Discuss and critically evaluate this statement with reference to contemporary theories and frameworks of management and organisational analysis. Word count 2500 words
1. Demonstrate a critical awareness of the theoretical base of organisational analysis and management, at operational and strategic levels
2. Critically assess theoretical models and frameworks as vehicles of organisational analysis and management practice.
Role of Management in Organizational Analysis and Management Practices
Management is the skill of getting the things done all the way through and within the formally organized group (Newton, 2011). It is the occupation of a venture, which concerns itself with direction, and organization of the diverse activities to accomplish business objectives. Management is fundamentally an administrative function; it deals with the vigorous direction of the human effort. It is the power, which leads guides and directs the business towards the achievement of the predetermined objectives. In short, management is not merely the task of managing the business (Griffin, 2013).
Management is pre-requisite to trounce the complexities of the business environment as the process of management assemble all the resources, factors of production requisite to run the business and integrate the resources for achieving the goals in an effective manner (Griffin,2013). It ensures that the resources are optimally utilized and thus sinking the cost of production which however leads to the establishment of the sound business. It ensures balance in the organization by establishing coordination in the internal business and responding to the changes in the external environment (Business Dictionary, 2018).
It is a continuous on-going process which ensures that all the activities all in accordance with the pre-determined plans and identifies all the problems which can hinder the performance of the organization. It is pervasive in nature and is required in all the types of organizations to integrate all the efforts of individual and work as a group. The process of management integrates the human, physical and financial resources in an effective way to attain the goals of the organization (Money Matters, 2018). It focuses on providing the maximum output with the input of minimum resources to reduce the cost and achieve efficiency in the operations of the organization. It brings prosperity for the employee and the employer by providing them the profit of incentive plans, proper wages and creating a healthy working environment (Shafritz, Ott, and Jang, 2015).
Management is the essential ingredient that controls the human as through the process of managing the manager directs the works of the employees it supervises that the actions of the employees are in line to the goals of the organization and provides motivation to the employees in the form of providing the monetary and non-monetary incentives. This helps to motivate the employees and create an environment in which the employees consider the goals of the organization as their main priority (Combe, 2014). The controlling function of management provides motivation to the employees as their performance is evaluated and a progress report is maintained. This motivates them to be committed towards their work and helps in achieving maximum efficiency. It ensures order and discipline in the workings of the employees as the practice of delay, theft, and corruption is evaluated (Schraeder et al, 2014). This function of management establishes coordination among all the departments as it analyses the performance of all the departments, take the corrective actions to work according to the set standards, and provides the overall efficiency in the operations of the business (Hayes, 2018).
Overview of Management Theories and Frameworks
The control function of management is important to achieve the organization success because it establishes the standards of performance then compares the actual performance with the set standards and then alter the deviations to ensure that the organizational activities are in line to the set standards. It helps to judge the accuracy of the standards i.e. to analyze that the laid down standards are more or less to the general standards. It helps in the optimum utilization of resources as the performance of the employees is controlled (Health Knowledge, 2017).
It is considered important because management establishes the standards for the performance of the employees and measures the actual performance then compare the actual performance with the set standards and lastly take the corrective actions. Such a process of controlling the employees ensures that all the actions of the employees are towards achieving the goals of the organization (Dubrin, 2008). For controlling the employees, the management provides them with the motivation in the form of rewards, promotions, recognition and providing the monetary incentives, which further inculcates the desire among the employees to work efficiently and be rewarded for the same. Such extrinsic and intrinsic motivation creates the environment, which improves the overall productivity and helps the organization in achieving the goals in an efficient manner (Business Management Ideas, 2018).
Management is required to control the humans because it directs and guides the employees, ensures that all the targets are achieved, and further defines the alterations required in the performance of the employees which improves their performance and helps in the accomplishment of goals. Management of the performance of the employees helps them in accomplishing the individual’s goals and leads to the growth and advancement of employees (Taley, 2018). Management ensures the attainment of individual goals by providing them with the opportunity to explore globally and learn in the global environment. The organization redesigns the roles of the employees considering their personal goals, promotes internal transfers to the different departments to provide them the learning of all the departments, and makes internal promotion to experience higher authorities. Such actions of organization help in motivating and retaining the employees and focuses on achieving the individuals' goals (TLNT, 2011).
The descriptions of management theory provide deep insight into how the process of management helps in effective management of the staff and are more committed towards the working of the organization. It helps in understanding the role of management in controlling the employees and motivating them to enhance their individual performance in line to the overall goals of the organization. In consideration to the above, Frederick Winslow Taylor founded the scientific theory of management in which he believed that the workers must work like machines to increase the productivity. It merely focuses on the work and the relationship with the workers (Business Jargons, 2018).
The scientific theory of management mainly focuses on the work at the production floor and the author believes that repetitive performance of the same task by the employees helps in increasing productivity as the employees gain more and more experiences. The theory of scientific management helps in controlling the activities of the employees.It ensures that there is the elimination of waste, proper functioning of all the departments and controls the actions of the employees. It scrutinizes that all the employees behave in an ethical manner and focus on the shift from craft production to mass production. This theory of management ensures that standardization of best practices in implied to the work and however attains the efficiency in the operation function of the employees (Miles, 2012).
Scientific Theory of Management
It requires a huge investment of capital into technology, training of the employees. Repetition of the same tasks leads to the situation where employees feel monotonous and all the planning and controlling are done by the managers, which, however, creates dissatisfaction among the employees. This theory is more mechanistic as all the control of employees is in hands of managers they, in turn, start considering the employees as machines. In this theory, there is no scope of individual preference and to overcome the technique of functional foremanship Taylor invented the principle of unity of command to divide the powers among all the managers (Wise Step, 2018).
In contrast to this theory, Taylor founded the administrative theory of management, which is a simple model that describes the behavior of managers towards its personnel. It depicts the way of how the management interacts with the personnel with the overall motive of improving the efficiency in the operations of the business. His model includes fourteen principles of management, which helps to direct the behavior of the employees and reduces the workload of each employee. It states that the work must be divided among all the individuals equally to reduce the burden of one person. The manager should be given authority to give the command to the employees and must ensure that the employee is responsible to one manager at a time. This leads to clarity in the minds of the employees and does not create the situation of confusion (Sahni and Vayunandan, 2010). Effective delegation of authority and responsibility to the employees leads to the achievement of the desired result as the managers get more time to interact and collaborate with the other competitive organizations. It motivates the employees as the employees become more responsible and however leads to the accomplishment of objectives in an efficient and effective manner. Taylor gives this principle with the overall motive of managing the activities of the employees. (Business Management, 2018).
The theory states that managers must focus on the individual interest of the employees and must direct their actions to enhance the performance of the employees. It focuses on providing equal opportunities to all the employees and ensures that all the employees get the fair remuneration. The application of such theories helps in managing the workings of employees and thus helps to increase the productivity of the firm. 87(Murugesan, 2012).
There were various criticisms of the administrative theory of Taylor (Sapru, 2013). Many management scholars believe that these principles are not empirically tested and are the unconditional statements, which are valid under all the circumstances of the business, which is not practically possible. The implementation of such principles leads to the formation of mechanistic organization structures, which do not, considers the social and psychological needs of the employees. It constrains the employee’s self-actualization and emphasizes their dependence on superiors. Application of these principles leads to the creation of rigid structures, which do not work in unstable conditions (Mahmood, Basharat, and Bashir, 2012). Application of such theories creates a very formal structure, which is not possible to continue in case of unstable environment because of the changing trends and the extensive competition in the environment. Herbert Simon states that administrative theory suffers from superficiality, oversimplification, and lack of realism (Aspirant Forum, 2014).
Evaluation of Scientific Theory of Management
It is analyzed that the TESCO Company follows the administrative theory of management to overcome the organizational issues. It follows a hierarchical chain of command, which consist of three levels and one employer monitors each employee at a time (Business Case Studies, 2018). There is a proper flow of information among the levels of hierarchy, which eliminates the issue of delay in decision-making and thus ensures efficiency in the operations of the organization. In Tesco, the organization structure, consist of levels of hierarchy, which includes the top management, middle management, and the respective departments. Each employee in the organization is responsible for the immediate head and the scalar chain is adopted. There is a separate department for resolving of the problems however leads to a proper flow of information without any delay and confusion (TESCO, 2010).
In today’s scenario, it is observed that there is a shift from control-oriented performance to committed oriented performance. The control-oriented approach can only work in an environment where there is stability while it is found rare in an increasingly competitive environment. In the recent era, the employees are more committed towards their work because the organization provides the incentive programs and awards to the employees to keep them motivating and providing them the authority to be responsible for their actions. The control approach leads to dissatisfaction among the employees because of higher involvement of managers at each step. As there is continuous change in the trends and threats of close substitutes in the environment the employees must be motivated to work efficiently and the organizations must shift from control oriented to committed oriented. To overcome the complexities of the environment the management scholars believe that the workers must be committed oriented. Extensive and formal control leads to the creation of negativity and discouragement among the employees and however leads to a reduction in productivity. (Hudson, 2015).
The bureaucratic organization structure provides the authoritarian–paternalistic pattern, which increases the purposeful specialization with numerous layers of middle and lower management for coordinating the managerial effort and eliminating administrative inconsistencies and as a response to professional abuses of power (Business Management Ideas, 2018). To overcome such organizational issues Max Weber propounded a set of philosophy to integrate the group efforts of the organization (Business Management Ideas, 2018). The description of the bureaucratic organization is a division of labor by functional specialization. It defines the chain of command of authority, defines the rights and duties of employees which leads to avoidance of overlapping jobs and the behavior of the system is predictable. It focuses on achieving efficiency by reducing the wasteful actions and building expertise in employees and assuring stability in the organization (Kalyan City Life, 2011).
Apart from the various advantages of this approach, there is various criticism analyzed by different management scholars. It includes large involvement of red tapes and paperwork, which leads to unpleasant experiences and inefficiency in operations. Excessive regulation of rules and policies leads to the unwillingness of the employees to make an individual judgment and avoids risks. However, the growth, development, and creativity of the employees get hampered (Business.com, 2018).
Contemporary Theories and Frameworks
It is analyzed that the automobile company Toyota has applied the bureaucratic approach in its working and was able to deliver the quality product to its customer and focuses on eliminating the waste, inconsistency and the needless requirement on the product line. The employees of the organization were unified to accomplish the stated objective (Hierarchy Structure, 2018). The company follows a hierarchical chain of command, involves a controlling structure, which unites the whole system together. The individual and group performance of all the departments of the organization is evaluated continuously and the company forms a unique project group of the functional experts from the different departments to develop the new product. It delivers the worth product to its customers by collectively coordinating the efforts of all the team members of the organization (Hierarchy Structure, 2018).
The performance management system is the fundamental component of human resource management, which align and maximizes the individual performance with the overall performance of the organization. It is the process of identifying, measuring and developing performance in organizations. To improve the performance of the employees the organization applies the control theory at all the levels of the organization and assures that the desired results are achieved. It has three type of managing systems. Firstly, the behavior control in which the manager evaluates the performance of the workforce on a continuous basis and are rewarded accordingly. Secondly, Output control in which the presentation of the employees is controlled through rewards after evaluating the performance on the foundation of organizational principles. Third, Input control, which seeks to manage the selection and training process of the worker (Davila, Epstein, and Manzoni, 2014).
From the above context, it is concluded that management is that the function of an organization that guides and directs the actions of the employees. Management is pre-requisite to control the employees and unite the individual goals with the organizational goals. The control function of management measures the performance of the employees against the set standards and then alters the deviations to improve the performance and motivates them to achieve the goals of the organization. It helps in improving the performance of the employees and helps them in the growth of their individual goals.
Controlling the employees on the regular basis also creates a negative impact and leads to the organizational issues, which therefore hinders the performance of the employees. The employees of the organization feel discouraged as all the powers of control are in the hands of the manager and thus reduce the creativity and participation of employees at the operational and strategic levels. To overcome all the organizational issues various management scholars have given theories of managing the employees and ensuring the survival of the organization in the complex business environment.
Thus from the discussion of the above parts, it is concluded that application of such theories of management changes the organization structure and brings the unity of command. There is proper flow of information at all the levels of the organization to eliminate to delay in decision making and provides all the monetary and non-monetary benefits to the employees to make the employees motivated and thus leads to increase in the production capacity of the employees and ensuring the accomplishment of the goals of the organization.
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