Business Management Practice - Case Study Example

Business Management Practice Practices on how to properly manage businesses differ according to the size of a firm and in the culture of an organization. The optimum strategy in effectively managing a workforce depends on the approach the management uses. There are several methods that businesses use nowadays. From basic management structure up to methods of managing behaviors of the workforce, companies usually implement a strategy that will allow them to fully utilize their resources. This study will discuss strategies that businesses use for them to achieve the best management structure and culture and the effective methods that the management uses in supervising employees’ attitude and behavior towards work. Firm sizes is a big factor to consider in employing the management structure since bigger company size entails a more complicated management structure. In a company where it employs an estimated 100 individuals in the workforce, it will most likely have a president that will be n top of the structure. There will be vice presidents that will aid the president with the improvements of the different departments like growth in sales, increase in administrative costs, changes in marketing strategies, financial reports, and other information essential in strategizing the company’s next move. On the other hand, a firm with employees lower than ten would mean a simpler management structure. There will be a manager, secretary, a bookkeeper and administrative help in the least. There are three assumptions to be considered according to the classical management theory established by F.W. Taylor (Alajloni, M.M., Almashaqba, Z.M.S., Al-Qeed, M.A.N., 2010). From this study, it is set that first, it is assumed that to avoid conflict in relationships, management and employees have defined sets of tasks and responsibilities, formal procedures and well structured communication. This is where an organization sets the border line between the lower and middle tier and the upper tier which are members of the management. Formal communication among the superior-subordinate relationship should be established as this will be a tool in defining respect and boundaries between the management and the workers. Second, that these workers in a company are economical, that all of them are motivated by monetary means only. It is assumed that workers are after the Third, and last, that these workers are there for production purposes; that they are responsible for the production mechanism of a company. Essentially, these assumptions and the classical theory were thought of as an arm to achieving an organization’s goals and objective. However, modern organizations find the classical management theory not applicable to the environment and its structure (Alajloni, M.M., Almashaqba, Z.M.S., Al-Qeed, M.A.N., 2010). According to the scientific principle formulated by Taylor, a worker’s potential is not fully shown when performing a task and tend to do less of what their capacity can. Thus, he formulated the scientific management theory that includes four principles. Basically, this principle applies science as basis of the management structure. It employs a scientific element instead of employing the classic rule of thumb method. Moreover, trainings for workers will be provided for using scientific methods and criteria so as to optimize the productivity of a worker. Accomplishment of company’s objectives and goals should be achieved by using scientific and systematic approaches and methods. Finally, there is a more defined division of roles for the management and the workers. Management should focus on planning and supervising workers. On the other hand, workers are responsible for the execution of productive tasks and functions. Some classical management theories include the administrative theory which was founded by Henry Fayol, the person considered to be the father of classical school of organization (Alajloni, M.M., Almashaqba, Z.M.S., Al-Qeed, M.A.N., 2010). It focuses more on the lower levels of the hierarchy that the technical abilities is a more necessary skill in the lower and middle tiers of the management structure pyramid. On the other hand, the member of the higher tier should be able to master the managerial ability. Fayol argued further that management should be considered as a skill that is learned by understanding principles behind it. Human relations, production efficiency and administration are just some of the management principles that was further subdivided into several principles that are universally applicable that will enable a company to be more optimal (Alajloni, M.M., Almashaqba, Z.M.S., Al-Qeed, M.A.N., 2010). Subdivisions of the principles include division of work which is done with minimum effort and work divided into employees. Authority and responsibility gives managers the right to allocate jobs to their subordinates and order out jobs to departments that are able to serve the needed service. Discipline, on the other hand, applies across the board. From management to workers, everyone should comply with the regulations and policies stipulated by a company. Unity of command allows an organization to follow one instruction coming from one person to avoid confusion of rules. Subordination of individual interest of general interests sets out that company goals are the priority instead of giving more importance to personal gains. Remuneration of personnel is a principle that orders proper compensation and fair remuneration to the employees. Centralization of authority differs according to the needs of an organization. Scalar chain defines the superior-subordinate relationship and the chain of commands each worker and the system of communication this chain undergoes. Order defines the proper place of a certain person or an event to take place. Equity concerns the fair treatment employees in the same rank experiences to avoid discrimination. Stability of tenure concerns the turn over of employees in a company so as to maintain stability of an organization. Initiative allows an employee to reach their capacity on how to execute management planning and carrying out of company’s goals and objective. Last but not the least, Esprit de corps concerns a company’s team spirit, unity and joint effort in achieving company goals. All of these principles were discussed in the study done by Alajloni, M.M., Almashaqba, Z.M.S., Al-Qeed, M.A.N. (2010). The bureaucratic theory of management was formulated by Max Weber, an organization model that offers an efficient way of to achieve company goals and objectives. Weber believed that bureaucracy could be the optimal organizational design if it follows some assumptions like if a company is continuous and is bound by rules and official functions. In addition to that, a company to adhere to the bureaucratic principle of management must have a sense of competitiveness. Moreover, a company that has an incumbent status and has to keep the authority and perform its functions displays bureaucratic qualities. Furthermore, this organization has to follow the principle and apply hierarchy of management (Alajloni, M.M., Almashaqba, Z.M.S., Al-Qeed, M.A.N., 2010). According to this study, bureaucracy has molded the division of accountability, responsibility and authority in an organization which makes it effective as a management structure. Public sectors employ such management practices in their industries as well. Depending on the number of workers in a given public sector, there are also applicable structures of management that best fits the organization. Structural form of management that much applies to “the political strategy of rational-legal domination” is the hierarchical bureaucratic model of organization, which was not actually meant to be a type of structure according to Weiss (Alajloni, M.M., Almashaqba, Z.M.S., Al-Qeed, M.A.N., 2010). However, there are a lot of public sector controversies that does not apply any principle of management structure. Some of the principles are violated by the workers that include CORPORATE SOCIAL RESPONSIBILITY Corporate social responsibility, in a way, is one of the means of a company of giving back to the community. Depending on a company’s vision and mission, each company has their own way of performing corporate social responsibility. Some may be in form of community services to the rural and urban poor. There are programs like giving out free education like teaching the less fortunate kids how to use computers and teaching them academic subjects such as math and English reading and writing. Some prefers doing the giving out of relief goods like clothes and other second hand furniture and fixtures. Moreover, corporate social responsibility can also be shown through other means like doing blood drives, medical missions, feeding programs, and other community services like road cleaning and efforts to river and sea cleaning. In the case of the private sectors whose nature is more on providing services, they are more involved in providing education to the urban poor. When it comes to companies with consumer goods products, they prefer giving out their products as goods to those people in need. In calamity events, usually private sectors donate relief goods such as foods and drinking water for the families who were affected by the calamity and for the volunteers who are also involved in the scene. In the case of the public sectors, they usually perform community service as their corporate social responsibility. Depending on the budget allocation, governments have the choice to do blood drives or medical missions like in the case of Red Cross. Department and Education can do book drives to public schools. Department of Health can perform free vaccinations for the less fortunate community. Conclusion Every firm in different industries has their own management structure patterned from the classical management theories. These theories help in guiding businesses on how to properly manage their resources, that is, their people, the supplied materials and the process on how they will produce their goods and services. Without the early founders of these management structure theories, there will be no set standard principles that are applicable to a wide variety of companies that acquire these systems so they can function properly. In the case of private firms, it depends on the firm size on how they will have their management structured and from which principles should they base their company’s projects on which are realistically attainable. With the help of these set of rules, companies will have a more defined process on how to have a more positive outlook when it comes to the growth of the business as a whole. It may also teach individuals on how to act responsibly towards their roles in the organization. In the company’s perspective, these set of principles and assumptions that theories teach. It may teach these companies on how to react towards the threat of competition within the industry. It may also help in setting outlook towards attaining the growth of a company, financial wise and reputation wise. A company with a good number of responsible employees gives a good vibe and positive response from the stakeholders. With this comes a positive response of the market served by the company. If a company will adapt positive principles and outlook to the future, these management structure theories might help them achieve their mission and vision. In conclusion, these management principles help out in shaping the future of the companies and its employees. A good practice of these principles will lead to a better set of resources and a better outcome for the company. References Alajloni, M.M., Almashaqba, Z.M.S., & Al-Queed, M.A.N., 2010. The Classical theory of Organization and it’s Relevance. [Online]. Available at: http://www.eurojournals.com/IRJFE_41_06.pdf [Accessed December 7, 2010]. Bernstein, P.A., 2003. Applying Model Management to Classical Meta Data Problems. [Online] Available at: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.12.2729&rep=rep1&type=pdf [Accessed December 7, 2010]. Clegg, S. R., Hardy, C., & Nord, W. R., 1996. Handbook of Organization Studies. [Online] Available at: http://www.google.com/books?id=ge3A1Giqj1AC&lpg=PA57&ots=Cciho5Vrlc&dq=classical%20management%20theory&lr&pg=PP1#v=onepage&q=classical%20management%20theory&f=false [Accessed December 7, 2010]. Daft, R.L., 2009. Organization Theory and Dsign. [Online] Available at: http://www.google.com/books?id=CmFjF5tNmuEC&lpg=PR19&ots=XpFDCQGVre&dq=classical%20management%20theory&lr&pg=PP1#v=onepage&q=classical%20management%20theory&f=false [Accessed December 7, 2010]. Freeman, R. E., 2010. Strategic Management. Cambridge University Press. [Online] Available at: http://www.google.com/books?id=NpmA_qEiOpkC&lpg=PR5&ots=6ZkgJ7S6QQ&dq=classical%20management%20theory&lr&pg=PP1#v=onepage&q&f=false [Accessed December 7, 2010]. Grint, K., 1997. Leadership: Classical, Contemporary, and Critical Approaches. Oxford management readers [Online] Available at: http://www.google.com/books?hl=en&lr=&id=oty2JfReC3cC&oi=fnd&pg=PR15&dq=classical+management+theory&ots=SMCHbddKgp&sig=JA42qwQG-j80-MDO1e8KzTFgJk0#v=onepage&q=classical%20management%20theory&f=false [Accessed December 7, 2010]. Taylor, F.W., 2005. The Principles of Scientific Management. [Online] Available at: http://www.google.com/books?id=tw-YGBovG8kC&lpg=PA5&ots=9igPLbWL0C&dq=f.%20w.%20taylor%20scientific%20management%20theory&lr&pg=PP1#v=onepage&q&f=false [Accessed December 7, 2010]. Read More