In recent socio-economical context, the management theories are facing some never-seen-before challenges from different corners. Many factors are posing threats to the businesses, and the decision makers are forced to rethink about the business strategies for sustainability. Generally it is seen that the human mind is materialistic and they basically value individual benefit more than the collective gains. It supports the famous theory of Darwin, the survival of the fittest, and Spenser only changed it to survival of the most adaptive in this case.
Some criticize that the organizational mechanisms (basing on the principal-agent theory) create short term gain and profits. But in most cases the people look for long term security, respect and acceptance. Actually leading a proper and meaningful life is really more important in most cases. This humanistic view of business can be useful in discussing business strategies, governance structures, leadership forms and organizational cultures. By discussing the effects we can use the humanism aspect to shape the future of the management-oriented aspects of the future organizations or the organizations that are working now-a-days in their future planning (Pirson and Lawrence, pp. 553–565).
The economic views of a person are generally predetermined by the utility functions of the condition he is prevailing. All the engagements of an economic man is only interest based, and these interests are mainly based on Maslow’s hierarchy of needs (the psychological and safety needs). But the humanistic views are generally dominated by universally appealing principles and they mostly focus on long term relationships. Although they do not have any fixed utility function, they can take courses and eventually exchange their views with the outside World.
In the case of any business, these humanistic perspectives are mainly based to ensure maximum profit. The organization can take decisions in the economical paradigm only to fulfill both the utility needs of the organization (like the RD sector), and also they need to use the results accordingly to ensure the ultimate profit of the organization and the share-holders. In this case, the case is mostly focused on the top level decision making aspects. But, on the other hand there are many enterprises that solely depend on the human skills for the productions. In these cases the authority levels do not have as much importance as the human labors that are solely responsible for earning profit for the organization. Here in this case all the expertise of the employees is directly involved with the development of the organization.
Another very important aspect of the case is the factor of leadership in the organization. The proper role of a leader in any organizational outcome is to be involved with the proper negotiation process with all the persons involved with a project and ultimately ensure the best possible outcome of the project. The economist type of leader is sometimes known as a transactional leader. And the responsibility of the leader is not less than any manager of a corporate set up.
To run a business in a proper way, we need to think about all the objectives of the business along with the ways of profit and all. And the humanistic view really works in this case. In the future, it will really help any organization who is undergoing a sustainability crisis in their approach towards their business, and it can solidify the positions of any company more than ever. This is and will be one of the very essential management theories in the future.
Works cited
Pirson, Michael A and Paul R. Lawrence. Humanism in Business – Towards a Paradigm Shift? Journal of Business Ethics 93.2010, (2010): 553–565