Management Theories and the Workplace

Management Theories and the Workplace

This paper presents how Leaders and managers play critical roles in the engagement and development of the positive workplace environment.  The intention of management theory is to give managers an opportunity to increase organizational profit and service quality.  In today business, they usually use a combination of more than one management theory depending on the purpose and workforce to execute strategies in the workplace.  This paper also will discuss how the two common management theories: Open System Theory and Contingency Theory which apply to The Boeing Company.  It also describes the role of the directorate and evaluates the most efficient management competencies in work environment.

Open System Theory

Open system theory is the most common management method in the management.  The Bastedo (2016), "open systems theory refers simply to the concept that organizations are strongly influenced by their environment."  In this approach, managers use the feedbacks they get from their customers and research such as information, energy, materials, etc. to create their business strategies.  Before launching a new program, Boeing has been considering all the factors that may impact on their proposal product or service in the future.  The Open System Theory gives management a tool to collect all the pro and con for each proposal target, so they can have a better idea to create a better strategy.  If management doesn't use this tool, they may miss all opportunity to know better their customers and their markets.  However, the dis-advance of this tool is taking a time to get the feedbacks. Sometimes it may cause missing a chance to adapt a new opportunity or adjust the old strategies to meet the market demand.

Contingency Theory

 Contingency Theory is another comment management theory that applies to The Boeing Company.  In this theory, management decision based on the internal and external situation or circumstances.  In the Open System Theory, as we discussed above, works well for the new program or new product/service; then the Contingency Theory is the best way to manage the daily tasks.  Almost about 50% works from Boeing production lines depend on material and supplies from their suppliers.  The way managers organize the work should change based on each situation.  Depending on the level of management and the boundary work responsibility of them, this theory applies and works well with the executive level of the directorate because it gives them more freedom to make their decisions in choosing the new suppliers or new material when it needed.  For the first line manager which is the lowest level of management at Boeing, they use this theory to manage their daily teamwork.

Management Theories and Business Environment

The managers’ jobs and responsibilities have been changed significantly in the last two decades. The primary influents that have led to these changes are global competition and the advantages in high-tech and information technology (IT). The competition is getting stiffer, and stiffer not only locally but also globally have put more pressure on all managers to improve efficiently and effectively business result. As management involved from owner-manager type, and primary use and apply X style in the early of industrial Era to Servant-leaders style in the 21st Century. This change has a significant impact on all level of managers and leaders. In an earlier time, managers achieved their goals primarily by authority and Autocratic theory, where Servant-leaders in present time are challenged to use the technology in communication with employees to set a clear vision and goals for the company and achieve the company’s mission and goals by applying relevant management theories and styles. The increased pressure in competitions and the availabilities of IT have given managers opportunities to restructure and outsource some organization activities to reduce the number of employees on the payroll, and utilities cost but still be able to operate the company and compete well on the open market.