Justifying the Best Suited Theory of Management - Term Paper Example

The research report is designed to find out the best suited theory of management in the organizations of today. This research includes some management theories that are related to the structure of the organizations. Examples of two well known companies have been taken to justify the best suited management theory in today’s organizations. In the end of the report, the consideration of the complex strategy has undertaken to justify its importance in the organizational structure. INTRODUCTION: For the last fifty years, the organizations are making enhancements and adjustments in their organizational structure with the passage of time. It can be said that the advancement in technology is one of the key factors in the enhancement of the organizational structure. Many organizational structures are formed by many organizations according to their needs and requirements because every industry has its own necessities and demands. This report is prepared to determine the role of complex organization, development and changes that have occurred in the last five decades and the theories of organization along with the justification of the best suited theory in today’s organizations. This report will focus on all these aspects as well as examples of two reputed and renowned companies; Apple and Google to justify the best suited theory of management. COMPLEX ORGANIZATION OVERVIEW: Complex system in the organization refers to the systematic manipulation of all output, process and input variables. For the last two decades or so, all the organizations that have a large number of employees are transferring its organizational structure in to the complex organizational structure. Complex organization basically means the organization that are operating with a combination of multiple strategies and connecting the employees with the dynamic networks of interaction. The advancement in technology has brought up a new concept of working. Now the human more rely on technology because it is reducing the human efforts. The advancement in technology is adapted by the organizations in order to operate in more systemized working conditions. The organizational structures have enhanced with the additional involvement of technology and adding extra effectiveness and efficiency in the processes. A very important function to have the maximum impact of changing and adapting new technology is a communication or coordination system within the organization. In the last two decades, the pace of enhancement and innovation in the communication or coordination process of organization has improved because of the continuous technological advancement. By analyzing the advantage of this advancement, the organizations are implementing advanced technology to develop more efficient structure of the information processing involved in coordination. The impact of technology on the other aspects of the organization is highly influential as well. For example, the strategies are developing with the consideration of the availability of technology in the organization. Every department in the organization is utilizing the technology for its purpose and performing its operations with more convenience. THEORIES OF ORGANIZATION: Some organizational theories have been explained below: 1- Human Relation Theory: The main focus of the human relation theory is focusing on the human aspect of business, and it tells that how to make maximum utilization of human capital as a valuable resource. The people are the main source for any organization so while changing the organization structure company needs to focus on employee relation. The investment in developing employees is directly proportional to their productivity and efficiency (Hatch, 2012). The investment of time and money on the employees by the organization supports the human relation theory of management. For example, the employees who feel happy about their work, are more likely to become motivated by their own self and searches for development and growth. The training and development of employees show trust, respect and support for them, so the employee gets loyal with the company (Business, 2013). 2- System Theory: The system theory discusses about the interrelatedness and connectivity of all parts of the organization. The theory talks about the sensitivity of change in the organizational structure. It tells that how a single change in one area can affect multiple other parts of the organization. It is not necessary that system always interact in a linear manner. Small change in one area can become a cause of a big change in other parts of the organization, while big changes in one area might only results in small level changes in another area (Keep, 2013). 3- Structuration Theory: It is a formal social theory and focus on the socialization process of the organization. It enlightens that people become dependent of the socialization structure by going through a socialization process (Whittington, 2012). In other words, social structure is the medium of human activities as well as an outcome of those activities. Socialization in the structure not only restricts the behavior but also develop the possibilities of human behavior and organizational behavior (University of Twente, n.d.). MOST VALUABLE THEORY FOR UNDERSTANDING ORGANIZATION TODAY WITH JUSTIFICATION: Human relation theory is focusing on the human aspect of business. It tells that the training and development of employees is a key factor in increasing the company’s productivity and efficiency. The most valuable theory for understanding the organizations today is human relation theory of management. Most organizations today are spending in the training and development of employees’ skills and capabilities. The development of employees’ skills is becoming the key factor in increasing their productivity and efficiency of work. Productivity of organization increases with the productivity of the employees. Therefore, it has been identified that the direct investment on the employees’ development is primarily the indirect investment on increasing the company’s productivity. Two organizations that are operating with the selected theory: Apple Inc: Apple organization is one of the organizations that focuses on the human relation approach of management. Continuous innovation and enhancement in the processes is the key factor in the success of the company. Therefore, with new technological adaptation the training and development of employees’ skills is become necessary to meet the technological changes or adoptions by the company. The innovation in the processes creates the need of educating the employees to handle and manage the newly adapted innovation in the organization. Apple Inc arranges consistent training and development programs for its employees to make them capable to absorb the changing in the technology. Apple believes that the training and development of employees increases their job satisfaction and also increase their loyalty with the organization. The training and development programs increase the employees’ productivity that is absolutely beneficial for the company. The continuous training and development of company employees has brought the company at the top of the competition. Apple Inc is the leading company in electronic gadgets industry and the company believes that its continuous training and development of employees for the adaptation of new technology has helped the company in gaining competitive advantages. Apple Inc, The top most company in its industry is ensuring the success of human relation theory of management. Google Inc: Google Inc is one of the fastest growing companies in the world, and it has got the top most position in many of its services in the presence of large competitors. Google Inc encourages the creativity in at the work place. Google Inc allows its employees to think creatively, it gives space and free environment to its employees and allow them to think and bring something new in its services. The creative or new ideas of invention and innovation are the main focus of the Google Inc. The company arranges training and development programs for the employees development with creative thinking. The environment of Google Inc is encouraging the element of creativity in the work place. The free time and space is creating the element of creativity among the employees of the Google Inc. The creativity leads to innovation and invention. Google Inc is continuously adapting the latest technology to beat the competitors’ services. This consistent adaptation of technology has created the need of educating the employees about the changing technology. The adaptation of new technology is enhancing its process and increasing the efficiency of work along with the growth in productivity of the company. Training and development of employees increases the effectiveness and efficiency of employees in accomplishing their tasks and responsibilities. The fastest growing company is justifying the successful presence of human relation theory of management. HOW COMPLEX ORGANIZATIONS MAY CHANGE GOING FORWARD Exceeding with time the organizations grow. This requires a change in the management style and practices to deal with upcoming issue in the future. When organizations grow and excel their span of control must widen. Organizations hire more workforces and engage with several expansion activities to increase business. Expansion strategy is also essential to sustain the competitive pressure. Some organizations adapt to a learning strategy to face competition with rival organizations by studying their practices and making strategies accordingly. Complex organizations operate while using several different strategies at the same time and utilizing the workforce to function under a dynamically changing environment. Complex organizations require changing their practices with the varying situations as they grow. They need to manage their workforce, structure their departments and technology, they need to manage their structure and expand the workforce accordingly to expand the operations of the organization. Apple Inc. This organization may be categorized as complex because it has faced several challenges on its quest towards growth. The products sold by Apple are innovative, and this is what earns a competitive advantage for it. The workforce employed by the organization is dedicated towards accomplishing the strategic goals set by the management. The growth of the organizations requires that the management maintains a span of control on the employees. The management must reduce the communication barrier with their employees to promote innovative ideas and suggestions. The management of Apple has faced several complex situations while growing. The change in management after Steve Jobs expired, and Tim Cook took over was a difficult time for the organization. The change in leadership style has affected the business practices dramatically. Leading the industry with innovative practices requires that the management is connected to the employees, and the structure of the organization must be flat to ensure communication between the employees and the management. Google Google is another example of complex organization. The operations of the company are diversified and the history of development of the organization is exemplary. The organization has excelled as a Search Engine Operator (SEO) and has diversified its offerings with the passage of time. It has initiated several operations, and it has stopped the initiation too if the failed to gain the targeted success. The operations of such a diversified business require that the departments are equipped with the appropriate workforce. The management must ensure that the barriers of communication is minimized between the management and employees. Minimum barrier will increase the span of control of management on the workforce. Google is a large organization which has expanded with time by engaging in various businesses. The organization is operating in a technological environment where adaptation to change and innovation are significantly essential for survival. Highlighting on the examples of organizations that have been discussed above it is clear that when the organizations grow or move forward they require changing their organizational structure. This makes it easier for the organization to maintain a span of control. Various different challenges require different practices by the management to overcome those challenges. Complex organizations require that the management communicates with the employees to efficiently cater the challenges which arise as the organizations grow. CONCLUSION: Human relation theory of management is best suited in organizations of today. Human relation theory of management emphasizes on the development of employees, it believes that the development of employees is playing a key role in increasing the company’s productivity. The reflection of the human relation theory of management has been observed in the two big companies of the world; Apple Inc and Google Inc. It has been analyzed with the example of these two companies that human relation management theory is the most appropriate for defining the structure of today’s organizations. References Business. (2013). Making the Most of Human Relations Management Theory. Retrieved August 18, 2013 from http://www.business.com/general/human-relations-management-theory/ Hatch, M. J. (2012). Organization theory: modern, symbolic and postmodern perspectives. Oxford university press. Keep, K. (2013). Theories About Organizational Structure. Chron, Retrieved August 18, 2013 from http://smallbusiness.chron.com/theories-organizational-structure-2777.html University of Twente. (n.d.). Structurational Theory. Retrieved August 18, 2013 from http://www.utwente.nl/cw/theorieenoverzicht/Theory%20clusters/Organizational%20Communication/Structurational_Theory.doc/ Whittington, R. (2010). Giddens, structuration theory and strategy as practice. Cambridge handbook of strategy as practice, 109-26. Read More