Changing Management Approaches - Essay Example

Management Theory The changing business environment including the 24/7 customer supply and the real-time supply chains are some of the modern changes in the business environment. However, there are some things that have remained the same or witnessed small changes compared to the 1960s. The changes can be associatedwith management theories among other theories such as organizational and human behavior. Nevertheless, the management theories continue to evolve due to industrialization, technology, and other variables influencing the business environment such as competition and government legislations (Watson, 2013). Comparison with the 1960s, few changes have occurred in the business environment because the companies still rely on the 1960s in most of the business transactions and operations. For example, the aspect of scientific management theory discusses rewards, disciplines and standardized processes (Shafritzet et al. 2015). These activities continue to occur within the current business environment with a minor twist. Therefore, the aim of the essay is to illustrate there are minimal changes from the 1960s approach to doing business. To achieve this objective, different classical and contemporary theories are used to create a form of comparison of the 1960s view of management to the 2010s view of management. 1960s Chief Executive Officer will indeed be astonished at the real-time supply chains and customer service that operates around-the-clock, due to globalization that has resulted in vibrant changes in the commercial sectors. To gain competitive advantage, companies have embarked on an innovation which has led to high level of competition in the world (Roth, 1994). New advancements are being developed each day which requires that the Human resources managers help the organization to adapt to the changes (Roth, 1994). Change in culture, calls for change in organizational strategies and the introduction of new goods and services. There is need for companies to device new standards and beliefs on what to be done and what not to be done by the employees. The growth in customer demand and technological advancements are to be adapted by the employees in every company. Workers tasks, reporting relationships, decision making processes and to restructure the departmental structure, structural change may possibly be needed (Roth, 1994). In order to achieve all these competent, well-motivated employees will be required. Over the years, the field of management has experienced several changes (Roth, 1994). In the 1960s the traditional organizational structure was goal oriented and informal in nature. Everything within the business practice in the traditional organization structure was predictable this was because the model was easily controlled and the organizational purposes and incentives were clearly defined (Roth, 1994). The authority, control, rules and hierarchy run the organization. Managers provided instructions to the subordinates and also established managerial control over them (Roth, 1994). This system is a direct comparison to an efficient machine with distinct functions, operating simultaneously reliably to accomplish accurate results. In spite of this, there has been significant adjustment in modern organization and emphasis is now on strategic management (Roth, 1994). Advancement of decentralized organization is highly regarded in modern organization. Politics and power influence, motivation and creativity have made the organization to undergo radical changes (Roth, 1994). In the current organization, there is high flow of information which travels in every direction (Roth, 1994). The exchange of information in the organization can occur towards any direction between management and workers (Roth, 1994). There are different variables in the modern organization unlike clearly defined aims that were in the traditional model. The distinct variables render the organization less structured and simple (Roth, 1994). There is also limited complication of hierarchy in staff ranking which makes it to have fewer layers. Also, the modern organization has no clear chain of command which makes the regulation and control of subordinates difficult for managers (Roth, 1994). Management field has grown due to the contributions of the likes of Adam Smith (Roth, 1994). Smith argued that division of labor would bring many economic benefits to organizations and society in the 1776 Wealth of Nations summit (Roth, 1994). Smith recommended the splitting of tasks in small and recurring jobs. Smith believed that division of labor saves time, especially the one lost in the process of changing tasks and also creates labor saving machines and invention which increases yield, hence improving worker’s skills and ability to handle that particular task (Roth, 1994). Management practices have also change over time due to industrial revolution. Industrial revolution began in the late 18th century in Great Britain during the substitution of human energy by machine power which enhanced the growth of massive industries across the globe (Roth, 1994). Delegation of duties was made to various people with the same interest. Contemporary management practices originated from classical management. Classical management approach stands for two theorists that is: Scientific management theorists and general management theorists (C & Kwok, 2014). Scientific management theorist deals with the improvement of productivity through the labor force whereas the General administrative theorists were interested in the ways of how an organization can be made effective (C & Kwok, 2014). The rules and instructions came from the managers to the subordinate. The subordinates were to execute and follow the instructions and demands as they were discharged (C & Kwok, 2014). Research, time studies and experimentation were emphasized in this model as opposed to simplification of the task, individualism and economic efficiency which was stressed in rule of thumb management and labor co-operation. In 1930s the human resources approach began, creating a hostile response to the mechanical view of employees that had been embraced by the classical theorists (Roth, 1994). The development of the human resource method was due to the Great Depression. The managers were regarded as engineers while the workers were handled as machineries for the organizations. On the other hand, the contemporary approach has provided solutions on how to improve productivity and reducing alienation between managers and the subsidiary (Roth, 1994). The employees are no longer viewed as machines which occurred in previous times since that work places have become more humanized (Roth, 1994). Finding the most suitable way a job could be done, identifying qualified employee for an appropriate task, careful management of the workers and cautious planning were the four principles classical management theory was based on (Roth, 1994). In order to increase revenue and maximize productivity the organizational managers of the 1900s were to carefully and strictly abide by those principles (Roth, 1994). However, with the coming of contemporary organizational theory, the circumstance has changed in the present world. This theory stresses on the importance of worker’s happiness. It emphasizes that for any business to succeed the labor force should be kept cheerful (Roth, 1994). The theory also encourages the managers to closely study what the employees want and understand the desires of specific worker which in return made organizations create human resources section. As organizations embrace teamwork the traditional hierarchical levels have been removed as opposed to the past when only the top managers had the authority to make decisions, the current employees in organizations are given an opportunity to participate in organizational decision-making (Roth, 1994). In past, the senior managers did not consult the middle level managers and subordinates in their decisions making process. Employees were expected to follow instructions without questioning, once decisions were made (Roth, 1994). Even if the employees are not comfortable with the decision, they could not raise their views. Therefore, this kind of management was somehow oppressive. The effective flow of information within the organization was hindered by so many levels of management hierarchy (Roth, 1994). Nonetheless, in the modern world, where employees at all levels of the organization take part in making organizational decisions, depicts a slight change in management witnessed in 1960s (Roth, 1994). Innovation has become a very important tool for survival in the current world because of high levels of competition (Roth, 1994). Therefore, employees are inspired to come up with new ideas that will enhance service delivery in specific tasks. The company is involved in collecting views of the employees before arriving at the final decision. How the business operates has been changed by global’ s technological advancements (Roth, 1994). Individuals and business entities are able to interact fast with each other because of the improved communication networks (Roth, 1994). Several entities are able to transact business in different regions of the world since barriers to trade between nations have been removed. Organization’s online business has been developed by the increased number of online internet users, who are at the same time potential consumers (Roth, 1994). Consumers are now able to sample the services and products on the company website, because of the real-time supply chains that have been established. At such, clients are able to place orders, make deposits, and even seek customer care services. The company instantly receives and acts on the information sent through the internet by the client (Roth, 1994). Since customers are not necessarily required to travel to the company to seek services, because of real-time supply systems, companies are able to receive and process a huge number of orders. The company has become more efficient since some of the services are delivered over the internet (Hayes, 2016). This is contrary to 1960s service delivery. In order for a consumer to make any purchase in traditional systems, they had to travel to the company offering the required products or services. There has been establishment of round-the-clock economy in most parts of the world brought by the market interconnectivity and a rapid increase of population growth. The round-the-clock service delivery is adapted by the companies to meet the ever-increasing demand (Hayes, 2016). As opposed to the 1960s when people could only access services during daytime, the current customers are able to access services at any time of day or night. For ensuring continuity of services at all times employees have to work in shifts. Therefore, consumers have been given an easier access to services while at the same the companies have increased their profitability due to the increased number of sales (Hayes, 2016). From the discussion, it is evident that there has been minimal change in management approaches applied in 1960s. The change in organizational structures, have been the main reasons for the overall change witnessed in business management. Unlike the traditional structures, the current structures of management have few levels of hierarchy. In traditional structures, decision making was made by only top management without consulting the subordinates. The contemporary structures encourage teamwork in such a way that majority are the one who makes the decisions. The organizations are able to offer real-time supply systems because of the introduction of internet that has been brought by technological advancements. Consumers have the ability to place orders online. The contemporary ventures operate around the clock because of the economic structures that have introduced a round-the-clock economy. References C, A. & Kwok, F. (2014). The Evolution of Management Theories: A Literature Review. Nang Yan Business Journal, 3(1), 20-24. doi:https://doi.org/10.1515/nybj-2015-0003 Hayes, J. (2016). The Theory and Practice of Change Management: Third Edition (3rd ed., pp. 19-21). Roth, W. (1994). The Evolution of Management Theory: Past, Present, Future (1st ed., pp. 60-70). CRC Press. Shafritz, J. M., Ott, J. S., & Jang, Y. S. (2015). Classics of organization theory. New York: Cengage Learning. Watson, T. (2013). Management, organization and employment strategy: New directions in theory and practice. London: Routledge. Read More