Zuzana Tuckova, Ph.D., Department of Enterprise Economics, Tomas Bata University Zlin, Mostní 5139, Zlin, 765 02, Czech Republic
During 20th century principles of the work division were used in the business activities of the companies. These principles took advantage of the knowledge of scientific management production. These principles were also transferred to the management sphere itself. The principles worked and supported the company economics in the mass manufacture period of standard products till the market was saturated. The companies grew to giant dimensions and integrated all what was needed for the manufacture. The activities divided by the work division were centralized in big hierarchical structures of the firms which realized the changes with difficulty.
At the end of the 20th century the market was saturated and it was no more sufficient for the customers of what the mass manufacture was offering them. The customers asked the manufacturers for the products which they want to have themselves. They asked for the products and services according to their own wishes, namely: high-quality, cheap and at once if possible. Large manufacturers met with the requirements with difficulty and there were others entering into the market that were able to react (respond) to the customers´ standards. Big firms had to react to this situation. They started to employ the reengineering and the activities previously divided by the division of work have now centralized to comprehensive processes. The useless employees were dismissed; some parts of the production process were transferred to other companies all over the world.
The embracive competition forces the manufactures to substantial costs reduction. They must offer such prices which the customers are willing to pay for their products, work and services. The manufactures are obliged to work on continuous innovations. They are not able to get through with innovations at all and every activity. Therefore more and more of what the manufactures are not able to produce, they buy from other manufactures all over the world.
In the globalize world on one hand considerable quantity of opportunities comes up continually, on the other hand the useless activities cease continually as well. The enterprisers respond to these opportunities and many new companies come up and cease continually.
First to professional services. The Danish economist Løwendahl (2005) analyses them as follows:
1. Career based on the complex knowledge typical for academical education (University education).
2. Career concentrated on application of these knowledge combined with experience of fundamental problems in society. Its solution includes altruistic service to the client more than searching for personal motives as profit and status.
3. Vocational organization is based on collective ethics code in which self-control is applied in a way that people of the same alignment can exclude the members who do not comply with the ethics code.