The Nature of Management - the Integration of Strategy and Structure - Essay Example

The Nature of Management: The Integration of Strategy and Structure Number(s) Table of Contents 0 Introduction . . . . . . . . . 3 2.0 Connotations . . . . . . . . . 3 2.0a Management . . . . . . . . 3 2.0b Strategy . . . . . . . . 3 2.0c Organisational Structure . . . . . . 3 3.0 Nature Management . . . . . . . . 4 3.0a Four Functions of Management . . . . . 5 3.0b Variables in Management Situations . . . . 5 4.0 Integration of Strategy and Structure . . . . . 5 5.0 Strategy and Structure As Inputs to Achieve a Competitive Advantage 6 6.0 Conclusion . . . . . . . . . 8 7.0 Bibliography . . . . . . . . . 9 1.0 Introduction The nature of management is still trapped in the world of ambiguity (Stewart, 1984, p. 324; Carlisle, 1968, p. 45). The management of activities in an organisation should be based on the strategies, not on the cultural norms. Strategy and structure are essential in the management of an organisation. In connection to that notion, this paper seeks to deliver the connotations of relative terms such as management, strategy and organisational structure. The nature of management will be discussed, as well as the integration of strategy and organisational structure. These two are derived from the set textbook by Mullins, Essentials of organisational behavior, 3rd Edition. Further, competitive advantage will also be explicated with inputs of strategy and structure on the management process, and lastly, a conclusion will be drawn as the researcher’s overall perception regarding the nature of management and the integration of strategy and structure. 2.0 Connotations 2.0a Management Management is the method consists of modelling and supporting of a particular ambience wherein entities are effectively working together in one purpose (Koontz & Weihrich, 2008, p. 5). The management of activities is usually held by a manager or a supervisor to ensure the effectiveness of operations. The management of it is integrated with strategies, following the organisational structure of the organisation. 2.0b Strategy As defined by James Brian Quinn (1980, p. 3), strategy is the model that incorporates an entity’s principal aims, policies, and series of operations into a coherent entirety (quoted in John & Gilles, 1997, p.176). Strategy is usually long term in nature as compared to tactics that are also formulated to achieve a specific goal but in a short period of time. 2.0c Organisational Structure Organisational structure pertains to the formal flow of organisational knowledge, precise sectioning of various business operations, and the model of frameworks to assure the effectiveness and efficiency of business activities across different units (Daft, 2010, p. 90). This includes precise organisational levels, concise departments, and optimum system to achieve the highest degree of efficiency towards job performance. 3.0 Nature Management The disposition of management is derived from the notion that what it is inculcated in the minds of the managers that are required to be understood (Stewart, 1984, p. 324). In specific terms, the nature of management can be depicted as the things that managers should do in order to create an effective strategy. Another notion in understanding the disposition of management depicts the certain things that a manager should do. In contrast to the former, the latter is the recent discovery that pundits have unearthed not existing in the world of literature (Dubin, 1962; Mintzberg, 1973; Stewart, 1968 quoted in Stewart, 1984, p. 325). In simpler terms, the disposition of management should look towards what managers should do before what managers should learn and how they can get these learning (Stewart, 1984, p. 325). Mintzberg (1973, p. 187) depicted that all managers are deemed to do certain types of work, but literature has provided no grounds on the requisites of training these managers to become effective in the execution of any type of this work (quoted in Stewart, 1984, p. 325). 3.0a Four Functions of Management Fayol (1916) has provided the management studies with grounds on studying the nature of management with his four assortments of managerial functions (quoted in Stewart, 1984, p. 325). Fayol’s quadral functions of management consist of planning, organising, leading, and controlling (Miner, 1982 quoted in Carroll & Gillen, 1984, p. 132; quoted in Stewart, 1984, p. 325; Pugh & Hickson, 2007, p. 96 quoted in McLean, 2011, p. 32). For Fayol and Carroll (1968), management function requires solely mental disposition and not straightly perceptible (quoted in Carroll & Gillen, 1984, p. 132). 3.0b Variables in Management Situations Five significant elements have existed through the classic perception of Chester Barnard (1938) as he delineated the variables in management situations (quoted in Carlisle, 1968, p. 47). These five variables are all linked to the actual execution or performance of a job such as (1) location, (2) time, (3) people, (4) materials, and (5) procedure (Carlisle, 1968, p. 47). Moreover, these variables should undergo a crucial stage of planning and organizing. It had been found that organisations with good manufacturing records have more stages of planning and organising than those entities with wretched operations (Carroll & Gillen, 1984, p. 134). 4.0 Integration of Strategy and Structure A strategy exists to support the long term operations of the business (John & Gilles, 1997, p. 176). The formulation of the strategy should not set business operations apart from the strategy itself. It does not mean that when a strategy is already set, business operations should no longer be attached to the nature of the strategy. First and foremost, in the initial stage of planning the strategy, business operations are already present on it and should always be part of the strategy. The operation of business is not just a set of activities that are governed by only one entity. It must be clear for an organisation to fathom that there are a lot of activities that a company should monitor. As such, there should be an effective organisational structure. Organisational structure is the relationship pattern used as a guide to identify the group of entities working under one systematic management (Daft, 2010, p. 90). Organisational structure can be vertical or horizontal. However, it does not mean to utilize only one pattern--it should be both. Horizontal and vertical patterns involve all of the levels of the organisation to disclose information from one department to another department. One department may not directly need this information, but such information will guide one department to decide what specific strategy to be used to achieve the departmental goal. In a case study of civil service management, it was found out that innovation and sustenance are the principal output for effective strategy and structure of an organization (Gaertner, G H, Gaertner, K N & Akinnusi, 1984, p. 540). The management of operation, from organisational learning to proper disclosure of information, from one person to another is very essential in the management process; thus, management is applicable to all organisations (Koontz & Weihrich, 2008, p. 6). 5.0 Strategy and Structure as Inputs to Achieve a Competitive Advantage It is noted that an entity is deemed to have a competitive advantage when its profitability is higher than any other entities in the industry. Consequently, if the entity is able to sustain the competitive advantage all throughout the years, it has certainly no doubt the most effective and efficient types of diversified strategies (Hill & Jones, 2012, p. 5). Needless to say, the organisational structure and strategies adopted in the internal and external facets of the organisation have contributed a lot to this favorable output. In terms of strategic process, there are quadral types of strategies that can be applicable to a specific business ambience. One of these is the classical strategy; a strategy that is imparted by business learning institutions. An adaptive strategy is somehow distinctive as this may relate to experimentations. A shaping strategy is best suited in unforeseeable ambience wherein organisations have the capacity to alter and lastly, the visionary strategy, which is centered on and influenced by the visions of the organisation (Reeves, Love & Tillmanns, 2012, p. 79). These proposed strategies are a glimpse of directional pattern that every organisation would want to achieve. According to the case study of civil service reform, there has to be innovative aspects that must be inculcated in the top management level of an organization (Gaertner, G H, Gaertner, K N & Akinnusi, 1984, p. 528). In other terms, the strategy should be innovative in nature--adaptive strategy. Nevertheless, innovation in the top management level does not conform to the strategic idea alone, but on how to perceive this strategy in the entire organization (Gaertner, G H, Gaertner, K N & Akinnusi, 1984, p. 528). Based on the case studies, two agencies have been compared and it was found out that success is deemed to be possible only for organization that has inculcated strategy on its structure (Gaertner, G H, Gaertner, K N & Akinnusi, 1984, p. 533). The management of the organization was decentralized, feasible, focused on research development, and with effective organizational culture (Gaertner, G H, Gaertner, K N & Akinnusi, 1984, p. 534). In terms of decentralization, other findings on the case study of the Shalimar Company depict that decentralization is an effective strategy to have an efficient structure of an organization (“How far should retail departmentalization” 1929, p. 230). However, even if how excellent the strategy is, there is still a contingency that such strategy will doom to collapse because of poor organisational structure. Organisational structure aids the management to delegate the duties and responsibilities properly to every employee. The organisational structure should be effective and efficient towards their job; thus, another notion has been supplemented onto the four quadrants of management functions--learning (Merrell, 2012, p. 21). Personnel development is one of the best approaches to achieve such benchmark. Therefore, in order for an organisation to achieve competitive advantage, integration of well-formed strategies and organisational structure should be instilled into the management of the organisation in its entirety. 6.0 Conclusion The strategic utilisation and organisational structure of an organisation are always tapped within the nature of management. Organisational structure will define the pattern of relationships showed in the management of an organisation, and strategies will depict the series of activities in each organisational level. Dismally, some organisations stipulate on strategies that do not amend the performance of its personnel. Strategies are formed not apart from personnel because organisational structure is not without personnel. Strategies are, therefore, instilled initially in the internal facet of the organisation before it leaves a mark on the exterior. Strategies and organisational structure should be integrated in the entire management of an organisation. 7.0 Bibliography Carlisle, H M (1968) Measuring the situational nature of management. California Management Review Vol. 11, No 2 p45-52 Carroll, S J & Gillen, J (1984) The classical management functions: Are they really outdated? Academy of Management Proceedings, p132-136 Daft, R L. (2010) Organizational theory and design 10th edn. USA: South-Western, Cengage Learning Gaertner, G H, & Gaertner, K N & Akinnusi, D M (1984) Environment, strategy, and the implementation of administrative change: The case of civil service reform. Academy of Management Journal Vol. 27, No 3 p 525-543 Hill, C W L & Jones, G R. (2012) Essentials of strategic management, 3rd edn. USA: South-Western, Cengage Learning How far should retail departmentalization be carried? (1929) Harvard Business Review Vol. 7, No 3 p 323-330 John, R & Gilles, G L. (1997) Global business strategy. China: L-Rex Koontz, H & Weihrich, H. (2008) Essentials of management: An international perspective 7th edn. New Delhi: Tata Mc-Graw Hill McLean, J (2011) Fayol--Standing the test of time. Manager: British Journal of Administrative Management Vol. 74, No 1 p 32-33 Merrell, P (2012) Effective change management: The simple truth. Management Services Vol. 56, No 2 p20-23 Reeves, M, Love, C & Tillmanns, P (2012) Your strategy needs a strategy. Harvard Business Review Vol. 90, No 9 p76-83 Stewart, R (1984) The nature of management? A problem for management education. Journal of Management Studies Vol. 21, No 3 p323-330 Read More