Literature review of Approaches to Management, Structure and Culture

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The strategic importance of management to national economies has grown considerably over the last quarter of century (Cole,G.A.2000, p.87) Flower Power as well as other organisations has to deal with the consequences of more rapid innovations in technology, which has revolutionised many of the processes by which goods and services are made available to customers and they have to face with increased expectations of customers for the quality and variety of goods and services (Hannagan, T.2008, p.5).

The scientific management approach developed by Frederic Taylor, is based on the concept of planning work to achieve efficiency, standardisation, specialization and simplification. The responsibility of management was to select, train and help workers to perform their jobs properly. The job of management was to plan and control the work. Taylor's claim that the only motivation driving people are their needs.

Henri Fayol created a "theory of administration". He introduced the principles of management, which where orientated on solving administrative problems and carrying out the functions of management. Fayol formulated 14 principles of management to the activities of management such as authority and responsibility, discipline, equity, scalar chain necessary for effective management of the company. Principles were divided into three groups: structural, procedural and effective. Compared with Taylor, Fayol had a comprehensive view of management very similar to modern ideas (Hannagan, T.2008, p714). Fayol first proposed to consider the management activities as an independent object of research. Many management principles still have practical value. Scientific management concentrated on how work was organised on the factory floor, while administrative management considered the organisation as a whole.

Max Weber developed a theory of authority structures and gave attention to the significance of large organisations. He described an ideal type of organisation that he called a bureaucracy, characterized by division of labour, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships. Weber's theory became the design prototype for many of today's large organisations.

Mary Parker Follett and Elton Mayo recognised the limitations of the scientific management perspectives (Boddy.D.2008,p.54). Follet was the first who defined management as "enforcing work with others." Follett stated that managers and workers should view themselves as partners as a part of a common group. She proposed that managers should rely more on their expertise and knowledge to lead subordinates rather than on the formal authority of their position. Follett addressed issues that are timely today, such as ethics, power, and how to lead in a way that encourages employees to give their best. The school's "human relations", focuses on the psychology of attitudes, behaviours and needs of individuals, social interaction and group interests.

E. Mayo's impact on the replacement of the concept of "rational worker" concept "social worker". Elton Mayo stated that employees would work harder if they believed management was concerned about their welfare and supervisors paid special attention to them. This phenomenon was subsequently labelled the Hawthorne effect.

The human resources perspective combines prescriptions for design of job tasks with theories of motivation. The best-known contributors to the human resources perspective are Abraham Maslow, Douglas McGregor, and Frederick Herzberg.

Abraham Maslow, proposed a hierarchy of five needs: physiological, safety, social, esteem, and self-actualization. In terms of motivation, Maslow stated that each step in the hierarchy must be satisfied before the next level can be activated and that once a need was substantially satisfied, it no longer motivated behaviour.

Douglas McGregor formulated Theory X and Theory Y. Theory X presents an essentially negative view of people. It assumes that they have little ambition dislike work, want to avoid responsibility, and need to be closely supervised to work effectively. Theory Y offers a positive view, assuming that people can exercise self-direction, accept responsibility, and consider work to be as natural as rest or play. The point of theory Y is that organizations can take advantage of the imagination and intellect of all their employees. The behavioural approach can be seen in organizations even today when, for example, a firm conducts research to determine the best set of tests, interviews, and employee profiles to use when selecting new employees.  

Modern management practices are based on consulting people and giving them responsibility for their work, while scientific management was based on telling people how to increase their earnings, training them and then expecting them to go ahead and do it (Hannagan.T.2008, p.713).

The process of strategic planning involves a number of important operations: planning, costs, production planning and sales planning. Main role of management is to unite people together in order to accomplish achievable goals. Management allocates resources to different departments and organize these resources in a way that organizational strategic goals are accomplished easily in the long run. The role of management is to perform such duties for the continuous existence and increased productivity of the organization.

Management also plays an important role in organizing. Management decides what kind of management structure they need to follow. Managers are tasked to recruit, hire and train people to perform various functions in the business. They also make decisions regarding how much they should pay the employees as well as their benefits, if any.

Control is one of the major roles of management. If changes should occur, it is management's responsibility to take necessary action. A business cannot perform without some form of control and this is where management comes in.

The decision making role of management applies to financial, budgetary, personnel, policy and security judgments. A good manager realizes the value of a company's employees and leads with the intent to motivate their staff, understands how to properly delegate and empower employees and also recognizes and acknowledges good performance by offering regular feedback and praise.

Most businesses still work on a hierarchal structure, but many are navigating towards horizontal structures. This structure is becoming more popular among smaller businesses and within singular divisions in larger companies because it allows employees to have a level of involvement in decision making. This is done with the anticipation of productivity increasing. In larger companies management cannot effectively function in this way simply because of their size, but within individual divisions, this way of thinking often yields success. Flower Power management should learn how to successfully integrate the traditional key functions with new organizational concepts to achieve a good balance which works within their company.

The Keith's approach is a classical school of management, mainly based on instruction and observation of employees. Many managers have been promoted internally without any training or support to help them understand role and activities of management. There is an on-going search for alternative approaches to Flower Power management. The human relation approach, which seeks the human relations pertains to motivating people in organisations in order to develop teamwork which effectively fulfils their needs and leads to achieving organisational goals could be a suitable option for Flower Power. In co-operation with training company Flower Power management could organise a training course 'Alternative approaches to management'. This course would be aimed at staff of Flower Power departments working in management, would help to understand the role and activities of management and would give members the chance to reflect on current and traditional Flower Power management approaches, and learn about new approaches and management would be able to select an approach that is most appropriate to the desired need or goal. Management should reflect new thinking, should handle all aspects of planning, purchasing, sales, personnel, promotion, and production.

The main aim of a manager is to maximise the output of the organisation through administrative implementation. Managers think incrementally, whilst leaders think radically. Managers do things by the book and follow company policy, while leaders follow their own intuition, which may in turn be of more benefit to the company. Leaders have a preference for innovation. Groups are often more loyal to a leader than a manager. A leader is someone who people naturally follow through their own choice, whereas a manager must be obeyed. A leader may have no organisational skills, but his vision unites people behind him. A leader can be a new arrival to a company who has bold, fresh, new ideas but might not have experience or wisdom. Managing and leading are two different ways of organising people. Keith, Managing Director, is not acting as a leader and not as a manager. He should get a training "Leadership and Management" develop organisational skills.

Business or corporate culture is the organisation's personality. It is the way in which the organisation thinks and how it does things. Some organisations have very strong cultures (Sutherland.J.1997, p.217).Harrison and Handy proposed four different types of organisational culture. Role culture is based on controlling all individuals within their roles and by the rules of organisation. Organisations where is project team plays the most important and power based on ability and expertise structured as a matrix and called task structure. Organisations where is project team plays the most important role and power based on ability and expertise structures as a matrix called task structure. A power and decision making concentrated in Managing Director Keith. Flower Power as a family business developed the power culture with a few rules in the organisation. If Flower Power would have a person culture then decisions would be made on more collective basis .Flower Power could develop any of these cultures and they would help management to co-ordinate and control the company itself but management needs to ensure that any organisational culture which they would have over period still successful and company needs to be able to change the culture if they want to be more competitive on market and more adaptable to economic situation.

To conclude it can be said that the classical theorists of organization were basically concerned with effective and efficient way to make a profit. People create structures to signify people's tasks and responsibilities towards the current objectives ,and to provide incentives for work that support them(Boddy,D.2008,p.347)