Contemporary Management Theories
The first stage in the development of management began in the early twentieth century and is associated with the teachings of Taylor after the publication of his book the Principles of Scientific Management, in which he first considered the scientific approaches and principles of building a management system (Appel-Meulenbroek & Danivska, 2021). The main idea of the scientist is the need to coordinate the activities of the enterprise for the common good, including increasing the salaries of employees. It was under the influence of Taylor’s teachings that Frank and Lillian Gilbreth’s management research papers appeared a little later.
The second stage in management development is associated with new approaches in the development of management doctrine, based on Taylor’s teachings, but with fundamentally new approaches. The so-called classical school of management, whose founders were Fayol, Urvik, and Mooney, will emerge and be tested in practice (Appel-Meulenbroek & Danivska, 2021). The contribution of this school is that they consider management as a universal process consisting of several interrelated functions.
The third stage in management development became known as the neoclassical stage. The school of human relations began to form, which is associated with scientists Mooney, Sloan, Mayo. The theories were developed based on advances in the psychological and sociological sciences, which have a decisive impact on the individual in the management system. Between 1970 and 1980, scientists began to develop new approaches in the development of management theory, the meaning of which comes down to the fact that the organization is an open system. (Appel-Meulenbroek & Danivska, 2021) This period includes Ansoff’s strategic management theory and Pascale and Athos’s Japanese-style business management approach. Competitiveness, as well as consumer qualities of products and resources, become important concepts due to Porter’s developments.
The Management Environment
The management environment should be understood as a set of factors that determine the boundaries of the organization. This concept also includes the goals and specifics of the entity’s activities, methods, techniques, and style of influence on people. The environment is also characterized by the mobility and complexity of its constituent elements. Mobility indicates how quickly environmental factors change. Currently, there is a tendency for constant growth of mobility of the environment, which significantly complicates the organization’s activities. Under the complexity of the environment is understood as a set of factors operating in it and affecting the organization’s functioning. In addition, the complexity depends on how variable the factors operating in the environment are and what fluctuations in strength they allow.
The environment can have uncertainty and is characterized by interrelated factors. Uncertainty exists when the decision-maker has too little information about the environment, or the available information may be unreliable. Every firm should strive to reduce the expression of this factor. Interdependence of the elements is commonly spoken of when a change in one of the factors entails a transformation of another one. An example is when the oil shock occurred in the early 1970s, causing an increase in the price of refined petroleum products (Cohen, 2021). This led to a general growth in the cost of almost all goods and services.
The external environment is a set of external actors and factors that actively influence the position and prospects of the organization but are not under the control of its leaders. The entire macro environment and part of the microenvironment form its composition. The main characteristics of the external environment of management include the increasing interconnectedness of factors, globalization, and complexity. The internal management environment is that part of the general environment that is within it. It has a constant and most direct impact on the organization’s functioning. Since organizations are human-made systems, internal variables are largely the result of management decisions.
The Analysis of the Management Environment
An analysis of an organization’s environment is the process of identifying critical elements of external and internal environments that may affect a firm’s ability to achieve its goals. This process performs a number of important functions in a firm’s operations. For example, the most influential factors affecting the economic organization and its future are better accounted for. In addition, the analysis provides the information necessary for the best performance of job functions. From a policy perspective, it helps the firm create the most favorable impression.
The process of analyzing the organizational environment begins with identifying the main elements of the firm’s internal and external space. Once these elements are identified, the firm must identify those that are most important to it. Then the firm gathers the necessary information about critical points. The analysis of the external environment of the enterprise is complicated by the main characteristics of the external environment. These include its uncertainty, complexity, mobility, as well as the interconnectedness of its factors. The environment of modern enterprises is changing with increasing speed, which puts more and more increasing demands on the analysis of the external environment. There is a need to develop such a strategy, which would take into account to the maximum extent all the opportunities and threats of the external environment.
References
Appel-Meulenbroek, R., & Danivska, V. (2021). A handbook of management theories and models for office environments and services. Taylor & Francis.
Cohen, J. (2021) The first oil shock? Nixon, Congress, and the 1973 petroleum crisis. The Journal of the Middle East and Africa, 12(1), 49-68. Web.