CHALLENGES FOR MANAGEMENT AND LEADERSHIP

Global Challenges for Management and Leadership



Global Challenges for Management and Leadership

Introduction to Management Theory

Theories are just generalizations of the practice, making interpretations. In regard to the theories of management Stoner offers the following definition: “Group consistent assumptions are presented to explain the relationship between two or more observable facts and provide a sound basis for predicting future events"(Stoner, 1989, p. 30). In this, and any other definition, there are three fundamental aspects: the "assumptions", which is the "theoretical framework", the systems concept of that part which makes the theory for the interpretation of what has been observed (or studied), the "observable facts" which are events that any other person can check and, finally, the "predictions" which expresses the possibility that the theory helps us predict what will happen in the future (Boddy, 2010, 727).

The pillars of the theory of management develop before industrialization. These pillars include the division of labour and specialization, organizational structure, span of control, the process scale or hierarchy of authority and delegation of authority. Second, centuries before industrialization, there were significant changes in the concepts of authority and power. It is known that there are three fundamental bases for legitimizing the authority these are tradition charisma and law (rational basis).

Competing Values Framework

Companies face ongoing changes and increasing complexity in companies with which they interact. These changes in the environment affect the relationship company with its participants, which are beginning to consider aspects not heretofore been considered, such as the problems of pollution, supportive behaviours. These different categories have influenced the thinking and in the desires of the participants of the company, which are conditioned by the institutional framework that surrounds them. All this means that legitimating is a process dynamic by which the company seeks to perpetuate its acceptance, evolving in rhythmic changes in the norms, beliefs, values and social definitions (Chakravarthy,Zaheer, 2009, pp.131).

The concept of competing values gets its name from the fact that the criteria described in four models seem to be contradictory. Organizations must be able to adapt and be flexible, but at the same time stable and controlled. Each quadrant of the concept is one of the four main forms of organization and management (Quinn 1988):

Model of human relations (Human Relations Model): Pays much attention to the elasticity and inner hub. It emphasizes the unity, confidence, and human resources development as the criterion of efficiency.

Model of Open Systems (Open Systems Model): Emphasizes elasticity and exterior centre, willingness to stress, growth, acquisition of resources and external support.

Model of rational goals (Rational Goal Model): Stresses authority and an outdoor focus. It examines the planning, goal setting, performance and effectiveness as the basis of efficiency.

Model the internal process (Internal Process Model): Emphasizes control and an inner focus, the position of information management, communication, stability and control.

Application

Analysis of the Company

It is characterized by the excellent quality of product at an affordable price. The company has plants in the U.S., Japan and the Netherlands with processes of art production as well as ...