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Contingency theory of management
Nature and importance of employee selection
Contingency theory of management
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According to Montgomery (2011; 56), the new concept of organization is facing the customer. It is he who says what he wants to buy and it is up to managers to avoid that this change is a threat to the survival of the organization, causing it to remain and prosper in this new environment is a challenge that will only be overcome if the company used its entire staff differently. It is also examined that the less qualified employee causes structural unemployment, which, unlike the staff reduction occurred earlier but does not disappear when the crisis passes. It is identified that one of the important functions to be performed by the leader and that here, can be seamlessly assigned in parallel to People Management, is also the observation of the …show more content…
In contingency theory staffing conditions is causing changes within organizations. That is, the staffing environment explains the phenomenon. Some deny this overall influence of staffing in the organization. The argument is that the influence of the organization is not dictated by the staffing, but only for what directly concerns the organization, that is, the technology on the environment. According to Montgomery (2011; 91), an important feature of the contingency theory is that if an individual cannot have a high level of organizational sophistication with the use of a single model, that is, there is no one way to make an effective and efficient organization. There will always be different alternatives for routing studies, problems and organizational …show more content…
Strategic management at Unilever follows the company's global guidelines and priority is the promotion of a motivating work environment that is safe, healthy and able to attract and retain the best talent. It is also a concern value diversity of the teams. For Unilever, it is to include and embrace the differences, creating opportunities for leadership development. The primary goal of the company is to develop an open internal environment of the multitude, mirroring within the company the complexity of the society in which they live in.
According to Hill et.al (2014; 56), the company also value the internal use, with emphasis on outreach opportunities and movement of employees within the company, as well as attracting and retaining the best professionals. To be a choice now for the talent, the company adapt and review their compensation according to the market reality. The security axis, they invested in improving working conditions and awareness
Moreover, the company has placed great significance on open and honest communications with the employees on many levels. Even more, leadership expected a plan that would utilize all human assets in a way that would support the organization’s attitude in servicing customers and employees. As such, they found it important to centralize the staffing initiative in order to maintain the unique corporate culture created in the beginning. Every one of these strategies would be focused on centralizing staffing, brining in the best possible employees, and retaining each on a high
Sainsbury’s mission statement is split up into several sections, first of all, to have great products at quality service and fair prices, secondly to be there for the customers and finally for their colleagues to be the difference. This is the mission and values of Sainsbury’s organisation which should be seen throughout their entire staff and the staff should know about it because of the fact that it is forced throughout all the different areas of Sainsbury’s managers and stakeholders. Sainsbury’s main goals are to sell products and services at prices that can relate to their customers, they achieve this goal by setting process and discount deals to attract customers to the products being sold. Also that colleagues are the ones who are making
“Managing strategically means formulating and implementing strategies that allow an organization to develop and maintain a competitive advantage—what sets an organization apart or what is its competitive edge.” (). By conducting a strategic analysis will allow This report provides a strategic analysis, execution, and evaluation of our corporation, Subway. With this report we are able to see what needs to be amended in our company in order to be more successful.
Strategic management is the ongoing process of ensuring a competitively superior fit between the organization and its ever-changing environment (Kreitner, G13). Strategic management serves as the competitive edge for the entire management process. It effectively blends strategic planning, implementation, and control. Organizations that are guided by a coherent strategic framework tend to execute even the smallest details of their mission in a coordinated fashion. The strategic management process includes the formulation of a strategy/strategic plans, implementation of the strategy, and strategic control. A clear statement of the organizational mission serves as the focal point for the entire planning process. People inside and outside the organization are given a general idea of why the organization exists and where it is headed. Working from the mission statement, management formulates the organization's strategy, a general explanation of how the organization's mission is to be accomplished. Then general intentions are translated into more concrete and measurable plans, policies, and budget allocations. Implementation is the most important part of the strategy. Strategic plans must be filtered down to lower levels to be success. Strategic plans can go astray, but a formal control system helps keep strategic plans on track. In the strategic management process general managers who adopt a strategic management perspective appreciate that strategic plans require updating and fine-tuning as conditions change. Given today's competitive pressures, management cannot afford to let strategic plans sit as is. A strategic orientation encourages farsightedness. Sun Microsystems Inc. is one company that developed a strategy to become the competitive leader and become the most reliable in the net business. I will explain how Sun's strategy integrates their marketing, management, technology, and service functions into one effective strategy. First I'll discuss who Sun is and what encouraged them to develop their strategy.
Hence, as a result from their participation in the company, the employee will provide labour. The labour that they provide will ensure the stability of the company progression and the maximisation of competency with other airline services. In fact, the larger the number of employee that the company have, the more efficient the company will be. Shortage of employees will surely contribute to the degradation of the company image as there are insufficient staffs to hold and organise the company (O'Sullivan, Sheffrin, & Perez, 2010). Hence, if the problem persisted, the company will face bankruptcy and will eventually shut down or in another cases, they will terminate the particular branch that face the problem of staff shortage.
Strategic management is the way of implementing different business strategies and plans to attain certain specific aims and objectives. It involves collection of decisions and different rules and policies that tend to define the results that are generated in the form of better business performance. For undertaking these activities, management should possess an in depth understanding and be able to assess the general and competitive external and internal business environment to take proper business decisions (Cornelis, 2010). McDonalds is an organization that offers a range of products and services in a very effective manner that makes it a market leader in providing fast food services all over the world. By enforcing suitable strategies, McDonalds can increase its level of sales and will also help in upgrading as well as sustaining the market by acquiring competitive advantage (Schoenberg, Collier and Bowman, 2013).
Compare and contrast the management theories of Frederick Taylor, Henri Fayol, Elton Mayo, and Douglas McGregor. In what sense(s) are these theories similar and/or compatible? In what sense(s) are these theories dissimilar and/or incompatible? How would a contingency theorist reconcile the points of dissimilarity and/or incompatibility between these approaches? The twentieth century has brought in a number of management theories which have helped shape our view of management in the present business environment.
The rapid development of media and technology in the world market today has helped companies to sell their products and get in touch with their customers more easily (Rayburn, 2012). However the success of a company depends on many factors, not that only whether it has brilliant advertisement or marketing campaigns. The main aim of a company is to create shareholder’s value which according to Bender and Ward (2008), companies have to manage both well in a trading environment and financial environment in order to do that. Hence, the financial strategy can be seen as one of the most important factors in contributing to the business’s success especially to a large company such as Unilever as it is all about strategic decisions related to raising and manage the funds in the most appropriate manner.
The case looks at prescriptive strategy as applied to multi-product group of companies. Unilever is based in over a hundred countries where multiple products are being made in each. However, the market is mature which means that growth is stagnant and innovation is almost non-existent. In order to improve on growth and sales, the strategies that are needed look at how to come up with new products that have high profit margins and penetrate new markets. The prescriptive approach was used to come with a strategy to improve growth and profit. In order to improve on innovation, both the prescriptive and emergent strategies can be used since both support innovation. From the case study, not much profit was made when the ‘Path to Growth’ strategy was first implemented (2001-2004). The strategy was initially based on cost cutting. There was a need to also build volumes through existing portfolio of branded products through innovation and marketing. By focusing on increasing sales in developing countries where growth prospects were high and increasing investment in personal care products where profit margins were higher, it was possible to improve the profit portfolio.
Unilever is a multinational company which ranks third globally in fast moving consumer goods. They have an excellent value chain which is one of the factors that has resulted in them to be among top consumer goods company globally. Their merger and acquisitions have led them to expand their company in different sectors of the consumer goods. They have 400 brands and sell their products across 190 countries. They have to work on some areas of the value chain to work even better than how they are working now. Also, there are many opportunities that will help Unilever to overcome their shortcomings and make them a successful Consumer goods
In my discussion, the main types of organizational strategies and structures will be listed and how they have impacted on Unilever’s improved performance and growth in recent years.
This indicates the importance of strategic management for organisations in making appropriate decisions and selecting strategies which will assist them to gain strategic competitiveness and as a result earn above-average returns.
Organizations have been affected by the recent economic downturn. Consumers have been negatively affected which ultimately affects the organizations. People are holding onto their money tighter than ever before. They are not spending as much which led to less profit for organizations. Nonprofit organizations suffer from budget cuts which affects them negatively as well. As a result of the poor economy, developing talent has become more important. “Leadership development has become increasingly important and an emerging trend to organizations in response to the increase in organization’s competitiveness” (Tonvongva, 2013, p 36). There are more organizations who are deciding to train and develop their employees. The development of internal employees eliminates or decreases the need to hire external candidates. Developing talent can save the organization money and can increase the morale as well. There are two kinds of interventions that are used to develop talent; these interventions are the career development intervention and leadership development intervention.
Strategic management has shown to enhance the company’s profits and market shares. Companies need to utilize strategic management in order to improve that their performance and organizations are set. Some of the benefits of strategic management are it brings new opportunities and development, the manager is more involved in their job role, the quality of the company is enhanced, implementing models that will bring the company growth and profits, it helps the manager to be organized in order for them to be successful, it brings certainty to the company, and provides management with a guide to what the company is needing to accomplish with their goals for the future. According to Nmadu (2007) he stated “strategic management has become more important to managers in recent years and defining the mission of their organization in specific terms have made it easier for managers to give their organization a sense of purpose” (Dauda, Akingbade, and Akinlabi, 2010, p.100). Strategic management can also have its disadvantages. A few disadvantages are time and effort that is put into the company, and discussing what is important for the company’s long-term goals. Another disadvantage is managers stay on the planning stage but forget to implement and take control of the plan. If strategic management is not enforced than this can cause effects on the companies market shares, and profitability. Enforcing a strategic plan will play a major role in the companies
In Today’s world, the composition and how work is done has massively changed and is still continuing to change. Work is now more complex, more team base, depends greatly on technological and social skills and lastly more mobile and does not depend on geography. Companies are also opting for ways to help their employees perform their duties effectively so that huge profits are realized in the long term .The changes in the workplaces include Reduction in the structure of the hierarchy ,breakdown in the organization boundaries , improved and better management tactics and perspectives and lastly better workplace condition and health to the employees. (Frank Ackerman, Neva R. Goodwin, Laurie Dougherty, Kevin Gallagher, 2001)