How has management evolved in the past two decades?
Business organization is a legal entity that has been incorporated in order to serve consumers and earn profits. All the activities of business organizations are directed towards consumers. They aim to increase their profit share by maximizing their sales.
Answer and Explanation: 1
Earlier managers focused on increasing productivity through centralization of work, division of labor, and followed hierarchal model that favored top-down control over business activities. Managers practiced strict control on the workers and were focused on maximum outputs only.
Later, due to growing business complexities and changing business environment, managers started adopting more flexible methods of management. Importance of human resources was recognized; managers started understanding role of workers in the production activities. They realized that production could only be maximized with the help of motivated and satisfied workers.
SWOT analysis was introduced to measure the market trends in the business environment.
Managers started focusing on the quality of their products. Focus was shifted from quantity to quality. Six Sigma, total quality were some of the tools that were invented in order to improve the quality of goods and services.
Managers also started adopting new and improved technologies that would help in production process. Innovation is the key that was adopted by managers to provide innovated and creative products to consumers.
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fromChapter 6 / Lesson 3
Learn to define "type of business" and study examples. Explore the three major types of business organization: sole proprietorship, partnership, and corporation.