DEFINITION OF ECONOMIC MANAGEMENT

DEFINITIONS GENERAL MANAGEMENT

Management word comes from Old French Menagement, which means art implement and manage. Management do not yet have an established definition and universally accepted. Mary Parker Follett, for example, defines management as the art work done through others. This definition means that a manager responsible for managing and directing others to achieve organizational goals. Ricky W. Griffin defines management as a process of planning, organizing, coordinating, and controlling resources to achieve the objectives (goals) effectively and efficiently. Effective means that the objective can be achieved in accordance with the planning, while efficiently means that the existing task done correctly, organized, and according to schedule.

Said management may be derived from the Italian (1561) maneggiare which means "control," especially "to control the horse" derived from the Latin word manus which means "hand". The words under the influence of the French language Manege meaning "horse ownership" (derived from English which means the art of controlling the horse), where the English term is also derived from the Italian. French then adopt these words from English into Menagement, which means art implement and manage.

Many difficulties that occur in tracing the history of management. However it is known that the science of management have existed for thousands of years ago. This is evidenced by the pyramids in Egypt. The pyramid was built by more than 100,000 people for 20 years. Giza pyramid would not have been built if there is not someone-no matter what the designation for the manager when it was planning what to do, organize people and their raw materials, lead and direct the workers, and enforce appropriate controls to ensure that everything is done in accordance plan

Pyramids in Egypt. The construction of the pyramid is not possible without the existence of a person who plan, organize and mobilize the workers, and controlling development.

Other management practices can be witnessed during the 1400s in the city of Venice, Italy, which is when it became the center of economic and trade there. Residents of Venice to develop an early form of business enterprise and do a lot of activities which is prevalent in today's modern organizations. For example, in the arsenal of Venice, the warship launched along the canal and at each stop, the raw materials and the halyard is added to the vessel. This is similar to the model assembly lines (assembly line) developed by Hanry Ford to assemble its cars. In addition to the assembly lines, the Venetians have storage and warehousing system to monitor the contents, management of human resources to manage the workforce and accounting systems to track income and expenses.

Before the 20th century, there were two important events in the science of management. The first incident occurred in 1776, when Adam Smith published a doctrine of classical economics, The Wealth of Nations. In his book, he suggests economic advantages to be derived from the division of labor organization (division of labor), which details the work into specific tasks and repetitive. By using a pin mill industry as an example, Smith said that with ten people each perform specialized work-pin company can generate approximately 48,000 safety pins in a day. However, if everyone works alone cover each part of the job, has been very good when they are able to produce ten pin a day. Smith concluded that the division of labor can increase productivity by (1) increasing the skills and dexterity of each worker, (2) save time wasted in turn of duty, and (3) creating machines and other inventions that can save labor.

The second important event that influenced the development of the science of management is the Industrial Revolution in England. The Industrial Revolution marked the commencement of the use of machines, replacing human labor, which resulted in the relocation of production activities from the houses to the special place called factory. This resulted in the displacement of managers when it requires a theory that can help them predict demand, ensure adequate supply of raw materials, assign tasks to subordinates, direct the daily activities, and others, so that science management was developed by experts.

At the beginning of the 20th century, a French industrialist named Henry Fayol proposed the idea five main functions of management: designing, organizing, commanding, coordinating, and controlling. Fayol idea was later began to be used as a framework for management science textbooks in the mid-1950s, and continues until now.

Another important contribution came from experts sosilogi German Max Weber. Weber describes an ideal type organization called the bureaucratic form of organization that is characterized by the division of labor, clearly defined hierarchy, detailed rules and regulations, and a number of impersonal relationships. However, Weber realized that the form of "ideal bureaucracy" that does not exist in reality. He described the type of organization with the intention of making it as a platform to theorize about how the work can be done in a large group. The theory is an example of structural design for many large organizations today.

The next development occurred in 1940 when Patrick Blackett make science of operations research, which is a combination of statistical theory with micro economic theory. Operations research, often known as "Management Science", try a scientific approach to solving problems in management, particularly in the areas of logistics and operations. In 1946, Peter F. Drucker-often called the Father of Management Science-published one of the earliest books on applied management: "Concept of the Corporation" (Concept of the Corporation). This book emerged over the Alfred Sloan (chairman of General Motors), which commissioned the study of the organization.

Scientific Management

Scientific management, or in English called scientific management, first popularized by Frederick Winslow Taylor in his book Principles of Scientific Management in 1911. In his book, Taylor described the scientific management is "the use of scientific methods to determine the best way to resolve a job. "Some writers like Stephen Robbins considers the publication of this book as a year  modern management theory born.

The idea of ​​using the scientific method arises when Taylor felt dissatisfied with Not Efficien workers in the company. Not Efficien it appeared because they use a variety of different techniques for the same job-there's hardly a standard working there. In addition, workers tend to assume an easy job. Taylor argues that the results of those workers is only a third of it should be. Taylor then, for 20 years, struggling to correct the situation by applying the scientific method to find a "best technique" in completing each job.

Based on that experience, Taylor made a clear guideline on how to increase efficiency in production. The guidelines are:
Develop a science for each element of a person's job, which will replace the old method that is chancy.
Scientifically, select and then train, teach, or develop them workers.
Work in earnest with the workers to ensure that all work is carried out in accordance with the principles of science that has been developed earlier.
Divide work and responsibility almost equally between management and workers. Management takes over all the work that is more suitable for him than for workers.
Frederick Winslow Taylor.
These guidelines drastically change the mindset of the management at the time. If earlier the workers choose their jobs and train themselves as best they could, Taylor proposes management should choose jobs and train. Management also advised to take over jobs that do not correspond with the workers, especially the planning, organizing, and controlling. This contrasts with previous thinking in which worker performed the task.

Scientific management then further developed by the married couple Frank and Lillian Gilbreth. Both were interested in the idea of ​​Taylor after listening to his speech at a professional meeting.
Gilbreth family managed to create mikronometer that can record every movement made by the workers and the length of time spent on each of these movements. Movement vain that eluded the naked eye can be identified with this tool, and then removed. Gilbreth family also developed a classification scheme to give names of the seventeen basic hand movements (such as searching, grasping, holding) they call therbligs (from the name of their family, Gilbreth, spelled backwards with the letters th fixed). The scheme allows families Gilbreth analyze a more precise way of the elements every hand movement of workers.

Schemes that they get from their observations on the way the preparation of bricks. Previously, Frank, who worked as a building contractor found that a worker doing 18 motions for laying bricks for the exterior and 18 interior also for the movement. Through research, he removes the movements unnecessary so that the movement needed to install the brick exterior was reduced from 18 to 5 motion movement. As for brick interior, he reduced drastically from 18 up to 2 motion movement only. By using the techniques of Gilbreth, raw artisan can be more productive and less fatigue at the end of the day.

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