HANDBOOK OF GERMAN BUSINESS MANAGEMENT Volume 1 A-Κ

Edited by Erwin Grochla Eduard Gaugier Managing Editor Managing Editor

Hans E. Büschgen Heribert Meffert Klaus Chmielewicz Marcell Schweitzer Adolf G. Coenenberg Norbert Szyperski Werner Kern Waldemar Wittmann Richard Köhler Klaus v. Wysocki

C. E. Poeschel Verlag Stuttgart Springer-Verlag Berlin Heidelberg New York London Paris Tokyo Hong Kong Contents

Column numbers are indicated after each article title

Survey Articles

The Economic and Social Structure of the Federal Republic of Germany 1-34 Horst Albach Organisation of the Economy in the Federal Republic of Germany 35-56 Erwin G roch I a The Structure of/and Institutions for Business Administration in German-Speaking Countries 57-78 Eduard Gaugler

Subject Articles

Accounting 81-92 Business Accounting Principles and Klaus Dellmann Standards 240-246 Manfred Layer Accounting for Planning and Control . . . 92-102 Michael Wohlgemuth Business Administration: History in German-Speaking Countries . . 246-270 Accounting Policy 102-112 Horst Albach Günter Sieben Business Administration: ADP-Application Systems 112-126 Present Theoretical Approaches 270-291 Dietrich Seibt Günter Wöhe Advanced Vocational Training 126-136 Business Informatics 292-297 Wolfgang Weber Joachim Griese Advertising 136-144 Business Policy, Business Politics 297-306 Wem er Κ webe r- R iel Günter Dlugos Agricultural Management 144-153 Business Start-Up 306-314 Erwin Reisch Erich Zahn Annual Audit 153-166 Business Statistics 314-326 Hans Η avermann Eberhard Schaich Appraisal System 166-173 Business Taxation 326-344 Werner R. Müller Lutz Fischer Assets 173-183 Cameralistics 345-354 Edmund Η einen Karl Oettle Audits 183-196 Capacity 354-363 Erich Loitlsberger Ludwig Pack Banks and Banking System 197-210 Capital Budgeting 363-373 f Hans E. Büschgen Klaus Lüder Bookkeeping 211-227 Capital Budgeting Techniques 373-386 I Michael Heinhold Bernd Rudolph Brand Policy 227-234 Capital Market 387-400 Ludwig Berekoven Wolfgang Gerke Budgeting 234-240 Capital Market Theory 400-412 \ Detlef Müller- Böling Herbert Hax XXIII Contents XXIV

Codetermination 412-428 Debt Capital 695-703 Klaus Chmielewicz Anton Egger Collective Bargaining 428-440 Decision Theory 703-712 Ernst Zander Eberhard Witte Commercial Accounts 441-451 Demand for Capital 712-724 Klaus v. Wysocki Wolfgang Eisele Communication Systems 452-459 Development Projects 724-734 Eberhard Witte Karl-Heinz Sohn Competition 459-466 Distribution 734-745 Hermann Simon Dieter Ahlert Concepts of Profit 466-474 Division of Labour and Responsibilities . . 745-752 Gerhard Scherrer Arnold Picot Consolidated Accounts 474-493 Early Warning Systems 753-764 Walther Busse v. Cölbe Reinhart Schmidt Consumers 494-509 Efficiency 764-775 Hans Raffee Franz Xaver Bea Contractual Vertical Marketing Systems . . 509-518 Employee Shareholding 775-785 Bruno Tietz Günther Schanz Contribution Costing 518-530 Employee Suggestion Schemes 785-796 Wolfgang Kilger Norbert Tlwm Controllership 530-541 Employers' Associations 797-802 Peter Horvath Rolf Rodenstock Conversion 542-548 Energy Supply 803-810 Anton Heigl Werner Kern Cooperative Associations 548-557 Environmental Protection 810-820 Emst-Bernd Blumle Heinz Strebel Cooperative Management 557-569 ^Equity Capital 820-829 Wilfried Krüger Jochen Drukarczyk Coordination 570-580 Ergonomics 829-841 Hans-Jürgen Drumm Walter Rohmen Corporate Governance 580-590 European Communities 842-852 Horst Steinmann Herbert Biener Corporate Modelling 591-602 Evaluation Techniques 852-861 Friedrich Rosenkranz Winfried Matthes Corporate Objectives 602-611 Expenses and Revenues 861-870 Edmund Heinen Helmut Kurt Weber Cost Accounting 611-622 Export Promotion 870-876 Gerhard Seicht Hans Günther Meissner * Cost of Capital 622-630 Financial Accounting Theories 877-889 Erich Swoboda Ma reel I Schweitzer Cost Estimating 630-641 Financial Analysis 889-898 Herbert Vormbaum Robert Büchner Cost Management 641-652 Financial Management 899-906 Lothar Streitferdt Friedrich Tliomee Cost Theory 653-664 Financial Planning 906-924 Mar cell Schweitzer Wolfgang Lücke Customer Service 664-672 Financial Report 925-932 Peter Hammann Edgar Castan Data Banks and Method Banks 673-682 Financial Statement Analysis 933-944 Peter Mertens/Hartmut Wedekind Adolf G. Coenenberg Data Processing Management 682-694 Financing 945-957 Dieter B. Pressmar Hans E. Büschgen XXV Contents XXVI

Forecasting Techniques 957-972 Inventory Management 1240-1256 Udo Winand Wolfgang v. Zwehl Foreign-Exchange Management 972-982 Job Design 1257-1265 Helmut Lipjert Ralf Reich wald Forestry Management 983-990 Job Evaluation 1265-1276 Werner Kroth Rainer Man Fringe Benefits 990-1000 Labour Law 1277-1290 Wolfgang H. Staehle Reinhard Richardi Funds Flow Statement 1000-1016 Labour Market and Unemployment . . . .1291-1302 Walther Busse v. Cölbe Gerhard Brinkmann Generally Accepted Auditing Standards . .1017-1028 Leadership 1302-1316 Karl-Heinz Forst er Rolf Wunderer Generating Alternatives 1028-1035 Leasing 1316-1322 Jürgen Hauschildt Winfried Μ el I wig Group 1035-1044 Legal Forms of German Business Werner Schubert Organisation 1323-1336 Hospital Management 1045-1056 Marcus Lutter Dietrich Adam Legal Requirements for Production . . . .1336-1347 Humanisation of Work 1056-1068 Klaus Stüdemann Herbert Kubicek Liquidity 1348-1355 Implementation 1069-1079 Wolfgang Stützel Eduard Gabele Loans and Credit 1355-1363 Industrial Firms 1079-1090 Hans-Jacob Krümmel Dietger Hahn Logistics 1363-1376 Industrial Marketing 1090-1098 Gösta B. Ihde Werner Hans Engelhardt Maintenance 1377-1385 Industrial Property Rights 1099-1106 August-Wilhelm Sehe er Hans-Η orst Schröder Make or Buy 1385-1390 Industrial Sociology 1106-1118 Friedrich Wilhelm Selch ert Friedrich Fürstenberg Inflation Accounting 1118 1130 Management 1390-1400 nomas Schildbach Knut Bleicher Information Systems 1130-1144 Management Consultancy 1400-1410 Norbert Szyperski Günter Sieben Innovation 1144-1158 Marketing Planning 1410-1427 Wilhelm Bierfelder Richard Köhler Insolvency 1158-1167 Marketing Theory 1427-1443 Wilhelm Uhlenbruck Heribert Meffert Insurance 1167-1177 Market Research 1444-1454 Dieter Farny Franz Böcker Integrative Planning 1177-1189 Markets 1455-1460 Dietger Hahn Heribert Meffert Inter-Firm Cooperation 1189-1199 Materials Management 1460-1471 Peter Schwarz Oskar Grün Inter-Firm and Intra-Firm Comparisons . . 1199-1208 Mechanisation and Automatisation . . . .1471-1482 Karl Vodrazka Erich Staudt Internal Audit 1208-1219 Merger 1482-1489 Andre Zünd Ehrenfried Pausenberger International Accounting 1219-1230 Motivation 1490-1499 Klaus Macharzina Gerhard Reber International Marketing 1231-1240 * Multinational Corporations 1499-1512 Hans Günther Meissner Martin K. Welge XXVII Contents XXV1I1

Non-Profit Organisations 1513-1520 Portfolio Management 1787-1799 Karl Oeitle Aloys Gälweiler Occupational Safety 1521-1529 Pricing Policy 1799-1815 Peter C. Compes Herbert Jacob Office Management 1530-1538 Principles of Proper Bookkeeping and Herbert Kraus Accounting 1816-1834 Jörg Baetge Old Age Benefits 1538-1550 Privacy and Data Security 1834-1842 Georg Heubeck Rainer Thome Operational Research Applications 1550-1564 Private Limited Company 1842-1850 Heiner Müller-Merbach Manfred Jürgen Matschke Operational Research Modelling 1564-1575 Werner Dinkelbach Process Organisation and Scheduling . . . 1850-1862 Hans-Ulrich Küpper Organisational Culture 1575-1581 Procurement 1862-1876 Alfred Kieser Horst Glaser Organisational Design 1581-1593 Product Design 1877-1887 Erwin G roch I a Hans Siegwart Organisational Development 1593-1601 Production 1887-1896 Hartmut Wächter Werner Kern Organisational Forms 1601-1617 Production Planning and Control 1897-1907 Knut Bleicher Helmut Wagner Organisational Structure 1617-1626 Production Processes 1907-1921 Friedrich Hoffmann Kurt Bohr Organisational Techniques 1626-1633 Production Theory 1921-1938 Robert Fieten Waldemar Wittmann Organisation Theory 1634-1648 Product-Mix Planning 1938-1953 Erwin Grochla Hermann Sabel Partnerships and Sole Traders 1649-1657 Profit and Loss Account 1954-1967 Otto H. Jacobs Klaus Chmielewicz Payments Transactions and Profit and Loss Appropriation 1967-1975 Clearing Systems 1657-1670 Ralf-Bodo Schmidt Wolfgang Benner Profit Sharing 1976-1985 Personnel Costs 1670-1680 Eduard Gaugier Eduard Gaugier Project Management 1985-1995 Personnel Information Systems 1681-1695 Erich Frese Michel Domsch Psychology of Industrial Organisations . . 1995-2009 Personnel Management 1695-1705 Lutz v. Rosenstiel Jürgen Berth el Public Aid for Small and Personnel Planning 1705-1720 Medium-Sized Firms 2010-2017 Wolfgang Mag Erwin Dichtl Personnel Policy 1720-1732 Public Auditing 2018-2031 Dudo v. Eckardstein Klaus v. Wysocki Planning Systems 1732-1743 Public Authority 2032-2041 Edwin Rühli Peter Eichhorn Plant Closure 1744-1753 Public Limited Company 2041-2054 Tliomas Raiser Eberhard Dülfer Plant Location 1753-1765 Public Procurement 2054-2062 Jürgen Bloech Helmut Diederich Plant Management 1765-1777 Public Relations 2063-2072 Wolfgang Männel Volker Trommsdorff Plant Models 1777-1787 Quality Control 2073-2082 Gert Laßmann Horst Wildemann XXIX Contents XXX

Rationalisation 2085 2092 Subsidies 2298-2307 Marceil Schweitzer Karl Alewell Ratios 2092-2104 Supervision 2307-2313 Thomas Reichmann Alfred Kuhn Reconstruction 2104-2111 Systems Theory 2314-2332 Johann Heinrich v. Stein Helmut Lehmann Recycling 2111-2119 Tax Balance Sheet 2333-2340 Erich Staudt Franz W. Wagner Research and Development 2120-2134 Tax Planning 2340-2351 Klaus Brockhoff Gerd Rose Research Methods in Business Technology Transfer 2351-2362 Administration 2134-2149 Hans H. Hinterhuber Richard Köhler Tourism 2362-2367 Restraint of Trade 2149-2160 Josef Mazanec Günther Bemert Trade and Craft 2368-2377 Sales Management 2161-2168 Peter Rütger Wossidlo Joachim Zentes Trade Unions 2377-2397 Sales Promotion 2169-2178 Ekkehard Kappler Hermann Diller Trading Enterprises 2397-2409 Service Industry 2178-2187 Fritz Klein-Blenkers Wilhelm Hill Transport Corporations 2409-2420 Short-Term Operational Accounting . . . .2187-2194 Paul Riebel Dietrich Börner Valuation 2421-2433 Size of the Firm 2194-2203 Helmut Koch Horst Seelbach Valuation of a Going Concern 2433-2444 Social Accounting 2203-2213 Adolf Μ oxter Adolf G. Coenenberg Vocational Training 2445-2456 Social Legislation 2213-2225 Heinrich Schanz Georg Wannagat Wage-Payment Systems 2457-2472 Standard Chart of Accounts 2225-2235 Karl-Friedrich Ackermann Walter Endres Wage and Salary Policy 2472-2482 Standard Costing 2235-2249 Hugo Kossbiel Josef Κ bock Working Time 2482-2492 Standardisation 2249-2258 Dieter Sadowski Hartmut Kreikebaum Work Structuring 2492-2502 State-Owned Enterprises 2259-2269 Hans Blohm Theo Thiemeyer Strategie Analysis 2269-2282 Author Index 2505-2554 Hans-Christian Pfohl Strategie Management 2283-2292 Subject Index 2557-2620 Werner Kirsch Subject Matter of Business Administration 2292-2298 Contributors' Addresses 2621-2638 Hans Ulrich List of Contributors

Column numbers are indicated after each article title. For contributors' addresses, see pp. 2621-2638

Ackermann, Karl-Friedrich Prof. Dr. Börner, Dietrich Prof. Dr. Wage-Payment Systems 2457-2472 Short-Term Operational Accounting . . 2187-2194

Adam, Dietrich Prof. Dr. Brinkmann, Gerhard Prof. Dr. Hospital Management 1045-1056 Labour Market and Unemployment . . 1291-1302

Ahlert, Dieter Prof. Dr. Brockhoff, Klaus Prof. Dr. Distribution 734-745 Research and Development 2120-2134

Albach, Horst Prof. Dr. Dr. h.c. mult. Büchner, Robert Prof. Dr. The Economic and Social Structure Financial Analysis 889-898 of the Federal Republic of Germany 1-34 Büschgen, Hans E. Prof. Dr. Business Administration: History Banks and Banking System 197-210 in German Speaking Countries 246-270 Financing 945-957 Alewell, Karl Prof. Dr. Dr. h. c. Busse v. Cölbe, Walther Prof. Dr. Dr. h. c. Subsidies 2298-2307 Consolidated Accounts 474-493 Baetge, Jörg Prof. Dr. Funds Flow Statement 1000-1016 Principles of Proper Bookkeeping . . . 1816-1834 Cast an, Edgar Prof. Dr. Bea, Franz Xaver Prof. Dr. Financial Report 925-932 Efficiency 764-775 Chmielewicz, Klaus Prof. Dr. Benner, Wolfgang Prof. Dr. Codetermination 412-428 Payment Transactions and Clearing Profit and Loss Account 1954-1967 Systems 1657-1670 Coenenberg, Adolf G. Prof. Dr. Berekoven, Ludwig Prof. Dr. Financial Statement Analysis 933-944 Brand Policy 227-234 Social Accounting 2203-2213

Bemert, Günther Prof. Dr. Compes, Peter C. Prof. Dr. Restraint of Trade 2149-2160 Occupational Safety 1521-1529

Berthel, Jürgen Prof. Dr. Dellmann, Klaus Prof. Dr. Personnel Management 1695-1705 Accounting 81-92 Biener, Herbert Ministerialrat Dichtl, Erwin Prof. Dr. European Communities 842-852 Public Aid for Small and Medium- Sized Firms 2010-2017 Bierfelder, Wilhelm Prof. Dr. Innovation 1144-1158 Diederich, Helmut Prof. Dr. Public Procurement 2054-2062 Bleicher, Knut Prof. Dr. Management 1390-1400 Diller, Hermann Prof. Dr. Organisational Forms 1601-1617 Sales Promotion 2169-2178

Bloech, Jürgen Prof. Dr. Dinkelbach, Werner Prof. Dr. Plant Location 1753-1765 Operational Research Modelling .... 1564-1575

Blohm, Hans Prof. Dr. Dlugos, Günter Prof. Dr. Work Structuring 2492-2502 Business Policy, Business Politics 297-306

Blümle, Ernst Bernd Prof. Dr. Domsch, Michel Prof. Dr. Cooperative Associations 548-557 Personnel Information Systems 1681-1695

Böcker, Franz Prof. Dr. Drukarczyk, Jochen Prof. Dr. Market Research 1444-1454 Equity Capital 820-829

Bohr, Kurt Prof. Dr. Drumm, Hans Jürgen Prof. Dr. Production Processes 1907-1921 Coordination 570-580 XXXV List of Contributors XXXVI

Dülfer, Eberhard Prof. Dr. Hahn, Dietger Prof. Dr. Public Limited Company 2041-2054 Industrial Firms 1079 1090 Integrative Planning 1177 -1189 v. Eckardstein, Dudo Prof. Dr. Personnel Policy 1720-1732 Hammann, Peter Prof. Dr. Customer Service 664-672 Egger, Anion Prof. Dr. Debt Capital 695-703 Hauschildt, Jürgen Prof. Dr. Generating Alternatives 1028-1035 Eichhorn, Peter ProW Dr. Public Authority 2032-2041 Havermann, Hans Prof. Dr. Annual Audit 153-166 Eisele, Wolfgang Prof. Dr. Demand for Capital 712-724 Hax, Herbert Prof. Dr. Capital Market Theory 400-412 Endres, Walter Prof. Dr. Standard Chart of Accounts 2225-2235 Heigl, Anton Prof. Dr. Conversion 542-548 Engelhardt, Werner Hans Prof. Dr. Heinen, Edmund Prof. Dr. Dr. h. c. mult. Industrial Marketing 1090-1098 Assets 173-183 Farny, Dieter Prof. Dr. Corporate Objectives 602-611 Insurance 1167-1177 Η ein hold, Michael Prof. Dr. Fie ten, Robert Dr. Bookkeeping 211-227 Organisational Techniques 1626-1633 Heu beck, Georg Prof. Dr. Fischer, Lutz Prof. Dr. Old Age Benefits 1538-1550 Business Taxation 326-344 Hill, Wilhelm Prof. Dr. Dr. h. c. Forst er, Karl-Heinz Prof. Dr. Dr. h. c. Service Industry 2178-2187 Generally Accepted Auditing Standards 1017-1028 Hinterhuber, Hans H. Prof. Dr. Frese, Erich Prof. Dr. Technology Transfer 2351-2362 Project Management 1985-1995 Hoffmann, Friedrich Prof. Dr. Fürstenberg, Friedrich Prof. Dr. Organisational Structure 1617-1626 Industrial Sociology 1106-1118 Horvath, Peter Prof. Dr. Controllership 530-541 Gabele, Eduard Prof. Dr. Implementation 1069-1079 Hide, Gösta B. Prof. Dr. Logistics 1363-1376 Gälweiler, Aloys Prof. Dr. Portfolio Management 1787-1799 Jacob, Herbert Prof. Dr. Dr. h. c. Pricing Policy 1799-1815 Gaugier, Eduard Prof. Dr. Dr. h. c. The Structure of/and Institutions Jacobs, Otto H. Prof. Dr. for Business Administration in Partnerships and Sole Traders 1649-1657 German-Speaking Countries 57-78 Personnel Costs 1670-1680 Κ apple r, Ekkehard Prof. Dr. Profit Sharing 1976-1985 Trade Unions 2377-2397 Kern, Werner Prof. Dr. Gerke, Wolfgang Prof. Dr. Energy Supply 803-810 Capital Market 387-400 Production 1887-1896 Glaser, Horst Prof. Dr. Kieser, Alfred Prof. Dr. Procurement 1862-1876 Organisational Culture 1575-1581 Griese, Joachim Prof. Dr. Kilger, Wolfgang Prof. Dr. Business Informatics 292-297 Contribution Costing 518-530 Grochla, Erwin Prof. Dr. Dr. h. c. mult. Kirsch, Werner Prof. Dr. Organisation of the Economy in the Strategic Management 2283-2292 Federal Republic of Germany 35-56 Organisational Design 1581-1593 Klein-Blenkers, Fritz Prof. Dr. Organisation Theory 1634-1648 Trading Enterprises 2397-2409

Grün, Oskar Prof. Dr. Kloock, Josef Prof. Dr. Materials Management 1460-1471 Standard Costing 2235-2249 χχχνπ List of Contributors XXXVIII

Koch, Helmut Prof. Dr. Dr. h. c. Man, Rainer Prof. Dr. Valuation 2421-2433 Job Evaluation 1265-1276

Köhler, Richard Prof. Dr. Matschke, Manfred Jürgen Prof. Dr. Marketing Planning 1410-1427 Private Limited Company 1842-1850 Research Methods in Business Matthes, Winfried Prof. Dr. Administration 2134-2149 Evaluation Techniques 852-861 Kossbiel, Hugo Prof. Dr. Wage and Salary Policy 2472-2482 Mazanec, Josef Prof. Dr. Tourism 2362-2367 Kraus, Herbert Prof. Dr. Office Management 1530-1538 Meffert, Heribert Prof. Dr. Marketing Theory 1427-1443 Kreikebaum, Hartmut Prof. Dr. Markets 1455-1460 Standardisation 2249-2258 Meissner, Hans Günther Prof. Dr. Kroeber-Riel, Werner Prof. Dr. Export Promotion 870-876 Advertising 136-144 International Marketing 1231-1240

Kroth, Werner Prof. Dr. Mellwig, Winfried Prof. Dr. Forestry Management 983-990 Leasing / 1316-1322

Krüger, Wilfried Prof. Dr. Mertens, Peter Prof. Dr. Cooperative Management 557-569 Data Banks and Method Banks 673-682

Krümmel, Η ans-Jacob Prof. Dr. Dr. h. c. Μ oxter, AdolfProf. Dr. Loans and Credit 1355-1363 Valuation of a Going Concern 2433-2444

Kubicek, Herbert Prof. Dr. Müller, Werner R. Prof. Dr. Humanisation of Work 1056-1068 Appraisal System 166-173 Kuhn, Alfred Prof. Dr. Müller-Böling, Detlef"Prof. Dr. Supervision 2307-2313 Budgeting 234-240 Küpper, Hans-Ulrich Prof. Dr. Müller-Μerbach, Heiner Prof. Dr. Process Organisation and Scheduling . 1850-1862 Operational Research Applications . . . 1550-1564 Laß mann, Gert Prof. Dr. Oettle, Karl Prof. Dr. Plant Models 1777-1787 Cameralisms 345-354 Layer, Manfred Prof. Dr. Non-Profit Organisations 1512-1520 Business Accounting Principles and Standards 240-246 Pack, Ludwig Prof. Dr. MBA Capacity 354-363 Lehmann, Helmut Dr. Systems Theory 2314-2332 Pausenberger, Ehrenfried Prof. Dr. Merger ' 1482-1489 Lipfert, Helmut Prof. Dr. Foreign-Exchange Management 972-982 Pfohl, Hans-Christian Prof. Dr. Strategic Analysis 2269-2282 Loitlsberger, Erich Prof. Dr. Dr. h. c. Audits 183-196 Picot, Arnold Prof. Dr. Division of Labour and Responsibilities . 745-752 Lücke, Wolfgang Prof. Dr. Financial Planning 906-924 Pressmar, Dieter B. Prof. Dr. Data Processing Management 682-694 Lüder, Klaus Prof, Dr. Capital Budgeting 363-373 Raffee, Hans Prof. Dr. Consumers 494-509 Lutter, Marcus Prof. Dr. Legal Forms of German Business Raiser, Thomas Prof. Dr. Organisation 1323-1336 Plant Closure 1744-1753

Macharzina, Klaus Prof. Dr. Reber, Gerhard ProL Dr. MBA International Accounting 1219-1230 Motivation 1490-1499 Mag, Wolfgang Prof. Dr. Reichmann, Tliomas Prof. Dr. Personnel Planning 1705-1720 Ratios 2092-2104

Männel, Wolfgang Prof. Dr. Reichwald, Ralf Prof. Dr. Plant Management 1765-1777 Job Design 1257-1265 XXXIX List of Contributors XL

Reisch. Erwin Prof. Dr. Dr. h. c. Seelbach, Horst Prof. Dr. Agricultural Management 144-153 Size of the Firm 2194-2203 Richardi, Reinhard Prof. Dr. Seibt, Dietrich Prof. Dr. Labour Law 1277-1290 ADP-Application Systems 112-126 Riebel, Paul Prof. Dr. Dres. h. c. Seicht, Gerhard Prof. Dr. Transport Corporations 2409-2420 Cost Accounting 611-622 Rodenstock, RolfProf. Dr. Dr. h. c. Selchert, Friedrich Wilhelm Prof. Dr. Employers' Associations 797-802 Make or Buy 1385-1390 Rohmert, Walter Prof. Dr. Sieben, Günter Prof. Dr. Ergonomics 829-841 Accounting Policy 102-112 Management Consultancy 1400-1410 Rose, Gerd Prof. Dr. Tax Planning 2340-2351 Siegwart, Hans Prof. Dr. Product Design 1877-1887 Rosenkranz, Friedrich Prof. Dr. Corporate Modelling 591-602 Simon, Hermann Prof. Dr. Competition 459-466 v. Rosenstiel, Lutz Prof. Dr. Psychology of Industrial Organisations 1995-2009 Sohn, Karl-Heinz Prof. Dr. Development Projects 724-734 Rudolph, Bernd Prof. Dr. Capital Budgeting Techniques 373-386 Staehle, Wolfgang H. Prof. Dr. Fringe Benefits 990-1000 Riihli, Edwin Prof. Dr. Planning Systems 1732-1743 Staudt, Erich Prof. Dr. Mechanisation and Automatisation . . 1471-1482 Sabel, Hermann Prof. Dr. Recycling 2111-2119 Product-Mix Planning 1938-1953 v. Stein, Johann Heinrich Prof. Dr. Sadowski, Dieter Prof. Dr. Reconstruction 2104-2111 Working Time 2482-2492 Steinmann, Horst Prof. Dr. Schaich, Eberhard Prof. Dr. Corporate Governance 580-590 Business Statistics 314-326 Strebel, Heinz Prof. Dr. Schanz, Günther Prof. Dr. Environmental Protection 810-820 Employee Shareholding 775-785 Streitferdt, Lothar Prof. Dr. Schanz, Heinrich Prof. Dr. Cost Management 641-652 Vocational Training 2445-2456 Stüdemann, Klaus Prof. Dr. Scheer, August-Wilhelm Prof. Dr. Legal Requirements for Production . . 1336-1347 Maintenance 1377-1385 Stützel, Wolfgang Prof. Dr. Scherrer, Gerhard Prof. Dr. Liquidity 1348-1355 Concepts of Profits 466-474 Swoboda, Peter Ϋνοϊ. Dr. Schildbach, Thomas Prof. Dr. Cost of Capital 622-630 Inflation Accounting 1118-1130 Szyperski, Norbert Prof. Dr. Schmidt, Ralf-Bodo Prof. Dr. Information Systems 1130-1144 Profit and Loss Appropriation 1967-1975 Tliiemeyer, Tlieo Prof. Dr. Schmidt, Reinhart Prof. Dr. State-Owned Enterprises 2259-2269 Early Warning Systems 753-764 777om, Norbert Prof. Dr. Schröder, Hans-Horst Dr. Employee Suggestion Schemes 785-796 Industrial Property Rights 1099-1106 Timme, Rainer Prof. Dr. Schubert, Werner Prof. Dr. Privacy and Data Security 1834-1842 Group 1035-1044 Tlwmee, Friedrich Prof. Dr. Schwarz, Peter Priv. Doz. Dr. Financial Management 899-906 Inter-Firm Cooperation 1189-1199 Tietz, Bruno Prof. Dr. Schweitzer, Marcell Prof. Dr. Contractual Vertical Marketing Systems . 509-518 Cost Theory 653-664 Financial Accounting Theories 877-889 Trommsdorff, Volker Prof. Dr. Rationalisation 2085-2092 Public Relations 2063-2072 XLI List of Contributors XLII

Uhlenbruch, Wilhelm Prof. Dr. Witte, Eberhard Prof. Dr. Dres. h.c. Insolvency 1158-1167 Communication Systems 452-459 Decision Theory 703-712 Ulrich, Hans Prof. Dr. Dr. h. c. mult. Subject Matter of Business Witt mann, Waldemar Prof. Dr. Dres. h. c. Administration 2292-2298 Production Theory 1921-1938

Vodrazka, Karl Prof. Dr. Wöhe, Günter Prof. Dr. Dres. h. c. Inter-Firm and Intra-Firm Comparisons 1199-1208 Business Administration: Present Theoretical Approaches 270-291 Vormbaum, Herbert Prof. Dr. Cost Estimating 630-641 Wohlgemuth, Michael Prof. Dr. Accounting for Planning and Control . . . 92-102 Wächter, Hartmut Prof. Dr. Organisational Development 1593-1601 Wossidlo, Peter Rütger Prof. Dr. Trade and Craft 2368-2377 Wagner, Franz W. Prof. Dr. Tax Balance Sheet 2333-2340 Wunderer, RolfProf. Dr. Leadership 1302-1316 Wagner, Helmut Prof. Dr. Production Planning and Control . . . . 1897-1907 v. Wysocki, Klaus Prof. Dr. Commercial Accounts 441-451 Wannagat, Georg Prof. Dr. Public Auditing 2018-2031 Social Legislation 2213-2225 Zahn, Erich Prof. Dr. Weber, Helmut Kurt Prof. Dr. Business Start-Up 306-314 Expenses and Revenues 861-870 Zander, Ernst Prof. Dr. Weber, Wolfgang Prof. Dr. Collective Bargaining 428-440 Advanced Vocational Training 126-136 Zentes, Joachim Prof. Dr. Wedekind, Hartmut Prof. Dr. Sales Management 2161-2168 Data Bank and Method Banks 673-682 Zünd, Andre Prof. Dr. Welge, Martin K. Prof. Dr. Internal Audit 1208-1219 Multinational Corporations 1499-1512 v. Zwehl, Wolfgang Prof. Dr. Wildemann, Horst Prof. Dr. Inventory Management 1240-1256 Quality Control 2073-2082

Winand, Udo Dr. Forecasting Techniques 957-972 745 Division of Labour and Responsibilities 746

niques; Organisation Theory; Plant Location; Process Organisation and Scheduling; Production; Strategie Management; Work Structuring]

/. Definition; IL Contributions from Economics in Ger­ man-Speaking Countries; HL Contributions from Busi­ ness Administration in German-Speaking Countries; IV. Consequences of Division of Labour.

I. Definition

The term "division of labour" is often used in econom­ ic and sociological discussion. The term "division of responsίbilities,, on the other hand is most commonly used in the field of business administration. From a sociological point of view Dahrendorf (1965) distin­ guishes between a narrower and a wider sense of a di­ vision of labour. The narrower definition is used to de­ note the economic division of labour between individ­ uals, while the wider understanding of the term is related to aspects of social differentiation in society.

II. Contributions from Economics in German-Speaking Countries

1. Division of Labour in the National Economy Around the Turn of the Century

Schmoller (1900) attempts to describe the historical de­ velopment of labour division at the national economic level. For instance, he sees the emergence of profes­ sional occupations and the working classes as a logi­ cally consistent development from the corresponding earlier social structures (clergy/aristocracy and slav­ ery/serfdom). He proves the productivity of commerce on the basis of the division of labour between agricul­ ture and trades. For Büch er (1898), labour division is a much nar­ rower term. He describes it as a further mechanism for —• Coordination in addition to the combination of la­ bour and the teamwork, and he classifies it as a con­ cept which can be subsumed under the heading of work structuring. In his writings, the division of labour appears in the form of production division (-^ Produc­ tion; —• Production Theory), task analysis, specialisa­ tion, development of occupations and job displace­ Division of Labour and ment. Task analysis is regarded to be the prerequisite Responsibilities for the effectiveness of the law of mass production de­ veloped by Bücher (1918) (economies of scale —• Cost Arnold Picot Tlieory).

2. The New International Division of Labour [see also: Business Administration: History in Ger­ man-Speaking Countries; Coordination; Humanisa- One more recent investigation which has received tion of Work; Industrial Firms; Organisational De­ much attention has been about structural unemploy­ sign; Organisational Structure; Organisational Tech- ment in the industrialised countries (—• Labour Market 747 Division of Labour and Responsibilities 748

and Unemployment) and the industrialisation of the tration of administrative tasks are the principles of developing countries. It begins at the level of interna­ task structuring. The connection between corporate tional economics as regards the division of labour tasks or strategy and organisational arrangements {Fröbel/Heinrichs/Kreye 1977 - engl, transl. 1978). shows the affinity between the work of Nordsieck and The authors have set three essential conditions for the more recent approaches to —• Organisation Tlteory validity of their theses, which are partially based on concerning the relationship between the task environ­ empirical research: a cheap labour force in the devel­ ment and organisational structure (e.g. Bums/Stalker oping countries, fragmentation of the production pro­ 1961; Chandler 1962; Lawrence/Lorsch 1969). cess, and availability of efficient transport and com­ Nordsieck sees task structuring as being carried out munication technology. ideally as pure process structuring, thereby linking this Once these requirements have been met, they say, to dispatching in terms of process organisation (—+ Pro­ there is a world labour market (—• Labour Market and cess Organisation and Scheduling). This is intended to Unemployment) and production site market (—*> Plant make it possible to balance the work of individual Location) with a corresponding burden of the labour work stations or groups. According to Nordsieck, the markets in the industrialised countries. The observa­ workloads must be made equal and brought into line tion of this qualitatively new phenomenon has caused with normal requirements, with speed and rhythm the authors to talk of a new international division of being coordinated at the same time. This is an aspect labour. about which he made detailed observations. In addition to the task concept, the function con­ cept plays a significant part in the academic develop­ 3. Further Development of Division of Labour ment of this area. Other authors besides Nordsieck have dealt with these issues, sometimes expressing di­ Based on extensive field research Kern/Schumann vergent opinions (e.g. Stefanic-Allmayer 1950; Schnu- (1984) developed the intensively debated {Osterloh tenhaus 1951; Acker 1956; Meier 1957; Böhrs 1963). 1986) hypothesis that, due to new technologies and new forms of work organisation, the division of labour in industrial production is vanishing. More autono­ 2. Task/Work Analysis and Synthesis mous and holistic work structures can emerge with higher qualified jobs. This decline of tayloristic divi­ Kosiol (\962) provided new impetus for questions con­ sion of labour would also mean that less qualified cerning the division of responsibilities, and this is still workers will have less chances to become employed. relevant today. For him, the corporate structure (—• Or­ This would produce a new segmentation of the labour ganisational Structure: —• Organisational Design) is ar­ market. Similar observations are reported from the ranged with task analysis (task structuring) being an large field of office work with new office technolo­ independant thought process and one step ahead of gies (Picot/Reichwald 1987: ^Office Management: task synthesis. Sub-tasks are structured according to —* Mechanisation and Automation). the various characteristics of activity, product, rank (decision or execution), phase (planning, realisation or control) and purpose (endogenous or exogenous tasks). Only one characteristic may be used at any one III. Contributions from Business Administration stage of structuring in order to allow the complicated in German-Speaking Countries task structure to remain clear. The task synthesis is concerned with combining 1. Task Structuring as a Central Concern of tasks from the view of their execution by task stations Organisation Theory and leads to a combination of analytical sub-tasks being joined together to form structured units. For Nordsieck (1934), one of the co-founders of mod­ After the task analysis has been broken off at the ern —• Organisation Theory, tasks represented the start­ point where the sub-tasks can be allocated to individu­ ing point and the ultimate goal of all organisational ef­ als, the work analysis can be interpreted as an extend­ forts. The various sub-tasks are interrelated because ed performance-related task analysis. Together with they were derived from the basic task as substantive the work synthesis it forms the methodical operation objective (nowadays this is often termed strategy; of process structuring (—• Process Organisation and —* Strategic Management). The division of responsibil­ Scheduling). In contrast to Nordsieck, who repeatedly ities is intended to reflect this interrelationship in a refers to the connections and interdependencies be­ meaningful way. The responsibilities can be divided tween organisational structure and process organisa­ according to activities or products, whereby it is possi­ tion, Kosiol clearly distinguishes between these two ble to have a case where both organisational criteria aspects. Work synthesis follows on from work analysis can be applied equally. in the same way that task synthesis follows on from Task structuring is the basis of the task assignment task analysis. Work synthesis forms individual opera­ and connection of tasks, as laid down in the —• Organi­ tions (—• Work Structuring) for established work sta­ sational Structure. The structuring according to activi­ tions. ties and products as well as the exclusion and concen­ Most recently, some authors have shown renewed 749 Division of Labour and Responsibilities 750 interest in questions concerning task and work analy­ Bibliography sis. While Krüger (1981) sees a renaissance for the techniques of task analysis (—* Organisational Tech- nicfues), Zterg (1981) considers such a task decomposi­ a) Introductory Reading tion as a further approach to —• Organisational Design. Dahrendorf, Ralf (1965): Arbeitsteilung, Soziologische Be­ In principle, this is a basic modification of the concept trachtung. In: v. Beckerath, E. et al. (eds.): Handwörter­ of analysis and synthesis put forward by Kosiol, using buch der Sozialwissenschaften. Vol. 12, Göttingen (Van- formal mathematical methods in particular. The con­ denhoeck & Ruprecht), 512-517. cept of decomposition allows at any stage of the struc­ Kossbiel, Hugo (\9Ί4): Arbeitsteilung, betriebliche. In: Groch- turing procedure an integrated analysis and synthesis la. E./Wittmann, W. (eds.): Handwörterbuch der Betriebs­ of tasks in four steps (generating system elements, de­ wirtschaft. 4th ed., Stuttgart (Poeschel), 256-262. riving interdependencies within the socio-technical Picot, Arnold (1979): Organisationsprinzipien. In: Wirt­ system, testing consistency and, if required, correction schaftswissenschaftliches Studium, 8: 480-485. of the design). Reber, Gerhard {\914): Die minimale personale Arbeitsaufga­ be. In: Wirtschaftswissenschaftliches Studium, 3: 217-223. It was Gaitanides (1983) who developed a process- Schweitzer. Marceil (1980): Arbeitsteilung. In: Grochla, E. oriented organisational design where the first stage is a (ed.): Handwörterbuch der Organisation. 2nd ed., Stuttgart pre-organisational process analysis. After this, the pro­ (Poeschel), 139-144. cess elements are allocated to various coordinated sta­ tions and the production processes can be coordinated among one another. For him, as for a large section of b) Further Reading the publications which have appeared since the early Acker, Heinrich (1956): Die organisatorische Stellengliede­ sixties, the influence of KosioVs concept of analysis/ rung im Betrieb. Wiesbaden (Gabler). synthesis is evident, although the distinction between Berg, Claus C. (1981): Organisationsgestaltung. Stuttgart et al. —• Organisational Structure and process organisation (Kohlhammer). was not always adopted and was even watered down Böhrs. Hermann (1963): Organisation des Industriebetriebes. to some extent. Wiesbaden (Gabler). An integrated examination of the problem of la­ Bücher, Κα//(1898): Die Entstehung der Volkswirtschaft. Vol. bour and responsibility division as well as the problem 1, 2nd ed., Tübingen (Laupp). of structure and process is assuming increasing impor­ Bücher, AT«/-/(1918): Die Entstehung der Volkswirtschaft. Vol. 2, 1 st ed., Tübingen (Laupp). tance in both the German- and English-speaking Bums. Tom/Stalker, George M. (1961): The Management of countries as far as the efforts at organisational descrip­ Innovation. London (Tavistock). tion and design are concerned (e.g. Mintzherg 1979; Chandler, Alfred D. Jr. (1962): Strategy and Structure: Chap­ Hill/Fehlbaum/Ulrich 1982; Kieser/Kubicek 1983). ters in the History of the American Industrial Enterprise. Cambridge, Mass. London (The M.I.T. Press). Fröbel. Volker/Heinrichs, Jürgen/Kreye, Otto (1977): Die neue internationale Arbeitsteilung. Reinbek b. Hamburg IV. Consequences of Division of Labour (Rowohlt) [Trans.: The New International Division of La­ bour, trans, by Burgess, P., Cambridge (Cambridge Univer­ sity Press)]. Research and debates on the consequences of division Gagsch, Siegfried (1980): Subsystembildung. In: Grochla, E. of labour have been conducted since its introduction (ed.): Handwörterbuch der Organisation. 2nd ed., Stuttgart to industry. The number of authors who have written (Poeschel), 2156-2171. on the subject is correspondingly large. The economic Gaitanides, Michael (1983): Prozeßorganisation. München advantages of a division of labour are particularly evi­ (Vahlen). dent in the possibility of specialised knowledge and Kern, Horst/Schumann, Michael (1984): Das Ende der Ar­ skills being used, in a more rapid development of beitsteilung? München (Beck). learning effects, in shorter training periods, and also in Kieser, Alfred/Kubicek, Herbert (1983): Organisation. 2nd making it easier in certain circumstances to obtain a ed., Berlin/New York (de Gruyter). Kosiol, Erich (1976): Organisation der Unternehmung. 2nd workforce. However, if division of labour is carried to ed., Wiesbaden (Gabler) [1 st ed. 1962]. an extreme, it can lead to decreased adaptability as Krüger, Wilfried (1981): Aufgabenanalyse: Renaissance einer well as to an increased need for coordination; it can Organisationstechnik. In: Zeitschrift für Organisation, 50: also run counter to social objectives. Physical and psy­ 185-198. chological symptoms of fatigue and alienation among Lawrence, Paul R./Lorsch. Jay W. (1969): Organization and employees can emerge. Thus the economic advantages Environment. Homewood, III. (Irwin). of labour division can conflict with serious disadvan­ Meier, Albert (1957): Rationelle Führung und Leitung in der tages (—• Corporate Objectives; —+ Humanisation of Unternehmung. Stuttgart (Poeschel). Work). Reber{\91A) has brought together the hypothe­ Mintzberg, Henry (1979): The Structuring of Organizations. Englewood Cliffs, N.J. (Prentice-Hall). ses developed on this subject in the literature and Nordsieck, Fritz (1934): Grundlagen der Organisationslehre. created the basis for a theory of the lower limit for the 1st ed., Stuttgart (Poeschel) [2nd ed. 1955: "Rationalisie­ division of labour. rung der Betriebsorganisation"]. 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