Early Business History and Mercantilism

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Questions and Answers

What is a key goal of limiting resource use and emissions?

Enhance customer satisfaction

Increase production costs

Conserve scarce resources (correct)

Expand operational capacity

Which step is involved in the target setting process for a company?

Target ordering (correct)

Crisis management

Budget assessment

Annual review

What concept was introduced by Maslow regarding human motivation?

Competitive desires

Survival instincts

Self-realization (correct)

Instinctual drives

What does the feasibility check in the target setting process evaluate?

Realistic implementation of targets Signup and view all the answers

What should be done after determining the actual target system?

Regularly adapt and review the target system Signup and view all the answers

What economic philosophy began to promote trade and state wealth in the 1650s?

Mercantilism Signup and view all the answers

Which part of the management cycle is associated with setting objectives?

Will formation Signup and view all the answers

Which philosopher expressed skepticism towards the pursuit of profit?

Plato Signup and view all the answers

What is the purpose of planning objectives in the target setting process?

To outline strategic goals Signup and view all the answers

What significant change in business began around 1900?

Birth of modern business administration Signup and view all the answers

How is risk limitation achieved in managing emissions and waste?

By utilizing alternative materials Signup and view all the answers

What type of economic activity was prioritized after the first industrial revolution?

Trade as an independent industry Signup and view all the answers

What is primarily assessed during the objective decisions phase?

Achievability of targets Signup and view all the answers

According to Maslow, which needs must be satisfied before pursuing self-realization?

Deficit needs Signup and view all the answers

Which legal or economic concept emphasizes import duties to increase state wealth?

Mercantilism Signup and view all the answers

What was one significant aspect of business education that began to evolve around 1900?

Establishment of business schools Signup and view all the answers

What is the primary objective on which the target-setting process is often based?

Profit maximization Signup and view all the answers

Which objective is considered equally important alongside profit maximization?

Security Signup and view all the answers

Which aspect is NOT part of the target operationalization process?

Target revenue Signup and view all the answers

What does the 'target extent' refer to in the context of target setting?

The measure and level of target achievement Signup and view all the answers

Which of the following factors is considered in the 'temporal reference' of target setting?

The period or point in time the target refers to Signup and view all the answers

What is the significance of 'Homo oeconomicus' in the context of target setting?

It represents the concept of rational individual decision-making Signup and view all the answers

Which of the following represents a multi-target function within an organization?

The collaboration of various departments to achieve different objectives Signup and view all the answers

What type of growth is mentioned among the other significant objectives in target setting?

Qualitative growth Signup and view all the answers

What best describes subjective performance conditions?

They are rooted in the employee's skills and personal attributes. Signup and view all the answers

Which of the following is NOT a type of objective performance condition?

Emotional conditions Signup and view all the answers

What is the main objective of personnel recruitment?

Filling vacancies Signup and view all the answers

Which principle is essential in the recruitment process?

Orientation on the labor market Signup and view all the answers

What does personnel appraisal primarily focus on?

Evaluating employee performance Signup and view all the answers

What is the primary responsibility of a task owner within an organization?

To be accountable for the fulfilment of a task Signup and view all the answers

What is referred to when multiple positions performing related tasks report to one authority?

Department Signup and view all the answers

Which of the following is a benefit of increasing specialization within an organization?

Increased productivity Signup and view all the answers

What does the congruence principle in organizational theory emphasize?

Balancing task, competence, and responsibility Signup and view all the answers

Which of the following describes operation-oriented structure design?

Organized around specific operational processes Signup and view all the answers

What is a key characteristic of a matrix structure in an organization?

Participative decision-making but often slower Signup and view all the answers

Which is NOT a limit of the division of labor?

Increase in productivity Signup and view all the answers

What is the main purpose of structure design in an organization?

To allocate tasks derived from task analysis efficiently Signup and view all the answers

In the sale of goods process, which step comes after 'carry out delivery'?

Create invoice Signup and view all the answers

Which of the following structures emphasizes the coordination of activities across multiple dimensions?

Matrix structure Signup and view all the answers

Which aspect of departmentalization focuses on geographical location?

Region-oriented Signup and view all the answers

What does 'invoice clearing' primarily involve?

Comparing payment and invoice amounts Signup and view all the answers

Which of the following describes the outward-looking perspective of companies?

Interaction with external partners and stakeholders Signup and view all the answers

What is one consequence of increasing dependencies within an organization?

Increased necessity for coordination Signup and view all the answers

Study Notes

Early History of Business

Lively long-distance trade and economic activity existed as early as 1200 CE
Trade was compatible with religion, and there was discussion about the pursuit of profit.
Thinkers like Plato and Aristotle debated the morality of profit and the value of money.
The concept of a just price was debated by Thomas Aquinas.
Interest was prohibited until the Reformation, showcasing the evolving relationship between economics and religion.

The Rise of Mercantilism (1650 onwards)

Emphasis on maximizing state wealth through trade
Importance of import duties to protect domestic industries
Mercantilism was a key driver of European expansion and colonialism

The Birth of Modern Business Administration (1800 onwards)

The state played a more active role in promoting trade.
The rise of the national economy
"The Wealth of Nations" by Adam Smith emphasized the role of the free market and the principles of division of labor.
The first industrial revolution spurred the need for efficient business administration

The Emergence of Modern Business (1900 onwards)

The birth of modern business administration
Development of the first business schools
Business administration became a recognized academic discipline

Maslow's Hierarchy of Needs

Maslow developed a model to explain human motivation, emphasizing the progression of needs.
Deficit needs must be satisfied before growth needs can be addressed.
Needs are the driving force behind economic activity and the application of economic principles.

Target Setting Process

The text outlines a cyclical management process for setting and achieving objectives.
The process involves:
- Will formation (objective decisions, planning of objectives, objective setting)
- Will enforcement (measure decisions, planning of measures, measure setting)
- Organization
- Controlling
- Control

Target Searching

The target search involves selecting the right objectives for the business.
It relies on:
- The theory of the firm (e.g., homo oeconomicus, individual decision-maker)
- Reality and empirical observation (e.g., catalogs of objectives, including profit maximization, security, qualitative growth, and social responsibility)

Target Operationalization

Operationalizing a target involves defining its:
- Content (what measure and level of target achievement is sought)
- Extent (what facts do the targets relate to)
- Temporal reference (what period or point in time does the target statement refer to)
- Organizational reference (which organizational unit or market do the goals relate to, what is the place or space where tasks are performed)

Organizational Structures

The increasing specialization of tasks drives the need for organizational structures.
The division of labor leads to:
- Increased productivity
- Increased dependencies
- Increased organizational complexity
But it also leads to:
- Coordination costs
- Monotony of work
- Technological circumstances

Structure Design Approaches

The text discusses three main design approaches:
- Operation-oriented
- Object-oriented
- Region-oriented

Further Structure Design Options

The text discusses two further options:
- Line Centers and Staff Units
- Matrix Structures
- Matrix structures involve participatory decision-making, but can lead to slower decision-making.

Organization Processes

The text uses the concepts of operation, gear step, and gear element to explain business processes.
It provides an example of the sale of goods to a customer, outlining the steps involved.

Organizational Networks

Emphasizes that companies need to consider both their internal and external perspectives (networks).
Subjective performance conditions are rooted in the employee and their skills.
Objective performance conditions are rooted in the immediate working environment, including technical, organizational, management, social, and legal conditions.

Human Resources Processes

Covers the seven key HR processes:
- Personnel recruitment
- Personnel deployment
- Personnel management
- Personnel appraisal
- Personnel release
- Personnel/organizational development
- Human Resources Controlling

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Description

Explore the evolution of business practices from the early history of trade to the rise of mercantilism and the birth of modern business administration. This quiz delves into key economic theories, influential thinkers, and the interplay between religion and profit. Test your knowledge on pivotal moments that shaped economic thought and practices.