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Business Management Theories.

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Business Management Theories Introduction * Explain the role of management Management is a process concerned with coordinating and integrating work activities to achieve the goals of a business, with and through other people. Successful management is about achieving goals. Effectiveness is management is about achieving goals. Efficiency is concerned with the relationship between inputs and outputs. Effective management invariably results in business success, while ineffective management often results in business failure. Body How the old management theory contributed significantly to the problems Sparks faces. Understanding management theories is vital to managers who are concerned with practical issues such as efficiency and productivity. They provide managers with a theoretical perspective at the nature and responsibilities of management within a changing environment. Features of Classical-Scientific Theory Scientific management focused on functions of management. Management functions were grouped on the basis of whether they were concerned with planning, organizing or controlling. It was believed that efficiency and productivity would be achieved through division of labour, which is concerned with breaking the total job into small, narrow repetitive tasks. Defined as ' the one best way of doing things'. The classical theory is characterised by a hierarchical organisational structure based on division of labour. ...read more.


To most effectively improve efficiency and productivity the business needs to adopt the Behavioural theory of management to address the current problems and achieve the new business objectives that recognised as a result of the current management theory. Features of Behavioural Theory The behavioural theory of management focuses on the human needs and aspirations in a workplace. This theory recognises the importance of human behaviour in the success and failure of a business. This approach is very different from Classical-scientific theories, which regarded people as machines. Motivational techniques such as rewards are used as incentives to improve performance Under the behavioural theory the role of management moves away from the simple planning, organising and controlling aspects, towards new roles such as leading, communicating and motivating employees. All of which raise productivity and performance. The behavioural theory gives staff opportunities to become multi-skilled and development of career paths. This style of management uses a participative/democratic style of leadership that recognises the need for employee input into decision-making. It is characterised by a flattened organisational structure and work teams. A flattened organisational structure involves removing layers of middle management creating a less hierarchal chain of command, resulting in a wider span of control. ...read more.


Increasing efficiency makes the business more competitive. Once the flattening has occurred the next strategy that must be used is the creation of work teams. This evolutionary division of labour focuses a whole group of people to work together on a particular task, as it is too big for one person. It encourages common goals and sharing of human resources. This strategy leads to a higher productivity in a business as can be seen through Microsoft who implores this strategy. This leading software developer uses work groups to provide shared workload, common goals and support network. In the case of Sparks this strategy can be used to place emphasis on selling and marketing and create focus groups as suggested by staff. * Switch to proactive rather than reactive. Tools available such as; o Situational Analysis o Forecasting o SWOT (Strengths Weaknesses Opportunities Threats) Conclusion The new management theory will solve current problems, and the management strategies will compliment this and improve efficiency and productivity, and how the business will use a model for change. Force Field Analysis: is a strategy employed in order to identify the various forces influencing a particular situation or problem. The analysis answers questions about which forces it would be most worthwhile to influence. Change is characterised as a state of imbalance between driving forces and restraining forces. ...read more.

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