Table of Contents
- What is PEST Analysis?
- How These Issues Affect on Business Environment or in Management
- Effects of Politics on Organization and Employees
- What is the Purpose of Studying the Management Theories?
- Classical Management Perspective
We have to know what MANAGEMENT is. And why this management needed in some type of organization. It is element coordinates currents organizational activities and plans for the future. As well, adapts the organizations to its environment and shapes the organizations to make it more suitable to the organization. There has been a research on Management Theories. Management theories are the set of general rules that lead the managers to manage an organization. Theories are an explanation to support employees to effectively relate to the business goals and put a decision into effective means to achieve the same. There had been some argued with an expert who have different opinion about the Management Theories.
What are Management Theories? Management Theories are an idea or insights that needed for management strategies, it may contain methods such as outlines and rules that can be applied in modern organizations. Usually, professionals will not rely just on one management theory alone, but instead, introduce several concepts from different management theories that best suit their workforce and company culture. With a machine that are able to think, talk, and experience emotions, humans will remain the most complicated beings to manage. But, on the other hand, there are lots of things that machines aren’t capable of doing, making humans important assets. For a long time, theorists have been researching the most suitable procedures or method of management for different work situations. This is where management theories come into view. Although some of these theories were developed a long time ago, they still make available for use secure outlines for running management.
What are future perspectives for management careers
Management is the steps taken in order to getting things done through others. Managers key tasks are expressing what is to be done by organizing resources. Also, managing others toward achieving their tasks and controlling their performance. As well, adapts the organizations to its environment and forms the organizations to make it more appropriate to the organization. For example, most people usually used Henri Fayol’s management theory. Because, it is a simple model how management can try to communicate with employees. Future managers will find great chances in world-wide and they will find fairness rewarding challenges in small, high and growth actions.
What is PEST Analysis?
PEST Analysis consists of Political, Economic, Social and Technological is a management technique where an organization can evaluate main outside issues that influences its process in order to become more reasonable in the market. As defined by the abbreviation, with these four analyses, it is a vital to the organization and management. It also provides an opinion of the different issues that might affect an organization. The idea is that by understanding what’s changing in our environment that will be able to make a right strategic decision.
Why the organization need to use a PEST Analysis
There is a ways or reasons in which the organization using this PEST Analysis on for their Management used:
- It helps to spot business or personal chance, and it gives an advanced caution of major threats
- It exposes the direction of change within the business environment. This aids to form what an organization has doing. So that they will work with change, rather than against it.
- It helps the organization to side-step from want to starting projects that are likely to fail, just for the reasons far from their limitation.
- Also, when the organization enter a new country, new environment, region or market; it can help to learn a way in of ignorant rules or traditions and develop the purpose view of this new situation.
How These Issues Affect on Business Environment or in Management
Employees who do not believe in working hard will be subject to revolting politics to make their position secure at the work place. Politics refers to unreasonable behaviour of the individuals at the workplace to obtain advantages which are outside their power.
Effects of Politics on Organization and Employees
Decrease in overall productivity
- As a result of politics at the workplace employees fail to achieve targets within the specified-on time arrangement. Work gets overdue in such an organization.
- Familiar remark says that individuals who play politics at the workplace to get benefits which are far from their control.
In businesses, either domestic or international, are affected by the active economic environment circumstances that established in the market. Among many economic factors affecting business some are; interest rate, demand and supply, decline, increase, etc. Every business wants to make the best use of on their profit. All this can be accomplished by study of demands of consumers or customers, running of suitable materials to them and the care of high quality of goods and services.
Demand and Supply
Demand and Supply are two great economic issues that effect to business models work. Demand is how willing and able a consumer is to acquiring what a business offers and supply is how able the business is to make of available to what the consumer needs. For example, when a mobile phone infused with the latest technology is presented to the market, it makes a higher price due to the high demand in markets, and the prices remain high if the demand is more than the amount of product.
The Social environment consists of the involvement of their own a society’s beliefs, customs, practises and behaviours. Some are similar with other cultures and some are not. For example, If European traveling to North-America will find similarity of practises, customs or traditions but not so much if exploring to Asia countries.
Culture also includes the organization’s vision, values. Norms, systems, symbols, language, assumptions, beliefs and habits.
Technology can develop the correctness of planning in management by providing the managers with the data they need to make an actual decision. Technology solutions gather data from internal and external sources, keep them in a data warehouse and make available for managers with access through a network. Collaboration tools allow the managers to work together to plan operations and make cooperative decisions.
What is the Purpose of Studying the Management Theories?
The Theorists who make management theories depend upon observation and calculation in order to build an idea or theory that to form by combining or arranging a model for business activities. Management Practice depends on research and each manager own experiences when dealing with workplace situations.
There has been answered, that theorists took insights from point of view with which people make sense of their world involvements. A theory is a clear group of assumptions that put out to explain the relationship between two or more visible facts. Such viewpoints are called invisible powers to highlight several critical uses of theories the ‘unseen’ ways in which we approach our world.
During the past century, a number of management theories have been improved and progressed which help them to understand and explain the relation and behaviour between the organization and management. The history of management thought is been tracked back in one form or another, can be traced back thousands of years. Theories offer a constant focus for understanding what we involved with. A theory provides values for determining what is relevant.
Classical Management Perspective
Under Classical perspective of management are:
- Scientific Management
- Administrative Management
- Bureaucratic Management
- SCIENTIFIC THEORY
Frederick Taylor was an American mechanical engineer, who was one of the earliest management theories, he was the founded of the Scientific management theory. He and his colleagues were among the first individual to research on work performance scientifically. Taylor’s scientific theory present some interesting questions by dig deeper into efficiency of work processes. He tries out in several ways to was which was the most efficient and effective ways to get tasks done.
Four Principles of Taylor’s Scientific management theory:
- Each task should be studied to decide which was the most efficient way to do the task.
- The workers should be matched to jobs that put in order with both their skills and motivation.
- The workers should be observed closely to make sure they only follow best working practises
- Managers should spend time training employees and planning for future needs.
Henri Fayol’s theory focus on basic management functions and the manager’s tasks within an organization. Also, his work’s focused on understanding management by break down into 5 Management functions and 14 Principles of Management.
The 5 Management functions are:
- Forecasting & Planning
- Set objectives
- Evaluation and choice of action to reach objectives
- Settings targets
- Measure the outcomes and compare with target
- To make sure all employees are working towards common aims
- Divide the work into tasks and projects
- Select subordinates responsible for each part of work
- To make sure the employees have the required skills and resources they need
- Give directions or order to subordinates so that they can pass the order to the others.
The 14 Principles of Management are as follows:
- Division of work- The workers should combine in such a way as to enhance their skills sets that allow to focus on certain areas.
- Authority- Management needs authority to give employees orders. This authority must be agreed upon
- Discipline- This gets to the idea of employees listening to command and being disciplined in getting work done. If a manager sets a deadline, an employee should have the discipline to meet it.
- Unity of command – Employees answer to their managers, and there aren’t a bunch of unnecessary people involved with the process. Going over your manager’s head would be an example of breaking this principle.
- Unity of direction – Teams should be striving for common goals.
- Subordination of individual interests – The team comes before the individual.
- Remuneration – There are monetary and non-monetary versions of remuneration. Both are needed to motivate employees.
- Centralization – There should be a balance between decision-making power. For example, a company’s board of directors should have a say, but the midlevel managers shouldn’t be overpowered.
- Scalar chain – Each company should have clear hierarchical structures.
- Order – This refers mostly to cleanliness and organization within a workplace. An office shouldn’t be disgustingly messy.
- Equity – Employees should be treated well.
- Stability of tenure of personnel – This principle suggests that businesses should try to limit turnover and keep employees around as they accumulate knowledge and improve.
- Initiative – Employees should share ideas and be rewarded for innovative thinking and taking on new tasks.
- Esprit de corps – Employee morale matters. This principle suggests that managers should work to keep employees engaged and interested.
Max Webber was created the bureaucratic theory, which says an organization will be most efficient if it uses a bureaucratic structure. His ideal business uses standard rules and procedures to organize itself. He believed this plan was especially effective for large tasks.
This theory has 5 principles they are:
- Task specialization – Weber stressed the importance of each employee fulfilling a specific role within a company.
- Hierarchy – Weber wanted each company to have a clear hierarchy within the organization.
- Formal selection – When selecting leaders, businesses view a person’s qualifications. They should be appointed to certain roles based on qualifications, which means they won’t be elected by vote.
- Rules and requirements – These ensure everyone knows what’s expected of them. Weber wanted business to have uniform standards, and rules are essential to achieve this goal.
- Impersonal – The rules and regulations make a business structure impersonal. Promotions aren’t about emotions or personal ties, but rather performance.
Different researchers have given different methods towards management. Many have given different theories on management and how to go about it in real life situations. All of these theories are relevant to every level in management and organization. Great scholars like Frederick W. Taylor, Henri Fayol, Max Weber etc. all have contributed towards the success of management. And as for recommendation, we still see ourselves using their methods in the current time, while they were practising it before our time.