Organizational efficiency prospects for management in Industry 4.0

Abstract

Industry 4.0 emerges as a tool to help organizations manage. Often identified with the Internet of Things and Cyber-Physical Systems, Industry 4.0 appears as a solution to many of the difficulties plaguing manufacturing. The history of management theories, e.g. by Taylor, Fayol, or Simon, shows that deterministic solutions do not ensure the permanent success of organizations. In manufacturing, the economy overlaps the technological, social, environmental, and cultural dimensions that influence organizations. This paper assesses the possible benefits for the efficiency of the organizations resulting from the implementation of Industry 4.0. To fulfill this purpose, the effects on the hierarchical structures of organizations are investigated, namely those related to specialization, authority, and span of control. The results show that technological advances and efficiency of industry 4.0, which are relevant for the economy, still do not respond satisfactorily to social needs that require changes in the behavior of the management system.

Keywords

• management
• industry 40
• efficiency
• hierarchy
• specialization
• decision-making process
• span of control