Samenvatting management
Introduction
C What is management?
Example: Harvesting potatoes
More people à more potatoes, BUT you can run out of resources
So, one person starts to coordinate to improve the limited resources that we have.
Management as paradox:
The fact that you do not participate in the production process, increases the efficiency of the
production process!
Old definition of management: ‘to spread manure’.
Value of management
Management = in essence coordination / resource allocation.
Organizational innovation: more/better coordination
Terminology / Semantics
For-profit Not-for-profit
Non-governmental Private sector, Commercial sector Plural sector, Civil society, Social profit
Governmental Public sector
1
,Relevance of non-profit sector: size, work that is does (healthcare, education, arts, environment, …).
Conclusion
WHY do people work together instead of alone? WHY create organizations?
à To achieve ends none of us could achieve alone
à If not, it is simpler, cheaper, more flexible to work individually
WHY do we need ‘management’?
à Because people that work together need coordination.
WHY do we need healthcare management?
à To reduce growth in healthcare costs to sustainable levels.
2
,Chapter 1
C WHY do people work together/create organizations?
- To make money
- To achieve ends none of us could achieve alone.
If not, simpler, cheaper, more flexible to work alone.
C WHY does an organization exist?
Evolving solution:
If the solution is better than the old one, people will pay for it. (vb. stofzuiger)
BUT when the problem is gone, people don’t want the solution anymore, their needs changed, the
added value is gone. (vb. vers fruit vit. C)
Can we ‘calculate’ value?
B2B (Business to Business) products: easier, very rational
à Time, labor or materials saved
B2C (Business to Customer) services: less easy
à Exception: where squeezing out ‘the middle man’ = Het begrip verwijst naar een situatie waarin een
bedrijf of organisatie rechtstreeks zaken gaat doen met de eindklant of consument, zonder de
tussenkomst van een tussenpersoon of distributeur. Hierdoor wordt de 'middleman' uit het proces
geëlimineerd en wordt de keten tussen producent en consument verkort.
3 Elements of a company that will determine the costs:
- Time for labor
- Materials
- Investments
In general, the more intangible/subjective the value, the more it is individual.
à Defined customer by customer
à Not defined by the producer
Objective of management: ‘Create value for customers’
à Implies that organizations are means to an end. (= organisaties of bedrijven zijn slechts een middel
om een bepaald doel te bereiken, en niet het doel op zichzelf)
- External focus on customer
- Differentiates organizations from groups that focus on well-being of members
à Only one test of a job well-done: client satisfaction
- Not the inputs nor the processes
- Examples of failures:
bv. Sometimes the company will produce a fantastic product, but for which there is no customer.
3
, bv. Hydrogen cars: te vervuilend om waterstof te maken dus nog niet veel klanten voor te vinden,
ook omdat je nog geen tankstations met waterstof vindt & heel duur.
à One of management’s chief responsibilities is to remember the external orientation and remind
others about it.
Waarom deden andere automerken vroeger niet hetzelfde als wat Tesla deed? à Te conservatief
Different midsets for value
Terminology illustrates a historical shift:
From managing inputs (resources that go into work: manhours, investments, materials)
To managing outputs (results or performance)
4 phases: Manufacturing – Marketing – Shareholder – Value chain
1. Manufacturing mindset
Value seen as efficiency (Bv. How many products can u produce for a $100?)
à Challenge: increase productivity
à Goal: make more things, more cheaply (pursuit of ‘best practice’, efficiency as science)
Makes sense when demand is (by far) greater than the supply.
à Make product affordable, creates new markets.
à ‘Make and Sell’ – paradigm (bv. Ford Model T)
Het Make-and-Sell paradigma is een productie- en verkoopmodel waarbij een organisatie vnl gericht
is op het produceren en verkopen van producten die al ontwikkeld zijn, in plaats van het proactief
inspelen op de behoeften & wensen van klanten. Dit model wordt vooral gebruikt in massaproductie.
Mixed reputation:
- Bad: synonymous with deskilling/dehumanization
- Good: cause of prosperity/ living standards
Main limitation: focus only on efficiency
= not wrong but narrowly defined & implies giant factories
2. Marketing mindset
• Taylorism based on assumptions:
Het omvat het systematisch analyseren van taken, het verdelen van arbeid in kleine en gespecialiseerde
taken, het standaardiseren van werkmethoden en het trainen van werknemers om deze methoden te
volgen.
4
Introduction
C What is management?
Example: Harvesting potatoes
More people à more potatoes, BUT you can run out of resources
So, one person starts to coordinate to improve the limited resources that we have.
Management as paradox:
The fact that you do not participate in the production process, increases the efficiency of the
production process!
Old definition of management: ‘to spread manure’.
Value of management
Management = in essence coordination / resource allocation.
Organizational innovation: more/better coordination
Terminology / Semantics
For-profit Not-for-profit
Non-governmental Private sector, Commercial sector Plural sector, Civil society, Social profit
Governmental Public sector
1
,Relevance of non-profit sector: size, work that is does (healthcare, education, arts, environment, …).
Conclusion
WHY do people work together instead of alone? WHY create organizations?
à To achieve ends none of us could achieve alone
à If not, it is simpler, cheaper, more flexible to work individually
WHY do we need ‘management’?
à Because people that work together need coordination.
WHY do we need healthcare management?
à To reduce growth in healthcare costs to sustainable levels.
2
,Chapter 1
C WHY do people work together/create organizations?
- To make money
- To achieve ends none of us could achieve alone.
If not, simpler, cheaper, more flexible to work alone.
C WHY does an organization exist?
Evolving solution:
If the solution is better than the old one, people will pay for it. (vb. stofzuiger)
BUT when the problem is gone, people don’t want the solution anymore, their needs changed, the
added value is gone. (vb. vers fruit vit. C)
Can we ‘calculate’ value?
B2B (Business to Business) products: easier, very rational
à Time, labor or materials saved
B2C (Business to Customer) services: less easy
à Exception: where squeezing out ‘the middle man’ = Het begrip verwijst naar een situatie waarin een
bedrijf of organisatie rechtstreeks zaken gaat doen met de eindklant of consument, zonder de
tussenkomst van een tussenpersoon of distributeur. Hierdoor wordt de 'middleman' uit het proces
geëlimineerd en wordt de keten tussen producent en consument verkort.
3 Elements of a company that will determine the costs:
- Time for labor
- Materials
- Investments
In general, the more intangible/subjective the value, the more it is individual.
à Defined customer by customer
à Not defined by the producer
Objective of management: ‘Create value for customers’
à Implies that organizations are means to an end. (= organisaties of bedrijven zijn slechts een middel
om een bepaald doel te bereiken, en niet het doel op zichzelf)
- External focus on customer
- Differentiates organizations from groups that focus on well-being of members
à Only one test of a job well-done: client satisfaction
- Not the inputs nor the processes
- Examples of failures:
bv. Sometimes the company will produce a fantastic product, but for which there is no customer.
3
, bv. Hydrogen cars: te vervuilend om waterstof te maken dus nog niet veel klanten voor te vinden,
ook omdat je nog geen tankstations met waterstof vindt & heel duur.
à One of management’s chief responsibilities is to remember the external orientation and remind
others about it.
Waarom deden andere automerken vroeger niet hetzelfde als wat Tesla deed? à Te conservatief
Different midsets for value
Terminology illustrates a historical shift:
From managing inputs (resources that go into work: manhours, investments, materials)
To managing outputs (results or performance)
4 phases: Manufacturing – Marketing – Shareholder – Value chain
1. Manufacturing mindset
Value seen as efficiency (Bv. How many products can u produce for a $100?)
à Challenge: increase productivity
à Goal: make more things, more cheaply (pursuit of ‘best practice’, efficiency as science)
Makes sense when demand is (by far) greater than the supply.
à Make product affordable, creates new markets.
à ‘Make and Sell’ – paradigm (bv. Ford Model T)
Het Make-and-Sell paradigma is een productie- en verkoopmodel waarbij een organisatie vnl gericht
is op het produceren en verkopen van producten die al ontwikkeld zijn, in plaats van het proactief
inspelen op de behoeften & wensen van klanten. Dit model wordt vooral gebruikt in massaproductie.
Mixed reputation:
- Bad: synonymous with deskilling/dehumanization
- Good: cause of prosperity/ living standards
Main limitation: focus only on efficiency
= not wrong but narrowly defined & implies giant factories
2. Marketing mindset
• Taylorism based on assumptions:
Het omvat het systematisch analyseren van taken, het verdelen van arbeid in kleine en gespecialiseerde
taken, het standaardiseren van werkmethoden en het trainen van werknemers om deze methoden te
volgen.
4
