Business Plans & Financial Statements

Quantitative flow (management science), a science-based management of mathematical techniques for problem solving and decision making, typically used in activities such as capital budgeting, cash flow management, production scheduling, product strategy development, program planning and human resource development etc. .

Science management measures are:

1. Formulation of the problem

2. Formulation of a mathematical model

3. Getting the completion of the model

4. Model testing and the results obtained from the model

5. Determination of monitoring results

6. Implementation

Kauntitatif management approach includes the following characteristics;

Concentration in the final decision-making and the impact of management actions

The use of economic criteria in the decision (cost, pendpatan, dividends)

The use of mathematical models and formulas with a sophisticated legal

The use of computers to speed up the process

Modern Management Approach

Development of approaches in management science shows that no single theory that can be applied universally in all situations. Development of management theory continues to adjust as the demands of a changing organizational environment dynamically. So that managers and organizations must respond to these differences through managerial strategies provide opportunities to the development of a number of talents and capabilities of members of organizations. The main foundation of this approach is a system management and contingency management approach.

1) Approach System (System Approaches)

System approach in the management of an organization that is viewed as a comprehensive single unit consisting of the parts are mutually berhubngan and as part of the broader external environment. Basically the system is a system of sub-sub-systems are interconnected and interdependent.

Management system viewed as a closed system and open system. Closed-system management to focus on relationships and internal consistency (unity of command, span of control, authority and delegation) while the system is open to consider the influence of the environment, but are not functionally connected with the concepts and management techniques that lead to the achievement of goals.

2) Approach Contingency (Contingency Approaches)

This approach is task manager memandanga that identifies where the technique in certain situations, under certain circumstances and at certain times will help the achievement of management objectives.

Differences in conditions and circumstances and requires the application of different management techniques, because there is no technique, principles and concepts that can be universally applied in every situation. These approaches include environmental variables in the analysis, due to differences in environmental conditions will require application of management concepts and techniques are different.

This flow arises because of dissatisfaction with the classical approach is not fully produce the efficiency of production and labor harmony. Flow seeks to complement the view of sociology and psychology.

Well-known figure in this genre is Elton Mayo, through experiments conducted at the Hawthorne plant of the condition of the working group of employees, Mayo found that the human relationship between elected members and the researcher (supervisor) is more important in determining productivity, special attention from top management encourages increased their motivation, rather than changes in variables such as wages, working hours or rest periods. This phenomenon is known as the “Hawthorne effect”.

Effect Hawthorne studies led to the view field of study is the study of organizational behavior indivisu and groups in organizations such as emerging human needs theory by Abraham Maslow’s five levels of human needs, namely:

The theory is based on two principles, the first principle of deficit, which needs have been met ceases to be a motivator in the behavior of the two principles of order, the fifth consecutive those needs as a hierarchy, a need will arise if each level of the lower level needs are met.

Douglas McGregor provides a view based on the Hawthorne studies and Maslow, the theory X and theory Y about human nature at work:

Theory X assumes that employees:

• Do not like to work

• Not having ambition

• Not responsible for

• Reluctant to change

• Prefer to lead rather than lead

Theory Y assumes that employees:

Like to work

• Being able to control himself

• Likes responsibility

• Full of imagination and creativity

• Ability to self-directed

Managers assume that employees are X will be very regulate and control oriented. This attitude encourages employees to be passive, dependent and have a sense of reluctance.

Managers assume that employees are Y will be encouraging employees to participate, and feel free to be responsible and kraetif in doing their jobs.

The flow of classical management, consisting of:

a) Scientific Management

The main character of this flow is Frederick Winslow Taylor who wrote the book “Scientific Management”. Taylor gives the basic principles of the application of scientific approaches to management and to develop techniques to achieve efficiency.

Four basic principles of scientific management, namely:

A. Development of scientific methods in management, so that the best method for performing any work can be determined

2. Scientific selection of employees, so that each employee can be given responsibility for a task according to his ability.

3. Educational and scientific development of employees

4. Good cooperation between management and employees

Achievement of efficiencies developed techniques to implement the principles of prinsiptersebut is the study of motion and time, functional supervision, system of differential wage intersection, instruction card, the purchase of the specification and standardization of work, equipment, and labor.

b) Principles of Administrative

The main character of this flow is Henry Fayol, indsutrialis France who wrote the book “Administration Industriele et Generale”, said the five elements POACC management (Fayol functionalism)

Fayol divided into six operating companies that are interdependent activities are:

A. Engineering, production and manufacturing of products.

2. Commercial, purchasing raw materials and product sales

3. Finance, acquisition and use of capital

4. Security, protect employees and company property

5. Accounting, financial reporting and record keeping

6. Managerial, application of function POACC

Fayol’s fourteen principles of management are:

A. The division of labor, specialization increases the efficiency of execution of work

2. Authority, the right to give orders and to be obeyed

3. Discipline, respect, and obedience to the role and objectives of the organization

4. Unity of command, each employee only receives instructions on certain activities of a supervisor.

5. Unity of direction, the organization’s operations that have the same purpose should be directed by a manager with the use of a single plan.

6. Putting personal interests under the common

7. Fringe benefits, compensation for work performed must be fair for employees and owners.

8. Centralization, there is the right balance between centralization (centralized decision-making) and decentralized (giving a role in decision-making to employees

9. Scalar chain, command line and a clear authority

10. Order, resource requirements should be there at the right time and place

11. Justice, there should be equality of treatment in the organization

12. The stability of staff, high employee turnover rate is not good for the development of the company.

13. Initiative, the freedom of employees to run the job as planned

14. Esprit de corps, unity is strength, emphasizing oral communication encouraged whenever possible.

Mary Parker Follett provides a view of the administrative principles in his book “Dynamic Administration: The Collected Papers of Mary Parker Follett” as follows:

• The task manager is to help employees to work together to achieve the integrated interests

• Sense of belonging to a company creates a sense of collective responsibility

• Problems in the business involves many factors to consider relating to the relationship between factor

• Provision of services and corporate profits should be attributed to the public welfare

c) The theory of bureaucratic organization, the proposed Max Waber said of the concept of bureaucracy: an ideal form of organization with the goal of a rational and highly efficient, based on the principles of a reasonable, orderly and formal authority.

Some characteristics of Weber’s concept of bureaucracy, namely

• a clear division of tasks,, job clearly defined making employees more skilled on the job

• a clear hierarchy of authority, a position of authority and clearly defined responsibilities, each position reported at other positions higher

• Rules and procedures of formal, written guidelines governing the conduct and any decision is made formally

• impersonal, rules and procedures applied throughout the whole, no one gets special treatment

• Study career based on quality, employees are selected and promoted based on ability and performance, managers have a professional staff.