, commanding, coordinating, and controlling
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Bureaucracy refers to a rational set of principles for structuring organization in the most effective and efficient manner.11
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Principles and advantages of Weber’s ideal bureaucracy are as follows: Division of labor, Authority of hierarchy, Formal selection, Career orientation, Formal framework of rules, Impersonality.
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Behavioral management theory focused on how managers should behave to motivate employees, encourage them to perform better, and improve their loyalty to the organization and its goals.
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Mary Parker Follett (1868-1933)
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The Hawthorne studies revealed the significance of psychological and social factors in the workplace.
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The quantitative approach to management refers to a perspective on management that emphasizes use of a group of methods in managerial decision making, based on the scientific method.
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Statistics, linear programming,network analysis, decision trees, and computer simulations are among the quantitative tools.
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A system basically refers to a structure of interrelated parts. Systems transform inputs into outputs to achieve specific goals.
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All open systems have five main aspects: inputs, transforming process, outputs, environment, and feedback
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Synergy, as a key concept in the systems theory, is also important for managers. Because synergy emphasizes the value of working together in collaboration to achieve organizational goals.
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In contrast to the classical management theory’s search for the best way to solve organizational problems, the contingency approach rejects the idea that there is a best way or a solution for all organizational problems.
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The advancements in information and communication technologies enabled employees work as members of virtual project teams that are networked globally. Doing business in real time may create instances for cultural blunders and misunderstandings. On the other hand, a global organization means managing diversity, which is increasingly seen as an asset for organizations.
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Managers today need to be fully aware of the current and profound changes; moreover they need to be equipped with hard and soft skills and competencies for effectively managing complex business organizations.
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Business environments can be divided into two broad categories: external environment and internal environment.
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