Effect of an Effective Management on the Success of the Business - Assignment Example

? Effect of an Effective Management on the Success of the Business TABLE OF CONTENTS INTRODUCTION………………………………………………………….2 2. LITERATURE REVIEW…………………………………………………..2 2.0 Introduction ….…………………………………………………………2 2.1 Critical Literature.……………………………………………………….3 2.2 Theoretical Framework...………………………………………………..5 3. GAPS IN THE EXISTING LITERATURE……..……………………………..5 3.0 Inadequate evidence...……………………………………………………5 3.1 Uncovered Areas…………………………………………………………6 3.2 False Effects……………………………………………………………..7 4. METHODOLOGY …………………………………………………………….7 4.0 Research Design………………………………………………………….8 4.1 Study Area and target group………………………………………………8 4.2 Sampling techniques and Sample size……………………………………8 4.3 Research Instruments…………………………………………………….8 4.4 Limitations of the Research………………………………………………9 5. SPECIFICATION OF HYPOTHESIS AND OBJECTIVES 5.0 Hypothesis………………………………………………………………..9 5.1 Objectives…………………………………………………………………9 REFERENCES………………………………………………………………………10 1. INTRODUCTION The major purpose of the study is to examine the effects of an effective and efficient management on the performance of an organization. The leaders of an organization have a major impact on the organization depending on how they perform their functions. The management of an organization performs different functions and thus, the success of the organization greatly depends on the manner in which the duties are performed (Drucker & Maciariello, 2008, 30) Therefore, the objective of the study is to find the major impacts that an effective management would have on the overall performance of an organization. The study seeks to find the extent of increase in production of an organization when then the management improves its performance. The foremost reason as to why I chose the topic is because; I would want to assess the major factors that determine the success of an organization. In addition, I would also like to find out how the performance of an organization can be improved and made effective. The topic also interests me since; it affects a variety of individuals and businesses in the economic world. Thus, such a research would be very useful to many parties in the business market. Many business organizations would definitely want to ensure the management of their businesses is effective in order to ensure that they reap the accruing benefits. 2. LITERATURE REVIEW 2.0 Introduction This chapter focuses and concentrates on previous studies conducted in regard to the effects of effective management on the performance of an organization. The issue of management’s effectiveness is very crucial to the organization’s performance and thus, many scholars have conducted different studies concerning the issue. 2.1 Critical Literature Studies have shown that when there is effective management in an organization, there will also be effective planning. On the other hand, effective planning in an organization ensures that there is a smooth flow of activities and operations. Thus, the organization is likely to accomplish most of its objectives (Anthony & Anthony, 2008, 34). The management of an organization also has a function of co-coordinating operations in the departments. Thus, when there is effective management in the company, there will also be effective coordination of the operations in the organization. Scholars also assert that, with effective management in an organization there will also be effectual organization and controlling of activities at work. Employees will be well organized and directed and thus, there will be no confusion or conflict of activities in the firm. A study conducted at AT & T Company found out that, effective management in an organization led to effective performance of employees since, the employees would be well organized (Flamholtz, 1996, 7). In addition, activities will also be well controlled such that, there will be limited interference of work by instances such as breakdown of machines or power failures. Furthermore, when the control function in an organization is well executed, external factors will also have a very limited effect on the organization (Choudhury, 1988, 32). A study conducted on Xerox Company also showed that effective management in an organization lead to effective decision making by both the employees and the leaders of the organization (Flamholtz, 1996, 8). Effective decision making in the organization will in return lead to quality production in the firm and reduction of losses. This is due to the fact that; unprofitable investment decisions which might have led to losses will be avoided. Managers of the organization will choose investment projects which are profitable to the organization. Effective management in the organization also leads to effective setting of objectives and goals at work (Likert, 2001, 17). Scholars assert that; when the management of a firm is effective and efficient, leaders will efficiently engage the shareholders of the company, be able to manage risks, and set achievable goals. When the management of the company is ineffective, the leaders may set objectives which are unrealistic and difficult to achieve (Marshall, Preston-Shoot & Wincott, 1991, 31). This will lead to frustration of workers since; they might not be able to achieve such goals. In addition, when the management of an organization is ineffective it may also set goals which are simple and easy to achieve. This will lead to laziness of the workers and lack of innovativeness. Employees will not have any challenging goals which can encourage them to work harder. Hence, they will be relaxed and stay in a certain comfort zone where they’ll think that the organization is successful since it is achieving all its goals (Reddin, 2007, 13). However, in as much as the organization will be achieving its goals in this case, the resources will be underutilized since; the firm will be operating below its maximum point. An effective management also leads to successful development of new leaders in the organization. This is due to the fact, when the leaders are effective, they will be able to impact positive attributes on their employees. Consequently, they will end up bringing up leaders like themselves (Williams, 2010, 11). Effective management in the organization also ensures that there is efficient communication and motivation of employees at work. The leaders of the company and the employees are able to communicate fluently and exchange different ideas which can be used to develop the organization (Williams, 2008, 12). On the other hand, effective leaders ensure that they motivate their workers to work harder and to produce more at work. Managers empower their leaders and ensure that delegation of work is appropriately done. Effective management also has the effect of ensuring that interpersonal roles in the organization are well done and coordinated. In addition, it also ensures that information roles are well organized, and that awareness in the organization is well created. Employees ensure that they coordinate their duties and interpersonal roles in a smooth manner such that, each of them is contributing to the success of the organization (Likert, 2001, 40). 2.2 Theoretical Framework From these studies, we can therefore clearly conclude that; the success of an organization is dependent on the effectiveness of the management. When the management of a company is more effective, the organization will on the other hand be more successful. Thus, we can say that an organization’s success is a function of the management’s effectiveness. This implies that; the success of the organization is the dependent variable, and is dependent on the management’s effectiveness. Where P represents the Performance of the organization and E represents the effectiveness of the management 3. GAPS IN THE EXISTING LITERATURE 3.0 Inadequate evidence The literature review consists of many gaps and ideas which are not connecting well. The scholars who studied about the effects of effective management in an organization do not give full details about the characteristics of an effective management. In addition, the scholars do not support the fact that an inefficient management in the organization would lead to failure of operations in the organization. 3.1 Uncovered Areas A lot of areas were left uncovered in the literature review. For instance; the scholars do not give other effects such as proper problem solving strategies. This is a very certain effect because, when the management is effective, the leaders will device better problem solving methods which do not consume a lot of time, and which are easy to apply in the company. 3.2 False effects Some of the effects given in the literature review are not very certain, and will not be applicable to all organizations or businesses. For instance, not all organizations with an effective management have motivated employees. An effective management will succeed in its decision making strategies, but it will not necessarily be a motivator to its employees. Employees will at times become motivated at their own choice. If an employer does not like his or her job, or is always fatigued, an effective management will less likely succeed in raising his or her morale. This is because; the low morale of the employee is independent of the organization’s management. 4. METHODOLOGY 4.0 Research Design The method proposed to be used in the research includes collection of both primary and secondary data. The primary data will be collected using the sampling methods, while the secondary data will be collected from different library materials and online materials. Data from the chosen sample will be collected through administration of questionnaires and observation. Interviews will also be conducted in different organizations in order to obtain first hand information from both the management and the employees of the chosen organizations. The study will also utilize time series trend analysis to observe the pattern of changes on the management’s effectiveness in different organizations. Since it would be expensive and time consuming to study all the organizations in a country, then the research will use the sampling method. Sampling methods that will be applied in the study include random sampling method, systematic sampling and stratified sampling. 4.1 Study area and target group The area to be studied will include the business world and the borders of the country. In addition, the study will target the organizations that have a large management whose effectiveness can have a massive impact on the overall performance. The target population will also include; poorly performing industries in the economy, organizations involved in international trade, and industries that have a large number of employees. This will help the study to find effects of an effective management on both small and large organizations. 4.2 Sampling techniques and sample size For purposes of accuracy, a sample size of 60 organizations will be selected from the targeted population. Details of the sample are as follows: 20 successfully performing organizations, 20 poorly performing organizations, and 20 average performing organizations. 4.3 Research instruments The data to be used in the research will be collected by administering questionnaires and conducting interview. The questionnaires will consist of structured questions with approximately 20 questions per questionnaire. Organizations chosen in the sample will be visited and asked questions about their performance over the previous number of years. The management will also be interviewed and asked why it rates itself as effective or ineffective. The study will also seek the opinions of the employees through a different set of questionnaires from those issued to the management. In addition, extra information will also be collected through observation of the normal routines being carried out in the organization. Additional data will be collected from online journal and published books from different authors. 4.4 Limitations of the Research Tediousness of data collection: This will be a major shortcoming in the data collection since; all the information that will be collected is not located at a single place. Moving from one organization to another in search of the data will be costly and time consuming. Unreliability of primary data: some of the primary data used may be unreliable and inaccurate. This is due to the fact that; some of the organizations may not be willing to give true information concerning their performance. In addition, some managers may not be willing to admit that the management of their organization is ineffective due to fear of tarnishing their image. Limited information: Information available in secondary sources may be limited because not a lot of research has been done on the topic. 5. SPECIFICATION OF HYPOTHESIS AND OBJECTIVES 5.0 Hypothesis 1. How does the effectiveness of the management affect the performance of an organization? 2. What are the factors determining the effectiveness of the management? 3. What strategies can an organization use to improve the effectiveness of its management? 4. What are the major functions of the management which determine its effectiveness? 5. How can an organization ensure that its management does not become ineffective with time? 5.1 Objectives 1. To identify the effect of a management’s effectiveness on the performance of an organization 2. To establish the factors that determine the effectiveness of the management 3. To investigate on the strategies that can be used by an organization to improve the effectiveness of its management 4. To find out the major functions of the management that determine its effectiveness 5. To investigate on how an organization can ensure that its management does not become ineffective over time GANTT CHART From the Gantt chart presented, we can observe that the organizational performance is directly dependent on the effectiveness of the management. In addition, we can also observe that in the past years both the management’s effectiveness and the organizations’ performance were low. However, with time the level of both of these variables has increased. References Anthony, R. N., & Anthony, R. N. (2008). The management control function. Boston, Mass: Harvard Business School Press. Choudhury, N. G. (1988). Effective management. Hyderabad, India: Orient Longman. Drucker, P. F., & Maciariello, J. A. (2008). Management. New York, NY: Collins. Effective management of local area networks: Functions, instruments, and people. (1992). New York: McGraw-Hill. Flamholtz, E. (1996). Effective management control: Theory and practice. Boston: Kluwer Academic Publishers. Likert, R. (2001). New patterns of management. New York: McGraw-Hill. Marshall, M., Preston-Shoot, M., & Wincott, E. (1991). Effective management. Birmingham: British Association of Social Workers. Reddin, W. J. (2007). Effective management. New Delhi: Tata McGraw-Hill Pub. Co. Williams, C. (2010). Cram101 textbook outlines to accompany: Effective management : a multimedia approach, 4th ed. United States: Academic Internet Publishers (AIP. Williams, C. (2008). Effective management. Mason, Ohio: Thomson/South-Western. Read More