The theory of public administration or, in English, the general theory of administration, is the general theory of what is done by managers and how to establish good management practices. Important contributions to this theory came from industrialists Frenchman Henri Fayol with 14 principles of its management and the German sociologist Max Weber's concept of bureaucracy of organization characterized by division of labor, hierarchy is definition with clearly, rules and regulations in detail, and a number of relationships impersonal.
A quantitative approach is the use of a number of quantitative techniques-such as statistics, optimization models, information models, or computer simulations-to assist management in making decisions. For example, linear programming used by managers to help make policies for the allocation of resources; crisis path analysis (Critical Path Analysis) can be used to create more efficient work scheduling; model of economic order quantity (economic order quantity model) helps managers determine optimum inventory levels; and others.
Quantitative development emerging from the development of mathematical and statistical solutions to the problem of the military during World War II. After the war ended, the techniques of mathematics and statistics are used to solve the problems of the military it is applied in the business sector. Forerunner is a group of military officers dubbed the "Whiz Kids." The officers who joined Ford Motor Company in the mid-1940s using statistical methods and quantitative models to improve decision making in Ford.
Hawthrone assessment is a series of studies conducted in the 1920s until the 1930s. This study was initially aimed at studying the effects of varying levels of lighting the lamp to work productivity. The study was conducted at the Western Electric Company Works in Cicero, Illenois.
Tests conducted by dividing employees into two groups: the control group and the experimental group. The experimental group was subjected to a wide range of light intensity while the control group working under a fixed illumination intensity. The researchers expect any difference if the intensity of the light changed. However, they get a surprising result: both the light level was raised or lowered, increased worker output than usual. The researchers could not explain what they saw, they can only conclude that the light intensity is not directly related to the productivity of the group and 'something else definitely "have caused the results.
In 1927, Professor Elton Mayo of Harvard, and colleagues are invited to join in this study. They then continued his research on the productivity of labor in other ways, for example by redesigning the office, changing working hours and working days a week nature, introduced a period of rest, and prepare draft individual wage and salary design group. This study indicates that turned out incentives over less influence on worker output compared with peer pressure, acceptance of the group, as well as the sense of security that accompanies it. The researchers concluded that social norms or standards group is a primary determinant of individual work behavior.
Academics generally agree that this Hawthrone study gives a dramatic impact on the direction of management confidence against human behavior role in the organization. Mayo concluded that:
1. The behavior and sentiment has a very close relationship
2. Effect of the group has a large impact on individual behavior
3. Standards working group determines the outcome of each employee
4. Money is not so be the deciding factor when compared to the standard output group, the group sentiment, and sense of security.
The conclusions that implies a new emphasis on human behavior as a determinant factor whether or not the organization's functioning, and the achievement of the objectives of the organization.
Management functions are the basic elements that will always be there and embedded in the management process that will be used as a reference by managers in carrying out activities to achieve goals. Management functions were first introduced by a French industrialist named Henry Fayol in the early 20th century. At that time, he mentioned five functions of management, namely designing, organizing, commanding,coordinate, and control. But this time, five of these functions have been condensed into four, namely:
1. Planning (planning) is to think about what will be done with the resources they have. Planning is done to determine the company's overall objectives and how best to meet that goal. Managers evaluate various alternative plans before taking action and then see if the plan chosen is suitable and can be used to meet the company's goals. Planning is the most important process of all management functions because without planning, other functions can not run.
2. Organizing (organizing) is done with the aim of sharing a great activity into the activities of smaller ones. Organizing facilitate managers in monitoring and determining those required to carry out the tasks that have divided them. Organizing can be done by determining what tasks should be done, who should do it, how the tasks are grouped, who is responsible for the task, at which level decisions should be taken.
3. Briefing (directing) is an action to see to it that all group members strive to achieve objectives consistent with the managerial planning and the organization's efforts. So actuating means moving people to want to work with full consciousness of itself or together to achieve the desired objectives effectively. In this case what is needed is leadership (leadership).
4. The evaluation (evaluating) is the process of monitoring and controlling the performance of the company to ensure that the running of the company in accordance with a predetermined plan. A manager is required to find the problems that exist in the company's operations, then solve them before the problem becomes even greater.
Man and machine, two management tools.
To achieve the goals that have been determined necessary tools means (tools). Tools is a requirement in an effort to achieve results. The tools are known as 6M, namely men, money, materials, machines, methods, and markets.
1. Man refers to the human resources of the organization. In management, the human factor is the most decisive. Humans are made of human purpose and also that the process to achieve the goal. Without human beings there is no work process, because basically humans are creatures of work. Therefore, management arises because of the people who work together to achieve the goal.
2. Money or Money is one element that can not be ignored. Money is a medium of exchange and a measure of value. The amount of activity results can be measured from the amount of money circulating in the company. Therefore, money is a tool (tools) that are important to achieving the goal because everything must be considered rationally. This will relate to how much money should be provided to finance the salaries of labor, tools required and must be purchased and how results will be achieved from an organization.
Material consists of semi-finished materials (raw material) and finished material. In the world of business to achieve better results, than man skilled in the art should also be able to use the material / materials as one means.
Machine or machine used to provide convenience or generate greater profits and create efficiency of work.
Method is a procedure for working the smooth running of the manager's job. A method can declared as the determination of how a working implementation of a task by providing a variety of considerations to the target, the facilities available and the use of time and money and business activities. Keep in mind though either method, whereas those who carry it out do not understand or do not have experience then the results will not be satisfactory. Thus, the principal role in the management of human remains themselves.
Market or the market is a place where organizations disseminate (market) products. Market products are certainly very important because if the goods produced is not sold, then the process will stop production of goods. That is, the work process will not take place. Therefore, the market share in terms of yield spread is a determining factor in the company. In order for the market can be controlled by the quality and price of goods must comply with consumer tastes and purchasing power (ability) of consumers.