Specialization of managerial personnel in accordance with the division of labor in management, accompanying the general division of labor, is the next stage in the evolution of managerial thought. Two methodologies are leading in this regard.
Scientific-research management approach
What is Scientific-research management approach? The application of this approach requires the organization (industrial enterprise) to be considered and explored as an open-ended, focused socio-technical system. The core of the theoretical studies of the supporters of this school places the person with his/her personality and motivation. To this day, Maslow’s research, as a typical representative of them, is at the root of all staff motivation training programs.
Scientific-formalizing management approach
The emergence of this approach is linked to the development of computer science. For the first time, operations research methods were used by the United Kingdom to solve military transport tasks in 1938.
APPROACH TO MANAGEMENT AS A PROCESS
Specialization of the specialization of managerial personnel in accordance with the division of labor in management, accompanying the general division of labor, is the next stage in the evolution of managerial thought. Two methodologies are leading in this regard.
Scientific Research Approach
The application of this approach requires the organization and industrial enterprise management to be considered and explored as an open-ended, focused socio-technical system. To this day, Maslow’s research, as a typical representative of them, is at the root of all staff motivation training programs.
Scientific-formalizing approach The emergence of this approach is linked to the development of computer science. For the first time, operations research methods were used by the United Kingdom to solve Army transport tasks in 1938.
SITUATION MANAGEMENT APPROACH
Recent scientific research gives us a reason to find a new scientific field and school in management.
Classical situational approach. The situational approach of management is based on the causal relationship between independent and dependent variants.
One variation of this deterministic concept is the concept of natural selection. According to its founder Aldrin Haward (based on an analogy with the biological concept of Darwin’s theory) the natural forces themselves choose the organizational characteristic of the social system that would best meet the requirements of the environment. According to him, the subject should be analyzed not so much the organization itself, but much more the population itself and the process of exchange, differentiation, and choice of a lifestyle that is in harmony with the environment. It is unanimous in the opinion of the followers of this scientific field that only those social systems that are in harmony with the environment survive and develop. All other management decisions and organizational changes beyond this basic idea are harmful.
The scientific-behavioral situational approach as opposed to the deterministic approach
The scientific-behavioral situational approach as opposed to the deterministic approach, the representatives of this approach raise the thesis of choice in each specific situation. All the representatives of this scientific field emphasize the freedom of personal choice in making management decisions. Decisions are made in two stages:
In the first stage, decisions are made regarding the construction of the social system in the following areas:
- setting goals for the social system
- forming ways to maximize profits
- the status of the organization and its internal rules of procedure
- the social structure of the organization and division of labor, qualification and normalization
These decisions cannot be taken independently, but should be seen as a complex interconnected system of complex solutions.
In the second stage, the management decisions are related to the final results of the firm’s activity and the determination of its strategy and policy.
- situational analysis
- the organizational structure
- restrictive conditions
- the behavior of the staff
- organizational culture
- organizational climate
Reference: Establishing and spreading a people-and-business-oriented culture, BVOP.org
SYSTEM MANAGEMENT APPROACH
The emergence of this approach is linked to the empirical studies of the organizational structures of 79 American industrial enterprises by American scientist Khandwal. He found a direct dependence and influence of the efficiency of the industrial enterprise on the organizational structure. Research has shown that reducing the complexity and complexity of environmental impact on the internal coherence of organizational elements and organizational structure has a significant impact on the efficiency of industrial production. This approach is based on the following prerequisites:
- in order to harmonize and structure industrial social systems, there is a need for similarity, similarity, and adaptability between the goals of the organization, organizational rules and regulations and the structure of the management apparatus.
- organizations should be systematized and qualified according to differences in organizational goals
- organizations should be compared and examined according to their organizational structures
The enterprise is seen as its dynamically interacting unity of the environment and system. In this unity, the structure and strategy of the enterprise are shaped by the influence of the environment.
Computers and the march to planning the need for materials
The main development of the ’70s was the widespread use of computers to solve manufacturing problems. For manufacturers, the big breakthrough was the implementation of MRP for production control. This approach connects all parts that are part of complex products into a computer program. This program allows manufacturing planners to quickly set up production plans and purchase materials to meet the changing level of demand for finished products. It is clear that manipulating the vast information needed to change product plans with thousands of parts would be impossible without a similar program and the ability of computers to manage it.
Just in time, total quality management and automation (Agile Product Management)
The 80s are the years of revolution in the management philosophies and technologies that drive manufacturing. Just-in-time (Kanban) production is clearly the biggest breakthrough in production philosophy of that time. Created by the Japanese, just-in-time is an integrated set of activities designed to achieve high-volume production, using minimal inventories of materials that arrive on-site just-in-time. Reference: Japanese management model
This philosophy, together with total quality management, which aggressively seeks to eliminate the causes of manufacturing defects, are today the guiding principles in the manufacturing practices of many manufacturing companies.
With the importance of just-in-time management, automation in its various forms has an even greater effect on production management over the decades to come. Terms such as computer-integrated manufacturing (CIM), Agile manufacturing systems, and the plant of the future are well known to many readers and are becoming concepts of manufacturing management practitioners.
Structure of the production strategy
The late ’70s and ’80s were the beginning of the development of the production strategy structure by Harvard Business University researchers. Professor William Abernathy’s work builds on William Skinner’s earlier efforts and shows how manufacturing executives would use the capabilities of their plants as strategic tools in the fight against competition.
The structure itself outlines how the 5 P’s of production management can be analyzed as strategic and tactical decision-making alternatives. They argue that since a plant cannot be perfect in all performance metrics, its management needs to build a focus strategy, creating a specialized enterprise that performs a limited set of tasks extremely well.
This increased the need to create a combination of similar performance measures such as low cost, high quality and high flexibility in enterprise design and management. In today’s production environment, the notion of combinability is often criticized as limiting management’s vision of what is possible for enterprise productivity. The so-called global manufacturers are trying to imagine that they are doing everything right, and claim that automated, Agile methodologies and technologies make this goal achievable. In fact, no company can be at the same time a leader in price, quality and Agile features in its industry.
Quality of customer service and productivity
Quality and Agile productivity are challenges for today’s service companies, regardless of what new tools are being developed to meet these challenges. They also take their place in the history of Production Management.
The wide variety of services in all business branches with around 2000 different types makes it difficult to broadcast one innovator or researcher who has made a major breakthrough in this wide range. However, there is one service company whose unique approach to quality and productivity has been so successful that it serves as a benchmark for defining mass standardized services, this is McDonald’s.
I can conclude my introduction to the discipline by outlining a set of key issues facing production managers today. All these issues are interrelated, namely:
- Accelerate the time (cycle) to produce new products and offer new services
- Achieving and maintaining a consistent high quality at low prices
- Integration of new technologies and management systems into existing production systems
- Recruitment and training of qualified personnel and management
- Effective interaction with other functions of the business (marketing, engineering, finance, and personnel) to achieve the goals of the company.
- Control of production and service activities in multiple locations in one decentralized system.
- Effective work with suppliers and friendly customer care.
- Work effectively with new partners and create strategically important alliances.