• Bring together resources to achieve desired goals and outcomes
• Produce goods and services efficiently
• Create value for owners, customers and employees

Challenges:

• Facilitate innovation
• Use modern manufacturing and information technologies
• Adapt to and influence a changing environment
• Accommodate ongoing challenges of diversity, ethics, and the motivation and coordination of employees

Organizations define their objectives based on their Vision, and their Mission.

Vision :

- the optimal desired future state

- the mental picture of what an organization wants to achieve over time;

- Inspirational

- Future guideline

Mission :

- Defines the present state or purpose of an organization;

- WHY an organization exists - WHAT it does; WHO it does it for; and HOW it does what it does.

- a sentence or two, but for a shorter timeframe than a Vision statement

Scientific Management : Taylor

» Putting the right person on the job with the correct tools and equipment.

» Having a standardized method of doing the job.

» Providing an economic incentive to the worker. 

critics of taylorism :

• Alienation of human beings.
• Loss of craftsman knowledge.
• Strong control system: disciplinary society (Foucault) “technique in order to make useful individuals”
• What about heterogeneity of individuals?
• Double movement: Individual disappear but every work performance has to be calculated in an individual basis.

General Administrative : Fayol

• Believed that the practice of management was distinct from other organizational functions.

• Developed principles of management that applied to all organizational situations.

The aim of bureaucracy :

1. Qualification-based hiring

2. Merit-based promotion

3. Chain of command

4. Division of labor

5. Impartial application of rules and procedures

6. Recorded in writing

7. Managers separate from owners

Quantitative Approach :

• Also called operations research or management science.

• Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems.

• Focuses on improving managerial decision making by applying:

• statistics § optimization models
• information models
• computer simulations

Behavioral Appproach : Elton Mayo

The study of the actions (behaviors) of people at work; people are the most important asset of an organization. Productivity unexpectedly increased under imposed adverse working conditions.

Social norms, group standards and attitudes more strongly influence individual output and work behavior than do monetary incentives.

Contemporary Approach :

• Systems approach : A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.
• Closed system : Are not influenced by and do not interact with their environment (all system input and output is internal).
• Open system : Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments.
• Contingency approach : Holds that the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and place.

1)  Define Favi as an organization, considering the 4 main characteristics of an organization.

An organization like Favi:

• is a social entity : it has a social dimension, in the sense of interactions between groups and individuals

• has objectives : it aims to satisfy the customer and generate profits

• is designed to divide and coordinate work : it combines different modes of division and coordination of work

• is linked to its environment : it works closely with customers, it has suppliers (not seen in the film) and it is very well established in its small provincial town as well as internationalized because customers are all over the world 

2) Which one of the taylor principles do you recognise in FAVI ?

• Standardization of working methods

• Compensation is correlated to performance through bonuses and incentives

3) Which Fayol's principles in FAVI?

Management is separate from the owners.

• Zobrist is an employee of the organization who reports to the owners.

Control, Order and Discipline, Merit-based Promotion

• Rules are applied to everyone
• The control is an internal process (in the group, collective)
• there are leaders who are managers, and a quality department external to the units that controls the conformity of the parts.

4) Which principles of the school of human relations in FAVI?

The principles of the School of Human Relations are at the heart of Zobrist's management philosophy:

• He is very present and pays attention to the employees
• Leaders are very present and pay attention to employees.
• Group norms are a very important management tool.
• Well-being of the employees is being considered by the organization.
• Very strong culture

5) To what extent can we speak of contingency in FAVI?

• Contingency is then presented as a universal recipe.
• In Favi we adapt to each customer, and we adapt to work by the suggestions of the workers. 

Organisation chart :

• how activities are allocated to organizational units (boxes)
• what are the reporting relationships among units (lines)

Dimensions of organization design :