The third major component in management theory is leadership. You must always be mindful of the fact that labor is a productive asset in any enterprise. It doesn't matter if the company deals in goods or services or both. The efficient and productive employment of labor resources is central to the success of the company.
But it is not an easy task. Humans are complex, and they respond differently in work situations. It is sometimes difficult for a manager to keep workers motivated and producing at a high level. Not surprisingly, therefore, management textbooks devote a large section to the psychological and sociological factors that affect worker performance.
BSBA graduates who begin work as junior managers with a company may think that all they have to do is tell subordinates what to do and it will be done. They are surprised, sometimes shocked, to discover that "it doesn't work that way."
That's not to say that employees will resist managerial directives. They will do the work because they don't want to be fired. But sometimes they will do just enough to get by. So how does the manager build enthusiasm, motivation, a strong work ethic, team spirit and loyalty to the company?
BSBA students who take an Introduction to Psychology course will have an advantage over management students who have not taken such a course. The psych course will describe motivational factors--particularly reward systems--that contribut to employee productivity.
Sociological factors also come into play. Workers are not just isolated individuals. They are members of groups and sometimes sub-groups that have their own notions of work rules, desirability of objectives and interdependence among workers. The student of management must be aware of all of them.
Next: control systems.
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