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What is Theory of Constraints (TOC)

Leadership and Followership in an Organizational Change Context
The theory of constraints is a management paradigm that views any socio or technical system as being limited in achieving its goals by a certain number of constraints.
Published in Chapter:
Innovation Leading Organizations
André Nogueira (Portuguese Naval Academy, Portugal), Pedro B. Agua (Portuguese Naval Academy, Portugal), and Anacleto C. Correia (Portuguese Naval Academy, Portugal)
Copyright: © 2022 |Pages: 23
DOI: 10.4018/978-1-7998-2807-5.ch009
Abstract
Innovation is one of the most likely factors to boost effectiveness, efficiency, and sustainability of an organization, regardless of its sector of activity, as for instance, the armed forces. The absence of innovation can affect the organizations in different ways, from suboptimal operational effectiveness and improvement of organization processes (administrative, operational, or logistics), bringing with it negative impacts on human resources motivation – the main keepers of knowledge, institutional culture, and organizational values. Innovative organizations also generate a stronger sense of belonging across their ranks and structures and fosters effectiveness in fulfilling organizations' missions. Hence, fostering innovation across any typology of organization is crucial and requires a proper approach to promote the desirable involvement of the entire workforce. This text, based on a review of some relevant literature, exposes critical enabling factors. Based on a cause-and-effect analysis, it proposes some recommendations for the practitioner as well as the academic.
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More Results
Throughput Accounting and Green Reporting: Decision Support for Enhancing Environmental Performance
Organizational change method centered on improving profit. Philosophy is that each organization must have at least one constraint. A constraint is any factor that limits the organization from making more efforts, usually profit.
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Throughput Accounting: Decisional Informational Support for Optimizing Entity Profit
Organizational change method centered on improving profit. Philosophy is that each organization must have at least one constraint. A constraint is any factor that limits the organization from making more efforts, usually profit.
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Manufacturing Scheduling Strategy for Digital Enterprise Transformation
A management paradigm that identifies and resolves the barriers which prevent a business from achieving its goals. The theory finds the constraints and rebuilds the organization around them using focusing processes. According to the theory of constraints, a system is only as strong as its weakest link. Therefore, it tries to overcome the individual process inefficiencies as well as bottlenecks in the production system.
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