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Critical management has transforming some of the mainstream managerial theory to the traditional management concepts, which critical perspective of the moral, social and ecological conceptions and formed the currency management and organizations. Those alternative mainstreams gradually formed the perspective from the traditional management which focused on the, stable and flexible management to a variable state. The so-called popular change of management has special performance which focused on the learning ability of organization, innovation management etc. with the development of global economics and the broadly apply of internet. In the human resource aspect, the feminist, social and ecological conceptions have gain more attention in the normal management of organizations.
As the topic focused, there are two basic components, the organization and management, which the critical theory transformed rapidly and try to find a more acceptable theory.
According to the definition of Business Dictionary, the organization can be defined as:
Social units of people systematically arranged and managed to meet a need or to pursue collective goals on a continuing basis.
From the definition of Rushton, J.P. (1985) of nature and social science, the nature science is the study of the universe, which is the rule and laws of natural origin. The social science is the study of academic scholarship and human society, which use the scientific approaches to study the human behaviour and society, such as inter-relationship and logic. So the subjectivity is very important for the scientific studies and the critical theory attempts at establish a discontinuity between the natural and social sciences. The critical perspective of subjective and objective is very important for the critical management study.
The organization has its own management structure as a social unit. However, John M, Joanne and Phil's (2007) indicates that, the individual is the member of organizations, while most of them have different or not approach to the goal of organizations, also they cannot understand the real meaning of the organization and the transformation of it. While the organizations theory defined that, all the transformation is ultimately traceable to the human behaviours.
Nowadays, the organization theory has greatly influenced people's lives, and basically its importance for two aspects: the first is it identifies the questions, who we are and why we are. Secondly, the study of organization theory indicated how we interact with other people when dealing problems, as people normally confused under the complex social contexts and don't know how things appear to be. Clegg's (2002) also indicated that in his studies that, today, no one can pretend to understand the human condition that does not understand the organizations in which it is constituted, constrained and trans formed. Organization studies should be at the core of the study of the human condition, because without such subject matter - how in what ways, we collectively organize, dispute, do and change the things that we do - we would have nothing of any consequence to discuss.
So the study of organizations can explain and describe the things people do within the organizations, and also predict the further development of different organizational forms though the study of recurring patterns. Those functions of organizational study significantly improved the development of management theory, which can greatly help in the emergency management, predict and avoid the risks, also help setting the rules or policy within the organizations with the aim of practical control. John McAuley, Joanne Duberley, Phil Johnson (2007) introduced the organizational theory though the philosophical aspect, as its significant influence to the study, which focus on the Modernist organization theory, Neo-modernist organization theory, Postmodernist organization theory and Reflective organization theory.
Modernism Organization Theory
According to the online journal (2006) indicated that for the assumption of modernist organization theory, the performance of the organization is objectively real entities operating in a real world. When well-designed and managed they are systems of decision and action driven by norms of rationality, efficiency and effectiveness for states purposes. The organizational theory more focus on to find general and universal laws, method and techniques of organizations and management control, favours rational structures, rules, standardized procedures and routine practise. According to Paul S.A, Linda. F, Hugh.W's (2007) research, this kind of organization structure is clear efficient and effective for decision making and management, and also benefits for the firm development and equitable sense of the organizations. However, it less care about the mainstream aspects, like the human conditions, which involved the relationship between people, environmental and feminists etc.
Neo-modernist organization theory
The modernist organization theory had been studies in the twentieth century until now and still be a powerful and broadly acceptable theory for organizations in their development, however, there are some concepts need to upgrade under the mainstream of nowadays. The newer developed theory which known as neo-modernist organization theory is more focused on the human being conditions attention, which put human resource as the centre of the organizations. The neo-modernist organization theory used insights and methods from the social sciences to develop a distinctive organization theory that can be applied to issues of management and leadership in organizations (Journal, 2006). With the development of globalization and human right requirement, all the organizations under high competitive and diverse social environment, which require the firms put more attention on the human resource to increase the creative and high competitive ability. For another hand, the development of mainstream concept like feminist force the organizations pay more attention to the workforce, the modernist organization and its tough, high effective and efficient, less care of human requirement model is gradually taken by the neo-modernist organization theory.
Postmodernist organization theory
The postmodernist organization theory brought the new wave compare to the modernist theory model, which was influenced by the rapid development of the global economy and internet, both of which greatly impact people's behaviour also to the organization theory and the management of it. The development compare the last two organization theory can be summarized as: (Journal, 2006)
How to design the organizations. Increase dynamism and diversity.
Philosophy of thinking.
The Journal (2006) of introducing organization theory indicated that some characteristics required in nowadays organizations, like the flexibility and multi-skilling enhancement, and also the sense of importance of knowledge work, flexible use of labour etc., because of the post-industrial and information developed society. The rapid development of society greatly impact the way of people thinking and also the human's behaviours, as mentioned, one of the objectives of the study of organization is to explain and predict the relationship of human beings, the change of behaviour and way of thinking also promoted the innovation of the development of organization theory.
Reflective organization theory
The new theoretical position or postmodernist focused is to identify the world around us. This ideological framing helps the organization to find the importance of nature to individuals also to the personal relationship with in organizations. Addressed in the management applications, this can help the manager to understand the people's requirement and complex organizations. Furthermore, John M, Joanne. D, and Phil. J (2007), (Journal 2006) indicate that: this significance of these themes and theories is that they can help organizational members to develop deep understanding of, to reflect on, their circumstances in order to learn and develop.
All the studies of theories discussed above indicated the significant theme, which is the importance of the study of nature and social study of the human being and our society. The study explains and predicts the further development of different organizational forms, addressed on the organization management, which made the it more smooth, effective and efficient, also satisfy the requirement of mainstream and societal environment, enhanced the competitiveness of the organizations.
The management principle will be analyzed in this part though the analysis of a case study, the reform or state-own enterprise (SOE) of China. However, the reform of SOE of China is very complex, significantly social and economic decision of Chinese government, too many details can't be presented in this assignment, only several management problems that existing in SOE of China will be introduced and analyzed using the management principles. By analyzing the purpose and problem solving process, the principle of management will be presented. The principle basically focuses on the four paradigms, which shown as: ( Burrell, G., & Morgan, G 1979)
Functionalist Paradigm. It seeks to provide rational explanations of human affairs. It's pragmatic and deeply root in sociological positivism. Relationships are concrete and can be identified studied and measured via science. This paradigm has been mildly influenced by idealist and Marxist thought too.
Interpretive Paradigm. It seeks to explain the stability of behavior from the individual's viewpoint. They are most interested in understanding the subjectively created world "as it is" in terms of ongoing processes. It emphasizes the spiritual nature of the world.
Humanist Paradigm. In this view the consciousness of man is dominated by the ideological superstructures with which he interacts, and these drive a cognitive wedge between himself and his true consciousness, which prevents human fulfillment. These theorists are mainly concerned with releasing this social constraints that bind potential.
Structuralism Paradigm. They believe that radical change is built into the nature of societal structures. "Contemporary society is characterized by fundamental conflicts which generate radical change through political and economic crises. Source: http://faculty.babson.edu/krollag/org_site/org_theory/Scott_articles/burrell_morgan.html [online]
Background of State-own Enterprise in China (parts of the real situation)
According to Xiaozu W.'s (2004) research, the reform of SOE of China started from 1980s and had not finished yet, which had impact significantly for the China's economic growth and normal citizen's life, some of those is negative, while some of the influence is positive. The reform action had three stages from 1984 to now, and still ongoing.
Stage 1: 1984-1992
In 1980s there are lots of problems in SOE's management, which will be present in the following part; one of the major problems was that, the ownership belongs to the Chinese government. The employee's salary almost did not connect to their performance, in another word, whether good or not of the worker's performance gained the same salary, which greatly damaged the employee's incentives. The major change in this stage was that the government released more autonomy and financial incentives to the SOE manager, and also connected the employee's salary to their performance.
Stage 2: 1993-2002
In this decade, according to Xiaozu W.'s (2004) research, the major change was the release of small SOE's ownership to privatization. With the rapid development of China's economy, the competiveness also became more and more serious for SOEs. Chinese government freeing lots of small SOE's ownership to privatization, this action led to over ten million workers laid off from their position, which brought high pressure for the society and Chinese government.
Stage 3: 2002-present
The major reform in this period time was focus on the ownership release to diverse styles. With the opening of China to the global economic environment, different kind of mainstream rapidly changed Chinese people's behaviour and the way of thinking, also promoted the private organizations development and restructure. In this kind of situation, the slow reform process of SOE which under government's control can't match the high competitive environment. So the third stage of reform of SOE in China still focused on the ownership transforming, which can greatly promoted the reform process of SOEs and enhance their competitiveness in the global market.
Problems of SOE in China in 1980s or at the beginning:
The ownership of SOE. As discussed, the government controlled the ownership of SOEs which greatly damaged managers and employee's incentives. For another hand, there was a very special phenomena of China was that, the manager must had political background. This kind of special culture led to lots of un-normal situation, the managers of business less cared about the benefit of organizations compare the political achievement. Lots of wrong decisions had been made by managers in that period time, which also the reason why Chinese government put ownership freeing as the major task in the reform of SOEs.
Employees surplus. In 1980s almost all the SOEs had the same problem was that employees surplus, but low efficient. This situation basically because of three aspects. Firstly, low technology of SOEs, which need lots of people to finish the job. Secondly, the SOEs in 1980s had too much social responsibility; it had to provide job positions for all the workers, as there were fewer private businesses in that period time. Thirdly, low incentives of workers, which lead to situation of high value of workers but very low efficient. This kind of situation led to the high unemployed rate in the second stage of reform of SOEs, as the privatization of small SOEs, the manager laid off ten million workers. (Russell S, Zhaiqing G, Wang J, 2001)
Low professional of organizational management. In the early period, the management of SOEs was very confusion and inefficiency as the lack of professional managers also the policy problems which discussed a lot above.
Management principle analysis
According to Jonathan R. Woetzel's (2008) research, the reform process of SOEs in China had achieved great success in the last twenty years, and the focus on the specific problem discussed above, the management principle will be analysis from four paradigms: Functionalist Paradigmï¼ŒInterpretive Paradigmï¼ŒRadical Humanist Paradigmï¼ŒRadical Structuralist Paradigm.
Ownership transforming problems
Jonathan R. Woetzel's (2008) indicated that, China's state-owned companies, like China itself, are diverse. Many of them would make better partners for multinationals than some of their private-sector counterparts. Openness, not ownership, is the key. Over the last 20 years reform, the SOEs in China had completely changed their appearance and performance and achieved the expectation of Chinese government. At the beginning Chinese government defined that the SOEs management, organization structure and performance did not apply to the market competition mechanism and decided to release the ownership to private or diverse style, with the aim to change the performance of SOEs and increase their competitiveness. After 20 years, the achievement proved that the government action is successes in active the SOEs potential and achieved better performance.
Employees surplus. The low efficiency of the SOEs had been greatly changed over the last 20 years, from the several people stay in one position and did nothing to high technological operations. The Chinese government also defined that the ownership problems greatly damaged the people's enthusiasm, and led to the low efficiency of the organization also the large waste of labor resource; while from the ownership transform, forced lots of people laid off their position and started another career, although it made high pressure for society and government at the beginning, which also greatly active people's potential and greatly promoted the economical development.
Management problem. The specific political culture led the lack of professional managers, and for another while, damaged their enthusiasm, with the aim to change this kind of situation, Chinese government started to change from the roots of the problem, which as know ownership transforming. The effect had shown from the end of the first stage, which used the form of "contract responsibility system" which means connect the performance and responsibility to individual managers. For another hand, release financial and more power to managers also greatly promoted their management performance.
Ownership problems. In 1978, the Chairman of PRC, Dengxiao Ping indicated that must release the ownership to private owners with the aim to active the economic development after visited the Shen Zhen economic special development zone. The performance of Shen Zhen greatly attracted Dengxiao Ping's attention and deeply impact his economic development concept, also from then on, China started to open to the world and achieved the nowadays success. Analyzed from the interpretive paradigm, the personal experience or concept can greatly impact the decision making process, especially for the organizational managers.
Employee surplus. Qi Hong's case was the presented in Russell S, Zhaiqing G, Wang J,'s (2001) research, who laid off in 1997 and started his own career, up to 2001, Qi hong had became a very famous businessman in his hometown Liaoning province. Qi hong is just one of the ten million of the laid off workers, and this case is a individual phenomena, however, it also shows something from the government policy decision. The Chinese government forced ten million people in the second reform stage from 1993 to 2002 totally with two aims, the first, reduce the surplus employees and increase the effectiveness and efficiency of the SOEs, secondly, with aim to force those people restarted their career and promoted the economic development of China.
Management problem. With the reform process developed of SOE in China, there are lots of managers show their potential on organization management. Although in this case, under a very special situation, the potential of SOE's manager have been active by some government policy, while the interpretive Paradigm is very important in the management principle analysis, especially for the decision making process.
Ownership transforming. The humanist paradigm focuses on the human being's behaviour study. Focus on this case, in the beginning of reform of SOEs in China, the ownership style people's incentives creativity which against the basic management theory. With the process of reform of SOEs the government freed the ownership to private and connects employee's performance to their normal performance, which greatly promoted people's activity and incentives.
Employee surplus. It's really horrible not only for employee surplus, several people in one position and did nothing, but also for ten million people lost their job, however, the result is totally different. The first situation is kind of action of kill people's creativity and ambition for their career development, however, the second situation forced people to restart career, active their creativity for development. Although the Chinese government had no choice at that moment, it also promoted the economic rapid development for another aspect.
Management problem. From the postmodernist organization theory's concept, the human being is the centre of the organizations, which also the same to management theory. With the development of global economy, the knowledge workforce plays more and more important place in the organization and management practices. Focus on the case of reform of SOE in China, more and more professional managers play very important role in this process and promoted the economic development of China.
Ownership transforming. The structuralist paradigm emphasizes the objective research and study of management to achieve goal. Focus on this case, the management of the large organization, China, with the aim to develop economy, from this paradigm, the Chinese government had to transform its ownership to private owners, there is no alternative choice.
Employee surplus. Sometime the structuralist paradigm of management principle seems a little bit relentless, however, from the most objective viewpoint; it ought to lay off some of the employee in this case.
Management problems. From the most objective aspect for this case, what the SOEs need are the professional management to promote the whole process on the right way and achieve the expected goal. That also the way SOEs doing in China, those management action changed the impression of themselves to the world also present a more and more better performance.
The study of organization theory in this assignment indicated that, with the development of the global economies, the people and the knowledge workforce had become more and more important for the organizational management. The development of organization theory from the modernist theory to reflective organization theory indicated the importance of study of human behaviours. The organization theory identifies, explain and predict the relationship between human behaviours and organization development which more and more connect to the social environment.
The case study of management principle practice analyzed the management of the reform of SOEs in China, which explain the diverse aspects of the four paradigms, shows the different kind of factors which impact the management.