IRE240H1 Chapter Notes - Chapter 6: Strategic Choice, Contingency Theory
14 Oct 2017
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Chapter 6: understanding and explaining management: theories of management and industrial relations. What managers actually do are called theories of management and they are primarily analytical, directed at understanding managerial processes and practices and explaining why they vary. Theories for management are primarily normative, directed at providing prescriptions for and hence influencing managerial processes and practices. Managers serve as agents of owners and investors and that as agents, they continually strive to enhance the efficiency and competitive position of the firm, thereby maximizing profits and ownership wealth. Neo-classical economic theory highlights the importance of efficiency. They acquire a mix of inputs labor, equipment, etc. which enables them to minimize per unit production costs compared to market prices. Neo-liberal is concerned with the costs of inputs, while contingency is concerned with the internal structure authority of organizations and focuses on managerial orientations.
