FAQ s

Frequently
Asked
Questions
Week 1

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Management
Principles and
Perspectives

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 Syllabus

Principles of Management

Types of Organization

Elements in the Definition

of Management

Managers’ Skills

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What do We Mean by the Principle
of Instrumental Value in
Management?
The instrumental value in management refers to the things, and
ways of acting used to achieve a specific purpose after a certain
number of objectives have been established; it is one of the
administration’s main features.

This particular subject allows institutions or individuals to achieve

the goals efficiently. It, therefore, involves the participation of
all departments and individuals, as well as the establishment
of a specific objective that leads the activities to be channeled
accordingly.

Here an example of this principle: A spare-parts sale establishment

is installed near workshops and dealerships. It has a cashier, and his
schedule is 9:00 a.m. to 6:00 p.m. (with two hours of lunch).

If the owner wants to improve sales at that location, they need to

hire more staff and extend the time of care to meet the demand.

One other option would be shortening to an hour the current two-

hour lunch that the cashier has.

On the other hand, the owner may improve the situation, even in
the short term, as they are surrounded by potential customers who
will require the items regularly.

Another example would be: A marketing company’s sales

department wants to improve its numbers, so it intends to make
several changes with this purpose.

One of these changes would be that the leader sets a series of

responsibilities recorded in a Gantt chart to visualize the tasks’
progress and fulfillment. Once a week, they will hold meetings to
discuss the progress and review weaknesses to be improved.

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What is the Difference Between
Formal and Informal
Organizations?
The main difference between formal and informal organizations is
mainly that the first one is “officialized.” The formal organization is
supported by organization charts, documents, manuals, etc. All this
officialization is based on plans, projections, behavioral models, and
other conceptual tools that constitute a hierarchy and allow the
division of work into specialized and differentiated units.

In a formal structure, boundaries, assignations, and responsibilities

are often much better defined and much more controllable and
measurable than in an informal one.

Example:

The structure of work in a bank obeys to different departments

and coordinations, hierarchical and differentiated according to the
principle of greater formality and control, something indispensable
since it is an organization that will manage amounts of money.

Informal organizations lack documentary support or written fixed

guidelines that last over time, as their operating rules are often
more or less changing according to their members’ will.

This allows you a lot of flexibility, but it also limits their functioning
and makes them susceptible to entropy (disorder).

Example:

A group of colleagues who regularly see each other and meet after
work for coffee is governed by an informal organization that allows
the eventual absence of one of them. It horizontalizes and flexes
the treatment and does not require any written commitment or list
rules to be governed.

A group member may choose not to attend or attend otherwise

without having to stipulate it anywhere.

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What is the Difference between
Efficiency and Efficacy?
Efficacy refers to the ability to achieve the desired objective,
outcome, or purpose.

It refers to the achievement of a purpose. For example, if a signal

transmission equipment is transmitting a signal, it can be useful. An
effective person is also one who meets the objectives set
objectively and quantifiably.

Example:

To meet the goal of winning a football league at the end of the

season.

Efficiency is the ability to achieve a goal using resources without

wasting them. Efficiency, or being efficient, is not just about
achieving a goal but about using those inputs, investment,
resources, etc., that generate the best result.

The goal is to minimize costs and maximize results. It also

implicates solving problems that affect a process.

Example:

The football league is won three dates before the end of the season,
thanks to a points advantage over immediate opponents, without
signing new players.

What are the Three Main Types

of Management Skills?
Technical skills:

Involves knowledge in specific processes, techniques, or tools

typical of the particular position or area occupied, for example,
software, apps, machines, operating manuals, induction, procedures,
new technologies, tablets, etc.

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Human Skills:

Refers to interact with your collaborators effectively or with

customers, suppliers, among others. Connect with human quality
and social values, be empathetic, motivating, and guide the team to
develop their talent, skills, abilities, knowledge and thus achieve the
established goals.

Conceptual skills:

It is about the formulation of ideas, understanding abstract

relationships, developing new concepts, solving problems creatively,
etc. They address three elements: emotional intelligence, innovation,
and creativity.

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Did You Know That...
Top management uses the
least technical skills as they are
responsible for decision-making.
Middle-level management uses
technical skills to boost sales
or design a new product. Lower
management uses the most
technical skills as they have to
operate machines and softwares.

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References:
Griffin, R. W. (2017). Management. (12th ed.). Cengage Learning. US.

Daft, R. L. (2018). Management. (12th ed.). Cengage Learning. US.

Álvaro-Moya, A. & Pierre-Yves, D. (2016). Business History and

Management Studies. Journal of Evolutionary Studies in Business.
Volume 1, Number 1, 122-151, January-June 2016 .

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 Syllabus

School of Scientific Management

Bureaucratic School of Management

Contingency School of the Management

Neoclassical School of Management

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What Would be the Main
Contributions of the School
of the Scientific Management?
This school is represented mainly by Taylor; its main objective
consists of eliminating waste and losses.

To do this, determine in shape scientific the best methods and

techniques to perform any task,select,train,and motivate trainees.

Hence the concept of administration as science,the study of

times and movements, division of labor and specialization,mass
production,standardization,payment through rewards & bonus,
etc.

What are the Contributions of

the Bureaucratic School of the
Management?
Max Weber believed that the organization should be efficient par
excellence, that this model was designed to work accurately.

To obtain good results, it was necessary to detail and specify in

advance how things should be done. Its most significant influence
is in routines and standardized processes, for example, in the
production of manuals procedures and the organization’s policies
and monitoring of compliance its characteristics.

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What do We Mean by the Influence
of External Factors on
the Organization According to
the Management´s Contingency
School?
Unlike the rest of organizational theories, contingency centers its
focus on the company’s external environment, giving priority to
what happens outside the organization before delving into the
elements
internal to the organizational structure.

This approach seeks a balance between both contexts, where the

organization aims to obtain the most significant benefit from your
environmental circumstances to ensure your success.

Aspects external to the organization act as variables independent of

the company’s internal organization modes, dependent variables of
the former.

This relationship, without, however, it is not establishedas a cause-

effect type, but rather as decision-making by the organization’s
leaders about the choice of the more effective alternative to
external circumstances.

We see this today in the globalization of markets and how it has

modified the life of organizations, since what happens in the world
will undoubtedly affect the economies and with it the factors
internal organizations, or example, greater or lesser sources of
employment,compensation,clients,compensation, etc.

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What Would be the Differences
Between the Classical School and
Neoclassical Management?
The neoclassical school did not want to replace the classical school
as it sought an improvement. It had to adapt to new technological
changes caused by the economy of the time and in this way could
lead to a better business management.

This school not only takes as reference the thoughts of Taylor and
Fayol; instead, they broaden their theories.
Let’s compare the classics and the neoclassical.

The classics recognize the school aspects, such as constituting the

first attempt with scientific foundations to equalize production
processes, meeting requirements, and seeking produce
developments to obtain production and improve it.

On the other hand,new technical processes stand out in the

neoclassical school. Nowadays, we can say that it guides new
administrators to organize the organization with the latest economic
and technological changes.

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Did You Know That...
Nowadays, there are other schools of managents. Those
are:

Quality Management School approaches, like Total Quality

Management (TQM) and Six Sigma, focus on continuous
improvement, customer satisfaction, and minimizing
defects or errors.

Strategic Management School emphasizes

long-term planning, setting goals, and aligning the
organization's activities with its mission and vision. It
includes concepts like SWOT analysis and competitive
advantage.

Contemporary Management School in recent years,

management theory has evolved to address modern
challenges, including globalization, technology, and
sustainability. This school explores concepts such as
agile management, digital transformation, and sustainable
business practices.

The choice of which management approach to follow often

depends on the specific goals and needs of an organization,
as well as the preferences and leadership style of its
managers.

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References:
Griffin, R. W. (2017). Management. (12th ed.). Cengage Learning. US.

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