Historical Foundations of Management - Essay Example

Historical Foundations of Management Customer Inserts His/Her Name Customer Inserts Grade Course Customer Inserts Tutot’s Name 02nd September 2013   Part A The nature of opportunities and problems that the modern organizations face are complex and change with time. The modern institutions feel the pressure of the changing environment. However, modern day managers should not sell history short in their management practices. This is because knowledge that such managers gain through past experience should be used as a foundation for future success. Therefore, the classical approaches of management still hold truth and they are applicable to the modern organizations. For instance, when Harvard University Press released a book by Mary Parker Follett it was clear that the historical and classical approaches to management were still applicable to modern day management. Although the book was written in a different age, it revealed ideas that were rich in foresight. She recommended that organizations should practice better horizontal approaches to management, cooperation, respect for employee knowledge and experience. She also called for visionary leadership and warned against excessive hierarchical management styles. These management approaches are or should be applied to the modern day organizations. For instance, I have realized that managers practice top down management styles. This is a hierarchical management practice which is too rigid yet it does not promote creativity. Some of the managers that I have come across are attempting to be visionary. For instance, they incorporate a vision statement in their annual plans and budgets. They also respect employee knowledge and experience by offering promotions, bonuses and training. Today, managers also use terms such as self-management, empowerment and flexibility in management. It is important that we should recognize the historical sources of modern management methods and confess that we are trying to put them into perfection (Schermerhorn, et al., 2011). The history of management can be traced back to as far as the 5000 BC whereby the ancient Sumerians recorded their commercial and governmental activities. The industrial revolution was also accelerated by an ancient scholar’s ideas of efficient production by practicing labour division and specialized tasks. Mass production was also invented by Henry Ford as a modern economic way of efficient and effective production. I have come across these economic and governmental practices in various organizations. For instance, companies like Coca Cola practice mass production of soft drinks. Additionally, all companies record their commercial and financial activities. All company operations are recorded in journal entries after which they get printed into reports such as balance sheets and income statements. The governments of the modern day use laws and statutes that have been in existent during the classic period (Celik. 2011). According to Schermerhorn et al, competitive advantage is one of the goals used in modern day organizations in managing environment interface. Competitive advantage refers to something that an organization does very well and which offers it a benefit over competitors. For instance, Coca Cola practices brand management which helps it to attract a specific and loyal type of clientele. On the other hand, Wal-Mart practices inventory management technique which enables it to encounter low-costs in operations. Modern day organizations have incorporated competitive advantage by cost management. This refers to methods of reducing costs in an organisation’s operations in order to remain competitive. This makes organizations to gain profits with prices that competitors find difficult to match with. For instance, Wal-Mart has very competitive prices which enables it to have more sales volume than its competitors. It practices improved inventory management system which increases efficiency. In the process, the retail joint is able to meet customer needs at affordable prices (Simon, 1977). Organizations can also gain competitive advantage by producing and selling quality products. Businesses can make goods and services which are of higher quality as compared to those offered by competitors. This can help them to gain more clientele than competitors. For example, sotfware and hardware manufacturers such as Microsoft and Apple have very high quality products. This helps them to beat other competitors such as Oracle Incorporation. Organizations can improve their delivery as a way of achieving competitive advantage. They can find ways of producing and delivering products to customers in a timely and fast manner. By so doing, organizations are in a position to meet consumer satisfaction. For instance, Coca Cola has many retail chains which ensure that consumers have access to its products at their convenience. This has enabled the company to gain a competitive advantage over competing companies such as Pepsi. Establishing a strong brand name through well defined packaging and logos has also enabled Coca Cola to maintain competitive advantage. The company’s logo acts as a strong brand name and has enabled it to gain consumer confidence over time (Taylor, 1911). Schermerhorn et al also focuses on 3Ps of organizational performance. They are Profit, People and Planet. Organizations are required by ISO 14001 to maintain global standards by setting up environmental objectives and targets. They are also required to account for their operations, goods and services. Also, organizations are expected to continuously improve performance of the environment within which they are established. Organizations are also expected to comply with the guiding principles of management. Therefore, according to United Nations sponsored forum, organisations should promote education by offering sponsorships and funding institutions of higher learning. Such moves would encourage and enable students to become future business leaders. For instance, J.W. Marriott Corporation is known to many as a hotel chain whose main focus is customers and profits. However, for residents within its locality, the name refers to a sponsor of better health care and education. The United Nations has also established rules aimed at reducing waste emissions, environment degradation and deforestation. Organizations such as Bon Frente are not only establishing new health care facilities and educational institutions but it is also educating the citizens about the importance of natural environment sustainability. By becoming a leader in space, Marriott has gained competitive advantage over its competitors. The company has gained a strong brand name and customer loyalty has increased. During the national tree planting days celebrated annually, companies engage in the exercise as a means of creating and encouraging the public to conserve the environment. Organizations also ensure that their products are checked by the bureau of standards and other observation bodies before releasing them to consumers. They also issue guidelines on usage as well warnings on all their products in order to ensure that consumers are conscious of product usage. Such moves secure people from health hazards. For instance, drugs and medical products have prescriptions, ingredients, expiry dates and warnings well encrypted to enable containers to be conscious of the substance intake. Therefore, the 3Ps of organizational management still hold true since they are applicable to the modern day organizations (Byrt, 1973). According to Schermerhorn et al, there are various issues that come in between how people live, organizational operations and natural environment capacity. It is important that all the involved parties become aware of the costs involved in attaining their aspirations. Therefore, the author advocates for sustainable development practices. Such practices make use of the environmental resources to sustain society while at the same time conserving the environment for utilization by upcoming generations. Sustainable development also refers to forms of growth that meet present needs without making it impossible for upcoming generations to meet their needs. It is applicable in management when methods of preserving environmental capital are put in place. Modern day companies are practicing sustainable development by engaging in alternative sources of energy. For example, some companies use solar or wind energy to power their machinery. Other organizations use more energy efficient building materials and designs, diversified work styles and teleconferences which reduce physical travel (Skipton, 1983). Schermerhorn et al has also focused on green management as classical management technique. Green management refers to people and organizational management in ways that can achieve accountable stewardship of the natural environment. Organizations are using green management by using new technologies as means of reducing energy consumption. They are doing so by making changes in basic practices and operations as a way of minimizing and avoiding undesirable impacts on the environment. For example, Proctor and Gamble is estimated to have reduced use of energy by 40% and reduced its annual consumption of paper sheet by outsourcing managed print services to Xerox. Quarterly performance scorecards are also issued to every one of Disney’s movie studios. Such cards are issued in order to determine the level of waste created and the level of water and energy used (Bowey, 1976). Green management is also used in marketing. This is done with an aim of educating stakeholders such as consumers and suppliers about the importance of maintain environmental sustainability. Green products are also being made with the knowledge of green management. For instance, the fully electric vehicle is being manufactured in order to reduce emission of harmful gases to the environment (Weber, 1964). Finally, Schermerhorn et al has focused on human sustainability in management. Jeffrey Pfeffer, a scholar, recommends that organizations should not only focus on environmental sustainability and green management, but also on human and social sustainability. There are concerns to protect human resources. Human sustainability entails the effect the managerial role has on preserving employee physical and psychological well being. The management should ensure that employees gain job satisfaction. For instance, many companies organize end year parties as well as team building activities as a way of promoting social interactions. Employees are also offered leave days in order to relief them of technical company operations and to enable them to have time with their relatives. Companies also offer incentives such as bonuses or promotions in order to encourage improved performance. Performance evaluations as well as promotions are done in order increase employee morale. Employees are also encouraged to take part in company organized functions such as community service and funding. It is important for organizations to balance between their profit goals, environmental conservation and employee welfare. None of a company’s objectives should outdo the other (Wilson, 1999). Part B Classical approaches to management include scientific management, administrative principles and bureaucratic management. These approaches are universal and can be used in different management situations. The main focus of this paper is the scientific management approach in comparison with the current management styles. Fredrick W. Taylor, the founder of scientific management states that the main aim of management should be to ensure that employers gain maximum prosperity. He also discovered that employees did not have a structured way of doing their jobs. This resulted to low efficiency, and less than optimum performance. To correct such a problem, the scholar believed that workers could be taught and get supervised to perform their duties in the right manner. For example, I as a manager I would like to see situations whereby organizations put in place systems and processes that dictate the roles of various employees. I would also want modern day organizations to put in place supervisory positions in order to ensure that employees adhere to the set out rules and practices. Secondly, the scientific management theory calls for careful selection of workers in order to ensure that only workers with the right credentials and abilities get employed. For example, as a human resource manager I would like interviews conducted with an aim of analyzing a prospective employee’s academic qualifications as well as experience. The theory also advocates for employee training and proper incentives to ensure that employees comply with the job requirements. As a manger, I would like to see companies organize training sessions for employees in various departments as well as issue bonuses. Such training measures and incentives enable employees to improve their efficiency and productivity. Taylor, also recommends that managers should support workers by planning their work carefully and easing up the way as they perform their duties. This would smoothen an organisation’s operations. I would like to see situations whereby managers have written down plans of their daily activities. This would enable employees to know when they can escalate matters than need escalation. This would help to reduce workload (Maslow, A.H, 1943). Conclusion Classical approaches to management still hold truth since they are applicable in modern day organizations. Companies are incorporating Taylor’s managerial tips by offering bonuses and promotions. Visionary leadership and reduced hierarchical management styles are also being incorporated in many organisations. They also respect employee knowledge and experience by offering promotions, bonuses and training. Today, managers also use terms such as self-management, empowerment and flexibility in management. Organizations are incorporating elements of competitive advantage, 3Ps of organizational, green management and human sustainability. However, scholars have recommended that organizations should not only focus on environmental sustainability and green management, but also on human and social sustainability. The paper has also focused on Fredrick W. Taylor’s scientific management approach in comparison with the current management styles. References Bowey, A.M. (1976). The Sociology of Organisations, Hodder & Stoughton Byrt, W.J. (1973). Theories of Organization. McGraw-Hill Book Company. Sydney Celik, M. (2011). A Theoretical Approach to the Science of Management. International Journal of Humanities and Social Science, 1(3), 65-69. Maslow, A.H. (1943). A Theory of Human Motivation. Psychological Review, 50(4), 370-96. Schermerhorn, et al. (2011). Management. John Wiley & Sons. Simon, H.A (1977). The New Science of Management Decision, Prentice Hall Skipton, M.D. (1983). Management and the Organisation. Management Research News, 5(3), 9-15. Taylor, F.W. (1911). Principles of Scientific Management. London. Harper & brothers Co. Weber, M. (1964). The Theory of Social and Economic Organization, Collier Macmillan. Wilson F.A. (1999). Organizational Behaviour: A Critical Introduction, Oxford University Press. Read More