Successful Intervention Of Organizations In Competitive Markets

Why do we need managers? What are the different levels of managers and explain how they differ?

Discuss about the Successful Intervention of any Organization in The Competitive Market.

The study seeks a deep insight to underpin the necessities of successful managers across the various levels of management. Critical evaluation of organic and mechanistic structure would outline the successful intervention of managerial practice in various organizations. The particular topic would also emphasize on the management styles and implementation of strategic management process in organizations.

Management is required for facilitating a coordinated effort towards the accomplishment of organizational goals. Good managers take active participation in injecting motivation, creativity, discipline and enthusiasm amongst the employees for ensuring long-term sustenance and productivity of the organization (Nepali et al. 2014). An effective management for the organization imparts a sense of direction amongst the employees. The following points figure out the necessity of an efficient manager in an organization:

The various levels of management refer to a “line of demarcation” amongst various managerial positions in an organization.  The various levels of management underpins a chain of commands, level of authority and the working status held by managers in different positions. The various levels of management sub divide itself under three categories: “Top level of management, Middle level of management and low level of management”

Figure: Various Levels of Management

Source:

The top management refers to the highest hierarchy in an organization and usually comprises of the “board of directors” “chief executive” and the “managing director”. The top management usually looks after the administrative section of the organization. In contrast to the administrative section, the middle level of management usually refers to the executive level of management comprising of the branch and departmental managers (Hill, Jones and Schilling 2014). The low level of management belongs to the operative and supervisory level of managements consisting of the section officers, superintendent, supervisors etc. The differences of responsibilities amongst the three levels of management are as follows:

The organic structure usually states the nature of framework than an organization utilizes to demonstrate amongst “power”, “authorities”, “roles”, “responsibilities” and the way in which information flows across the various forms of management. In contrast, Mechanistic structure states that an organizational structure is in alignment with a “formal” and “centralized” network of operations. The mechanistic structure is also known as “bureaucratic” structure. The mechanistic structure is ideal for those organizations that operate within a stable and certain environment (Schmidt, Deem and Davis 2014). Therefore, there are lesser chances of change in this form of management and so is relatively easier to maintain. In contrast, organic structure allows an organization to be flexible in nature and adjust to the uncertainties and challenges arising in the external and internal environment.

Comparing and contrasting organic and mechanistic organizational structures with examples

An organization with a suitable organic structure would take active participation in implementing practical operation procedures and decision-making abilities for achieving the objective oriented outcomes in a successful manner. In case of a mechanistic structure, most portions of the functional entities are not dependent on each other. For example, the governmental organizations and the health care institutes of UK  usually follows a mechanistic structure where the top level managers take majority of the decisions and it also lacks involvement of multiparty (Bergh et al. 2014). The IT companies in UK are the best examples of organic structure where the employees take active participation in enhancing their problem-solving abilities and producing new products.

Figure: Characteristics of Transformational Leadership

(Source: Avolio and Yammarino 2013) 

Transformational leadership style is one of the most practised methods in successful organizations Transformational leadership style emphasizes on team building, motivation and collaboration at variant levels of an organization. The leaders always probes for improvement of the organizational culture and management. The transformational leaders take active participation in setting goals and incentives for the employees in order to enhance their performance (Zhu et al. 2013).  Inclusion of opportunities for personal and professional development motivates the employees in a positive manner.

Transformational and Transactional leadership styles are “polar opposites” when it comes to underpinning the theories of management and motivation. In terms of successful business enterprises, transformational leaders are much more effective than the transactional leaders. A transactional leader could be a blessing in disguise for an employee who is a performer and a nightmare for the ones who is struggling to churn productive outputs for the organization (Schuh et al. 2014).  This is because transactional leaders rewards or punishes the motivating followers. However, a transformational leader always motivates and inspires an employee irrespective of success or failure (Noruzy et al. 2013). Transactional leaders could be biased in nature due to personal connections with the employees, thus raising higher chances of discrimination and partiality.

Transformational leadership usually emphasizes on “values”, “ideals”, “morals” and requirements of the individuals. Transactional leaders are usually reactive by nature, which could sometimes affect the organizational progress on certain occasions. In contrast, transformational leadership are proactive by nature and has better capability of handling complex situations. Transactional leaders are ideal for a working environment that is in the best of its shape (Herrmann and Nadkarni 2014). When exposed to a complex scenario, they may look vulnerable. Likewise, transformational leaders are identical for handling complex situations or implementing radical changes in the existing organizational culture. The most important section where transactional leaders fail to surpass transformational leaders is that they are concerned with the maintenance of normal flow of information. Transformational leaders are responsible for taking the performance and success of the organization to the next level. Upon differentiation of the two styles of leadership, it can be clearly stated that transformational leaders are more successful than the transactional leaders for successful intervention of the organization in the competitive market.

The strategic management process is a philosophical approach to business that allows the organization to gain supremacy in the competitive market. The higher management thinks in a strategic manner before applying the thought into a particular process. Business enterprises seek a deep insight on the following strategic implementation stages for developing successful strategies of an organization.

Goal Setting

The primary intention of goal setting is to recognize the vision of the business. On an early stage, the management seeks a deep insight in identifying the short and long-term objectives for the organization. Upon identification of the objectives, the management identifies the process of accomplishing the objectives (Proctor, T., 2014).  The processing of the task states the final stage of the goal setting process. On needs to keep in mind that the goals needs to be realistic and aligns with the values of the vision for achieving objective oriented outcomes.

Analysis

Gathering of accurate and relevant information is clinical to success for the organization. The management seeks a deep insight to understand the requirements of the business as a sustainable entity, strategic initiatives directions and the initiatives required for the development of the business. The management must conduct SWOT, PESTLE and Stakeholder analysis for identifying the opportunities and constraints for the organization.

Strategy Formulation

The main step involved in forming a strategy is to review the information gathered from the data analysis. The management shall be sure about the existence of the resources that could assist the organization in achieving the objective oriented outcomes (Kacperczyk, Nieuwerburgh and Veldkamp 2014). The organization must identify the requirement for any external resources. The management must have alternatives approaches for the execution of each plan.

Strategy Implementation

This is the stage where management performs actions for successful intervention of the strategic management process. If the overall strategies fail to impress, then a new strategy shall be implemented at an earliest stage. The employees of the organization should be aware about their responsibilities before executing the plan

Evaluation and Control

The strategic evaluation comprise of review about performance measurements, deep insight on the external and internal issues and taking preventive actions where required. Successful evaluation plans starts by identifying the parameters that needs to be measured. The management must recognize the progress by measuring the actual results in contrast to the plan. Monitoring of external and internal environment of the organization would also allow the management to react on any substantial changes in the business environment.

Conclusion

On the contrary, it concludes that, successful managers are identical for successful intervention of any organization in the competitive market. The implementation of organic and mechanistic structure would outline the various implementations in various business environments. The transformational leadership style is perhaps the best leadership approach for business organizations. The application of strategic management helps the organization to secure a safe position in the competitive market.

Reference list

Avolio, B.J. and Yammarino, F.J. eds., 2013 Transformational and charismatic leadership: The road ahead Emerald Group Publishing

Bergh, D.D., Connelly, B.L., Ketchen, D.J. and Shannon, L.M., 2014. Signalling theory and equilibrium in strategic management research: An assessment and a research agenda Journal of Management Studies, 51(8), pp.1334-1360

Herrmann, P. and Nadkarni, S., 2014. Managing strategic change: The duality of CEO personality Strategic management journal, 35(9), pp.1318-1342

Hill, C., Jones, G. and Schilling, M., 2014 Strategic management: theory: an integrated approach Cengage Learning.

Kacperczyk, M., Nieuwerburgh, S.V. and Veldkamp, L., 2014. Time‐Varying Fund Manager Skill The Journal of Finance, 69(4), pp.1455-1484

Nepali, K., Sharma, S., Sharma, M., Bedi, P.M.S. and Dhar, K.L., 2014 Rational approaches, design strategies, structure activity relationship and mechanistic insights for anticancer hybrids European journal of medicinal chemistry, 77, pp.422-487

Noruzy, A., Dalfard, V.M., Azhdari, B., Nazari-Shirkouhi, S. and Rezazadeh, A., 2013 Relations between transformational leadership, organizational learning, knowledge management, organizational innovation, and organizational performance: an empirical investigation of manufacturing firms The International Journal of Advanced Manufacturing Technology, 64(5-8), pp.1073-1085.

Proctor, T., 2014 Creative problem solving for managers: developing skills for decision-making and innovation. Rout ledge.

Schmidt, J.E., Deem, M.W. and Davis, M.E., 2014. Synthesis of a Specified, Silica Molecular Sieve by Using Computationally Predicted Organic Structure‐Directing Agents. Angewandte Chemie 126(32), pp.8512-8514

Schuh, S.C., Bark, A.S.H., Van Quaquebeke, N., Hossiep, R., Frieg, P. and Van Dick, R., 2014 Gender differences in leadership role occupancy: The mediating role of power motivation Journal of Business Ethics, 120(3), pp.363-379

Zhu, W., Newman, A., Miao, Q. and Hooke, A., 2013 Revisiting the mediating role of trust in transformational leadership effects: Do different types of trust make a difference?. The Leadership Quarterly, 24(1), pp.94-105