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Free «Complexity of Management Essay» Essay Sample

Management can have different meanings to different persons at diverse times, and a number of definitions have been presented. The term management is derived from the verb ‘manage' which can mean to handle, control, organize or to make and keep submissive.

Recent views of management theories stress the varying nature of the external surroundings and the need to comprehend and deal with the external forces that cause change. Even though some may outlook that we do not deal with tragedies, there is an overlap amid the contribution of emergency management and management theory. Management theory emphasizes the need for effectual planning to make sure that organizational objectives are obtained.

The meadow of management developed in its formalization throughout the last fraction of the Nineteenth Century and all through the Twentieth Century along with the increase of the industrial uprising. The development of management concepts was required to guide the expansion of industrial manufacturing in Europe and United States. Management is considered as a process, and if approached scientifically, it will lead to success. The principle of scientific management initialized an uprising in how both the procedure and the position of the manager are viewed

Management can be largely defined as functioning with individuals to establish, understand and achieve organizational goals by performing the tasks of organizing, staffing, planning, controlling and leading. It is a collection of procedures such as problem-solving, action-planning and decision- making. These processes engage the management of finance, material, time and resources. People frequently use the word ‘management’ to mean administration. An obvious distinction however, has to be made between administration and management.

Lack of sufficient concept development is considered a severe disadvantage in the development of an integrated and unified management theory. The complexity in the improvement of the concepts of management comes from the reality that, because management is regarded as an applied science, it needs rational theoretical ideas of its own. Management researchers have borrowed and employed perceptions from other disciplines. Theory of management has advanced in a symbiotic association to its supporting and related disciplines like statistics, behavioral sciences and mathematics, grudging the inspiration to develop its own theoretical framework, which is independent of interrelated disciplines.

Throughout the record of management, varieties of different schools of management deliberation have come out, and all sees management from their own. Classical management theory comprises of a group of related ideas on the management of organizations that changed in late 19th century and at the beginning of 20th century. This school, changed as an effect of the industrial uprising, in reaction to the development of large organizations and in distinction to the handiwork system that survived until then. The Classical school is at times referred as the traditional school of management amongst practitioners. It comprises of three branches, that is, administrative principles, bureaucratic organization and scientific management. The principal and common attribute to all these branches is the stress on the financial rationality of organization and management;

Taylor (1856-1915) is regarded to be the founder of scientific management. Frank, Lillian Gilberth, Harrington Emerson and Henry Gantt supported him in his efforts. All these supporters of Taylor became prominent in their own. They revolutionized management thinking together with Taylor. The scientific management is the is a term given to the practices and principles, that developed out of the effort of Taylor and his supporters and that are characterized by concern for competence and systematization in management.

The stress of a general or administrative management theory is on discovery of the best way' to run an organization. This school of thought is sometimes called traditional or administrative principles of management. Fayol (1841-1925), is the key designer and the founder of administrative management theory He developed a wide administrative principles and united idea of management appropriate to and higher and general managerial levels. Fayol used the term `administration' to refer management. He also focused on administrative levels and the organization as a whole.

Enthused by Fayol, Cyril O'Donnell and Harold Koontz advocated a new school of thought identified as the management process school. The two believed that management is a go-ahead process of doing the functions of organizing, directing, planning, controlling and staffing. These functions and the ethics, which they are based on, are thought to have universal and general applicability.

The concept of rational economic individual is often sturdily criticized. The supposition that citizens are motivated largely by economic compensation may have been suitable around 1900 A.D., as well as for a few individuals today. The assumption is not true under the latest state of affairs where the educational level and ambitions of persons have changed. Organizations have become more multifaceted and therefore need judgment and more creativity from employees.

The classical theory and its philosophy are attacked on the basis that they are conflicting, pay slight attention to inspiration, and make quick statements on what ought to be done, devoid of examining these assumptions. As a response classical theory, which over-emphasized the physiological and mechanical personalities of management, arose the schools of neoclassical theory, a more human-oriented concept and stress on the drives, needs, attitudes and behaviors of individuals.

Modern management theory points out the difficulty of the organization as well as persons and the variety of their motives, aspirations, potentials and needs. As a consequence, one time universal management standards are not viable. The complications require complex managerial approaches for dealing with organization and people. As against the coherent economic social person understanding of neoclassical theory and classical theory, the composite employee perception is the premises of contemporary management theory.

The complexity of management is not a thing of the past as many managers would say. However, there are a lot more complexities around businesses and organizations across the world at large. Management is a complex function in itself which concerns or cut across various disciplines including control, coordination, organizing and directing. All these must converge to bring about good results. Managers in most cases face tough decision making moments when there complex cases arise.

One example of such complex case is communication breakdown just for the common good of the company. Companies in most cases are exposed to the actions of stakeholders such as suppliers, government agencies and the public among others. However, immediate and direct stakeholder that deserves respect is the customer. Customers are the backbone of doing businesses.

Successes will be measured based on the transactions through the actions of these customers. One classical example is media reported case from the United Kingdom, “Co-op bank fined £113,300 for stalling over PPI claims. This is a real world case that impacted majorly on the consumers for insurance products from the bank. This bank ensured that claims up to 1,629 were put on hold until a court case ended. In this real case, the bank was playing tough games so that it could benefit from the court case. Benefits from the court case would only come if the case favoured the bank.

Complex management issues arose within the bank. Bank officials ensured total miscommunication to its customers. Also, the officials were not supposed to put on hold claims during the period of the case that was expected to affect the insurance package. Even though banks often delays claim payments for a given period, the co-op case went too far and this resulted in a heavy fine. Due to poor management strategies towards communication, this bank suffered a communication cost. Another similar case is from the media, “Lloyds Banking Group raises PPI bill by a further £1bn.”

Indeed, this bank forecasted growing compensation needs from its customers with mis-sold PPI claims. This real world case was aimed to bring more consumers for payment protection insurance. This move by Lloyds pushed it loss to £144 during the third quarter of the year. Such news would deep its share prices but in real case it did not, but rather, the shares rose to around 7%. In this case Lloyd’s management reported a drop in volume of complaints during the third quarter. However, even though this move reduced the number of complaints, it led to a rise in administration expenses on issues such as cost of contact and redress.

The Lloyds bank was also suffering communication complexities during the third quarter. The move to set aside more funds for compensation was to avert fines and comply with the rules from the financial services authority. Across the world, there is a rise in complaints from consumers. Even though banks reject PPI claims still bodies such Financial Ombudsman Service handle such cases. This means that communication is becoming one major complexity though many stakeholders do not consider it vital. Even within the organizations, employees alone can be united not by heavy packages of salaries and other privileges but only through clear communication strategies.

Clear and efficient communication will forever ensure operational efficiency within a given company. These two classical cases discussed need to adjust their communication strategies. Communication brings power to the desired group of people. Stakeholders often need to get adequate communication so that they can transact business of various kinds. Customers for payment protection insurance for these two institutions require close attention on their package because customer loyalty will be lost if there is no mutual benefit from such transactions.

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Fewer complaints will only be the result of an effective communication system. Clear communication will ensure that a company has the right group of consumers. Businesses will enjoy having the right demand in the market. Costs of transacting with such informed customers will always be as low as possible. Managers need to consider communication as one big challenge that can bring complexities at any moment. Efficient and proven strategies are needed to clear out issues that bring about communication bottlenecks in the system.


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