Processes of Management: Synthesis: The Role of Management - Essay Example

Processes of Management: Synthesis: The Role of Management Executive Summary Change is presumed as the only constant thing in the modern world. In the dynamic business environment of today, the role of the management is continuously changing with the changes in both the internal as well as external environment. A business operates under the factors of uncertainty and therefore the management needs to have a contingent approach. Each and every industry has its own threats and opportunities and the management needs to strategise the business in relation to it. Profitability is one aspect that has been of concern with the increasing competition. Organisation design provides a platform through which the organisation can sustain the competitive environment profitably. But all of these depend upon the ability of the management to synthesise various factors of concern and turn them into a profit generating one. Table of Contents Executive Summary 2 Table of Contents 3 Introduction 4 Contingency Factor relevant in Unisys 4 Impact of Design Features on the People in Unisys 6 Current Organizational Design and Its Outcome 8 Conclusion 9 References 10 Bibliography 11 Introduction Unisys is a multinational corporation and is one of the major firms operating in the information technology sector. It provides its services and programs on a global basis. The company in the past has carried out several huge international projects with élan. In 136 years of its existence, it is one such company which have grown with the elements of reliability, technical excellence and determined workforce. They help their clients to adopt information technology in their business and service to have that competitive advantage, mostly desired in the present situation. These features and the achievements made have rendered the company as one of the most elite companies of the world (Unisys Corporation.2009). Contingency Factor relevant in Unisys Contingency is one such issue for which all the organizations have to be prepared for. It is very difficult to state from which area a contingency can arise. There are several threats and emergencies that an organization face both from the internal operating environment as well as the external competitive environment. Therefore, it is very crucial for an organization to frame their policies in light of such contingencies. There are several areas that may lead to contingencies but as Unisys is operating in the sector of information technology, the most crucial factor is that of the technology itself. Technology is one such aspect that is fast changing. Being in the competitive technological sector, it is very important for Unisys just not to match up with the latest technological innovations but also to develop some of these technologies. Obsolesce of a particular technology can create a severe frustration in the company and incur great losses to them. Therefore, the firms operating in the sector of technology needs to be alert on their toes all the time and always should be in surge of developing newer technologies to have that competitive advantage over their rivals. Other factors too, play a significant role in the provision for contingencies such as the external environment in which the organization is operating, internal strategies, demographics of the organization and even the organizational structure. Managing the external environment is one of the toughest situations that an organization faces. It is very difficult being in the segment of information technology and having favourable external environment. The major reason behind this is the large number of organisations competing against each other and even the nature of their projects are long term which means they are exposed to a more significant risk class than others engaging in short term projects. Therefore to avoid such contingencies the organisation is required to be aware of the external situation and operate in the internal environment accordingly. With relevance to the internal environment, the most important factor is that of the strategies of the organisation. It is irrelevant to say that each and every organisation has its objective and goal. Thus to fulfil the objectives, it is very important for the organisation to formulate proper strategies. Proper strategies guide the organisation in achieving its goal and have room for overcoming any contingencies arising out of both internal and external environment. Demographics do play a crucial role in the performance of the organisation taking into consideration the nation in which, it is operating and its policies, concentration of major industries in the area, the supply of work force and other related factors. An information technology organisation requires employees having sound knowledge of theories as well as concepts. High academic orientation and specialised training in the field are also mandatory. Thus, the productivity and the feasibility of a project hugely depend on the human forces behind it. So, there is always a doubt regarding the fate of the project if not properly guided or implemented by the human forces. But most importantly the organisation structure should be flexible enough to be able to accommodate any changes in case of the emergencies. In the domain of information technology, where the environment is constantly changing with the technology it is only flexibility of ideas, concepts, human forces and the strategies that can help face the organisation the difficult situations. Thus, the management should always be prepared for any adverse circumstances and accordingly make decisions so that the contingencies does not take a toll on the operations and the profitability of the organisation. The management has to play a greater role in securing the future of the organisation and to strongly face any difficult situation (Information Resources Management Association, 1994.). Mechanistic and organic systems have always been considered as duality but a close study reflects that actually the mechanistic and organic elements rather are in continuum. Actually the mechanistic is foundational to that of the organic elements as the mechanistic are the base for the analysis of the problem. The mechanistic approach justifies that an organisation is operating under stable condition whereas the organic approach considers change as inevitable in the organisation. But the fact remains that organic approach can only be adopted in terms of contingencies which does take place but intermittently. Therefore, organisations such as Unisys needs to have a mechanistic-organic approach which is a mid way approach to both. The factors of change basically the technology, external environment and demographics have to be properly dealt with. Mechanistic-organic approach advocates prevention and therefore it is very essential for the organisation to have precautionary measures in cases of contingencies. The more the levels of awareness within the organisation, lesser will the risk of any unfavourable changes both in the external as well as internal environment (Donaldson, 20001.). Impact of Design Features on the People in Unisys Human resource is the most important factor for any organisation. It is actually the people who are behind the creation of sophisticated technologies that have moved the world. Therefore, the employees of Unisys are the assets of the organisation. In this competitive scenario of today, it is very important for the organisation to identify real talents and retain them. Employees do have the tenacity to shift from one organisation to another for various reasons such as higher packages, working conditions, satisfaction and several other factors. In terms of the information technology sector, there are a large number of companies in the market always hunting the best minds in the industry. So it becomes very essential for the particular organisation to have employee friendly human resource policies. The human resource department of Unisys has a greater role to play in the retention of its employees who are the best in the business. Motivations and rewards are two factors that determine the loyalty of an individual in an organisation. It is very difficult for the human resource department to understand the motivating factor as individuals differ in their preference. In such cases practical as well as theoretical aspects help the human resource managers to understand an individual and his needs. One such theory which helps in understanding the employee motivation is the Theory X and Theory Y concepts developed by Douglas McGregor. There are certain basics for which an individual work. It is not always the same motivating factor for all. Here, the theory comes handy in establishing a relation between the probable motivations and their characteristics. Theory X assumes that people are less keen towards work, has no ambition and avoids responsibilities. Employees do not value organisational goals and are prone to make mistakes. Generally, such people work merely for money and security. Therefore the management needs to have a tight control on such people and formulate policies accordingly. On the other hand, Theory Y assumes people to be hard working and committed to their jobs. They are responsible and even align their personal objectives with that of the organisation. These people have higher motivating factors than mere money and security. Thus, the management needs to understand and can act in several ways to enhance productivity. Decentralisation and delegation, job enlargement, participative management and performance appraisals are methods to acknowledge such employees. Rewards are vital for motivation of a potential employee. It can be in the form of increment, promotions as well as other benefits. The employees feel that their work is getting acknowledged and simultaneously grows an attachment towards the organisation (Winona State University, n.d.). Leadership is a crucial factor for any organisation. An organisation lacks focus without a responsible leader. Unisys gives major focus on leadership and that is the reason they have delegated team leaders in each and every department and processes. It is the task of such leaders to bring out the best from their team members. It is also a known fact that the employees follow their leader. Therefore, it is very important for Unisys to select a leader who has performed well in the past. But on various occasions it has been observed that good employees do not turn into good leaders. Thus leadership requires special skills and orientation. There are various leadership styles that can be noticed in the organisation, it depends upon one person to another. It will be very difficult to state that democratic leadership is better than autocratic and vice versa. Many scholars perceive Laissez-faire as the best leadership style as the management give greater responsibilities to the employees but the true fact remains that when the business organisation is constantly changing there can be no one style of leadership suitable in an organisation. Hence, the best leadership style that has been followed in Unisys as well as all modern organisations that are prone to changes is actually the strategic leadership. Here main emphasis is given to the strategies and the works are delegated to the team members accordingly. Right kind of leadership can bring out the best from its employee and increase the productivity of the organisation. Changes are inevitable but a true leader can bring out the organisation from severe circumstances (Northouse, 2009). Current Organizational Design and Its Outcome Organisational design is actually a pre-guided procedure adopted by the management to integrate the human resource, information and technology. This is a strategic decision made by the management which will have a long term effect on the functioning of an organisation. Organisational design is adopted with the expectation of probability that it will increase the profitability of the organisation and bring success to it. In Unisys, the four basic pillars of organisational design are integrity, respect, accountability and responsibility. Unisys believes in honest dealings and promotes only the right things. They also understand that it is important to respect one another and be fair and equal to all its team members and even the customers. Equal opportunity for all is one of the prime beliefs of the company. They give each and every person equal chance to grow and show their mantle. The organisation does not shy away from their responsibilities rather are accountable for all the decisions made or the actions taken. They also stand up to their commitment and believe that it is one of the stepping stones to success. Other prime factor that Unisys believes have helped them grow is their responsible attitude towards their client, the government and the nations they are operating. They properly follow the laws and legislations of a particular country. They have operation in all major countries of the world and it is their duty to abide by the laws of the nation pertaining to social responsibilities and business. This immensely creates goodwill for the company. Even the organisation has to follow the rules imposed by their clients. With all such restrictions, the organisation still needs to provide the best to the clients and even maintain their profitability (Unisys Corporation, 2009). To maintain a set of standards there are certain guidelines formed to seek the best interest of both the organisation and its employees. In Unisys, both the management and the employees have to follow these guidelines to have a more productive orientation. They have developed certain codes which are mandatory for all the employees serving in any part of the world, the subsidiaries and those are even enforced upon the top level management that is the board of directors. Compliance with the law, avoiding the conflicts of interest, maintaining and furnishing proper details regarding accounts, respecting work place and several other factors that are enlisted in the code of ethics have to be followed by each and all related with the organisation. Unisys is always a forward looking company, and therefore its organisational design has also been made with provision to the future. In the annual report of 2009, it has laid down several steps through which it can attain desired results in the future too. Technology and the human aspects play a vital role in attainment of the desired results in the future. It has summarised all probable threats and opportunities that Unisys may face in their functioning in the future. Therefore, the design has been made in such a way that will eventually help Unisys in maintaining or even enhancing their profit run. For example, the recent strategies adopted by Unisys named cloud computing has been adopted with a future outlook. It will help in maintaining better relations with its clients and is one of the critical issues raised by the management as one of the crucial factors to obtain future profitability. SOA Enablement for ClearParth is a technological innovation that would make the delivery strategies prompt and quick. Even the organisation continuously monitors their work process and the employee contribution. Thus the strategies do have provisions for making the services better for the future and thereby sustaining in the competitive environment (Unisys Corporation, 2009). The design is made according to the needs of the organisation in the present scenario and even has a futuristic approach towards problem solving. Therefore it is quite essential that the strategies adopted have to be in sync with the future concerns of the organisation. It is only through a proper design backed up with relevant strategies that would provide a soft cushion for both internal and external contingencies and it would also determine the profitability and the vulnerability of the organisation (Unisys Corporation, 2009). Conclusion The management has to be multi-dimensional in their approach. There are various resources available in the hands of management which has greater influence on productivity. The task of the management is to integrate and synthesise these factors of production in the best interest of the organisation. The management has a strong role to play in the development of the organisation and therefore the decisions made by them needs to be judgemental and with a broad futuristic approach. Also, it is true that without other factors, the management cannot bring in the desired results. Contribution of all factors as desired in a particular situation with proper guidance is the best survival tactic in this era of cut throat competition (Baqir, n.d.). References Baqir, M., No Date. Strategic Knowledge Management for Futuristic Organizations. Protégé. [Online] Available at: http://protege.stanford.edu/conference/2004/posters/Baqir.pdf [Accessed October 13, 2010]. Donaldson, L., 2001. The contingency theory of organizations. SAGE. Information Resources Management Association, 1994. Managing Social and Economic Change with Information Technology. Idea Group Inc. Northouse, P., 2009. Leadership: Theory and Practice. SAGE. Unisys Corporation.2009. Code of Ethics and Business Conduct. Investors. [Online] Available at: http://www9.unisys.com/common/investors//other/Code_of_Ethics.pdf [Accessed October 13, 2010]. Unisys Corporation.2009. Management’s Discussion and Analysis of Financial Condition and Results of Operations. Annual Report. [Online] Available at: http://www9.unisys.com/common/investors//annuals/2009/2009_AR_D.pdf [Accessed October 13, 2010]. Unisys Corporation.2009. Unisys Moves to Break Through Barriers to Adoption of Cloud Computing. News. [Online] Available at: http://www.unisys.com/unisys/news/detail.jsp?id=10018700006&pid=&sid=203 [Accessed October 13, 2010]. Unisys Corporation.2009. Company Profile. About us. [Online] Available at: http://www.unisys.com/unisys/about/companyprofile.jsp?id=201 [Accessed October 13, 2010]. Winona State University, No Date. Theory X and Theory Y. Course . [Online] Available at: http://course1.winona.edu/lgray/el601/SlidesPPNotes/Theorys/TheoryXY.pdf [Accessed October 13, 2010]. Bibliography Khosrowpour, M., 2001. Managing information technology in a global environment. Idea Group Inc. Leibold, M& Et. Al., 2005. Strategic management in the knowledge economy. Wiley-VCH. Read More