Management and Globalization Issues - Essay Example

NATURE AND SCOPE OF MANAGEMENT Management has been defined as the act of controlling and directing. It can also be termed as a system that characterizes a process of managing and controlling towards a specified direction with the help of all human and material resources at the disposal of business. The process of management has also been associated with the activities that are performed with a vision of leading an organization towards a pre-determined goal (Management, accessed 12.01.06). Management is said to be performing the following functions: Planning: It is the duty of management to envision a goal for the company and make suitable plans to achieve the goal. Organizing: Management organizes the activities within or outside the organization in order to ensure a collective effort and attempt to achieve the goals of activities. Leading: The management leads the members of an organization in an organized way towards a specific direction in order to achieve the organizational objectives. Coordinating: It is the function of any management to coordinate the organizational goals and objectives to every single member of the organization with a view to ensure that every member collaborates towards the achievement of the targets set by the management. Controlling: The management controls the flow of organizational activities and evaluates the direction towards which the organization is leading or being led by the management in order to avoid any missteps taken in the course of business operations. Hence, management performs all the duties covering the aspects mentioned above to ensure that the organization is moving swiftly on the way to achieve its goals and objectives. MANAGEMENT AND ORGANIZATION THEORIES The theorists of scientific management have been engaged constantly to put forth theories of management that could be turned into practice. Management is a process carried out in an organization in order to achieve the desired results. The theories of management as brought forward by renowned theorists also attempt to put the view of management theory into practice with respect to organizations. The important theories of management are discussed below: Theories of Taylor and Gilbreth These two theorists are known to be the pioneers of the scientific management. Frederick W. Taylor is known as the "Father of Scientific Management". He came up with the view that the productivity level of workers depends upon their frequency and propensity to rest during working hours. He was of the idea that a worker can only continue to work efficiently and productively if he takes rest during the work. A tiring situation can affect the working capacity of the workers and therefore, can hinder the way of achieving organizational goals (Taylor, 1911) Gilbreth introduced the idea that the working capacity and productivity of a worker can be enhanced by reducing the unnecessary tasks and exertions on the part of a worker during the course of his work. It would enable the worker to retain his energy throughout the work process. (Gilbreth, 1911) Therefore, both the theories given by these two theorists encompass the enhancement of workmen's working capability and efficiency and assessment of possible reasons that might be affecting the workers' productivity. Hawthorne Theory The theory put forth by the management scientists belonging to this school of thought mainly focused on the Taylor's theory of Scientific Management. They experimented on the theory and came up with interesting facts about the theory. They discovered that with the passage of time, one of the principles put forward by Taylor that enhanced lighting in the working environment could result into improved efficiency of the workers, helped to improve the workmen's working capacity even to a greater extent than anticipated. However, after further research, they figured out that the enhancement in worker's productivity was mainly due to the relationships between the managers and the workers, rather than due to lighting in the working environment. Hence, this school of thought principally focused on exploiting the workforce towards increased production (Mayo, 1949). Tavistock Theory This theory emerged at the time when in 1940s the increasing industrialization and the introduction of coal-cutters and mechanical conveyors enabled coal to be extracted on a "longwall" method. The theorists believed that an organization can experience increased productivity by changing the social groups of miners. However, this theory did not succeed in achieving its target as the managers found it less effective in increasing workers' productivity. It rather reduced the efficiency of workforce because of social problems caused due to this method. Therefore, this theory reached the balanced approach between technical and social approaches of scientific management (Mullins, 1993). Organization Theory An organization is a group of people working towards accomplishment of some aim or objective putting forth the effort of every member of group individually. Business organizations are generally formed by a group of people with a specific and unified aim i.e., profit, which can only be achieved by providing the customers what they need to make them buy the goods or services offered by the business. The open-systems theory is the most widely used study in the organization theory. It rejected the traditional view of organization an entity separate from society or social environment. It hence introduced the idea that the external environment or social conditions could affect the organizational capabilities and therefore, organization should be prepared to deal with the environmental and social problems. The environmental conditions that influence the working productivity of an organization, depends upon the geographical and social environments in which it operates. These influencing factors may be cultural, economic, legal, political, literacy rate etc. The organizational theories further improved in the modern age with the introduction of Theory Z combining the management practices of America and Japan (Organization Theory, accessed12.01.06). Management and Organization go hand in hand, which means the organization needs to have a management devoted to set the goals for organization, to ensure collective effort from every member of the organization and make possible the achievement of goals and targets set for the organizational activities. SYSTEMS THEORY AND MANAGEMENT Systems are the means and measures of communication with an object to express and spread information. Systems reflect the environment and can adapt to various environmental changes. Managements systems consist of the environment in which the business operates, specifying that everything that is other than organization is environment. The management system is a means to achieve the transfer of particular information. It takes into account every result obtained in an organization, whether from human or non-human efforts. Systems Theory in the context of management has been termed as being expressed in numeric form, which rejects the concept of transfer of information in pure and absolute manner contributing to infinite knowledge. It mainly depends on the re-evaluation of information transferred with respect to any volatility in information or in the case of adaptation of more complex system to process information. Systems Theory in Practice The major distinction in the extent to which the organization communicates; either within the system itself or between the system and external environment in which the organization operates. The complexity of management system will further be enhanced if the extent of distinction between these two communication levels. Management comes to exist in an organization only where the gap between these communication levels exists. Therefore, a situation where communication within the system is greater in quantity than the communication within systems, it reflects an inefficiency in the structure of organization (Charlton 2003). NATURE OF ORGANIZATION AND COMPLEXITY The organizations are structured within the context of business for the accomplishment of certain goals and targets set by a group of people forming the organization. These objectives once specified among the members may be subject to volatility as per the changing situations within or outside the organizations. The complexity in any organization may arise in the situation where the aims and objectives of an organization clash with each other. The social environment in which the business operates consists of numerous organizations working and struggling to reach their goals. In addition to the society or external environment, the complexity may arise within the internal environment of an organization and its members may find their may find their personal goals and objectives conflicting with the organizational mission. As evident, the foremost trait of an organization is the existence of conflict within and outside the organization. Hence, there take place a series of communication between individuals and environment, individual with another individual, individual with organization, organization with other organizations and organization with the external environment and condition, this provide a likelihood of complexity occurrence. There are many origins through which the conflicts may take rise, however the greatest origin for any conflict within and outside the organization is due to a lack of resources and organization struggle to maintain the competition for resources. Therefore, this managerial capacity to recognize the origins from where the conflicts begin is the key to effective performance (Evans, accessed 13.01.06). COMPLEXITY THEORY AND MANAGEMENT Complexity Theory Complexity theory encompasses the unpredictability of management systems, which is divided into two zones i.e., stable and unstable. The stable zones are the ones that do not keep pace with any disturbances, which may lead the systems to return to the point of beginning. The unstable zones are the ones that can be greatly distracted from the point of initiation if they confront any disturbances. The results of stable and unstable behavior arising out of complexity theory are only the mathematical figures that are calculated based on equations (Rosenhead Jonathan, 1998). Complexity Theory in the Context of Management According to Rosenhead Jonathan (1998), the unpredictability of future and the events to take place in future is among one of the important reasons in the introduction of Complexity Theory. The problems arising in the course of information transfer affects the capability of management. This productivity is also affected by the management's pre-determination and limitation of their duties to the direction and goals of organization. However, the task of management should encompass principally the target, the vision, the line of action and to avoid any distraction from the mission. All of these management deficiencies are seen as barrier to organizational productivity from the complexity theory point of view. The complexity theory when concerned with management shows rational measures to the management to analyse and asses various issues and conflicts facing the organization. After having evaluated the complexities within and outside the organization, it becomes imperative for the management to take appropriate measures to fix the complexities and further investigate into the sources through which the conflicts originate. He further points out that a well-managed organization should have a managing head supervising a management team with a mission and should keep the organization clung to its strengths and resources, react to the environmental conditions and stay focused on its aims and objectives. MANAGEMENT EXPOSURE TO COMPLEXITY According to Rosenhead Jonathan (1998), the complexity theory in relation to management reveals a problematic picture of current management. The current management practice remains prey of unpredictable situations and complexities arising within the organization as well as in the external environment of the organizaiton. The major problem that arises is the complexity of determining the stable and unstable systems in the organization. He has discussed the exposure of management to complexity in various dimensions as: Gaining Knowledge According to Jonathan, this is the most critical aspect of complexity theory in the practice of management. The management should not be too critical in receiving information i.e., it should not reject the message on the basis of over-selling neither should it over rely on the message and give more attention to it than it deserves. During most of the disturbing periods, management will tend to regard the information received on the basis of fulfillment of their world-view i.e., they will focus their organization within the decorum considerable to them. The management should balance their approach towards the future of organization with the present view. The vision of organization in the future can be strengthened by focusing on current objectives and ensuring that they are met, which will help the management to lead the organization towards its ultimate goals. Therefore, complexity theory requires the management to take a more pragmatic path to future by simplifying the current objectives and achieving them. As a focused and determined approach to the short-term goals and objectives of an organization could only lead the management towards the fulfillment of long-term mission and target set for the organization. The Growth of Management Complexity The complexity theory remodels the organizational concepts as said by Jonathan. The unique concept of complexity theory has emerged due to the fact that organization itself has remodeled with expanding nature, swift availability of information and a business environment that is prone to change unpredictably. Not all the concepts being known and practiced in today's organizations would be of any charm to the management a century ago. Therefore, all such prevailing conditions make possible the emergence and practice of complexity theory, which illustrates that future, is unseen and unpredictable and hence management should not over rely on the aims targeted to the future. The major theorists putting forth the complexity theory suggest that an organization that is reactive to changes and unpredictable situations can give birth to specific line of actions that need to be taken in the course of business operation whenever it becomes necessary, especially at the time the organization's principal strategy fails. Management and Significance of Complexity Analysis The complexity theory requires the management to adapt analytical skills in identifying the problems before they could bud. The managers should be capable of having a complexity based approach towards decision making in order to be proactive in taking decisions against any unpredictable situations that may arise. If the management fails to analyse any complexity that is being faced by the organization currently or is likely to show up sometime in future, it would really fail to keep focused on the organization's mission and vision. The complexity theory enables a management to have an analytical attitude towards the conflicts and issues arising in an organization that management needs to confront with. Once a complexity has been figured out, the management should analyse the causes of conflicts from where the conflicts originate so as to avoid any future complexities taking place in the organization. The existing conflicts should also be dealt with proper line of action and through the use of rational decision making so that the conflict does not rise further. This analytical thought based on complexity theory can save the management from turbulent situations arising out of conflicts and the condition could be further aggravated if these problems and issues remain unsolved in the organization. GLOBALIZATION AND MODERN MANAGEMENT In this era of globalization, it becomes increasingly important for the management to recognize cross-cultural views and skills required in the process of management. Today as more businesses tend to operate globally, the external environment of an organization also expands, giving rise to complexity and conflicts in the aims of objectives within and outside the organization against those of individual and group concerned with the company internally or externally. The world of 21st century is becoming more and more embedded into societies and organizations, where the business organization can no longer be thought of a separate entity having no links to the outside world. Every organization needs to coordinate and collaborate internally and externally in order to meet its short-term goals leading to the accomplishment of long-term objectives. The modern management now seeks to manage the organizations effectively by taking the cultural values concerning the external and internal environment of the business along the way to maximize their productivity, performance efficiency, and growth leading to the maximization of their profit. As a result of globalization, the flow of interaction increases further between the individuals and environment, individual with another individual, individual with organization, organization with other organizations and organization with the external environment and condition, giving rise to the extent of complexity and conflicts arising within and outside the organizations at a level that is unpredictable for the management. In their quest for profit maximization, management failing to comply with the cultural and social obligations of the business environment may become incapable to compete in the global environment leading the organization to the ultimate failure. The modern management is capable enough to influence the perception of the individuals working in the organization and individuals concerned outside the organization. It is the duty of management being the focal point of the organization, to guide all of them towards the success of organization and individuals through the fulfillment of their mission as a whole with the help of rational decision making, which sums up the role of modern management in the age of globalization. Therefore, for an organization to compete effectively in the international market, realizing the importance of environmental impacts is necessary. The management should re-design its strategy and re-structure its policy with respect to any changes that may occur in global economy. Being responsive to the external environment in which the business operates and reacting to the changes occurring in the society at an individual and group level i.e., both locally and internationally is of utter importance. It is also imperative for the management to formulate a set of short-term goals and objectives, the achievement of which should be considered as the foundation for the accomplishment of the organization's long-term goals. Over-emphasizing the pursuit of short-term objectives, which is prevailing in current management practice, will render the management incapable of achieving any of its objectives and the organization would end-up as being a failure. Reference List: Charlton BG, Andras P. (2003), "What is management and what do managers do A systems theory account", Philosophy of Management, accessed January 13, 2006 from the World Wide Web: http://www.hedweb.com/bgcharlton/rip-management.html Evans G. Edward, "Management Training and Background", accessed January 13, 2006 from the World Wide Web: http://www.unesco.org/webworld/ramp/html/r8722e/r8722e08.htm Gilbreth, F.B. (1911)," Motion Study: A Method for Increasing the Efficiency of the Workman", D. Van Nostrand, New York, NY Mayo, E. (1949), "The Social Problems of an Industrial Civilisation", Routledge & Kegan Paul, London Mullins, L.J. (1993), "Management and Organisational Behaviour", 3rd ed, Pitman, London Management, accessed January 12, 2006 from the World Wide Web: http://www.answers.com/topic/management Organization Theory, accessed January 12, 2006 from the World Wide Web: http://www.referenceforbusiness.com/small/Op-Qu/Organization-Theory.html Rosenhead Jonathan (1998), "Complexity Theory and Management Practice", accessed January 12, 2006 from the World Wide Web: http://human-nature.com/science-as-culture/rosenhead.html Sides Lynley (October 2003), "Management Decision Making in Early Stage Companies", The Outlook, accessed January 13, 2006 from the World Wide Web: http://www.outlookventures.com/newsletter/october2003/article2.html Taylor, F.W. (1911), "The Principles of Scientific Management", Hive Publishing, Easton, PA Read More