Management Principles

MANAGEMENT PRINCIPLES 12

ManagementPrinciples

Table of Contents

Task1 3

Introduction 3

Significance of managers 3

Part 2 4

Introduction 4

Differences between mechanistic and organic culture 5

The mechanistic organizational structure 5

The organic organizational structure 6

Similarities 6

Task 3 7

Introduction 7

Formulating corporate strategy 7

Task 4 8

Introduction 8

Creating innovative culture 9

Reference 11

Task1Introduction

Toattainthedesiredsuccess,an organizationmust draftappropriatedevelopmentstrategy,philosophyanda seriesof goalsandprogramsthat are aimedat focusingandimprovingskillsandtalentsof theemployees(McCrimmon 2010, p. 1).Aproperfunctionality of theseprograms,philosophiesandstatementsrequiresappropriatemanagement,ensuringtheattainmentof organizational goals.Assuch,thesuccessof organizationslargelydepends on inspirational leadersandsoundmanagers,whohelpin theproperexecutionof corporate strategiesandengagetheemployeestowards organizational success.Themanagersare responsibleforensuringthattheorganizationis not merelyreactingto thechallengesbutthatall thestakeholders havea lucidunderstandingof whattheorganizationrequiresto succeed(McCrimmon 2010, p. 2).

Significance of managers

Themanagementsetsclearorganizational goalsthat are in linewith organizational missionandobjectives.Thesegoalsare usedtoevaluatewhethertheorganizationis movingtowards theattainmentof organizational objectivesat certainintervals.In theeventtheorganizationis not movingin therightdirection,themanagementformulatesnewgoalsortakesa correctiveactionto gettheorganizationbackon track.Thisisachievedby developinga uniqueplanthat fitstheorganization,ensuringalignmentto organizational missionsandobjectives,therebypromotingsuccess(McCrimmon 2010, p. 2). Theyorganize,coordinateanddirecttheemployeestowards attainmentof thesetgoalsby leadingfrom thefront,which is criticalto promotingorganizational success.Themanagementis criticalto ensuringthattheemployeesincreasetheir skillsandjob-related talentsthrough trainingorfinancingemployeestraining(Sims 2002, p. 53). Additionally, theyhelptheemployeesfindmotivationthrough rewards,effectivecompensation,andrecognition,providingappropriaterolesandresponsibilitiesthat leverageson employeesskills,talents,andmotivationto promotecorporate success(Hellriegel&amp Slocum 2009, p.57). Mostindustrial-agemanagersandtransformational leadersoperateusingthe‘boss-knows-best’ mindset, which is criticalto injectingmotivationto employees,helpingthem discovertheir corestrengthsthatarethenchanneledtowards organizational success.Theymeasuretheperformancesof individualemployees,recognizethebestperformersandencouragethepoorperformersto reachtheir fullpotential, which leadsto organizational success(Sims 2002, p. 56).

Mostmanagersare thecreatorsandfacilitators of organizational culturesandstrategies.Through staffing, theyseekandbringtherightpeopleandresourcesinto theorganization.Theyavail allothermechanismsrequiredto fostercreativethinking,therebypromotinginnovationthat is criticalto organizational success.Additionally, theyenhancecommunicationwithin theorganization,givingclearandpreciseinformationforspecificinstructionsandcreateidealmodeforfeedback (McCrimmon 2010, p. 3). Above all,theydesigntheorganizational structureanddeterminetheinteractionof thevariousaspects,functionsanddepartmentswithin theorganization,baseon reliability,simplicityandflexibility,therebypromotingtheattainmentof organizational goals.Thisshowsthatthemanagementis thecoredriverof organizational performance.Unlike leadership,themanagementnot onlydirectsbutalsofacilitatesandengagesin theattainmentof organizational goals(McCrimmon 2010, p. 3).

Part2Introduction

Organizationstructurerefersto thetypeof frameworkthat distinguishesits authority,powers,roles,andresponsibilities,as wellas themethodologyinwhich informationflowswithin theorganization.Organizational structuresare uniqueandhelptheorganizationto adapttouncertaintiesas wellas in theattainmentof organizational goals.Themostcommonorganizational structuresincludethemechanisticandorganicstructures(Salama 2011, p.78).

Differences betweenmechanistic and organic cultureThemechanisticorganizational structure

Themechanisticorganizational structure,alsoknownas thebureaucratic structuredescribesastructurethat isbasedon formalcentralizationnetwork.Thisorganizational structureis bestsuitedforcompaniesthat operateunder certainandstableenvironment,andthatdoesnot requiretheorganizationto changeits structureoften.Thestructureisdefinedbyawell-definedhierarchical authoritystructure,wherethetopmanagementmakesamajorityof theorganizational decisions(Lunenburg 2012, p.2). Thesubordinatesare expectedto followthemanagementdecisionwithout questioningtherationaleforreachingdecisions.Therelativestabilityunder which thesecompaniesoperatesreducestheneedforthecomplexdecision-making process,hencethesubordinatesare not requiredin thedecision-making process.Like thedecisions,communication,muchof which is written,followsthelaiddown hierarchy,from thetopdown,with thefeedback followinga similarpath,down-up. In thisstructure,there is individualizedjobspecialization, wherespecificemployeeshavespecificrolesandresponsibilities.Thisleadsto thelowintegrationbetweenfunctionalareasanddepartmentsin organizationsusingmechanisticorganizational structure.Additionally, thestructureis highlystandardized,with clearlywrittenrulesandstandardsthat are to be followedby theorganization(Salama 2011, p.96).

Theorganicorganizational structure

Incontrast,theorganicorganizational structureis usedin organizationsthat operateindynamicenvironmentsthat requirethem to adaptto change.Organizationsusingthisstructurehavea decentralized authority,with allstakeholders beingallowedto makedecisions.Like thedecentralized authorityanddecision-making processes,communication,mostof which is oralfollowsthehorizontalcommunicationstructure.To achievethis,organizationsusingthisstructureintegratethefunctionalareasanddepartmentstogethertoallowinformationto flowseamlessly between them (Lunenburg 2012, p.3). Unlike themechanisticstructurethat has individualspecialization, theorganicstructurepromotesjointspecialization, wherebyworkerscoordinatetheir effortsandskillsin a teamto attaina specificgoal.Thisgivesallworkersa broadunderstanding,allowingthem to respondquicklyto changes.Unlike themechanisticstructurethat is highlystandardized,theorganicstructureadvocates formutualadjustments,preferringface-to-face contactforcoordination (Lunenburg 2012, p.2).

Similarities

Despitethesedifferences,themechanisticandorganicstructuresare similarin thattheyacknowledgetheneedforspecialization in attainingorganizational success.Themechanisticstructureadvocates forindividualspecialization, whereastheorganicstructureadvocates forteamspecialization butwhich operatesas a unit(Lunenburg 2012, p.8).

Task3Introduction

Corporatestrategyissystematicandofficiallydocumented theprocessthat isusedin makingmajordecisionsthat corporate must getrightinordertosucceedin theattainmentof their goals(Bryson &amp Alston 2011, p.26). Corporate strategiesareuniqueandlargelydepends on thesetorganizational goals,among them, increasingprofitability, improvingapprovalratings,gainingmoremarketshareorcompletinga projectunder thestipulated time.Corporate strategiesarebasedon knowingthecurrentpositionof theorganization,thegoalandtheplanto attainthegoal.Indeterminingthestrategy,thecompanymust understandtheinternalandtheexternalenvironmentto identifythestrengthsandopportunitiesto use,andtheweaknessesandthreatsto be waryof forthesuccessof thestrategy(Salama 2011, p. 53).

Formulating corporate strategy

Thefirststepto helpa companyformulatea corporate strategywouldbeassistingitto analyzeitscontextandenvironment.ThisinvolvesSWOT analysis,corecompetencies as wellas theanalysisof thecorporate resourcesandliabilities.An in-depth analysisof theorganizationisagreattoolforthediscovering potentials anduniquestrengthsthat are criticaltocompetingandsucceeding.Itis an apttoolforevaluatingtheweaknessesandpossiblethreatsthat may inhibitsuccess.Further,I would encouragethecompanyto undertakeenvironmental analysisusingtestssuchas thePESTanalysis,Porter’s Five Forces andthePorter’s Diamond These analyseshelpstheorganizationto knowits positionin thelargerenvironment,therebyalignits missionalong thechangesin theoperatingenvironmentratherthan against it(Salama 2011, p. 117).

Afteranalyzingtheinternalandexternalenvironment,thecompanyshould identifyits strategicoptions.Theorganizationshould useits in-depth understandingof theinternalandexternalenvironmentandcreateclearadvantagesthat helpin theattainmentof thegoals.Strategicoptionscan be createdthroughbrainstorming, examiningtheSWOT andotheranalysisortheproblem-solving approach.After identifyingallstrategicoptions,theorganizationshouldevaluateandselectthebeststrategicoptionstofollow,pertinentto thesetgoals(Bryson &amp Alston 2011, p.76). Theevaluation processis criticalto adoptingthebestcorporate strategy,henceshouldbeconductedin thelightof thecontextual factorsthat wereidentifiedin thefirstprocess.Techniquessuchas theFailure Modes andEffects Analysis, Risk Analysis, andImpact Analysis may be usedto identifythepossiblenegativeresultsofadoptingspecificoptionsthat may otherwisebemissed.Thefinancialanalysistechniquessuchas theNPVs, IRR, CBA among others are alsohelpfulin determiningthemostprofitableoptionforprofitmakingorganizations(Hellriegel&amp Slocum 2009, p.93). Afterselectingthebestoption,theorganizationmustchecktheconsistencyof theselectedoption,ensuringthatitisproperlyalignedwith thevision,mission,culturesandvaluesof theorganization.Thesoundness andthereasoningprocessusedto developtheadoptedcorporatestrategyshould thenbe checkedusingtheLadder of Inference to ensureits applicability (Salama 2011, p.145).

Task4Introduction

Organizationalcultureincludessharedassumptionsvaluesandbeliefswithintheorganization,andthatgovernsthebehaviorsandoperationsof allworkerswithin theorganization.Organizational culturesare uniqueandprovidetheboundariesandguidelinesforthebehaviorsof theworkersin an organization,rangingfrom howtheyact,dressorperformtheir duties(Hellriegel&amp Slocum 2009, p.87). Organizational culturescan be definedusingseven characteristicsthat rangefrom highto lowprioritywith theadoptedcultureremaininguniqueto thecharacteristictheorganizationseeksto maintain.Thesecharacteristicsincluderiskorientationorinnovation,precision,achievement,fairness,collaboration, ruleandcompetitiveorientations(Claver &amp Llopis 2012, p.1).

Creating innovative culture

Organizationsseekingto establishan innovative culturemay adoptdifferentpaths,butcertainlyallmust startbychangingthemindset of thepeople.Thisstartsby acknowledgingthattheworldhas changedsince its creation,itis changingandwill keepon changingevenin thefuture.Thismindset must beginat thetop-levelmanagementandpermeatethrough otherlevels of management(Phillips &amp Marketing 2012, p.3). Thechangedmindset among theseniormanagementis keyto creatingan innovative organizational culture,since themanagementwill be walkingthetalkby funding andsponsoring newideasthroughout thecompany,which is keyto establishingan innovative culture.Otherthatfunding innovation,themanagementmust motivatetheemployeesto adopttheinnovative culture.Thismayinvolveadequatecompensationsince, as rationalindividuals,compensationis criticalto motivation.Additionally, thefirm should rewardandrecognizetheindividualsthat haveadoptedtheinnovative cultureto compelthewholeworkforce toparticipatein innovativeactivities.Itis not until theearlyadopters of theinnovativeculturesare rewarded,compensatedandrecognizedfortheir effortsthatthewholeworkforce will agreeto adopttheculture(Phillips &amp Marketing 2012, p.2).

Otherthatfunding andcompensatingtheworkforce foracceptingtheinnovative culture,themanagementshould ensurethatthere is effectivecommunicationat alllevels of management.Theexpectations of thecompanyshould be communicatedto all thestakeholders repeatedlyandconsistently inorderforthecultureto be understoodandputinto practice.However,thecommunicationshould be followedby actions,with themanagementwalkingthetalkandbeingtheleadersin innovation(Claver &amp Llopis 2012, p.3). Thisshouldbe followedby effectivetrainingoftheworkersto assistin thetransitionto theinnovative culture.Whileeffectivecommunicationtellstheworkerswhatto do,itis effectivetrainingthat teacheson themethodologies forinnovation,as wellas changingthemindset of theworkers.Effectivetrainingshould be futureoriented,focusingmoreonnewprocessesandmethodsforidealinnovations(Phillips &amp Marketing 2012, p.3). Thefinalprocessof promotingtheadoptionof theinnovative organizational cultureinvolvesmeasuringtheoutcomesof theadoptedinnovative culture.Themanagementshould developmetrics to measurethelevels andachievementsof theadoptedinnovative culture,forcompensationof effortsandensuringthattheinnovativecultureisalignedto themissionof theorganization.However,themanagementmust be readyto embracefailureanduseitas leapfrog to otherinnovations,ratherthan condemningthefailures(Phillips &amp Marketing 2012, p.4).

References

Bryson,J. M., &amp Alston, F. K., 2011. Creatingyour strategic plan: A workbook for public and nonprofitorganizations.San Francisco, CA: Jossey-Bass

Claver,E &amp Llopis J., 2012. OrganizationalCulture for Innovation and new Technological Behavior.Retrieved fromhttp://faculty.mu.edu.sa/public/uploads/1360752011.8013organizational%20cult12.pdf

Hellriegel,D., &amp Slocum, J. W., 2009. OrganizationalBehavior.Mason, OH: South-Western Cengage Learning.

Lunenburg,C. 2012. Mechanistic-Organic Organizations-An Axiomatic Theory:Authority based on Bureaucracy or professional norms. International journal of scholarly academic intellectual diversity,Vol. 14(1).Retrievedfromhttp://www.nationalforum.com/Electronic%20Journal%20Volumes/Lunenburg,%20Fred%20C.%20Mechanistic%20&amp%20Organic%20Organizations%20IJSAID%20V14%20N1%202012.pdf

McCrimmon,M., 2010. A New Role for Management in Today’s Post IndustrialOrganization. IVEYBusiness Journal of leadership.Retrieved fromhttp://iveybusinessjournal.com/publication/a-new-role-for-management-in-todays-post-industrial-organization/

Phillips,J. and VP Marketing, 2012. Creatinga Culture of Innovation: Changing your culture to accept and embraceinnovation.Retrieved fromhttps://ovoinnovation.files.wordpress.com/2012/07/creating-an-innovation-culture.pdf

Salama,A., 2011. Creatingand re-creating corporate entrepreneurial culture.Burlington, Vt: Gower Pub.

Sims,R. R. 2002. OrganizationalSuccess through Effective Human Resources Management.Westport, Ct: Quorum Books.