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Changes in the contemporary business environment
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Today’s business environment is increasingly global and competitive, the influence of organizational behavior, the efficient human management and the nature of a relationship between people organization. This essay studies the changes in the business environment since the past one hundred years and how the organizations have responded to the identified challenges because of the changes that occurred. Moreover, it explains how the attitude of the consumers towards the workplace has changed in relation to their expectations, motivation and job satisfaction. Then this essay will identify the current changes and trends adopted by the organization in order to manage the people and the importance of a manager to understand the perception of the needs …show more content…
In the light of Hablemitoglu, Ozkan and Purutçuoglu (2010. Pp.222-228), organizations in the modern world and after hundred years of management generally use Maslow’s hierarchy of needs. As we can see from the Figure Ι, this theory puts emphasis on five factors that are aligned with the performance of an employee, physiological, safety, love, esteem and self-actualization. The employee of an organization is motivated to work if these factors are fulfilled by the management. For instance, if his or her physiological needs are being fulfilled, i.e. food, shelter and water, he will be willing to perform better. On the other hand, if the employee is secure about his job, he will ensure that he retains it by performing to the expectations. In the Maslow’s hierarchy of needs, there are two important factors for managing the workforce in the modern business organizations, motivation and satisfaction (Gagné and Deci, 2005. Pp.331-362). Employees who are satisfied with the factors and incentives being provided by the organization are more likely to be motivated to perform better, which is completely different from the past. For instance, if an employee feels he or she does not have enough knowledge about a certain department in the organization, the management can fulfill his or her esteem factor by planning a career …show more content…
Contingency theory believes that there are no best form for the organization and focuses on designing general principles which dependent upon the nature of the task and the environment (Mullins, b, 2011. p.280). In the studying of leadership style, there is no unitary style of leadership is suitable to all situations. Facing new individual and dynamic environment, the leadership style need to be adjusted and adapted through changing in characteristics, power, relationship between employees and groups and so on. In the studying of management style, McGregor (1960) put forward two suppositions named X and Y theory which is a management theory in which an employer identifies the factors that create an impact on the performance of the employee. The major principle of theory X is control using a centralized system of organization and the exercise of authority. Nevertheless, theory Y needs to integrate organizational and individual goals. Theory X is used when the manager believes that the work lacks ambition and needs a certain kind of incentive to perform better. On the other hand, theory Y believes that the workers are responsible naturally and do not require any incentive (Capozza, Brown, Aharpour and Falvo, 2006.
Contingency leadership theories attempt to define leadership style, the situation, and answer the if-then contingencies. Situational leadership theory is a contingency theory that focuses on followers’ readiness: the extent to which people have the ability and willingness to accomplish a specific task. Path-goal theory states that it is the leader’s job to assist followers in attaining their goals and to provide direction or support needed to ensure that their goals are compatible with the organization or group goals. Each theory was developed as a separate model for leaders to determine which leadership style to use in different contexts or situations. However, both models can be related to each other and may be even more effective when used together. Effective leaders will recognize that they must adjust their styles and behaviors according to their followers and the environment. By accurately assessing their team’s stage while minimizing redundancies in the environmental structure leaders can improve their team’s performance and satisfaction.
Situational leadership is a theory which was designed in 1969 by Paul Hersey and Ken Blanchard. The “contingency theories of leadership” states that a leader’s effectiveness is dependent on their behaviours in relation to different situational factors. Thus, situational leadership theory, relates to how a leader 's effectiveness is depend on their ability to adjust their leadership behaviour to the required level of the “followers” capability or if the situation is modified.
The situational leadership theory states that leaders use different styles and strategies depending on the situation. There are two models that support this theory. The Fiedler’s Contingency Model of Leadership Effectiveness states that an “effective leadership occurs only when there is an ideal match between the leader’s style and the group’s work situation” (pg
In this theory leadership style changes as needed to ensure that the goal is achieved (Huber, 2014). Each situation may need to be addressed differently, which requires flexibility by all involved, especially leadership. Managers need to evaluate every individual to understand what they are capable of and how they fit the needs of the institution and or situation (Nash, 2015). As a nurse I think this is a very important trait for a leader to have because of how quickly things change and how we must work within our environment. For example, in healthcare we sometimes have to allow others to take control of a situation on to ensure the best possible outcome for each patient. In addition, the manager needs to ensure that each person works within the scope of their practice, functions at the highest level allowed and completes their tasks. To be a successful leader in healthcare and achieve desired outcomes requires a high level of flexibility by leadership. I would also say that the contingency theory would also fit into my leadership style. The basis premise of this theory is that each situation is different and leadership needs to take that into account when managing a situation (Huber, 2014). At times a leader needs to look at the bigger picture and incorporate that in their decision making process. When looking at a specific situation taking input from all parties involved can lead to a more effective solution. We can learn a lot form those around us and need to take that in account to be an effective
Originally presented in the 1964 article “A contingency model of leadership effectiveness”, Fred Fiedler’s Contingency Theory states that there is no one best managerial style effective for all situations. Rather, effective leadership is attained when leader style and situational forces or aligned. (Fiedler, 1964)
The leadership model that is being chosen in this paper is the Theory X and Theory Y Leadership model and how to compare the two management style of each employee described in this paper. According to the Business Balls (n.d.), the Theory X manager is a person who is authoritarian and maintains a repressive style while showing characteristics of tight control and no development. They explain a Theory Y manager as a person who wants to have a high achievement, empower their employees, and giving their employees great responsibilities that they known that the person can handle.
(Schermerhorn, 2012) defines Contingency thinking, “Recognizes that management practices must be tailored to fit the exact nature of each situation” (p.6). The research suggests that Trader Joe’s management is very formulaic in their approaches from defining and maintaining company culture to site location and advertising methods. Daft, R. L. (2015) States, The idea behind contingency theories is that leaders can analyze their behavior to improve leadership effectiveness” (p.17).
Pardee, R. L. (1990). Motivation Theories of Maslow, Herzberg, McGregor & McClelland. A Literature Review of Selected Theories Dealing with Job Satisfaction and Motivation.
“Contingency theory is a class of behavioral theory claiming that there is no best way to organize a corporation, lead a company, or make decisions” (Pfeffer, 1997). There is no simple or one right way to run things. In the 1950’s and 1960’s, two men named Henri Fayrol and Frederick Taylor continued the study of contingency theory. Research in the 1970’s dealt with the organizational structures and leadership styles for different situations (Thompson, 2005). Contingency theory was started by Joan Woodward, whose company research found that different types of processes were linked to different structures and amounts of control. She said that certain organizational forms are appropriate for certain forms of work. Woodward was a pioneer for the theory. Woodward composed several studies using differential variables such as management levels of a company, industry compressions, and management styles in her measurement (Thompson, 2005).--. From those tests, she has identified that there are three influential aspects to contingency theory: environmental, organizational, and leadership. These factors are the key components that influence the success of a business.
Those who take this approach assess the current situation by identifying its major factors, then focus and act on those aspects of the situation (McNamara). In his book, “Leadership Management: Achieving Breakthroughs,” K. Barman writes that by adopting the Contingency theory, the manager believes that there is no correct or best way of leading; what works in one situation may not necessarily work in another. Due to this assumption, one can say that contingency theory is similar to situational theory; there is no single, simple, or exact way to handle all situations, and effective management depends on the situation (50). Contingency theory is different from situational theory, however. He writes,
The contemporary era is the time with constant changes and new demands. In view of this point, we can't put unitary leadership into real work. Accordingly, the term of "contingency leadership theory" (also namely "situational leadership") is given rise to by those situational factors. This theory notes that managers can vary their styles to suit different circumstances.
A new element has been introduced by the contingency approach, which takes into consideration the impact of the organizational or work group on the extent to which given leader traits and behaviors will be effective. The approach was used mainly in the late 1960s and 1970s. Fiedler 's contingency theory, path-goal theory, the Vroom-Yetton-Jago decision-making model of leadership and the situational leadership theory are the most popular contingency
In daily life, we need motivation to improve our performance in our job or in studies. Motivation is an internal force, dependent on the needs that drive a person to achieve. In the other words, motivation is a consequence of expectations of the future while satisfaction is a consequence of past events (Carr, 2005). We need to give reward to our self when we did correctly or we has achieve our target. Reward is something that we are given because we have behaved well, worked hard, or provided a service to the community. Theories of motivation can be used to explain the behavior and attitude of employees (Rowley, 1996; Weaver, 1998). The theories include content theories, based on assumptions that people have individual needs, which motivate their action. Meanwhile according to Robbins (2001), motivation is a needs-satisfying process, which means that when a person's needs are satisfied by certain factors, the person will exert superior effort toward attaining organizational goals. Schulze and Steyn (2003) affirmed that in order to understand people’s behavior at work, managers or supervisors must be aware of the concept of needs or motives which will help “move” their employees to act.Theories such as Maslow (1954), McClelland (1961), Herzberg (1966) and Alderfer (1969) are renowned for their works in this field. The intrinsic reward or also be known as motivators factors is the part of Herzberg motivation theory. Motivators are involve factors built into the job or the studies itself such as achievement, recognition, responsibility and advancement. Hygiene factors are extrinsic to the job such as interpersonal relationship, salary, supervision and company policy (Herzberg, 1966. There have two factors that are called hygiene fac...
Motivation is an important function in organizations to motivate their employees for their ability to perform well, improving their skills, increasing productivity, job satisfaction and employee extension. Employees also are not a machines that we could just program their task in their brain and they will do it automatically, they require motivation to actually do their job properly. And so, after discussing the process models of the Maslow’s “Hierarchy of needs”, Douglas McGregor theory X and Y, and also the Herzberg’s “two factor motivation hygiene theory.” understanding the ways of motivating people, the human nature, and the substance of nature. I believe that the true motivation can only come from within and also managers can actually motivate all of their employees.
The environment contributes resources to the organisation only if the organisation returns desired goods and services to it.