Critical analysis of different theories
Discuss about the Foundation Management for Business Scenario and Organizations.
In the present business scenario, contemporary business organizations face more diverse business challenges in their daily operations than ever. The contemporary business scenario is more complex and challenging than it is being a few years ago. Thus, more and more new theories are being originated for the business organizations in order to enable them to cope up with the change in business scenario (Van Wart 2013). However, majority of the management theories being originated are contradictory to one another. Various different criterions are being emerged by them for the business organizations to face the organizational challenges in effectively organizing and managing the organizational procedures (Clegg, Kornberger and Pitsis 2015). This essay will discuss about the various theories of organizing and managing the business organizations. A critical analysis will be done to evaluate the effectiveness of these theories. It will enable to determine that whether there is only one best way to manage or the managerial decision will depend on the situation.
As told earlier, different theories and opinions are being given by the authors in view to the managerial roles and effectiveness of the organization. Several authors are of the opinions that, the policies and strategies in the particular organization should have singular approach and it should not be changed in any situation. According to them, changing of the unified organizational procedures and management styles will affect the organizational cultures. Similar opinion being given by Sahin (2012), regarding the management styles. According to him, the attitudes and beliefs of the managers are one of the key determinants in influencing the best the way to manage. He stated that according to the McGregor’s theory of x and y, managers lead their employees accordingly. Managers following the theory x follows the authoritarian style of leadership. According to him, this style helps in directing the employees effectively in any given situation. Moreover, due to lack of accumulation of the opinions from the employees, it becomes easy for the managers to initiate the decision making process by own and in more effective manner. On the other hand, managers following the theory y, offers more options of participation of the employees. According to this theory, decision making process is being initiated with the opinions of the employees. Though, it involves more time but is more effective for the organizational procedures.
Effectiveness of transformational leadership
Some other authors such as García-Morales, Jiménez-Barrionuevo, and Gutiérrez-Gutiérrez (2012) are of the opinion that, transformational style of leadership is the most effective managerial style for driving the organizational excellence. This is due to the reason that, in the case of the transformational style of leadership. Employees are being motivated for generating innovative ideas along with the visionary goals of the higher level management. According to the authors, this managerial style helps the organization in effectively determining the requirement of the market and initiates the organizational strategies accordingly. The employees are being kept motivated and equipped, which eventually helps the organization in facing the challenges effectively. According to the authors, initiation of this managerial style helps the organizations in handling the negative business environment also. In addition, the motivation of the employees in generating the innovative ideas helps the organizations in gaining the competitive advantages from the market.
According to Ertureten, Cemalcilar and Aycan (2013), initiation of singular approach of management in the organization have their own set of advantages for the business organizations. This is due to the reason that, according to the authors, the internal stakeholders in the organization including the employees and different managerial levels are being accustomed with a particular type of management style. Thus, with the sudden change in the existing style of management, they may have adverse impact on their effectiveness. It will take time for them to get adjusted with the new set of regulations. The authors also stated that, other related aspects of the internal management such as communication channels should also have to change with the change in the style of management. Thus, according to them, it will be favorable for the business organizations to stick to a single style of management and modify it according to the situation.
On the other hand of the opinion that, business organizations should initiate a singular approach of management style, some other authors have given several valid points, which conclude that there is no best way to manage. According to Thompson and Glaso (2015), business organizations should not have a singular approach in maintaining their style of management. This is due to the reason that, according to the authors, business organizations from around the world are operating in different and diverse business environment. Thus, a singular approach is not applicable for all. In addition, the current business scenario is rapidly changing and following of same and similar approach will make hard for the business organizations in handling the business situation effectively.
Initiation of singular approach of management
According to DuBois, Hanlon, Koch, Nyatuga and Kerr (2015), it is necessary for the business organization to change their style of management according to the current situation. This is due to the fact that, the requirement of the internal as well as external stakeholders of the organization are changing rapidly and thus, to meet the emerging requirement, they cannot have a single way of management. According to the authors, if the internal stakeholders of a particular business organization are well equipped and motivated in their workplace, then a more democratic management style can be initiated. However, on the other hand, if the internal stakeholders are more comfortable in directive style of management then, authoritarian style will be applicable.
They also stated that, the style of management is also determined by the business competitiveness. If the operating area for the particular organization is more competitive and dynamic, then motivation of the employees to generate innovative ideas will have favorable outcome (Aziz and Rizkallah 2015). On the other hand, if the business scenario is less sensitive or elastic to change and it operates in same conventional way, then directive style will be more favorable. Thus, the management style of the organizations should be based on the situation and environment where they are currently operating.
As told by Yukl (2012), there are advantages and disadvantages in every kind of managing the business organizations. According to him, if an organization initiates the democratic style of management, then also they will face issue in involving more time in the decision making process. Moreover, it will be difficult for the organization to bring consensus from among the varied opinions of the employees. On the other hand, if the organization initiates the directive style of management then also they will face the issues of dissatisfaction of the employees in their workplace (Sageer, Rafat and Agarwal 2012). In addition, the effective identification of the requirement of the employees will also not be possible. Thus, according to him, business organizations should initiate the situational style by adhering to the merits of all the available management styles. It will prove more effective for the organizations.
From the above critical analysis, it is been seen that several authors have given varied opinions about the best possible way of organizational management. The situational mode will be more applicable and favorable for the business organization due to the reason that, it will help the organization to be flexible enough in coping up with the changing business scenario. Moreover, the current global business scenario is more of customer oriented rather than manufacturer oriented (Adekola and Sergi 2016). Thus, effective determination of the market requirement is important for the organizations to stay ahead in the competition.
There is no best way to manage
However, one aspect that needs to be considered by the business organizations is that, strategies and approaches are to be initiated in according to the requirement of the market. Thus, to initiate strategies according to the requirement of the market, the organizational management should be flexible to change with the situation (Santos-Vijande, Lopez-Sanchez and Trespalacios 2012). In addition, the situational style of management will further help the organizations to train and equip the internal stakeholders according the current need. Based on the internal and external situation or environment of the organization, the management style should be initiated.
Thus, from the above discussion, it can be concluded that, for the contemporary business organizations, managing the internal operation is more complex than ever. Thus, they should be flexible enough in order to get adjust with the changing scenario of the business. It is been discussed in this essay that, sticking to a single type of management style will not help the organization in dealing with the changing scenario. Analysis done by various authors is being evaluated in this essay and it concludes that initiation of situation style of management will help the organization to change or modify their management approach with the change in the external and internal situation. It is being discussed briefly in this essay that situational style of management will prove beneficial for the contemporary business organizations.
Adekola, A. and Sergi, B.S., 2016. Global business management: A cross-cultural perspective.
Aziz, H.H.A. and Rizkallah, A., 2015. Effect of organizational factors on employees' generation of innovative ideas. EuroMed Journal of Business, 10(2), p.134.
Clegg, S.R., Kornberger, M. and Pitsis, T., 2015. Managing and organizations: An introduction to theory and practice. Sage.
DuBois, M., Hanlon, J., Koch, J., Nyatuga, B. and Kerr, N., 2015. Leadership styles of effective project managers: Techniques and traits to lead high performance teams. Journal of Economic Development, Management, IT, Finance, and Marketing, 7(1), p.30.
Ertureten, A., Cemalcilar, Z. and Aycan, Z., 2013. The relationship of downward mobbing with leadership style and organizational attitudes. Journal of Business Ethics, 116(1), pp.205-216.
García-Morales, V.J., Jiménez-Barrionuevo, M.M. and Gutiérrez-Gutiérrez, L., 2012. Transformational leadership influence on organizational performance through organizational learning and innovation. Journal of business research, 65(7), pp.1040-1050.
Sageer, A., Rafat, S. and Agarwal, P., 2012. Identification of variables affecting employee satisfaction and their impact on the organization. IOSR Journal of business and management, 5(1), pp.32-39.
?ahin, F., 2012. The mediating effect of leader–member exchange on the relationship between Theory X and Y management styles and affective commitment: A multilevel analysis. Journal of Management & Organization, 18(2), pp.159-174.
Santos-Vijande, M.L., López-Sánchez, J.Á. and Trespalacios, J.A., 2012. How organizational learning affects a firm's flexibility, competitive strategy, and performance. Journal of Business Research, 65(8), pp.1079-1089.
Thompson, G. and Glasø, L., 2015. Situational leadership theory: a test from three perspectives. Leadership & Organization Development Journal, 36(5), pp.527-544.
Van Wart, M., 2013. Lessons from leadership theory and the contemporary challenges of leaders. Public Administration Review, 73(4), pp.553-565.
Yukl, G., 2012. Effective leadership behavior: What we know and what questions need more attention. The Academy of Management Perspectives, 26(4), pp.66-85.
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