Mind Map: Chapter 2 & Zara International Case Study môn Principles of Management | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

Mind Map: Chapter 2 & Zara International Case Study
1. Classical Management Approaches
Scientific Management (F 📌 rederick Taylor) Key Principles:
·Efficiency through standardized work, selection, and training.
·Focus on worker productivity, incentives, and process optimization.
·Scientific analysis to eliminate inefficiencies and increase output. Zara Connection: 🔗 ✔ to analyze Real-time data tracking
customer demand & optimize inventory.
✔ Fast production cycles (2 weeks) instead of traditional 6-month fashion cycles.
✔ Just-in-time production prevents overstocking and allows quick design changes. ✔ Store managers use to reor handheld devices der best-selling items quickly.
Administrative Principles (Henri F 📌 ayol) Key Principles:
1. Foresight – Planning for the future.
2. Organization – Structuring resources efficiently.
3. Command – Leading employees effectively.
4. Coordination – Integrating different activities.
5. Control – Monitoring and correcting performance. Zara Connection: 🔗
✔ Zara’s parent company, Inditex, controls all aspects of design,
production, distribution, and sales.
✔ Minimal outsourcing → keeps production flexible & responsive to fashion trends.
✔ Continuous planning & adaptation to emerging fashion styles.
✔ Direct communication between store managers & HQ ensures accurate restocking.
Bureaucratic Organization (Max W 📌 eber) Key Principles:
·Hierarchy of authority – Clear chain of command.
·Formal rules & procedures – Standardized processes.
·Impersonality – Decisions based on rules, not personal preferences.
·Merit-based promotion – Performance-driven career growth. Zara Connection: 🔗
✔ Centralized decision-making ensures product consistency across 78+ countries.
✔ Structured logistics system allows deliveries within 24 hours in
Europe & 48 hours in the US/Asia.
✔ Small production batches avoid oversupply, creating exclusivity & urgency for customers.
✔ Managers follow strict reporting guidelines to track sales trends and adjust orders.
2. Behavioral Management Approaches F
📌 ollett’s Organizations as Communities Key Principles:
·Collaboration between managers & workers → teamwork-based approach.
·Workers should participate in decision-making.
·Emphasis on integration of interests rather than hierarchy. Zara Connection: 🔗
✔ Store managers provide input on what designs sell best,
influencing production decisions.
✔ Design teams collaborate closely with sales teams → fast response to market demands.
✔ Customers indirectly influence product lines through their purchase behavior. Hawthorne Studies 📌 Key Principles:
·Social & psychological factors influence productivity.
·Group dynamics and workplace environment impact motivation.
·Employees perform better when they feel valued (Hawthorne Effect). Zara Connection: 🔗
✔ Small production batches create a “scarcity effect”, increasing consumer desire.
✔ Store ambiance & product presentation are designed to enhance shopping experience.
✔ Zara’s frequent stock rotation keeps customers engaged and returning often.
Maslow’s Hierarchy of Needs 📌 Key Principles:
1. Physiological Needs – Basic salary, job security.
2. Safety Needs – Stable work environment.
3. Social Needs – Team belonging, relationships.
4. Esteem Needs – Recognition & career growth.
5. Self-Actualization – Creativity & fulfillment. Zara Connection: 🔗
✔ Designers have high autonomy → encouraging creativity (Self- Actualization).
✔ Performance-based incentives motivate employees at all levels.
✔ Ethical concerns over labor conditions in supplier factories
contradict safety needs (e.g., sweatshop controversy in Brazil). McGregor 📌
’s Theory X & Theory Y Key Principles:
·Theory X: Employees dislike work & need strict supervision.
·Theory Y: Employees seek responsibility & are self-motivated. Zara Connection: 🔗
✔ Creative teams operate under Theory Y (freedom to innovate designs).
✔ Factory workers & supply chain staff operate under Theory X
(tight control & efficiency-focused processes).
✔ Retail employees balance both: monitored for sales efficiency but
encouraged to engage with customers.
3. Modern Management Foundations
Organizations as Systems 📌 Key Principles:
·Inputs → Transformation → Outputs model.
·Organizations are open systems that interact with their environments. Zara Connection: 🔗
✔ Inputs: Customer feedback, fashion trends, materials.
✔ Transformation: Design, production, distribution.
✔ Outputs: Fashion products delivered to stores in record time.
✔ Constant feedback loop: Store managers report sales data → informs production. Contingency Thinking 📌 Key Principles:
·No one-size-fits-all management style.
·Strategy should adapt to different environments. Zara Connection: 🔗
✔ Adjusts strategies based on regional markets (e.g., conservative
styles for Middle East, trendier cuts for Europe).
✔ Online vs. Physical Stores: Different approaches for e-commerce vs. flagship stores.
✔ Localized pricing & product selection depending on economic factors.
Quality & Knowledge Management 📌 Key Principles:
·Continuous improvement → Learning from data & experience.
·Knowledge management → Using insights for competitive advantage. Zara Connection: 🔗
✔ Data-driven decision-making: Store sales reports determine what gets restocked.
✔ Rapid prototyping: Designs are tested in select stores before full production.
✔ Minimal advertising budget (0.3% of sales) → relies on word-of- mouth & trend adaptation.