Business Management in the Context of Uncertainty - Literature review Example

THERE IS ONLY ONE BEST WAY TO MANAGE Name Institution Course Professor Date THERE IS ONLY ONE BEST WAY TO MANAGE Introduction Business management is an imperative area that determines the success or failure of a business. Proper management entails the availability of excellent strategies that control the functions of the enterprise, especially the various stakeholders. According to Hofler and Barnett (n.d. p. 1), the performance of activities in management process including planning, leading, controlling, and organising depend on the particular organisation. The imperative in understanding the topic is the continuous replacing of traditional management and organisation models to new generation models. In particular, there is the rise of decentralised organisation structures; people based leadership style and organic structures to replace the customary mechanic forms. According to Jasse and Haber (2016, p, 46), the change in management structures follows the particular challenge posed by the application of a management strategy. In particular, the dynamism of the social functions of the organisation including the people, culture and habits support the application of a situational approach also referred to as the contingency model of management (Hofler & Barnett, n.d. p. 1). Therefore, the essay argues that there is no one best way to manage to apply the contingency approach supported by various management theories. Environmental Change and Uncertainty The characteristic of organisations environments dictates the application of a particular management model. According to Hofler and Barnett (n.d. p. 1), firms in the contemporary society experience frequent changes and operate under numerous uncertainty. In particular, demographic changes and economic instabilities characterise these companies influencing their need to adapt more flexible and adaptable management strategies (Hofler & Barnett, n.d. p. 1; Otley, 2016, p. 50; Chenhall, 2003, p. 137). Similarly, Flinsch-Rodrigues (2017, p. 1) present that the particular circumstance in the organisation directs the course of action by management. Moreover, these situations vary in their occurrence implying that there is not only one particular solution to different challenges. The people in an organisation are different varying in habits, culture, practices and behaviour (Jasse & Haber, 2016, p, 75). In this case, the human factor in a firm entails a level of uncertainty on what works best for all the concerned employees. Based on Jasse and Haber (2016, p, 42) the human factor introduces the challenge of labour management and the administration of the employees such that there is the effective performance of responsibilities in a collaborative work environment. The imperative in managing the human work life is the active subordination of labour without generating internal conflicts between the employees and employers as well as within the workforce. In response to the need to effect appropriate human management in the firms, Henry Fayol developed a management theory identifying the stages in managing the personnel (Krenn, 2017, p.1). The theory includes planning, organising, commanding, coordinating and controlling as the main activities that achieve adequate personnel management alongside an effective production process. Comparatively, human relations theory supports the involvement of the employees through encouragement, providing special attention and recognition on an individualistic level, and motivation (Perry, 2017, p. 1). Theory on human relations advocates for a management strategy that involves the support of the workers by the employer in ways that encourage productivity. Moreover, Jasse and Haber (2016, p, 76) provides that the human management theory focuses on the social being on the worker with various needs. Therefore, for effective management of the organisation, the management needs to identify the particular needs and structure the firm process to account for these individualistic needs. Nevertheless, both the human relation and Henry Fayols’ realise a coordinated work environment that centres on the satisfaction of the workforce to achieve the organisational objectives. Size of the Organization The size of the firm influences the type of management strategies employed by the company’s management. According to Hofler and Barnett (n.d. p. 1), the size of the organisation dictates the level of formality, which interprets to a difference in approaches methods between large and small establishments. Similarly, Flinsch-Rodrigues (2017, p. 1) and Chenhall (2003, p. 148) includes that the size of the enterprise influence the organisation structure, whereby small firms takes a functional form of structure whereas the large institutions operate under a divisional form of plan. The imperative of either strategy is the ability to maintain control in the firm. Based on Jasse and Haber (2016, p, 75), for effective achievement of control, the organisation needs to influence the individual choices such that they align with the values of the firm. Jasse and Haber (2016, p, 75) provides two mechanisms that facilitate the process of control including the development of a common moral purpose with the presence of a minimum managerial intervention and the complete managerial intervention in establishing an organisational personality rather than waiting for the conforming of individual personality to set a common ground. Contributing to the success of a control organisation process is the application of the bureaucratic management theory. The theory process the use of standardised procedures in articulating a process of cooperation within the firm (Terry, 2017, p. 1). Moreover, Chenhall (2003, p. 149) includes that for the large forms, administrative type of management is more appropriate centring the control to the executives. Comparatively, small firms should exercise a personal as provided in the human relation theory (Perry, 2017, p. 1). Therefore, as evident that the size of the organisation relates to the contingency management approach, the application of various management practices helps achieve a cooperative environment with a sense of direction. Strategy within the Organization Strategy informs the ability of the firm to control external factors that influence the operations of the business. In regards to Chenhall (2003, p. 149), the managers are responsible for positioning the company in a particular environment following the implementation of particular strategies in the business. The importance of strategy as a concept in organisation management involves the specific structure of the institution. Therefore, Chenhall (2003, p. 150) provides the relationship between structure and the management strategy through the examples of conservative orientation, defenders, harvest and cost leadership strategies linking to a centralised organisation plan. Comparatively, the strategies of entrepreneurial orientation, prospectors, build and product differentiation link to the decentralised organisation systems. However, despite the different strategies aligning to the structure within an organisation, the importance of managers in strategy development requires their critical evaluation of the external conditions to decide on an excellent strategy. Moreover, Jasse and Haber (2016, p, 150) explains the application of a specific strategy should encompass a concept of flexibility following the dynamic nature of the external environment. The flexibility of the management strategies allows the quick change of an organisation system in respect to the particular circumstances or situation present in the enterprise (Jasse & Haber 2016, p, 151). The idea of flexibility in strategy development aligns to the administrative form of management theory, where the leaders design a process and present it to the followers who adhere to the provided system. Comparatively, Chenhall (2003, p. 150) describes four dimensions of management control systems that identify to strategy. The dimension includes a boundary system of rules and regulation, communication of values and missions and their reinforcement, setting measure to control and regulate outcomes, and the establishment of control. Focusing on rules and regulation as a component in setting accurate strategies, the particular process links with the bureaucratic theory where efficiency is key and reinforced through a hierarchical structure of authority. Therefore, the various paradigms effecting the presence and functionality of a strategy highlight the need to integrate management practices. Technology Technology advancement today and its integration in the business world introduce changes in the management practice to effectively manage these technologies. Technology management directly links with the scientific management theory whose main role involved improving the efficiency of performance in the firm (Hofler & Barnett, n.d. p. 1; Flinsch-Rodrigues, 2017, p. 1). According to Jasse and Haber (2016, p, 52), the scientific management includes a system of stages where the initial step includes an analysis of the underlying conditions followed by the selection of the appropriate means to achieve a task. Having selected the most suitable method of accomplishing the task, it is important to train the workforce and provide a system of encouraging productivity by including a rewards system. Based on Chenhall (2003, p. 139) the concept of technology in organisations includes the operation of organisations processes including the people, material, hardware and software. Therefore, technology initiates interdependency in the firm requiring the application of human relations theory to manage the factions. Moreover, Chenhall (2003, p. 139) includes that the management of these particular technologies requires adequate control mechanism as well as the inclusion of feature of flexibility. The examples of techniques in management systems include Total Quality Management (TQM) and Just in Time (JIT). The imperative of these technologies is their association in the management process where particular technology works best in a specific organisation setting. Conclusion In summary, the essay provides evidence for the argument that there is no one best way to manage an organisation. Following the four areas of technology, environmental changes and uncertainty, strategy within the organisation, and the size of the organisation, the effective management of these areas involves an integrative application of management strategies. The imperative in the discussion is the continuous innovation occurring within the firm and to the work environment limiting the level of stability in these enterprises. The presence of these dynamisms necessitates the availability of flexible management models, designed to handle the particular situation. References Chenhall, R.H., 2003. Management control systems design within its organizational context: findings from contingency-based research and directions for the future. Accounting, organizations and society, 28(2), pp.127-168. Hofler, D. and Barnett, T., n.d. Contingency approach to management. [online] Available at: http://www.referenceforbusiness.com/management/Comp-De/Contingency-Approach-to-Management.html [Accessed on 10th May. 2017]. Perry, G.L., 2017. Human Relations Management Theory Basics. [online] Available at: https://www.business.com/articles/human-relations-management-theory-basics/ [Accessed on 10th May. 2017]. Jasse. and Haber, E.L., 2016. La Trobe University: Foundations of Management. New York, NY: McGraw-Hill Humanities Social. Krenn, J., 2017. Management theory of Henry Fayol. [online] Available at: https://www.business.com/articles/management-theory-of-henri-fayol/ [Accessed on 10th May. 2017]. Terry, L., 2017. The management theory of Max Weber. [online] Available at: https://www.business.com/articles/management-theory-of-max-weber/ [Accessed on 10th May. 2017]. Otley, D., 2016. The contingency theory of management accounting and control: 1980–2014. Management accounting research, vol. 31, pp.45-62. Flinsch-Rodrigues, P., 2017.Contingency management theory. [online] Available at: https://www.business.com/articles/contingency-management-theory/ [Accessed on 10th May. 2017]. Read More