Essay Sample on Organizing and Managing Change in Contemporary Firms

Introduction

Organizational changes occur in most companies when the management incorporates specific policies to facilitate the accomplishment of projected objectives. Hence, the implementation and planning of the desired organizational change rely on the efficient application of certain tenets that influence the manner in which a company runs and organizes its operations. For instance, a selected organization approach dictates a company's transitional growth through minimizing organizational expenses and employees' resistance. As a result, managers can maximize the proposed changes' efficiency by utilizing the human relations approach. Besides, the contingency theory determines the manner in which firms operate and organize their processes to counter stiff competition from their rivals. In addition, globalization and emerging technological trends oblige the administration to adopt efficient organization theories that will ensure a company retains its market share. Therefore, the application of relevant organization theories initiates minor changes that refocuses a firm's operational strategy while transforming its approach to counter persistent competition.

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Contingency Theory

The contingency theory claims that managers do not have a correct approach that will efficiently optimize how firms operate their processes. Moreover, internal and external constraints will constantly modify strategies that seem to be the most appropriate in resolving certain circumstances. Consequently, a situation at hand stipulates the best approach a leader will utilize to address that particular issue. According to Baldus 2014, there is a proportional connection between a leader's effectiveness and their managerial traits (p.217). For instance, some leadership traits are effective to certain crises, but the management strategies should change to resolve different circumstances efficiently. Managers need to identify leadership styles that will assist in achieving the projected organizational objectives in a particular situation. Besides, managers need to evaluate three key variables that influence the Contingency theory's effectiveness in transforming a firm's approach to enhance its operations. Hence, detailed job description, employer-employee relationship, and a leader's authority in a particular organization influence the theory's efficiency. Managers who foster a cordial relationship with their employees have more influence in refocusing a company's operational policies. Hence, organizations with detailed job descriptions and a conducive workplace environment will benefit from the contingency theory compared to firms without structured tasks.

Organizational leadership is situational. Furthermore, the manager's actions rely on external and internal factors that have a significant impact on the integration of optimal organizational structure. The contingency theory enables one to understand complex organizational processes by focusing on the firm's multivariate nature. Subsequently, it empowers managers to operate companies under different external and internal factors. The theory obliges leaders to formulate customized strategies to solve various problems. Besides, it has a framework that offers certain solutions based on the environmental conditions a company faces. The contingency theory provides comprehensive insight into a firm's flexibility to the external and internal environment. It incorporates systems and behavioral approaches to design suitable and applicable solutions to a specific issue (Baldus, 2014, p.223). Hence, the theory does not depend on pre-designed organizational strategies. However, it endorses an approach that boosts a company's environmental adaptability. The contingency theory assists in the establishment of organizational decision-making systems. Therefore, it determines whether a firm will adopt a decentralized or centralized approach in transforming its organizational operations.

Most management critics claim that the contingency theory does not comply with the universality principles that apply to certain management circumstances. The lack of precise solutions to specific internal and external factors implies that firms are likely to incur losses due to the time and money spent to implement alternatives. In addition, it is quite challenging for the managers to incorporate all the relevant factors affecting organizational operations during the decision-making process. Money, time, and capacity are the essential constraints that will limit the management's initiatives to acquire comprehensive information to analyze the environmental factors critically (Baldus, 2014, p.231). Moreover, attaining a perfect link between the internal and external factors is very challenging, and it complicates organizational decision-making due to the limited statistics gathered. Therefore, the contingency theory boosts the operation of organizational tasks if it is applied rationally.

Classical Management Approach

Most of the contemporary businesses rely on the classic management theory to enhance their employees' productivity. Subsequently, it strives to empower the workers by nurturing a conducive workplace that provides the staff with the essential tools to maximize their output and efficiency. The classical management theory is efficient in boosting organizational output especially in firms that are associated with repetitive tasks. As a result, managers should develop a common technique that will be used in implementing organizational tasks based on the scientific management approach. For instance, the recruitment process needs to scrutinize prospective applicants based on their abilities and skills. The management should design an efficient work schedule that eliminates unnecessary interruptions (Gimenez-Espin, Jimenez-Jimenez and Martinez-Costa, 2013, p.679). Likewise, it should incentivize the remunerations to encourage the employees to increase their output to achieve the set organizational goals. However, supervisors should review their management policies and their efficacy before altering the firm's leadership style. An assessment on the leadership style one deems to be the most appropriate to a company might expose the weaknesses and strengths that the management did not recognize initially. As a result, a comprehensive evaluation of the company's operations will enable the supervisors to refocus organizational policies using the classic approach swiftly.

An organization should adopt a distinctive hierarchical structure to enhance the integration of the classic approach in different workplaces. Firms should have low, middle, and top managers to provide centralized leadership. Besides, the hierarchical structure is fundamental in promoting profit maximization, decision-making, and labor specialization due to its influence on the long-term organizational goals. The classic management theory advocates for the incorporation of the assembly line approach that prioritizes specialization given tasks are categorized, and employees have to understand their obligations (Gimenez-Espin, Jimenez-Jimenez and Martinez-Costa, 2013, p.686). Division of labor in the company promotes specialization that eradicates multitasking to increase efficiency and productivity. For that reason, incentives, specialization, and hierarchical structure promote autocratic leadership that ensures a quick decision is made on the most appropriate transformational objectives during a crisis.

Management critics have acknowledged the strengths and weaknesses posed by the endorsement of the classic management theory. Even though most of the managers do not prefer using the classic approach in their leadership, it has some exceptional strengths. Firstly, it has a precise management structure that outlines the employees' obligations. Secondly, it advocates for job specialization that promotes productivity and makes easier to accomplish the company's goals. Ultimately, the classic management theory eliminates incompetence through clearly defining the workers' roles. According to Gimenez-Espin, Jimenez-Jimenez and Martinez-Costa 2013, the classic management principles focus on controlling the workers' behavior to the extent that they underestimate the significance of creativity and human relations (p.689). The classic management theory views employees as machines, undermining their morale, input, and job satisfaction at their workplaces. Additionally, reliance on the employees' ability and experience is usually effective in the manufacturing industry. Therefore, the classical management approach should assist in streamlining operations in the manufacturing sectors where high productivity is mandatory.

Human Relations Approach

The human relations management theory purports that employees deserve a support system that facilitates their growth and development. As a result, if the workers are appreciated for the exceptional tasks they have performed, they will be inspired to be more productive. The person-centered approach disputes the classical management theory that concentrates on the notion that staffs work to receive more incentives (Gimenez-Espin, Jimenez-Jimenez and Martinez-Costa, 2013, p.686). The human relations rationale focuses on supporting and acknowledging the workers to enhance job satisfaction and growth. The human relations theory has objectives that support creativity, enthusiasm, and better healthcare. Consequently, the human relations theory focuses on communication, cooperation, progression, and satisfaction as the fundamental principles in enhancing operations in most firms.

Firstly, the human relations theory acknowledges the staff members' right to express their views. Hence, it promotes the development of communication skills among workers to express their grievances. Furthermore, it encourages the administration to create clear communication channels for employees. The communication process should be unbiased in relaying the workers' feedback and grievances (Baldus, 2014, p.228). Hence, the organizational communication process should focus on acknowledging and appreciating the workers' feedback.

Secondly, the human relations theory emphasizes the cooperation to motivate staffs to produce and achieve better outcomes. The executives should focus on fostering team building through indorsing cooperation. They should adopt the open door policy and oversee the execution of the organizational tasks. Such initiatives inspire workers when they see their managers showing interest and helping them to perform their daily tasks (Baldus, 2014, p.227). Besides, the supervisors should use such chances to promote staff collaboration and build cordial relationships. Therefore, the administration should adopt an affirmative conflict resolution to enhance cooperation among the employees at their workplace.

Thirdly, the human relations approach concentrates on the enhancing the employees' learning and skill progression. Subsequently, the human relations approach motivates the executives to aid in their workers' career development by designing realistic long-term goals. The supervisors should know their workers' strengths and weaknesses to propose valuable suggestions. For instance, if the managers recognize certain employees have great conflict resolving skills at their workplace, they should encourage them to apply for the human resource vacancies (Gimenez-Espin, Jimenez-Jimenez and Martinez-Costa, 2013, p.690). The administration needs to acknowledge that workers can outgrow their organizational roles, and embracing such facts plays a fundamental role in developing the company's leadership. Hence, the executives have a crucial role in improving their employees' career progression to secure the firm's future networking and consult...