Management Theories for Resolving Work-Based Problems in Global Organizations

This essay explores the applicability of management theories in resolving work-based problems in global organizations, with a case study of Marks and Spencer. It discusses the effects of globalization on organizations, leadership, and business strategies.

ESSAY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................5
REREFENCES................................................................................................................................6

INTRODUCTION
Globalization is a kind of process that has increased interaction and integration among
people, companies and government. Globalization has increased different kinds of work- based
management problems due to which it is becoming difficult for organizations to manage and
operate their business globally (Miron-Spektor and et. al., 2018). There are various management
theories that can be applied within organization that not only helps them in resolving different
kinds of work-related problems such as, communication, reducing cultural difference, reducing
chances of inequality, increase effectivity of leaders so that they can lead and manage all the
operations globally. This essay will lay emphasis on different kinds of management theories to
work based problems. In this essay case study of marks and Spencer will be focused upon. M&S
is a British retail sector organization that sells products such as cloths, food products and home
products.
MAIN BODY
Applicability of management theories for resolving work- based problems
There are various kinds of management theories that can be used by organizations for
resolving work- based problems that occur within an organization. Management theories are kind
of concepts that helps an organization in development of management strategies that further
works as a framework or guidelines that are implemented within modern organizations. There
are different kinds of management theories that applies in different ways to various kinds of
organization.
One of the most commonly used and known management theories is contingency
management theory. This theory is suitable to M&S organizations as well. This theory says that
there is no particular management approach that suits every organization. There are three
different factors that impacts overall organizational structure: technology employed or used by
company, overall size of the organization and leadership style adopted by them. M&S adopts this
theory for resolving various kinds of management problems (Dimitrova, 2020). They have
adopted situational leadership style in which as per the need and requirement of situation or
problems which helps the management or leaders of the organization in resolving the issues that
occur within the organization and also helps in resolving conflicts. For example, leaders provide
proper training to new employees and provide detailed guidelines and directions to newly
employed employees so that they can understand ways in which a particular task is required to be
1

carried out. Not doing so can result in work place issues or conflicts. Leaders also remain
involved within the task and monitors performance and involvement of all the team members so
that if any kind of problem or conflict arises then it can be easily and leaders are well aware of
the situation.
Another management theory which is being used by organizations like M&S is Theory X
and Theory Y. Both the theories refer two different management styles: First is authorization
(Theory X) and second is participative (Theory Y). it is mostly used within large organizations
like M&S where if an employee does not show interest within their work then in such case, they
adopt authorization style (Vecchi, 2019). On the other hand, if employees are willing to do their
work or are passionate about it then in this case leaders can adopt participative management
style. Both the type of styles adopted by managers or leaders helps them in motivating their
employees or team members. Majority of times in large organizations like M&S theory X is used
where incentives or appraisals are provided to employees so that they are satisfied from their
work and are motivated.
Analysis of effects of globalization on organizations today
Globalization is a kind of a process that helps organization to operate globally across
different nations. This process of globalization is affecting organizations in different ways both
positively and negatively. It has increased competition for organizations in many different ways.
Globalization has also impacted business management, organizational structure of organization,
especially the one’s that operate globally (Rosenberg Hansen and Ferlie, 2016). Globalization
has helped organization to in increasing employment and has also helped in increasing various
kinds of concepts through which many operations and business processes have become much
easier such as outsourcing. It has further helped in bringing changes within management
structure of an organizations. Organizations like M&S have adopted Bureaucratic management
theory. This theory helps in explaining overall structure of a business in a hierarchical manner on
the basis of some rules like clear division of labour, hierarchical chain of command, consistent
regulations and many more. It is a kind of style which is based upon rules and formalities,
standards, procedures and structures. M&S has adopted bureaucratic management and on the
basis of this management they have defined some rules and regulations and have also adopted a
hierarchical organizational structure for division of labour and workforce. But due to too many
division and responsibilities have been created that lacks accountability. They need to work upon
2

simplification of operations and cutting down some layers of management. There is no doubt that
till a certain level this bureaucratic management style is appropriate but when an organization
grows internationally same bureaucratic management starts creating issues and problems within
the organization as too many formalities and rules do not work in a proper manner when an
organization operates internationally.
Globalization has not only increased competition for organizations like M&S that
operates globally but it has made it difficult for organization to sustain within the market in
which they operate (Huber, 2017). Not only this, increasing competition has also increased
options for employees due to which it has become difficult for organizations like M&S to retail
their employees. Different kinds of organizations use different kinds of motivational theories for
retaining their employees, enhancing their performance and gaining competitive advantage.
Globalization has also impacted employer and employee relationship and has made it difficult to
maintain clear and proper communication with employees. Due to which it has become difficult
for organizations that operate globally to manage their workforce.
Globalization has also made it possible to recruit talented and knowledgeable employees
of different culture or regions. This cultural difference also works as a barrier in effective
management between employees and employer (Swanson and et. al., 2019). In order to
overcome this issue of cultural difference and communication issue there are various kinds of
management theories. Hofstede theory of cultural management is one of those theories that helps
organizations to recognize cultural difference and bring improvement within their strategies
accordingly. this theory helps the organization in understanding difference between culture of
two different nations. As per this theory there are seven main dimensions that helps in
differentiating between cultural difference between two culture or nations which further helps
them in bringing chances within their management strategies so that not only cultural difference
barrier can be removed but proper and effective communication between employer and
employees can also be established.
Globalization has also increased vulnerabilities for business due to fluctuating prices
globally also impacts organizations that operates globally for example change in labour cost, tax
rate can directly impact overall cost associated with all the business operations especially
manufacturing and production processes (Zavyalova, Kucherov and Tsybova, 2017). But on the
other hand, globalization has made all kinds of required resources easily available. They can
3

easily access required amount of goods or raw materials at lower cost from suppliers present
anywhere in the world. That further helps the organization in getting required material in lower
price as choices of suppliers also increased.
Effects of Globalization on leadership, business strategies
Overview
Globalization is a kind of process that has impacted overall working of organizations,
management structure, business strategies and leadership in many different ways. It has been
observed that globalization has increased interconnectivity, increasing transparency between all
the stakeholders of the organization due to which organizations need to bring continuous changes
within their structure, strategies and leadership style as well in order to survive and sustain
within the market in which they operate (Flores-Rodríguez, Sánchez-Gutiérrez and Pelayo-
Maciel, 2018). Globalization has increased competition for organizations because of which it has
become difficult for organizations to grow and expand globally. Today leaders of top global
organizations like M&S need to interact with all of their employees or staff members working
for them globally regardless of different kinds of barriers such as language barrier, cultural
difference barrier and many more in order to gain desired outcomes.
Impact of globalization on global leadership, required leadership skills and stratategic
changes
Due o globalization exchange of goods and services have increasing globally. Most of the
organizations are focusing upon expanding their business internationally which has further
impacted leadership of organizations. Marks and Spencer are one of those organizations that
operates globally and sell their products and services world- wide. It is a well- known fact that a
good leader in one country cannot necessarily be a good leader in another country. In order to
successfully lead an organization globally it is important for leaders to enhance their knowledge,
skills and qualities. They need to have complete knowledge of countries beliefs, ethics, customs
etc. this will help the leaders to bring improvement within their leadership so that they can
expand their business in other countries and increase revenue and profitability (Flores-
Rodríguez, Sánchez-Gutiérrez and Pelayo-Maciel, 2018). There are various kinds of skills that
are required to be developed within leadership style of leaders. There are various kinds of needs
and requirements that have been developed due to globalization that are required o be adopted by
leaders such as strong business knowledge, sensitivity and awareness of cultural difference, ways
4

to maintain effective communication and also maintain relationship between all the stakeholders
of the organization. These skills and knowledge will not only help the leaders in successfully
running a business but will also help in resolving any kinds of issue or problem that occurs
within an organization, maintain leadership of organization within the market, remain
competitive within the business market in which they operate. Organizations like Marks and
Spencer has developed and designed an enterprise program in order to develop future leaders
who can contribute in growth of the organization. This program has been developed in such a
manner so that required skills and knowledge can be developed within leaders of the
organization.
Globalization has also brought chances within management and development of business
strategies of an organization. It helps in creating opportunities for business for growth and
development of the organization. This has forced business organizations like Marks and Spencer
to bring changes within their business strategies and management style (Flores-Rodríguez,
Sánchez-Gutiérrez and Pelayo-Maciel, 2018). It has also increased need of adaptation of advance
technological systems so that all the global business operations of organization can be managed
in a smooth and appropriate manner. Organizations need to bring changes within their
management style, leadership so that that they can survive in this global competition. Marks and
Spencer have adopted these changes within their business and has developed their business
strategies accordingly. M&S has adopted different kinds of motivational and leadership theories
and have brought changes within their management structure and strategies so that their trainees
all over the world can receive same training. They have also combined their financial and non-
financial plan so that they can increase motivation and satisfaction level of their employees.
Globalization has brought various kinds of changes within global business environment
that has affected all the business and has increased threats and risk for organizations as well.
M&S have developed their business strategies in such a manner that they can increase
profitability of the organization and can maintain their leadership in the market. They are
focusing upon bring changes within their bureaucratic management style and are focusing upon
changing from hierarchical structure. They are focusing upon simplifying their management
structure within a smaller and more focused teams so that effectivity of their decisions can be
maintained and issues arising within their organization globally can also be maintained.
5

CONCLUSION
From the above essay it has been summarized that globalization has created various kinds
of work- based problems because of which it has become important for organizations to bring
changes within their management structure and leadership style of the organization. It has also
been concluded that there are various kinds of management theories that can be applied to
organization resolving different kinds of work- related issues.
6

REREFENCES
Books and Journals
Dimitrova, M., 2020. Of discovery and dread: The importance of work challenges for
international business travelers' thriving and global role turnover intentions. Journal of
Organizational Behavior. 41(4). pp.369-383.
Flores-Rodríguez, C.R., Sánchez-Gutiérrez, J. and Pelayo-Maciel, J., 2018, July. Leadership and
Management Theories and Bridging the Gap between these Theories-A Literature
Review. In Competition Forum (Vol. 16, No. 2, pp. 83-89). American Society for
Competitiveness.
Huber, D., 2017. Leadership and nursing care management-e-book. Elsevier Health Sciences.
Miron-Spektor, E., and et. al., 2018. Microfoundations of organizational paradox: The problem is
how we think about the problem. Academy of Management Journal. 61(1). pp.26-45.
Rosenberg Hansen, J. and Ferlie, E., 2016. Applying strategic management theories in public
sector organizations: Developing a Typology. Public Management Review. 18(1). pp.1-
19.
Swanson, S., and et. al., 2019. Leader prototypicality in sport: The implicit leadership theories of
women and men entering sport management careers. Sport Management Review.
Vecchi, A., 2019. Global work arrangements and talent management in the born-virtual
organization: The case of Automattic. In Research Handbook of International Talent
Management. Edward Elgar Publishing.
Zavyalova, E., Kucherov, D. and Tsybova, V., 2017. Human Resource Management at Russian
Companies—Leaders of the Global Economy. Форсайт. 11(4 (eng)).
7