Editura Universitara Fundamentals of Organizational Management

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ISBN: 978-973-749-448-1

Publisher year: 2008

Edition: 1

Pages: 416

Publisher: Universitară

Author: Ovidiu Nicolescu, Ion Verboncu

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This paper, THE FUNDAMENTALS OF ORGANIZATION MANAGEMENT, brings together the essential fund of theoretical knowledge regarding the management of the organization, absolutely necessary to understand and practice a professional management in all types of organizations. The volume provides organizations, especially economic ones, the scientific managerial support for the development of a functional and efficient market economy in Romania, in accordance with the approaches and practices in the European Union and with the requirements of the transition to the knowledge-based economy. Through its elaboration, the authors considered the achievement of the following main objectives:
- presentation of the main fund of knowledge that constitutes the content of the professional management of the organization;
- highlighting the main theoretical elements applicable with priority in the management of the organization in Romania in the conditions of the modern economy;
- making available to managers, entrepreneurs, specialists and students a set of case studies, referring to major components of the organization's management;
- facilitating the formation of a modern managerial concept at the level of managers, entrepreneurs and specialists, necessary for the functioning and development of high-performance and sustainable companies, in the context of accelerating the transition to the knowledge-based economy;
- training and development of rational and effective managerial behaviors in those who participate in management processes.

The volume is structured in seven chapters that deal with basic management issues: process, functions and principles of management, typology and characteristics of the organization, entrepreneurs and managers, the environment of the organization, strategy and policy of the organization, management system and its subsystems - decisional, informational, methodological, structural-organizational and human resources -, organizational culture, creativity and human resource management, managers and leadership.

OVIDIU NICOLESCU
ION VERBONCU

Foreword / 13

CHAPTER 1
Introductory elements regarding the management of the organization
/ 15
The main aspects approached / 15
1.1 The object of study of management / 16
1.1.1. Defining the science of management / 16
1.1.2. Managerial processes / 18
1.1.3. Management relations / 20
1.2. The managerial functions of the organization / 23
1.2.1. Forecast / 23
1.2.2. Organization / 24
1.2.3. Coordination / 25
1.2.4. Training / 26
1.2.5. Control - evaluation / 28
1.2.6. Interdependencies and dynamics of management functions / 29
1.3. General principles of organization management / 34
1.3.1. The principle of ensuring the concordance between the parameters of the management system of the organization and its essential characteristics and of the environment / 35
1.3.2. The principle of participatory management / 35
1.3.3. The principle of motivating all the factors involved, of the stakeholders of the organization / 36
1.3.4. The principle of effectiveness and efficiency / 37
1.4. The evolution of management worldwide and in Romania / 38
1.4.1. General considerations regarding the formation and development of management science / 38
1.4.2. Worldwide management approaches / 40
1.4.3. Romanian management / 43
1.5. Knowledge - based management / 46
1.5.1. Factors that determine the emergence and development of knowledge-based management / 46
1.5.2. Defining knowledge - based management / 49
1.5.3. General principles and perceptions regarding knowledge - based management / 52
1.6. Relationships between management science and scientific management / 54
1.6.1. Definition and content of the scientific management of the company / 54
1.6.2. Corporate governance, specific form of scientific management / 55
1.6.3. The interdependencies between management science and scientific management / 56
1.7. Case study - Exercising managerial functions at SC Motor SA / 58
1.7.1. Presentation of the case / 58
1.7.2. Topics for discussion / 59
Bibliography / 60

CHAPTER 2
Organization and environment
/ 63
The main aspects approached / 63
2.1. The environment of the organization / 64
2.1.1. The need to approach the environment for the management of the organization / 64
2.1.2. Defining the environment of the organization / 65
2.1.3. Factors influencing the environment on the organization / 67
2.1.3.1. Economic factors / 67
2.1.3.2. Management factors / 71
2.1.3.3. Technical and technological factors / 72
2.1.3.4. Demographic factors / 72
2.1.3.5. Socio-cultural factors / 73
2.1.3.6. Political factors / 73
2.1.3.7. Natural factors / 74
2.1.3.8. Legal factors / 74
2.1.4. Organizational behavior and environment / 75
2.2. The main economic changes in the environment of the Romanian company / 75
2.2.1. Definition and brief characterization of the market economy / 75
2.2.2. The transition to the knowledge-based economy is the determining motivation in the environmental environment of the organization / 77
2.2.2.1. Definition and role of knowledge / 77
2.2.2.2. The knowledge revolution / 80
2.2.2.3. Definition and features of the knowledge - based economy / 85
2.2.2.4. Coordinates and premises of the approach to the construction of the knowledge-based economy in Romania / 91
2.3. The organization as an object of management / 94
2.3.1. The concepts of organization and company / 94
2.3.2. Company typology and management implications / 99
2.4. Knowledge based company / 105
2.4.1. Main features / 105
2.4.2. Defining the company based on knowledge / 106
2.5. Entrepreneur and company / 110
2.5.1. Definition and importance of entrepreneurs / 110
2.5.2. Characteristics of the Romanian entrepreneur / 112
2.5.3. Overview of the situation of small and medium enterprises in Romania / 116
2.6. Case study - A lightning career / 119
2.6.1. Presentation of the case / 119
2.6.2. Topics for discussion / 125
Bibliography / 127

CHAPTER 3
Organization strategy
/ 129
The main aspects approached / 129
3.1. The concepts of strategy, strategic management and organization policy / 130
3.1.1 Short retrospective incursion / 130
3.1.2 The wide range of strategy approaches / 131
3.1.3 Strategy and its main characteristics / 132
3.1.4 Delimitation of strategic management strategy, strategic alliances and company policies / 134
3.2. Components of the strategy / 136
3.2.1. Various approaches to the anatomy of strategy / 136
3.2.2. The mission of the organization / 137
3.2.3. Fundamental objectives / 139
3.2.4. Strategic options / 140
3.2.5. Resources / 142
3.2.6. Deadlines / 143
3.2.7. Competitive advantage / 143
3.3. The determinants of strategy / 145
3.3.1. Approaches to strategy conditioning / 145
3.3.2. Endogenous determinants / 146
3.3.3. Contextual determinants / 152
3.3.4. The strategy-life cycle relationship of the company / 154
3.4. Typology of strategies / 156
3.4.1. Hofer and Schendel classification / 156
3.4.2. Collins' systematization / 158
3.4.3. Mintzberg's treatment / 159
3.4.4. Porter's approach / 160
3.4.5. Typology of company strategies / 161
3.5. The role of organizations' strategies / 166
3.5.1. At the organizational level / 166
3.5.2. At the level of macroeconomics / 168
3.6. Case study - Organization strategy / 168
3.6.1. Presentation of the case / 168
3.6.2. Topics for discussion / 170
Bibliography / 171

CHAPTER 4
The managerial system of the organization
/ 175
The main aspects approached / 175
4.1. The concept of managerial system of the organization / 177
4.2. The decisional subsystem of the company / 179
4.2.1. Definition and structure of the decision system / 179
4.2.2. Managerial decision - the main component of the decision system / 183
4.2.3. Risks and organizational decision / 186
4.2.4. The decision-maker - quasifactotum in management / 189
4.2.5. Functions of the decision system / 191
4.3. The methodological-managerial subsystem of the organization / 192
4.3.1. Definition and main components of the methodological-managerial system / 192
4.3.2. Management systems, methods and techniques / 194
4.3.3. The characteristics of the methodological-managerial subsystem / 199
4.3.4. The functions of the methodological-managerial system / 201
4.3.5. Extending the use of management systems, methods and techniques - a condition for the survival and development of companies / 203
4.4. Information subsystem / 204
4.4.1. Defining the information system of the organization / 204
4.4.2. Components of the information system / 206
4.4.2.1. Date and information / 206
4.4.2.2. Information circuits and flows / 211
4.4.2.3. Information procedures / 213
4.4.2.4. Means of information processing / 214
4.4.3. The importance and functions of the information system of the organization / 216
4.5. Organizational subsystem / 218
4.5.1. Definition and main components of the organizational system / 218
4.5.2. Definition and components of procedural organization / 218
4.5.3. Company functions / 221
4.5.3.1. The research-development function / 221
4.5.3.2. Commercial function / 222
4.5.3.3. Production function / 223
4.5.3.4. Financial accounting function / 226
4.5.3.5. Human resources function / 227
4.5.3.6. Interdependencies of the organization's functions / 227
4.5.4. Structural organization / 228
4.5.4.1. Definition and importance of the organizational structure / 228
4.5.4.2. Components of the organizational structure / 230
4.5.4.3. Classification of organizational structures / 235
4.5.4.4. Ways of presenting the organizational structure of the company / 241
4.5.5. Interdependence between formal organization and informal organization / 244
4.5.5.1. The concept of informal organization / 244
4.5.5.2. Interdependencies between formal and informal organization / 246
4.5.6. Functions of the organizational subsystem / 246
4.6. Human resources management subsystem / 247
4.6.1. Specificity, ascendancy and plurivalence of human resources / 247
4.6.2. Mutations in the approach to human resources management / 251
4.6.3. The main hypostases of human resources management / 253
4.6.4. Defining the human resources management subsystem and its components / 254
4.6.5. Functions of the human resources management subsystem / 257
4.7. Case study - Organization management subsystem / 257
4.7.1. Presentation of the case / 257
4.7.2. Topics for analysis and solution / 259
4.8. Case study - Job description, managerial tool or organizational document / 259
4.8.1. Presentation of the case / 259
4.8.2. Topics for analysis and solution / 265
Bibliography / 266

CHAPTER 5
Human resources management and motivation
/ 269
The main aspects approached / 269
5.1. Creativity of human resources and innovation within the organization / 270
5.1.1. Creativity / 270
5.1.2. Innovation / 271
5.2. Selection and classification of human resources / 274
5.2.1. Basic notions, premises and selection and classification criteria / 274
5.2.2. Methods and techniques of personnel selection / 274
5.3. Staff training and development / 276
5.3.1. Defining training and improvement / 276
5.3.2. Ways of training and improvement / 276
5.3.3. Teaching methods used in the training and improvement of human resources / 277
5.4. Evaluation and promotion of human resources / 278
5.4.1. Defining evaluation and evaluation methods / 278
5.4.2. Concepts, trends and characteristics of promoting the organization's staff 281
5.5. Career development / 282
5.5.1 Definition and meanings of career development / 282
5.5.2 Organizational and individual career planning / 283
5.6. Communication within the organization / 285
5.6.1. Defining communication / 285
5.6.2. The main approaches of communication / 286
5.6.3. Components of the communication process / 287
5.6.4. Typology of communications / 288
5.6.5. Major deficiencies in the communication process / 289
5.6.6. Ways to amplify the effectiveness of communication / 290
5.7. Complex staff motivation / 290
5.7.1. The concept of motivation / 290
5.7.1.1. Defining motivation / 290
5.7.1.2. Roles of staff motivation / 291
5.7.2. The main motivational theories / 293
5.7.2.1. Typologies / 293
5.7.2.2. Mc.Gregor's approach / 295
5.7.2.3. Maslow's theory / 296
5.7.2.4. Herzberg's theory / 296
5.7.2.5. Vroom's theory of VIE expectations / 297
5.7.2.6. Contingency theories / 297
5.7.3. Motivational mechanisms / 298
5.7.3.1. Categories of variables involved / 298
5.7.3.2. The motivational cycle / 299
5.7.3.3. Motivations of the organization's employees / 303
5.7.4. Types of motivation / 305
5.7.4.1. Defining the type (form) of motivation / 305
5.7.4.2. Positive and negative motivation / 305
5.7.4.3. Economic and moral-spiritual motivation 306
5.7.4.4. Intrinsic and extrinsic motivation / 307
5.7.4.5. Cognitive and affective motivation / 307
5.7.5. Motivation and power / 308
5.7.5.1. Definition and sources of power within the organization / 308
5.7.5.2. Conditioning motivation by managers' power / 311
5.7.6. Increasing the effectiveness of managers in achieving motivation / 312
5.7.6.1. Requirements regarding the motivation of human resources / 313
5.7.6.2. Specific motivational techniques / 314
5.8. Case study - Staff motivation / 316
5.8.1. Presentation of the case / 316
5.8.2. Discussion topics / 318
Bibliography / 319

CHAPTER 6
Organizational culture
/ 321
The main aspects approached / 321
6.1. The concept of organizational culture / 321
6.1.1. Defining the organizational culture of the company / 321
6.1.2. The relations between culture and the organizational climate / 323
6.1.3. Levels of organizational culture and component subcultures / 324
6.1.4. The dimensions of organizational culture / 325
6.2. The variables that determine the characteristics of the organizational culture 328
6.2.1. Diagram of the main variables / 328
6.2.2. Presentation of cultural-organizational variables / 330
6.3. Ways of manifestation / 332
6.3.1. The symbols / 333
6.3.2. Organizational behavioral norms / 334
6.3.3. Rituals and ceremonies / 335
6.3.4. Staff statutes and roles / 336
6.3.5. Organizational stories and myths / 337
6.4. Managerial Culture / 339
6.4.1. Definition and content / 339
6.4.2. Specific dimensions / 341
6.5. Changing organizational culture - organizational transformation / 344
6.5.1. The premises for changing the organizational culture / 345
6.5.2. Organizational transformation - the primary approach to changing the organizational culture / 346
6.5.3. Models and methods for operationalizing organizational changes / 349
6.5.4. Remitologization of organizational culture / 351
6.5.5. Changing the organizational culture in the context of modern organizational approaches / 353
6.6. Functions and importance of organizational culture / 354
6.6.1. The main functions of organizational culture / 354
6.6.2. The importance of knowing and taking into account the organizational culture / 356
6.7. Case study - Organizational culture and power conflicts at INTRA S.A / 359
6.7.1. Case presentation / 359
6.7.2. Topics for discussion / 362
Bibliography / 363

CHAPTER 7
Managers and leadership
/ 365
The main aspects approached / 365
7.1. Managers / 366
7.1.1. Defining the manager / 366
7.1.2. The sphere of managers' qualities, knowledge and skills / 367
7.1.3. Types of managers and managerial styles / 370
7.2. Leaders and leadership / 374
7.2.1. Definition and content of leadership / 375
7.2.2. Leadership-management relations / 377
7.2.3. The leader and leader-manager / 379
7.2.4. Determinants of leadership / 381
7.2.5. The mechanism of organizational leadership / 383
7.2.6. Leadership tools / 384
7.2.7. Leadership styles / 385
7.2.8. Leadership effectiveness and organizational performance / 387
7.3. Increasing the effectiveness and efficiency of the manager's work / 389
7.3.1. The importance of using time for managers' performance / 389
7.3.2. Judicious use of working time, the foundation of increasing the effectiveness of the manager / 390
7.3.3. Efficiency and effectiveness of manager's work / 391
7.3.4. Ways and techniques to amplify the effectiveness and efficiency of managers' work / 392
7.3.4.1. Scientific programming and organization of managers' work / 392
7.3.4.2. Ergonomic organization of manager 's work / 394
7.3.4.3. Improving the manager - subordinate relations / 395
7.3.4.4. Effective use of the secretariat / 396
7.3.4.5. Enrichment and modernization of managerial tools / 398
7.3.4.6. Priority list / 400
7.3.4.7. Work schedule / 401
7.3.4.8. Annual agenda / 402
7.3.4.9. List of problems / 403
7.3.4.10.Electronic agenda / 404
7.3.4.11.Using the modern collaborators of the manager / 405
7.4. Case study - The director 's time budget / 408
7.4.1. Study presentation / 408
7.4.2. Topics for discussion / 413
Bibliography / 414



 

This paper, THE FUNDAMENTALS OF ORGANIZATION MANAGEMENT, brings together the essential fund of theoretical knowledge regarding the management of the organization, absolutely necessary to understand and practice a professional management in all types of organizations. The volume provides organizations, especially economic ones, the scientific managerial support for the development of a functional and efficient market economy in Romania, in accordance with the approaches and practices in the European Union and with the requirements of the transition to the knowledge-based economy. Through its elaboration, the authors considered the achievement of the following main objectives:
- presentation of the main fund of knowledge that constitutes the content of the professional management of the organization;
- highlighting the main theoretical elements applicable with priority in the management of the organization in Romania in the conditions of the modern economy;
- making available to managers, entrepreneurs, specialists and students a set of case studies, referring to major components of the organization's management;
- facilitating the formation of a modern managerial concept at the level of managers, entrepreneurs and specialists, necessary for the functioning and development of high-performance and sustainable companies, in the context of accelerating the transition to the knowledge-based economy;
- training and development of rational and effective managerial behaviors in those who participate in management processes.

The volume is structured in seven chapters that deal with basic management issues: process, functions and principles of management, typology and characteristics of the organization, entrepreneurs and managers, the environment of the organization, strategy and policy of the organization, management system and its subsystems - decisional, informational, methodological, structural-organizational and human resources -, organizational culture, creativity and human resource management, managers and leadership.
This volume represents the result of important accumulations and efforts made by the two authors in the last three decades, both in the country and abroad (USA, France, Japan, Belgium, Germany, Sweden, Spain, Italy, Canada, etc.), being designed in terms of the requirements and specificity of Romanian companies.
The volume is edited in a conception and design corresponding to Western standards, which are likely to facilitate the understanding and perception of the complex concepts and approaches presented and to contribute to familiarizing readers in Romania with the international approach and know-how in this field.
The main beneficiaries of the work are managers and entrepreneurs, economists and engineers from companies, national companies and central and local government structures. Equally, the volume is addressed to students in economic, technical, legal, psychosociological and computer education, who study as a basic or complementary discipline the management of the organization.
Of course, the authors are aware that, despite the intense efforts made, the work is far from perfect. Consequently, we are receptive to the suggestions and constructive observations of the readers, which will be very useful for the next edition.
Finally, we bring our thanks to the publishing house that ensured the publication of this paper that corresponds to the urgent needs of Romanian companies and university education.

Prof. univ. Dr. Ovidiu Nicolescu

www.editurauniversitara.ro

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