Business Theories and Models - Case Study Example

? Business theories and models A business model or theory is the plan a as to how the company is going to produce, market and gain from the transactions it is engaged in. A business model is laid out as a strategy that the company will use to reach its laid down objectives and purposes. Once a business is incorporated and has started business, it is the duty of the management to lay out clearly the rational that they are going to use in their operations so as to meet their customer and employee needs and satisfy them for the benefit of the organization. Models are not only used to describe the current position and functioning of the entity but also the future position and the share that the company wants to achieve in the long run. The type of model that the organization adopts will go a long way to determine how the customers relate with the organization, how the employees are motivated and also how possible is it for the company to meet its long term plans. Different business models and theories have been adopted by various leaders in the management of their organizations. One of these business theory and models is the human relations theory. This theory is mostly concerned with the human factor in the company, leadership and the motivation of the workers (Heron, 1993). This theory assumes that both the employer and the employee are social beings and can relate on a common ground. This is also based on the assumption that the employer was so much concerned with the employee behavior at the work place. The level to which the organization is going to meet its objectives depends so much on the general perception of the employees and their general attitude towards work. The human relation theory also makes an assumption that how well the people’s needs are put into consideration, the better they are able to perform in their places of work. People naturally want someone who will be there for them and by the management showing concern about their needs is a way of giving them more reason to be proud and identify with the organization. The theorists who came up with this model suggested that to a given level, the managers could predict the behavior of their employees at the work place. This theory is mainly concerned with employee motivation and general satisfaction at work (Heron, 1993, p. 242). Different categories of people are motivated differently according to human relations theory. Rational- economical man is the type of employee who is motivated by being let to exercise those things that are of self interest but at the same time taking full advantage of the gains that come up in the organization. The second class of the employee is the social man who is motivated by being allowed some social time and allowed to be part of the groups in the organization. This type of employee will be motivated by even those things that are considered not as important to other people, for example, being allowed some time to go on a company trip or even a short business vacation where he is to meet other people. The self-actualization man, according to human relations theory, is motivated by those things that will help him to feel fulfilled as an individual. These things are like any advancements or achievements that the employee achieves and is recognized for them by the company. The management can motivate this employee by allowing him to be free and support any innovative ideas that he may come up with. The fourth type of individual is the complex man and as the name suggests, this employee is not easy to understand and he may stand for different things at different times. This man is motivated by understanding his needs personally and or as a group and trying your best to satisfy them in the best way possible. The human relation theory is a theory that applies so much in the day to day running of many businesses because many firms are concerned with productivity and this is achieved by making sure that the employees, who are directly concerned with this production are well catered for their needs and there is someone to listen to their predicaments as the arise (Heron, 1993, p. 245) MAS Company, as outlined in the case study, is a company that is concerned with the textile production and it is making good progress and the sales of the company are increasing annually. This has been attributed to the good relationship with the main customer of the company, Victoria Secret, who takes about 60% of the total sales of the company. MAS is also reported as having an exemplary relationship with the employees and it has done anything possible to ensure that they are comfortable and thus increasing their productivity. The company, for example, has put in place transport system that picks and drops the employees in the morning at the gate of the company and return them home in the evening. Ladies working in the company wear blue head nets and in case of a pregnant lady, she puts on a pink net just in case she may need special care. Besides this, employees are given free breakfast, lunch and other privileges that cater for their social welfare. This clearly demonstrates employee interest at the heart of the company and may be this is the reason for the continued productivity in the company. This is explained as human relations business theory and as earlier stated, it is demonstrated by how well the company is able to create and maintain good relationship with the employees and motivate them to even feel more affiliated to the company. There are many advantages that are associated with the company adopting this theory in the management and dealing with the company affairs. Firstly, it makes the company indulge into real industrial research on the social wants of the different types of individuals. This will ensure that the company will be on the lookout about what is expected of them and work towards meeting the specifications of different categories of people. Secondly, the companies will device other methods of motivating their employees other than the common monetary compensations in terms of salaries and wages. From the case study, for example, MAS Company went ahead to introduce awards that were meant for women who performed exemplary and were selected by their fellow employees. This ensured that the selection was genuine and not biased. It also acted to reduce conflicts where employees may fell that they deserved better than the selected person because the selection was open to all the employees (Heron, 1993, p. 251). The third advantage that the company gets by adopting human relations theory is that it enlightens the management to be more sensitive to the social needs of people working for the organization. This has been proven to be having a positive effect on the employees’ motivation and attitude towards work. It also brings out the benefits of working in groups as opposed individual work. This creates synergy and learning is encouraged in these groups. The second business theory that applies well with the case study of MAS Company is the classical management theory. This theory is concerned with the general well being of the firm as a profit making entity and how the organization is structured so as to meet its objectives. Classical theory also brings into play the concept of a practical leader as opposed to a theoretical one who is concerned only on the social needs of the people. Classical management theory tries to explain that there should be a balance between the company needs and the individual employee needs. The theory therefore established some pillars that govern the general conduct of the employee and control their relation with the management (Heron, 1993). One of these pillars is remuneration whereas it should be balanced between the two parties. It should not be too high beyond the company ability to meet them or too low such that the employees do not get the full benefit that is associated with the work done. The theory also emphasizes on the scalar chain whereby authority should flow from the top of the chain to the junior staff. This helps to create some respect and discipline which is also emphasized by the theory. An organization that practice this business theory are so concerned with the equity in the organization where all the employees are treated as equals without discrimination based on certain lines. Division of labor in the organization is also an important aspect of this theory of business management as well as unity of command and direction. This means that at any one given time, there can only be one supervisor for a given unit. The interests of the individuals should not come before those of the organization and the employees should work towards a united front to meet the general objectives of the firm. Teamwork, unity and order are some of the features that are associated with making this theory a success (Heron, 1993, p. 253) Classical management theory requires that there be a means of achieving the company goals and it may require some scientific and technological advancement that are geared towards the success of the firm as a whole. To make the theory successful, the management is required to understand the environment in which the business operates and develop means and ways of reaching that goal through selection and training the employees so that they can be well suited for the tasks that may come up. Then employees on the other hand the employees are required to cooperate with the management and not to focus so much on the monetary compensation they get from the company. The employees are also required to accept to be trained without feeling intimidated. This way, the company will be able to meet its objectives in a clear and good way and it may go ahead to receive a good market share for the company. Classical management theory is demonstrated in the MAS Company case as the management was always thinking about the well being of the company and how they can get full benefits from its operations. The company, when they came up with a new label, Women Go Ahead, they were so determined to include it in the label of their fabrics and promote the company sales as the initiative had gained so much recognition not only nationally but also globally. The management is also concerned about who is to be left in the management once they had retired and they are worried how well the next manager will be able to take the company to the next level. The management is also concerned with the corporate social responsibility (CSR) which is with the aim of building and maintaining good relationship between the company and the society which serves to benefit the company in the long-run. This theory is beneficial to the company in that the needs of the both the employees and the company are catered for and both stand to benefit mutually. The theory emphasize of the key steps that can lead to the attainment of the goal without oppressing the workers in any way. Corporate social responsibility is a way through which the larger community benefits, for example, through improved medical services, schools that are started by the company and other infrastructural developments and at the same times the company benefits from the society’s support and the increased sales (Heron, 1993). In conclusion, business theories are the strategies that are laid down by the company and they determine the way the company conducts its production and selling procedures. Different theories can be adopted by a company to meet its objectives and in some instances; the company can combine two or more theories in its processes. Human relations theory is mostly concerned with the human needs in the company and the company works towards the achievement of their social needs. The management understands the need for motivating their employees so as to maximize their productivity in the firm. Different individuals are motivated in different ways and the earlier the understanding of these people’s needs, the better the company is able to motivate them and ensure that they contribute fully towards the gain of the company. On the other hand, classical management theory is concerned more with the well being of the company and its subsequent success that comes from happy employees. It is always important for the management to understand what is expected of them in the development of the company and its future success. Equality, order, discipline, centralization of work as well as authority and unity of direction and command are emphasized by this theory. The management should not only be concerned about how well they can improve the employees welfare but also what steps can be taken by the company to improve its image in the public eye and gain their confidence. From the study, it is important for the company to choose a model that well meets its interests and those of other stakeholders. The company should not overstretch itself to meet its employee needs and incur losses but at the same time it should not offer the employees too little hence making their employees unable to offer their all in the production process. It is important for the company to know their strengths and maximize on them and their weaknesses and develop ways of dealing with them by adopting the model that best suits their needs. Bibliography Heron, J. (1993). Group facilitation: theories and models for practice. London: Kogan Page ;. Read More