Theoretical and Practical Perspectives of Management from the Start of the 20th Century - Coursework Example

ORGANIZATIONS AND MANAGEMENT: A REVIEW OF THEORY AND PRACTICE SINCE 20TH CENTURY Name Course Professor Institution City/State Date Introduction Management is an age-old concept that dates back to the history of man and society. The management of organizations occurred in the backdrop of man’s inability to achieve certain goals that cannot be attained through individual means. The need to come together and achieve these goals led to the rise of various social groups such as clans, tribes, and hunting groups (Buble 2015, p. 1-17). Consequently, management became an effective way of enhancing the coordination of the efforts of every individual. As societies became increasingly complex, the management techniques also became sophisticated. In the contemporary society, management has become an irreplaceable tool for the transformation of social and economic structures of many countries (Drucker 1974, cited in Buble 2015, p. 2). The aim of this paper is to explore the evolution of organizations and management as well as how such concepts have shaped human understanding. It examines the various theoretical and practical perspectives of management from the start of the 20th century. Theory and Practice of Organizations and Management Although studies have revealed that management is an age-old practice, the theories and conceptual framework have their origins at the beginning of the 20th century. Various theories, approaches, and conceptual frameworks of management were developed during that time. Many authors and scholars developed management theories to try to explain the systems of management. The most notable work on management theory was presented by Koontz (1980) (Jones 2010, p. 3). There have been many attempts to integrate various theoretical approaches to management. However, the difficulty in achieving this goal is premised on the notion that management is considered an applied science. In this regard, there are no coherent theoretical concepts. It is against this background that many scholars of management have embraced and adopted concepts of behavioural science, statistics, and mathematics. In this regard, management theories have undergone evolution in symbiosis with the related aforementioned related disciplines. The classical management theory was developed in early 20th century. It encompasses other theories such as scientific management, administrative, and bureaucratic theories. Taylor (1911) described management as “a science that is centred around certain laws, rules, and principles” (p. 2). Taylor developed scientific management theory that had four cardinals. The first principle involved finding the best way to carry out a particular task. The next step involved matching each worker to each task to achieve specialization, while the third principle involved close supervision of the workers and the use of rewards and punishment to encourage or discourage behaviour. The fourth principle involved management (planning and controlling). In the beginning, Taylor’s theory became an effective way of increasing production because they involved finding the best people and equipment and closely monitoring every stage of the production process. In this regard, organizations were able to achieve significant production levels. Although the scientific management theory was successful at the beginning of the 20th century, it has failed to be effective in contemporary corporate entities. Taylor’s philosophy of “production first, people second” has reduced production and quality significantly (Faust 2012). It has led to the dissatisfaction of employees with work, reduced workmanship, and declining organizational pride. In furtherance of Taylor’s scientific management theory, Max Weber (1947) underscored the importance of reducing ambiguity and diversity in organizations (p. 23). Weber placed emphasis on the need for clearly defined roles. In his bureaucratic theory, Weber stressed the hierarchical structure of power and the need for authority and control. He posited that division of labour was important and that specialization would increase production. To achieve stability among organizations, Weber established rules within the hierarchy structure. He reinforced the notion that organizational behaviour encompassed the interaction of human beings. Weber observed that an analysis of the cause and effect could help in the understanding of human behaviour. The administrative theory was postulated by Mooney and Reiley (1931). It explored the principles of management of organizations (p. 5). This theory placed emphasis on universal principles of management, which have wide applications in organizations globally. One weakness of the classical management theory is that it was rigid. The major failure of this theory was that people draw their motivation to work from the anticipated financial rewards. This theory originated from the authoritarian structure of classical theory and attempted to solve some of the problems that the classical theory presented. Unlike the classical theory that fostered rigidity and conformity, neoclassical theory stressed concern for human needs. Studies by Mayo (1933) revealed that any change in the work environment could affect productivity significantly (p. 7). In an experiment aimed at manipulating the conditions of the work environment at the Western Electric Plant in Hawthorne, the author recognized the need for managers to be friendly to their employees as a way of increasing work output. The Hawthorne effect draws many applications in contemporary organizations. For example, the Coca-Cola Company has a deeper commitment to promoting and respecting human rights and workplace rights. The company considers respect for human rights as a precondition to sustainable business (Coca-Cola 2016). The rights are envisaged in the United Nations Declaration of Human Rights. Other agencies such as the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work also champion for the protection of human rights. In this regard, the Coca-Cola Company has undertaken proactive measures to guarantee respect and dignity for every individual in its bottling system, supply chain and the communities in which it operates globally (p. 1). These measures apply to every individual, including the employees of the company, and they have been instrumental in sustaining the company’s lead as the global beverage manufacturer. However, the Hawthorne effect has not been applied in Apple, Inc., the world’s leading Technology Company. In 2013, Apple Store employees filed a federal lawsuit against the organization where they claimed that the company treated them like criminals (Becker 2015). The employees claimed that the company had subjected them to searches in a bid to prevent them from stealing the company’s products from the stores where they worked. The searches took place in front of customers, and they made the Apple Store employees feel demeaned and insulted. The perception among employees of the company is that Apple Inc. did not trust its employees. Other perceived injustices that the company purveyed upon its workers include a ban on any discussion of Apple Inc.’s labour practices, failure of the company to give some workers breaks for meals, and forcing employees to endure long waiting periods for the supervisor to inspect their belongings (Becker 2015). Clearly, these work conditions can potentially undermine Apple Inc.’s performance because they fail to motivate employees and boost their morale. The consequence of these adverse working conditions may include declining productivity, reduced worker morale and loss of creativity. The views of both classical and neoclassical management theorists anchor on the proposition that the purpose of management is to sustain balance. They underscored the need for an organization to control and manipulate workers in their environment. In 1928, Ludwig von Bertalanffy proposed the systems theory of management. However, the theory’s application to organizations did not occur immediately until the late 20th century (Buble 2015, p. 6). The theory proposes that all components in an organization have a relationship. In this regard, a change in one component can lead to a significant change in another component. The theory views organizations as open systems that continue to interact with their immediate environment. Thus, the systems within an organization exhibit active balance because they respond to the changes in the environment. In similar studies, Senge (1990) described system thinking as a tool that enables people to recognize how actions shape people’s realities. The author observed that this theory gives people the assurance that they can change their future realities from their present actions (p. 36). For a long time, most organizations were oriented according to Weber’s notion of bureaucratic structures. However, as multinational organizations became increasingly complex, there was a need to organize companies. Drucker (1974) proposed federal decentralization in which an organization comprises several independent units that operate simultaneously. In this arrangement, every unit within a complex organization has its own management that runs the business of the organization (p. 572). The result of federal decentralization has seen many large organizations diversify to minimize the risk. Systems theory examines the organizational structure as organized patterns of relationships. These patterns involve integration, differentiation, structure and hierarchy, and formalized policies. Integration refers to the way various activities are coordinated within an organization while differentiation involves the way tasks are divided in the organization. Formalized policies refer to policies, procedures, and controls within the organization. This theory places emphasis on the relationship between organizational structure and the environment. In this regard, most companies embrace greater differentiation in environments that are more complex. Jones (2010) observed that most contemporary organizations have moved from the stable (mechanistic) structure to organic (adaptive) structures (p. 11). In so doing, these organizations have become very flexible and dynamic. For example, Starbucks has embraced a strategic differentiation strategy, which is centred on the broader segment of the market. The market that this company serves is comprised of coffee drinkers. The management of the organization has embraced a broad differentiation strategy, which includes making orders that meet the wishes of the customers irrespective of how detailed they are (Amanda Hale Online 2013). In the contemporary dynamic business environment, the company has developed stringent guidelines that detail how coffee should be made before it is presented to customers. Additionally, Starbucks offers differentiated quality and service through diversification. For instance, the company has partnered with companies such as PepsiCo and Jim Beam to offer brand liqueur while it has acquired Tazo tea to expand the reach of its products to customers. Systems theory postulates that information and energy characterize the relationship between an organization and its environment. Some organizations attempt to influence the environment in which they operate (Walonick 1993). Various theorists posit that organizations largely invent their environments by selecting them from a pool of alternatives. In this regard, the determination of organizational structure and environment are influenced by an organization’s strategic decisions regarding its products and channels of distribution. It is clear that systems theory departs significantly from the mechanistic classical theory of management. Studies by Walonick (1993) revealed that organizational structure affects the behaviour of employees on the basis of performance, satisfaction, and turnover (p. 1). Some employees are less satisfied with organizations that have highly complex structures. The author opined that structural deficiencies in organizations could yield challenges such as reduced morale, lack of coordination and increased conflict, and the inability of employees to adapt to the changes in the environment. Later theorists developed contingency theory of management. This theory holds that the techniques of management should depend on the circumstances. In this regard, the way an organization is managed should change from one situation to another. This approach is situational in orientation. It “identifies and develops relationships between the environmental, management and performance variables” (Walonick 1993). Various applications of the contingency theory include organizational design, quantitative applications, and leadership and behavioural applications. Jones (2010) argued that people seek to build organizations to find better solutions to the environmental problems that they face. In this regard, the prevailing situation forces people to have common purposes and come together to coordinate various activities around an organizational structure (p. 13). The effectiveness of an organization is determined by the extent in which the needs of the members of the society are satisfied. Faust (2012) explored the sociological perspectives on management consulting by dividing this approach into two parts (p. 1). The first part refers to the institutional and cognitive-cultural approach to management while the second part is a relational and structural approach to management. Studies by Morgan (1980) identified organizations as political systems because they are characterized by the acquisition of power and authority (p. 605). Organizations have rulers and the ruled, whose interactions follow the superior/subordinate relationships. According to Morgan (1980), organizations are political entities where people plot to acquire an advantage over the others. The author views organizations as mini-states, which exhibit three types of relationships. These relationships include unitary, pluralist, and radical view of the organization (p. 609). In the unitary organization, the emphasis is placed on the need to achieve common objectives. The organization is perceived to be united by its common goals. In a pluralistic organization, the emphasis is placed on the diverse interests of both the individual and the group (p. 610). In this regard, the organization is assumed a loose coalition with divergent interests. The radical view of the organization is evident in the form of rival forces such as the management and unions. In this regard, the unions and the management of organizations strive to achieve incompatible ends. For example, on April 13, 2016, thousands of Verizon workers went on strike across North East United States. The strike was facilitated by the Communications Workers of America (CWA). It was supported by the International Brotherhood of Electric Workers (IBEW) (O’Kane 2016). The strike centred on the treatment of these workers by Verizon. The company outsourced call-centre jobs and forced many workers to relocate to various parts of the country. It also increased its attention to wireless business, thereby destroying supporting jobs. The dispute between Verizon and its workers underscore the political nature of the organization from a radical viewpoint. The unitary view of organizations assumes the role of power in organizations. Various terminologies such as authority, leadership, and control are merely the ways of describing the managerial function of the organization towards the attainment of common interests. On the other hand, the pluralist view of an organization regards power as a medium in which conflicts of interest can be solved (Morgan, 1980, p. 614). The radical view of an organization regards power as a phenomenon that is distributed unevenly across the various class divisions. Morgan (1980, p. 617) observed that most organizations embody a pluralist frame because they place emphasis on competition between interests and power. Cultural perceptive of management focuses on the culture of an organization. According to Jones (2010), organizational culture encompasses traditions, habits, and patterns of relationships within an organization (p. 14). Various organizations exhibit different levels of individual freedom. Culture determines what things should be done, how they should be done, the acceptable behaviour and the norms that the members of the organization are expected to use in solving problems. Culture describes the symbols, stories, and myths within an organization. My thought on the notion of organizations and management borders the views of early contingency theorists. I believe that organizations came into existence to serve the purpose of human beings. In the process of achieving common interests, people come together to form organizations to solve their environmental problems. For example, the United States Steel Corporation came into existence after a combination of previous steel companies owned by Andrew Carnegie, J. P. Morgan, and Charles Schwab. In the case of the Carnegie Steel Company, Andrew Carnegie, together with some business associates, created the company with the aim of managing businesses at the steel mills. These businesspersons saw a problem that needed to be solved and came together to form an organization, which became the pioneer producer of rails. Clearly, the organization came into existence after the same vision drove the individuals. Most contemporary organizations have paid attention to the communities in which they operate. The management of these organizations encompasses corporate social responsibility (CSR) frameworks, which guide their engagement with local communities. The concept of CSR was fundamentally missing in early management theories. For example, Coca-Cola Company’s CSR policy places emphasis on changing the lives of people in communities where it operates. The company is committed to the social, economic and environmental progress of local communities (Coca-Cola 2016). It has contributed time, expertise, and resources towards eradication of hunger, poverty, and malnutrition in vulnerable communities in the regions of operation. The company also promotes education and vocational skills among children, women, and the elderly. Conclusion This paper has explored organizations and management in theory and practice. At the beginning of the 20th century, many organizations embraced classical management theories, which placed more emphasis on rules. However, the evolution of other theories such as neoclassical and systems theories of management led to the decline of classical management theories. Unlike the past, the management of contemporary organizations pays attention to the working conditions of employees because any change in the working environment can impact on the work output significantly. The paper has also revealed that corporate social responsibility is a contemporary management strategy that allows managers to engage local communities and empower the people who live in those communities. References List Amanda Hale Online. October 12, 2013. ‘Starbucks pursues a broad differentiation strategy.’ Retrieved from http://amandahaleonline.com/2013/10/12/starbucks-focused-differentiation-strateg/ Becker, Sam. 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