The Economic Man Or Homo Economicus Business Essay

Published: November 4, 2015 Words: 1009

Job design is a strategy that is widely used in the management of todays modern organizations structure as an action to increase their profitability and productivity. It is mainly concerned with the process of planning, setting up and organizing systematic tasks within the organization according to the organization's needs and employee's capability. In order for the strategy to be effective and efficient, management put the responsibility to their employees and explains how the implementation process of their organization work arrangement will be in their management system. (DuBrin, 2008)

Virtual organization is an association that exists but cannot be physically seen by the naked eye. It is a concept that is changed in line with the current vast developments and change. The virtual organization is very flexible and responsive because it does not necessarily require an office to operate but the existence of this virtual organization can be felt and experienced throughout the business process. Those business processes refers to the networking system used along the production process which conducted virtually through the way of communicating using electronic devices as the main telecommunication form. (Burn, J., et al. 2012)

Matrix structured organization has the advantage of giving the opportunity for the top management to develops their skills and knowledge in conducting and managing project-based strategy as well as gaining experience and understand the various aspects of the business as a whole. Matrix structure organization also creates the flexibility of cross-communication system in exchanging information and ideas among the team members from different departments which can helps on saving time and cost. A matrix organization structured also practices decentralization decision-making system that encouraging improvements of employee's self motivation level as they have the chance to make decisions and act independently.

Chain of command function as an organization system that showing how the operational and management within the organization works in a systematical manner to ensure efficient flow of work activities. It signifies the continues line of authority from the top managerial position to the lowest levels of an organization that showing the distinctive status, roles, responsibility, and the rights inherit in varies positions of the organization itself. It even clarifies the organization reporting system between the subordinates to their superior which resulting as the unity of command.

Question 14

Maslow's need theory which illustrated in pyramid design shows the hierarchical level of five basic human needs. Maslow stated that the human basic needs start from physiology needs, then the safety needs, and social needs, esteem needs and lastly the self-actualization needs. According to Maslow, the progress of fulfilling the needs must by completing one level before moving on to the next level. Safety and physiological needs are the low-order needs that can be satisfied externally. High-order needs which consist of social, esteem and self actualization needs however can be satisfied internally.

Question 7

Scientific management mainly focuses on the application of scientific method of study and also analysis into a problem which occur during management. F. W. Taylor quoted that "Scientific Management means knowing exactly what a person wants his subordinates to do and observe it to be done in the most efficient and effective way ". Among the principles of Scientific Management are Science not rule of Thumb, Scientific training and development of workers. Close cooperation between employees and manager, equal division of works and also responsibility, maximum prosperity of employer and employee and mental revolutions. (Murugan, 2007)

Question 15

Richard Hackman and Greg Oldman develop a five job characteristic model to increase the productivity and performance of the employees. Among the five characteristics is skill variety which means a diverse number of skills while performing activities and facing different problems each day increase the variety. Secondly, task identity, where employees perform their jobs with a recognizable start and finish. Third, task significant is where an employee produces positive result to his or her company. Fourth, autonomy is where the employees are less controlled and given the freedom in planning while carrying out tasks. Fifth is the feedback where the managers provide evaluation to the employee on their effort while working and ways to improve it. The more of these characteristic is applied the more motivated and productive the workers. (Daft and Marcic, 2010)

Question 13

The Expectancy Theory of motivation was developed by Victor Vroom. His approach attempt with his theory is more on the individual goal and their expectations while achieving it. Employees are able to receive rewards from their organization according to his or her performance while working. The theory's method will keep the employees motivated at all times as they hold their personal expectations of the rewards. The expectancy of increasing effort by the employees will lead to the increment of performance which will increase the productivity and positive result. (Montana and Charnov, 2008)

Question 10

Hawthorne studies were first attempted by Elton Mayo showing how lighting affected the employees working performance. But it shows that the physical conditions of the workplace do not influence the performance or motivation. In his finding, taking interest in all individual was enough to increase their work efficiency and output. Hence, the Hawthorne Experiment continues to show its result from time to time. Companies which value their employee's ideas and opinions will result a higher standard of achievement. This will also increase the ability and self esteem of the employees. Thus, increase their performance and productivity while working. (Wright, 2012)

Question 12

Theory of X and Y was introduced by Douglas McGregor. In theory X, managers will assume that their employees are less ambitious, less responsible, dislike their job and prefer to wait for instructions rather than to lead a task. Managers with theory X are stricter and may threaten their employees in order to motivate them and increase their performance. But manager who holds the theory Y will assume that the employees are more responsible, willing to do work, more creative and self-directed. Thus, in theory Y the managers will not control much on their employees because they believe that employees are capable to perform well. (Shermerhorn, 2011)

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