Simplifications Present in Management Theories - Literature review Example

Running Head: MANAGEMENT THEORIES With Reference To Selected Management Theories and Drawing On Specific Examples, Discuss Why Managers Need To Be Aware Of Limitations And Simplifications Present In Some Of These Theories [Writer’s Name] [Institution’s name] With Reference To Selected Management Theories and Drawing On Specific Examples, Discuss Why Managers Need To Be Aware Of Limitations And Simplifications Present In Some Of These Theories Introduction Management of Organization It was said that an organization will function effectively only if its personnel function not just as individuals but as members of effective and efficient performing work group. The management uses its potentials in order to make the organization amenable to success (Miner 2002, p 361).However; one of the most vital activities in the organization is retaining and brining improvement in the workforce (Sims 2002, p 80). It is important that the abilities and the skills of the employees must have to be brought out in order to fully perform in their duties and obligations in the workplace. The more efficient the worker is the better the drive to success of the organization. The consumers who are in need of their services and products will be satisfied and hence it will be a plus factor for the organization's productivity. Service organizations have to adapt such kind of approach. If their services did not satisfy the needs of their consumers it will affect their quality of being competitive. With the ongoing and increasing global competition and changes, there is a need therefore for a management philosophy which is basically grounded on moral contract which is basically what Ghosal asserted (Mullins 2005). This moral contract pertains to the individual worker who needs to be considered as a resource of the organization. With this matter, quality management method and practice is seen to be as important as the workers involved in it. Several companies are in continuous search for means on how to alleviate their system of managing service organizations and their workforce. They assume that one way of delivering better management is through the means of applying several theories. The implication of these theories may vary depending on the way they are approached and applied. Analysis Theory and Practice Indeed, there is no one theory that is comprehensive and sufficient enough for all situations (Mailick & Stumpf 1998, p 11). They tend to use theory that seems to be the nearest one applicable to certain situation in order to come up with an expected outcome. It is indispensable that we can not the same philosophical model to explain our modern society (Weyme 2004). Therefore, theories have changed as time goes on. Theories can really help managers in learning to generalize from a certain specific experience and eventually apply it for future purposes that would regard the same experience or the other way around (Mailick & Stumpf 1998, p 11). It also enables them to learn from the past and keep on learning for the better improvement of its workforce and managerial practices. According to Miner (2002, p 5) theory is said to be the "cornerstone" of any science that provides ideas that drives research and practice. However, theories are seen to be important in shaping the future of a certain organization especially in finding the feasibility of certain managerial practices. Good theories are the ones that are validated by sound and adequate research. In addition in order for a theory to be effective and efficient in the practical application in life is it must somehow be intertwined with research (Miner 2002, p 5). Thus it has to be beyond philosophical speculation not just mere notions (Miner 2002, p 5). Theories One of the importance of management theory as cited by Mullin (2005) is that it tries to explore relationship between the development of theory, behaviour in organizations, and management practices. In addition, it entails for the critical understanding of the development of management thinking that helps in inferring underlying principles of the management process. The initial development of theory can be seen to the concept of bureaucratic organization that which did Max Weber introduced during the year 1958 and later developed by classical theorists such as Taylor, Frank and Gilbreth, Fayol, Grant and Follet. Hence the management theory has evolved since then in order to be appropriate to the conventional era (Weymes, 2004 p45). Management theory and practice turned its focus on to the people and on the necessity of values, emotions and social mores in the organization. Organizations then were goaded to have a purpose, to eliminate the inter-departmental barriers that exist and lastly to instill trust throughout the organization. The development of management thought has paved way for the use and application of management theories and practices so as to determine by manager their needed program content. This will provide them an effective learning approach that which will motivate them to be competitive enough in their workplace. Because of the exceptionally influence of management in all aspect of human across the globe, management theories have permeated in the space of hegemony as a key actor in molding the communal values and knowledge of every individual worker (Monin 2004,p 1). However, the uses of organizational theories by managers are tactical rather than strategic (Gabriel, 2002 p133). The use of organizational theory is one of being selective, eclectic and flexible in the use of resources books in acquiring ideas (Monin 2004, p10). The utilization and application of organizational theory can be in a wide variety of uses in the hands of different practitioners. Analysis of Theories The theories that which will be presented will be assessed on their significance to the management of organization and the workforce. The ideas contained in these theories will be beneficial in providing guidelines and directing the organization towards the development and on achieving a competitive advantage of every organization. Learning Theory One of the management theories that was created and put into practice by most practitioners is the Learning theory. In here, learning is a life long process where learning is most effective on the analysis of a hands-on experience (Mailick & Stumpf 1998, p 13). John Dewey (as cited by Mailick & Stumpf 1998, p 13) had generated a three-phased learning process. The initial stage is the experience. Then it, I followed by activities that shall reiterate and generalize the experience. Lastly, the generalized experiences are then tested in actual practice. Path-Goal Theory In this theory, the emphasis is on the capability of a leader or a manager to affect the performance, satisfaction and motivation of a group. In addition, certain situational factors must have to be taken into consideration by the leader which is task and the characteristics of a follower (Winston, 2005 p7). Robert House's path-goal theory has four different types of leadership styles that which depend on a certain situation. First is the Directive leadership wherein the leader provides guidance of performance to its subordinates. The second one is Supportive leadership where the manager shows care and friendliness. Third, Participative Leadership wherein leaders consult their subordinates for their ideas and to integrate it into the decision-making of the organization as their contribution. Lastly, Achievement-Oriented Leadership. The leader set a high goal for his or her subordinates as a pattern for their high level performance. Vroom's Expectancy Theory The expectancy theory is consists of cognition and emotion that supposed people to use up energy in order to pursue goals in order to satisfy the necessary needs or desires. This theory emphasizes that individuals can be encouraged if they just consider that their hard work will produce a positive outcome that in return gives them reward (Winston, 2005 p10). Value Chain Theory Michel Porter's Value Chain theory specifically centered on the analysis of activities that which organizations to acquire competitive advantage. Moreover, an organizations' distinct and unique value chain could be a chief source of competitive advantage of every organization who engage in such kind of activity (Carthy, 2001). This is useful especially when promoting the strengths of certain organization. ERG Theory As on the development of the needs theory, Clayton Alderfer' ERG Theory emerged during the 1960's. His model is a reaction to Maslow's famous "Hierarchy of Needs". He distinguishes three categories of human needs that have a significant influence on the behaviour of every individual worker. The needs include existence, relatedness as well as growth. The existence needs are the same as Maslow's physiological and safety needs. Relatedness needs comprises all socially oriented needs. Lastly, growth needs are somewhat related to the development of human potentials and has some similarity with self-actualization. Furthermore, the theory states that all these needs are present in every human being and they are not in the order according to its hierarchical significance (Cheng, 2002). Political Model This theory is about negotiating and playing the game, if not wanting to play, you at the very least need to know how the game is played. In this model the manager is believed to be thinking solely about the employees. Power is the most important element of the political model. To acquire the power you have to gain the trust of the employees. This does not always imply that the manager is honest, although people think he is. Theory X and Theory Y Theory X Theory X is the traditional view of direction and control by managers. 1. The average human being has an inherent dislike of work and will avoid it if he or she can. 2. Because of this human characteristic of dislike of work, most people must be controlled, directed, and threatened with punishment to get them to put forth adequate effort toward the achievement of organizational objectives. 3. The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security above all. (Scholtes 1998 p298). Theory X gives special importance to the strategies of control - to procedures and systems for guiding people on how to go about doing things, for determining if the employees are doing it correct or not, and for managing rewards as well as punishment. Theory X gives an explanation of consequences of a specific strategy of management. Since its theories are so needlessly limiting, it stops managers from considering the possibilities that my be present in many other managerial strategies. Since the assumptions of Theory X manipulate managerial strategy, organizations will be unsuccessful in discovering and making use of the potential of a normal human being. Theory Y Theory Y is the view that individuals and organizational goals can be integrated. 1. The expenditure of physical and mental effort in work is as natural as play or rest. 2. External control and the threat of punishment are not the only means for bringing out effort toward organizational objectives. 3. Commitment to objectives is a function of the rewards associated with their achievement. 4. The average human being learns, under proper conditions, not only to accept but also to seek responsibility. 5. The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organizational problems in widely, not narrowly, distributed in the population. 6. Under the condition of modern industrial life, the intellectual potentialities of the average human being are only partially utilized. (Scholtes 1998 p298). Theory Y encourages assimilation, to produce such a condition in which an employee can attain his or her own goals best by means of diverting his or her hard work in the direction of the goals of the organization. It is an intentional effort to associate improvement in managerial ability with the fulfilment of higher-level ego as well as self-actualization needs. Theory Y tackles the formation of an environment which will support the commitment of organizational aims and which will give opportunities for the maximum use of inventiveness, creativity, and self-direction in gaining them. Contingency Theory Fred E Fiedler’s Contingency Theory sets froth the fact that is no best way by which managers can successfully lead his employees. Conditions would produce diverse leadership styles and would be reliant on the situation. For instance in an extremely mechanistic environment, a specific leadership style might be enough to capable to get exceptional results, whilst in an active environment, that same style might not be able to produce the same results. Fiedler observed three situations that may possibly describe the state of a managerial task: 1. Leader member relations: How properly do the manager and the employee get along? 2. The task structure: how properly well structured the job is ? 3. Position power: how much influence does the manager have on his employees? Managers were rated on two mediums relationship oriented and task oriented. Task oriented managers tend to be more effective in situations that have brilliant manger employee relationships, planned tasks, and intensity of power of the position. These managers are more effective when task is unstructured nevertheless the influence of position is strong. They preformed good at the other end of the scale when the leader member relations were fair to poor and the task was unstructured. Relationship oriented managers perform well in every situation apart from this. Therefore, a given state of affairs may require a manager who has a different style or a manager who might use a different style for a different situation. In modern management, managers cannot command their employees to work harder, smarter or faster. They need to discover novel and creative methods in order to confront their workers to achieve their required goals and objectives. Leaders in organizations require being able to draw and keep talent manage knowledge and unblock people's ability to adjust and be creative. Systems Theory A system is something which is made up of two or more co-dependent parts that interrelate to make a functioning organism. Regardless of the kind of system, the theory states that the system consist of four components. They are inputs, transformation processor, outputs, and feedback. Classical-Scientific Theory The classical-scientific management theory states that employees will do what they are ordered to do, at that exact time with no questions asked exactly like robots do. The notion of the management had been that the more employees worked hard, the more money that would be makes for the company. A company which is utilizing this theory would be considered to be a multi levelled hierarchical system. It consists of a lot of departmental heads that direct each level on the pyramid - the uppermost manager is the Chief Executive Officer (CEO) he is considered as the top of the chain of command. The use of so many levels of management can disrupt how a business is run. Whilst the CEO is the "big boss" he is there to oversee the business running, and orders from him have to be passed down through many stages. The managers for which the message was originally intended may not get the message in its entirety or in some instances may not even get it at all! The way decisions are made is very simple, the CEO as dictator makes the decisions on what is best for the company and also in relations to things that may lead to the achievements of goals set out in the tactical, operational or strategic planning phases. The management of each level do not consult their workers (only high level executives) about plans for the future e.g. Changes to staffing levels. Content Theories They provide a viewpoint which is based on the relative value place upon different rewards. Content theorists make suppositions regarding the relationship among individual's motivation and job satisfaction. Firstly that needs are originate form physiological and psychological bases and secondly managers have the ability to change rewards to adjust to individual choices. To sum up we can state that need generates an aspiration to fulfil, then behaviour is the act which takes place in order to fulfil the needs, and at the time the needs are satisfied a reward is expected. Maslow's Hierarchy of Need This theory states that man is basically a wanting animal seeking to satisfy needs both in social and working life in a logical manner. . (wildgreenyonder.files.wordpress.com/2007/10/m) The needs in the above diagram are in hierarchical order lower needs take priorities such as food which is the physiological need. Acquired Needs Theory By D. McClelland McClelland stated that people have the need achievement, affiliation as well as power. He gave counter arguments to Maslow that the needs of people are most likely to change as time goes on due their different experiences. He concluded that various kinds of needs are attained throughout a person’s life. Herzberg's Dual Factory Theory Frederick Herzberg described the satisfaction and dissatisfaction with jobs has said both conditions take place due to Motivation-Hygiene (M-H) Theory. He came up with two kinds of motivators; one was which outcomes satisfaction with the job (motivators), and the other stops dissatisfaction (hygiene factors). He further stated that basic factor due to which to job satisfaction is attained are achievement, acknowledgment, work itself, responsibility and improvement. The basic factors due to which dissatisfaction takes place are the policies of the company, supervision, interpersonal relations with co workers and management, pay, designation, and safety. Trait Theories of Leadership The theory states that individual is much more vital than the situation. Thus the management which follows this theory tend to train people to consist of these features, when they cannot find born leaders as their employees. These natural managers from past experiences tend to be intellectual, initiative, consist of strong self-confidence, have good health and either too tall or short, and they usually belong to the upper class. The four basic characteristics which make managers effective manages attention by means of ideas and goals, meaning, trust, and the most essential of all self. Many times when a manager proves to be unsuitable, the core reasons behind are untrustworthiness, selfishness to others, intense ambitiousness ect. Conclusion The competitive advantage of every organization depends largely on the competitive intelligence system. The theories largely contribute on this particular area. However, the organizational and management theories presented above are not a means of assurance of the success of every organization. The situation of every organization faces is not at all similar to other organizations problem. Likewise, the application of theories by other organization may not be applicable to another organization. Indeed, it needs further and thorough understanding of what the situation or problem needs. It is noteworthy that the implications of theories have the tendency to uplift the management status of an organization. As it has been discussed above, the theories of organizational management that have evolved and developed by scholars whose concern is on the proper management of organization and the people that work there. One of the beneficial factors of organizational management theory is that it addresses the problem or shortcoming of a certain organization. First is the structural organization wherein the heads of every department or organization is motivated to improve their skills and qualifications of leaders or managers. Proper planning, tasking, organizing and implementation are needed. The implication of theories in this matter is that it tries to assert that the future of organization lies on the hands of managers running a particular business or service venture. It tries to present realities, either positive or negative, that are happening in the workplace that needs immediate attention. Thirdly, the implication of which to the workers greatly affects their performance. It tries to focus on the immediate needs of the workers like benefits, incentive and career growth. Their motivation, loyalty and active participation and collaboration within the organization will give an opportunity to have a competitive advantage. Also, through theory it will help in the development and enhancement of the workforce in terms of their performance and career growth. References Carthy, Stuart (2001). From strategy to execution., financial management techniques and theory The Banker. Cheng, T. C. Edwin. (2002). A critical review of end-user information system satisfaction research and a new research framework.(US). Omega. Gabriel, Yiannis (2002). Essal: On Paragrammatic Uses of Organizational Theory — A Provocation. Studies, Vol. 23, No. 1, pp133-151 Mailick, Sidney &, Stumpf, Stephen A. (1998). Learning Theory in the Practice of Management Development: Evolution and Applications. Quorum Books: Westport, CT. Miner John B. (2002). Organizational Behavior: Foundations, Theories, and Analyses. Oxford University Press: New York.p5 Monin, Nanette (2004). Management Theory: A Critical Reading. Routledge: New York.pp1-10 Mullins, Laurie J. (2005). Management And Organisational Behaviour. Seventh Edition. Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England Scholtes R. Peter (1998); Leader's Handbook: Making Things Happen, Getting Things Done, McGraw-Hill Professional, p298 retrieved from books.google.com/books?isbn=0070580286 on 5 December 2008 Sims, Ronald R. (2002). Managing Organizational Behavior. Quorum Books.: Westport, CT. p80 Weymes, Ed (2004). Management theory: Balancing Individual Freedom With Organizational Needs. The Journal of Corporate Citizenship p45 wildgreenyonder.files.wordpress.com/2007/10/m retrieved on December 5th 2008 Winston, Bruce E. (2005). Towards a deeper understanding of hope and leadership. Journal of Leadership & Organizational Studies pp7-10 Read More