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Practical Applications of Management Theories - Essay Example

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Successful performance and profitability of every organization depends upon effective use of resources and management tools which help to increase productivity. Management theory can provide categorizations for the manager to be able to select and adapt from past learning to meet current needs and conditions…
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Practical Applications of Management Theories
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Download file to see previous pages This theory views organization as a system of different components which help to accomplish the goals of the system.
In general, a management theory is useful if it helps managers to understand relationships within organization. Furthermore, theory tends to simplify complex relationships by removing from consideration variables thought to be of lesser concern, in order to permit focusing on the variables of greater interest. Following Hoopes (2003): "some corporation prospered more than others, accumulating capital that in onrushing era of heavy industry created a new kind of special privilege, privilege of owing" (1). This statement can make it easier to understand cause/effect and other relationships among variables. It can help managers increase the accuracy and usefulness of predictions with respect to the variables. According to Deming (1986) "Management in any form is prediction" (cited Scherkenbach 1991, p. 7) managers have to act on the best knowledge they have to get anything done. This knowledge enables them to predict with approximate certainty that their efforts will pay off. Therefore managers must assiduously gather that knowledge that best enables organization to predict the outcomes of efforts that ensure success. And managers must do all they can to ensure that everyone in an organization acts in concert on the best knowledge. ...
Building bureaucracy transferred power from subordinates to superiors (Hoopes 2003). Deming's theory allows organization to reach the desired goals and coordinate all activities in the best possible manner. Deming's theory is often connected with quality management and quality control. The Deming's theory is based on 14 principles which help organizations to improve the current and future performance. It is possible to say that this open and dynamic approach avoids the error of the other theorists, who thought of organizations as closed systems and analyzed their problems with reference to their internal structures and processes of interaction, without taking account either of external influences and the changes they impose or of the technology in the organization (Scherkenbach 1991).
Deming's theory best meets organization needs because to helps to maximize productivity and reduce operational costs. For instance, "inspection," writes Deming, "does not improve quality and is costly and ineffective" (cited Scherkenbach 1991, p. 45). Quality does not come from inspection by management of everything that workers do (an unrealistic and impossible task anyway). Mass inspection by a principal, for example, is unwieldy and time-consuming. Moreover, it promotes complacency by establishing management-determined standards for employees rather than allowing them to establish and work toward their own standards in areas in which they have expertise. Mass inspection is antithetical to the belief that people will strive to do high-quality work where trust exists. This does not mean that there is no place for quality control, nor does it rule out peer assessment for the purpose of improvement.
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