Organizations and Management - Assignment Example

? Organizations and Management of Organizations and Management Identify and explain the four basic management functions in organizations: The function(s) of management in organizations is not simply stated because management’s role is complex and a vital factor within an organization that affects performance, sustainability, and longevity. Griffin (2011) identifies the basic or primary activities of management within organizations as: planning and decision making, organizing, leading, and controlling (pp. 5-7). The list of primary functions reveals a mere fraction of the various tasks and responsibilities that management performs in organizations. In addition to the basic four functions of management, managers strategize and control the activities within the organization. Each category of skills enables management in an organization to perform its primary function of ensuring internal activities are in alignment with the groups’ goals. The organizational goals targeted by the shareholders for the organization are the objectives management must design the work flow to accomplish. Management has the responsibility of ensuring the organizational goals are met and the directives of the executive leaders are executed. Management uses the organizational goals to design the work flow and identifies the skill sets needed to perform the tasks to accomplish the goals. Decision-making involves developing strategies that will achieve the group’s goals. Management has the responsibility of overseeing the internal systems and ensuring the processes within the various work units are in alignment with the organizational objectives. Planning coordinates the functions within the various departments and distributes resources effectively to produce the goods and services of the organization. As a function management organizes and coordinates the organization’s material, equipment, employees, schedules, and uses authority to ensure the activities within the internal environment are in alignment with the organizational goals. In the process of planning and organizing management recruits employees. Staffing or human resource management includes selection of workers, developing ongoing training programs, establishing, and maintaining an internal culture of cohesion in which the efforts and activity within the organization accomplish the group’s goals. Managers have the task of overseeing and controlling an operation’s processes to fulfill the organization’s strategic plans and goals. Whereas, leaders formulate or chart the direction in which an organization travels to reach specific goals, managers work to ensure the goals materialize using the resources available. Distinctly different, yet overlapping and dependent on the other, managers and leaders each have the responsibility of directing, guiding people, and implementing plans in efforts to accomplish strategic targets. 2. Explain the importance of history and theory to management, and highlight the pioneers of management theory: The study of the science of management is relatively young, however management has existed from ancient times The societal transition from that of an agrarian society to an industrialized one helped to create the need for knowledge of how to manage people in factory settings. Management theory evolved as a result of workers moving from farm communities into cities and working in offices and manufacturing plants. The ability to effectively coordinate workers’ efforts and efficiently use machinery was essential in keeping up with social change, progress, and consumers’ demands for products and services. The gradual development of systems of work has been one of the most significant factors that have prompted the need to understand the internal relationships within the organizational culture. The First Industrial Revolution (1712-1830) gave birth to the inventions of the steam engine, spinning jenny, and improvements to the machinery in general. Because of the steamboat and improvements to the steam engine commerce and the way business was done began the quest for better ways to manage workers and machines. The years between 1830 and 1875 saw the expansion of industry and the explosion of the Industrial Revolution. The former agrarian lifestyle changed the character and nature of society. In the areas in which farming had been the primary income producing source factories and offices became the hub of industry transforming towns and cities into business centers. The second Industrial Revolution between 1875 and 1905 birthed inventions such as the telegraph, transatlantic cable, the telephone, light bulb, and the first airplane flight. During this time industry saw tremendous growth and the demand for managing people, processes, and machines increased. Philosophers such as Sun Tzu, Niccolo Machiavelli, and Adam Smith were a few of the early forgers of management theory. Sun Tzu is given credit for formulating strategies for military operations and is the foundation of strategic management theory used today. Machiavelli formulated leadership principles in which “the end justifies the means” concept was born. His beliefs and practices were fundamental in fueling competition in the marketplace. However, it was Adam Smith from Great Britain using logic that formed the “division of work” theory for use in manufacturing processes. His philosophy was influential during the Industrial Revolution in Europe and America. Max Weber (1864-1920) introduced “bureaucratic management” as the most efficient way to maintain control in the workplace. His theories and philosophy birthed the multiple levels of authority within the organizational structure with the power flowing from top to bottom in the organization. Another notable pioneer of the development of the science and theories of management was Peter Drucker (1909-2005) his theories were the blueprint for the structure of the modern day corporation. Similarly, “Taylorism” the name given to Frederick Winslow Taylor’s (1856-1915) development of the principles of scientific management was influential in creating division of work within the organizational structure. Taylor’s basic four principles of scientific management are 1) Scientifically study each part of a task and develop the best method of performing the task; 2) Carefully select workers and train them to perform the task by using the scientifically developed method; 3) Cooperate fully with workers to ensure that they use the proper method(s); and 4) Divide work and responsibility so that management is responsible for planning work methods using scientific principles and workers are responsible for executing the work accordingly. The earlier philosophies and theories continue to influence the development of viable entities in the global arena. The ability to make rapid changes requires management to remain flexibility when it comes to adopting one philosophy or method of managing people. 3. Identify and summarize two emerging ethical issues managers face today: The list of ethical issues facing managers today include: hiring practices, performance evaluations, personal and family issues, diversity, and managers as role models just to name a few. Each of the issues can potentially have profound effect on the health of the organizational culture and growth within the organization. Business ethics is the study of the standards that determine the behavior of the organization in society. As responsible members of society, organizations should promote human welfare and implement business practices that avoid harming the environment. One of the most controversial ethical issues today is that of “Corporate Social Responsibility (CSR)”. Corporate accountability as it relates to the environment and the business practices that have direct and indirect influence or impact on the environment. Corporate social responsibility is a way in which organizations demonstrate ecological conscientious business practices that include self-regulatory processes of the group’s business operations. As a member of society in general and as a member of a particular industry specifically, organizations have a social obligation to comply with governing laws. Globalization presents additional challenges and ethical issues due to the variances in international laws regulating transnational operations. CSR requires management and leadership to exercise good judgment in developing business practices that ensure the environment is not negatively affected or contaminated by the company’s business activities. Sustainability is another area that creates ethical issues for managers and leaders in organizations. Sustainability implies the development and effective use of methods, systems, and material that do not adversely or negatively impact resources or harm the natural cycles of the Earth. The ethical dilemma for managers evolves when business practices impede or can potentially affect the environment. Corporate performance and accountability include “Triple Bottom Line (TBL)” accounting that underscores the relationship between “profits, people and the planet” (Slaper & Hall, 2012). Balancing the way an organization produces profits, how people are involved in the process, and the impact the group’s activities have on the natural resources of the planet are the major elements the organizational design must include. Achieving the fragile balance between the three P’s produces the desired state of sustainability and creates the foundation of corporate social responsibility. Challenges for managers happen when an imbalance occurs between the three components; during these times creation and reassessment of business processes and procedures are done to create more ecologically friendly practices. 4. Discuss the types of organizational structures and summarize their strengths: Frederick Taylor’s philosophy was the framework of the classical management theories Taylor’s philosophy became the foundation of the scientific approach to management and the military/mechanistic organizational design. The military/mechanistic design is a highly structured internal environment resembling that of a bureaucracy such as a governmental agency or manufacturing plant. The basic characteristics of the scientific approach are: 1) the responsibility for the work in the organization shifts from the worker to management; 2) use of scientific methods to design division of work; 3) hire the best qualified people; 4) train workers efficiently; and 5) monitor production and processes to ensure alignment with objectives. The military/mechanistic approach to management theoretically standardized the management process of work in organizations. One example of the efficiency of using the design is McDonald’s; an organization in which the process of duplication is the cornerstone of the operation. Internally, employees perform the duties mechanically interfacing with the systems and equipment in getting the work done. Managing and controlling the operations scientifically enables organizations to consistently produce systematically as demonstrated by the success of organizations such as McDonald’s and other fast food, assemble line manufacturing organizations, however the system is not without limitations. The strengths of the scientific approach increases productivity because of the uniformity of activities, subsequently the results are reliable. However a weakness or limitation of the theory is the factor of people or employees. Whereas technology has enabled organizations to automate processes within the design with the equipment, machines, and computers replacing the human element, in settings in which people are an intricate component in the design control wavers due to the unforeseen or uncontrollable interruptions in the system of operations. Managing the moods, attitudes, and emotions of people in the organizational setting presents inherent challenges for managers. Another significant factor limiting the efficiency of the theory is the inability of organizations to change quickly in response to changes in the environments. The design of the scientific system is based on uniformity and repetition of procedures and activity in the environment however because of unexpected changes or contingencies such as consumer preferences this design inhibits the organization from modifying its internal operations in response to change in a timely manner. The changes in the external environment are an example of how the need to change internal procedures quickly is necessary to remain viable and competitive. The military/mechanistic design’s inflexibility prohibits the spontaneity necessary to response accordingly. In the biological or cognitive organization design employees or people are at the core of the organization. Workers trained to function as machines mindlessly without cognitive interaction is the primary principle of the mechanistic theory, in the biological/organic organization the realization and acceptance of people as thinking, emotional beings is at the center of the organization. The primary premise of the biological/cognitive organizational design is that by allowing people in the organization the ability to grow and contribute to the organization potentially influences the culture and performance of the group. The design is decentralized giving workers freedom to “think” and interject ideas and suggestions into the operational processes, in contrast the military approach to management is centralized with a hierarchal structure closely adhered to. Organizations such as advertizing agencies, research laboratories, and groups that encourage the use of creativity and innovation as internal tools are examples of biological/cognitive design. 5. Describe a leader and how leaders can influence organizational effectiveness. Also cite some personal examples: The task of describing a “leader” is a complex, multi-faceted undertaking. A leader is a combination of factors that effectively with efficiency influence and empower processes and people cohesively in order to achieve specific organizational goals. A leader is an individual, a group of individuals, a company/corporation, or a combination of entities united to accomplish a goal(s). The ability to synchronize and unite the internal systems and the efforts of the workers is how a leader influences organizational effectiveness. An example of a leader influencing the effectiveness in an organization is that of the former CEO and Chairman of the Board, Gordon Bethune of Continental Airlines. Bethune was recruited after a decade of ineffective and sometimes even scandalous leaders. With his arrival to the struggling and dysfunctional corporation, an assessment of the internal culture and structure was performed that produced reflection of the health of the organization. The assessment revealed a fragmented, contentious climate and a cancerous culture within the organization. Departments were not communicating, management was ineffective, morale severely low, and in general the internal operation was in chaos. The former leaders had not taken the time to develop a concise “future state or vision” for the company and as a result the group was existing aimlessly (Bethune & Huler, 1999). The executive leadership team lead by Bethune realigned the internal structure of the organization by designing strategies and objectives to improve performance and regain the confidence of workers and consumers. In his book, Bethune recounts the methods of restoration used to regain employee trust and restore consumer confidence. By developing and using a reward system employees’ performance and production increased. The walls of division within the culture were eliminated and replaced with two-way communication between work groups using the intranet, face-to-face group meetings, and offsite social events. The efforts of including the employees in the decision-making process was an attempt by the company to convey to the employees their significance and importance to the organization. Bethune’s methods were profound and effective resulting in the company once considered the worst in the industry by consumers becoming the #1 carrier and customers preferred choice in the country. The process of re-aligning the internal structure and operational procedures within the company and restoring consumer confidence was not instantaneous, change was gradual, set-backs occurred, and the process of restoration took years to attain. However the implementation of systematic plans along with determination, focus, and the willingness to lead by example enabled Bethune to turn the airline carrier around (Bethune & Huler, 1999). 6. Identify and distinguish between two opposing forms of structural control: Two opposing forms of structural control refer to the concepts of “Centralization and Decentralization”. Deciding which system of control is appropriate depends on the industry, organizational objectives, internal relations between management and workers, whether the workforce within the organization is stationary or remote, and other factors of possible influence. In a centralized hierarchical design control, authority, and decision-making in the organization flows vertically from top to bottom in the structure. In contrast, authority and power is horizontally distributed in a decentralized structural design giving control to managers across the levels of the organizational hierarchy. The philosophy of the centralized system of control is to provide a rigid and “tall” framework with parameters for the internal operations and employees. The objective of the design is to create an automatic system of control over the internal activity. However a major disadvantage of the design is the fact that decisions are not easily made because of the safeguard of the chain of command within the organization (Jones, 2010, pp. 103-106). A tall organizational design is one in which the hierarchy has many levels oppose to a “flat” design in which an organization has a few levels of authority In a bureaucratic centralized organizational design the systems of control provide the necessary structure for managers to systematically oversee the internal activities of workers and internal processes. On the other hand, in a decentralized system managers across the levels of the organizational structure have authority to make decisions and implement changes as situations in the internal and external environments mandate. 7. Highlight the major issues involved in choosing strategies for small firms and the role of management in entrepreneurship: One of the major issues involved in choosing strategies for small firms is that of founders and owners not developing a concise business plan and image of the organization. By developing a detailed plan provides the blueprint or foundation for the firm to construct its internal operations. The ability to select strategies is contingent on what the firm’s objectives are and the firm’s short and long range goals. The vision or future state of the firm determines which strategies are needed to accomplish the objectives. Without specific goals management is unable to select the strategies necessary to influence the organization’s performance and productivity. The strategies dictate and direct the activities within the internal environment moving the firm toward its goals. Another issue that hinders or obstructs managers from effectively selecting strategies in small firms is the lack of knowledge about the firm’s direct and indirect competitors. Having insight into firm’s competition enables managers to select strategies to increase a firm’s presence and opportunities in the marketplace potentially creating an advantage. Entrepreneurship involves the creation of companies and the development of new products and services using creativity and innovation for start-ups to lead industries into the future. Creative Destruction is a term given to describe the process in which innovation in industries uses new technologies to develop new markets and meet the unmet needs of existing markets. In smaller firms management takes place horizontally in the firm with decision-making shared throughout the organizational structure. Typically, in smaller firms members in the group perform multiple duties and are capable of implementing changes as dictated by the environmental demands. The rigidity and formality of a more complex organizational structure is absence in smaller firms due to the collective efforts of a few attempting to synergistically propel the organization toward its goals and objectives. 8. Discuss how you will adopt and model the management style and practice of Nehemiah (of the Holy Bible, from a Biblical/Christian perspective), to influence others and create positive change: The book of Nehemiah exemplifies the leadership styles of a visionary transforming leader. As a manager using Nehemiah’s approach requires applying three significant factors in forming strategies for leading workers. The foundational factors are: 1) creating and constructing an ideal vision; 2) defining the organizational philosophy; and 3) developing processes in which the manager/leader actively is involved. As a manager applying the visionary and transformational leadership characteristics depicted by Nehemiah involves effectively conveying and transferring the vision for the organization. Effectively transferring the vision enables management to enlist the support of the workforce and permits managers/leaders to formulate strategies to address the need and produce the desired results for the organization. Nehemiah appealed to the conscious and emotions of the Jewish people. The Bible states, “Nehemiah saw a problem, organized, managed, supervised, encouraged, met opposition, confronted injustice, and completed the building of the wall” (Life Application Bible, 1996, pp. 800-828). He skillfully met the challenges of the project and with expertise confronted each obstacle with the singleness of mind completing the project of re-building the wall around the city. The example of leadership demonstrated in the book of Nehemiah exemplifies how significant a manager’s influence is in an organization. The ability to mobilize and continue to motivate workers to complete a specific task requires tenacity and perseverance. As the manager he/she sets the standard creating cohesion within the culture and has the capability to continue to propel the activities within the group toward a specified goal or destination. Nehemiah transformed the masses by appealing to their moral conscious. The effectiveness of using the visionary and transforming skills allows manager/leaders to successfully implement and initiate strategies that enable an organization(s) to achieve its objectives and goals. By using the foundational factors as guidelines identifying the future state of the organization or objective is the first step in the process. The second step is to organize and coordinate the skill sets necessary to complete the task. Finally, providing support and actively participate in the processes establishes trust and generates cohesion within the group. In the biblical account, Nehemiah labored and fought as one of the Jews despite his status and privileges as the assistant to the King. Similarly, as an effective visionary transforming leader emulating Nehemiah’s strategies managers/leaders can expect to achieve positive results. References Barton, B. B., Beers, R. A., Galvin, J. C., Taylor, L. C., & Veerman, D. R. (Eds.). (1996). Life Application Study Bible. Wheaton, IL: Tyndale House Publishers, Inc. Bethune, G., & Huler, S. (1999). From worst to first: Behind the scenes of Continental’s remarkable comeback. New York, NY: John Wiley & Sons, Inc. Retrieved from http://www.amazon.com/From-Worst-First-Continentals-Remarkable/dp/0471248355 Griffin, R. W. (2011). Fundamentals of management, (11th Ed). Mason, OH: South-Western, Cengage Learning Kotter, J. P. (1990). What leaders really do? Harvard Business Review. Retrieved from http://hbr.org/2001/12/what-leaders-really-do/ar/1. Slaper, T. F. & Hall, T. J. (2012). The triple bottom line: What is it and how does it work? Indiana Business Review. Indiana University, Kelley School of Business. Retrieved from http://www.ibrc.indiana.edu/ibr/2011/spring/article2.html. Tanz, J. (2003). A brief history of management. Retrieved from http://money.cnn.com/magazines/fsb/fsb_archive/2003/10/01/353427/index.htm. Read More