Management Theory and Its Effect on Managers Today Essay Example

hierarchies, division of labor, and adherence to rules and regulations.

Division of labour became more efficient as tasks became simplified, but it was criticized for decreasing flexibility of skills and motivation. Fayol's principles, such as centralizing authority to subordinates, ensuring equity between managers and employees, and striving for unity of goals, remain important today. The Human Relations Movement introduced the importance of monitoring both internal and external relationships within a business. This theory stemmed from the Hawthorne studies, which investigated the impact of social relations, motivation, and employee satisfaction, all of which influence individual work behavior.

The external environment encompasses technological advancements, globalization, ethics, diversity, increased competitions, and implications of risk management. According to Mintzberg, survival and success do not depend on strength or intelligence, but on the ability to adapt to change. Therefore, organizations should constantly prepare for future changes and seize opportunities to enhance innovation. Scientific management theory continues to have a role in today's management system. As part of this theory, Taylor developed reward systems that linked monetary rewards to performance. Although Taylor faced criticism for his belief that humans are motivated solely by money, it is evident that his theory can effectively complement other reward systems.

Modern organizations are focused on motivating employees using a mix of financial and non-financial incentives to boost engagement and improve performance. The concept of selecting the most suitable candidate for a job has regained importance, with qualifications, skills, knowledge, abilities, and experience being key factors in the selection process. Taylor's machine model theory played a significant role in popularizing mass-production techniques such as the moving assembly line. This theory emphasizes breaking down tasks to identify the most efficient

methods and training workers under supervision.

Research demonstrates the crucial importance of effectively managing both employees and customers for an organization's success. Numerous studies highlight the significant influence of human resource management practices on a company's profitability, reputation, and goodwill. In fact, research findings indicate that these practices can enhance an organization's market value by up to 30%. Nevertheless, it is essential to recognize that employees also present financial risks for the company.

Industries in the United States experience a substantial annual financial loss of about $300 billion, resulting in an average individual loss of $7,500. The causes for this include reduced productivity, employee absenteeism, high turnover rates, and expenses associated with workplace stress such as medical costs, legal fees, and insurance fees. As a result, organizations must prioritize improving their employees' knowledge, skills, and abilities to avoid these unnecessary expenses. In conclusion, managers have responsibilities that go beyond traditional tasks like planning, organizing, leading, and controlling.

Management theories and trends have played a significant role in shaping the management world and continue to impact daily managerial decisions. Despite facing criticism, these ideas and concepts were considered groundbreaking. For instance, Taylor's scientific theory of performance, which associated monetary rewards with productivity, was crucial in management thinking. However, it is now combined with non-financial incentives to enhance employee motivation and boost production. Similarly, innovative trends like selection criteria and mass-production techniques are still effective in today's workplace.

We now understand that the operation of all intertwined management theories is necessary for effectiveness. It is also evident that people are the most important asset of an organization. By establishing clear lines of administration and organization, along with cultivating flexible and healthy

relationships with the workforce, an organization can have more motivated and reliable employees. This can lead to a reduction in expenses and an increase in profit, reputation, and goodwill for the organization.

References

1. Text Robbins, S., Bergman, R., Stagg, I., & Coulter, M. (2006)
2. 'Management 4th Edition', French Forest, Australia: Pearson Prentice Hall. Journal Article Stambor, Z. (2006)
3. 'Employees: A company's best asset', Monitor on Psychology, 37(3): 28Brown, D.

(2007)

html> Reh, J. (2008)

<a href="http://www.hrmreport.com/pastissue/article.asp?art=269163&issue=186">Legge, C. (2008)</a>
<br>
<a href="http://www.bizcovering.com">Informania (May, 2007)</a>
<br>
<a href="http://www.bizcovering.com">‘Fayol Theory of Administrative Management’, (19/04/08)</a>

com/Management/Fayol-Theory-of-Administrative-Management. 26749> Onepine, (2005)