Organisational Management: Principles, Theories, and Analysis

This report provides an in-depth analysis of organisational management, covering principles, theories, and analysis. It discusses Henry Fayol's management theory, Maslow's Hierarchy of Needs, PESTLE analysis, and situational leadership. The report explores the benefits and challenges of implementing these concepts and techniques in practice.

Organisational
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Henry Fayol’s management theory:.............................................................................................2
Maslow’s Hierarchy of Need.......................................................................................................3
PESTLE analysis.........................................................................................................................5
Situational Leadership.................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
1

INTRODUCTION
Organisational Management refers to the process to structure, plan and direct the
resources and employees of the company or organisation to attain its goal. The main of goal of
every organisation is generally to earn profit and the growth of its business. The prime focus of
the organisational management is to get the right people together and make them work for the
predefined mutual goal by providing the common platform. Organisation management allows the
optimum usage of resources by the help of meticulous planning and control in the organisation.
The following report will discuss about the principles, benefits and challenges of putting into
practice the concepts, techniques and tools that aim to equip manager to accomplish the task
described.
MAIN BODY
Henry Fayol’s management theory:
It is the simple model of management which is used by organization to interact with the
personnel. It is a board way concept that make it flexible theory to adopted by every
organization. This theory is considered as a relevant theory to guide the productivity staff. Henry
Fayol's is known as the 'father of modern management theory' this applies in all level of
management and every department. It helps the manager to regulate and mange all the internal
activities of the organization. This theory include 14 principle management that should be
followed by the organization (Jones-Washington, 2015). This principle are division of work,
authority and responsibilities, discipline, unity of command, subordination of individual interest,
remuneration, centralization, scalar chain, order, equity, stability, initiate and esprit the corps.
Henry Fayol's management theory is adoption of one or more theory of principles
management has been claimed and respond to more effective leadership. Leader believes that
these principles increase the efficiency of workforce and the productivity level of the
organization. Discipline is also adopted by the many organizations into activities for the
reinforced in the organization. This brings the organization to set the goal focused and lead the
organization towards it. Discipline is a two-way street that is come from employee and employer
side. Still, organization have been using g this principle as they help the organization to function
in smooth manner and facilitates the organization structure where top-level management act as a
leader. Small business are still using this module. promoting the team concept where the
2

employees take the organization interest over personal interest, motivation employee through fair
compensation is another effective theory for the business and employee to treated as the fair by
the employer. This not only motivate the employees but also increase the productivity of the
employee. Whereas, Fayol's six main functions are forecasting, planning, commanding,
organizing, coordinating and controlling in the organization (Rajković, 2017).
Intend and unintended outcomes of the Fayol's theory shows the behaviour of the
organization and the employees toward the organization and goal. Intended change means
change in result of planned action and intend outcome is more than a vision statement and which
change the end result of the organization. It is very tangible way that look, feel and change the
behaviour of the organization after change have been adopted. Intend outcome shows end state
after the adoption of change. Once new change is adopted the new change become the normal
state and outcome state is job done. The main objective is clear the focus of all the employee
which are affected. Whereas, unintended change means forces beyond the control of the change
manager which shows various assumption that changes of the manager and increase the
awareness about the different changes by interpretation (Tasie, 2017). Create dominate image of
the change within the organization and range of alternatives available to change manager is
highlighted.
Maslow’s Hierarchy of Need
Maslow’s theory of Needs is a motivational theory of psychology which comprises of five stages
model of human needs and is also referred as hierarchical level in a pyramid. It flows from
bottom to bottom showing that the need of person grows with his level.
This theory is based on the assumptions listed below:
- People’s behaviour is according to their needs
- A satisfied need will not motivate the person
- As one need is satisfied, another originates
Maslow’s Theory is one of the widely appreciated and recognised theories, which focuses on
understanding ‘what’ motivates human beings (Hopper, 2019). He explains that hierarchy of
needs ranges from concrete needs to the abstract needs. The following explained below is the
hierarchy of needs will provide greater understanding of the concept:
3

Physiological needs – This is most basic and the lowest level of need in the Maslow’s theory. It
includes the most essential things that a human need for surviving such as food, water, clothes
and shelter. In this basic level, the motivation of person drives from their instinct to survive. At
the workplace, the basic need can be stable employment and salary.
Safety and Security needs – The second level of need comprise of safety needs. This safety and
security need means denotes to the human need to feel secure and safe in surroundings and life
(Fallatah and Syed, 2018). At this stage, motivation arises from the need of law and order, and
protection from dangerous and unpredictable circumstances. To find the security and safety,
person should consider their physical safety which includes having protection from threats and
sickness. In the organisational context, this need relates to stable emotional and physical
environment issues like: benefits, pension, fair work practices and safe working environment.
Love and Belongingness needs – This level of need relates to love and belongingness that every
human wants. Being a social creature people crave interaction with other people. This level of
hierarchy of need outlines for friendship, family, love and intimacy. To make human believe that
they are the part of group they need to be receive and give love. If this need is not satisfied,
person may experience sadness or depression. In the organisation this need can be defined as the
need of social acceptance such as friendship and good relations with the co-workers and
cooperation from the teams.
Esteem needs – The fourth level of need is esteem need, after the love and belongingness need is
satisfied, individual seek to fulfil their esteem needs. It can be classified into two categories:
need for respect from oneself (confidence, freedom, dignity) and need for respect from another
(by achieving fame, prestige and recognition). This need in the organisational context can be
referred as positive self-image, respect and recognition such as gaining a job title, getting
prestigious job assignments and nice work space etc (Singh and Behera, 2016).
Self-Actualization need – The final level in the hierarchy of need which is an abstract need is
self actualization needs. It relates to the realization of individual’s full potential, people in this
stage generally strives to become the best version of themselves in every best possible way. This
is the pursuit of personal growth and can be manifested in many ways such as by obtaining skills,
pursuing dreams, utilizing the knowledge etc. This need at workplace can be seen in the form of
getting autonomy in organisation, challenging work and expert status on the job.
4

Maslow’s theory of hierarchy of need is so effective that organisations implement it these days
also. The employer or the company can provide the ways to fulfil these needs, but the person
should also be aware that how the need impacts his overall success in certain specific roles. For
example, if the individual struggles with rejection, a definite career such career in sales can make
him more challenging to meet his needs. This theory explains that top most level of this theory at
workplace, that individual need to be self-actualized, means should be able to understand and
handle his capabilities, skills and ability. These individuals are generally found where the
organisation’s workforce is engaged and healthy. When the individual feel safe, supported, sense
of belongingness and actualized, his attitude will also influence the other employees at
workplace. Companies who have the low engagement rates or higher retention or turnover and
generally where employees are unsatisfied and their morale are low (Soni and Soni, 2016). It can
invest in the happiness of the employees by understanding and satisfying their needs which will
increase satisfaction and will boost employee engagement & motivation among workers that will
have high impact on overall productivity of companies.
The overall outcome of this theory is intended to track the growth and development of human
being from the very basic need to the highest level of need. Maslow’s theory had a great
influence on the researchers, who have build their theories on the basis of Maslow’s theory. For
example psychologist Carol Ryff and Singer picked the Maslow’s theory when developing their
own theory of eudemonic well being which refers to the same as the idea of self actualisation.
PESTLE analysis
PESTLE analysis is a macro environment analysis tool which is used by organizations to
evaluate the changing market trends and changing environmental factors which affect the goal
achievement capability of the company (Song, Sun and Jin, 2017). PESTLE analysis is used to
evaluate the external factors of the organization which makes a direct negative impact on its
working capabilities because of which company uses PESTLE analysis for the evaluation of
external factors. PESTLE analysis is a strategic management tool which evaluate the following
factors which are as following: Political, Economical, Social, Technological, Legal and
environmental. The PESTLE contains and analyse several factors but is not able to predict the
upcoming changes in the work areas until they are accrued because of which it fails to be used in
the real time analysis as a major element. In PESTLE analysis all the factors have to analysed
5

separately because of which it is a time-consuming process and with that it lacks the easy
implementation of updated information.
PESTLE analysis is a analytical tool which is used to evaluate the macro environment
which makes a direct impact on company's working capability because of which it is widely used
by organizations. In the time when due to increasing market competition organizations have to
increase their geographic reach then in that case PESTLE analysis is used to evaluate the
changing market condition by which company can develop effective working strategy in such a
way that company is able to achieve high sales in minimum expenditures (Pan Chen and Zhan,
2019). In present time of COVID-19 organizations have to change their working strategies and
because of which PESTLE is widely effective through this company can analyse the improvised
market conditions and can identify the different creative ways through which high organizational
productivity can be achieved.
The untended outcomes are the factors for which PESTLE analysis is being used and
because of which company is able to identify the changing market trends and can effectively
develop products in such a way that high goal achievement capability can be achieved. But on
the other hand PESTLE analysis may provide a clear understanding of different external factors
which are making a direct impact on company's working capabilities but this is limited to the
events which have happened and with that it doesn't change with the changes in time (Nurmi and
Niemelä, 2018). With that the analysis is also limited to analyse the following factors in detailed
deep understanding because of which each factor has to be analysed separately. Since all the
different factors have to be analysed separately because of which PESTLE analyses is only used
as an generalized evaluation method for analysing the changing market trend because of which
complexities while analysing the macro environment increases.
Situational Leadership
Situational leadership, as the name suggests is a form of leadership which is not defined but here
the leader moulds self according to the situation. There are no particular characteristics followed
but the leadership style changes as per the demand of the situation. This depends on the team, its
characteristics and the amount of experience and intellect the team mates are carrying which
influences the leader to mould self accordingly (Thompson and Glasø, 2018). For e.g. a team of
experienced people will be comfortable with a leader who is participative in approach as the
6

team mates already are aware of the work process and the objectives to achieve a participative
leader will help them gel with him. Similarly, a team of novice would require a leader who is
directive in approach and makes the team aware of the work process and guides them how to go
about the work to reach organisation’s objectives. Here adaptability of the leader is required to
present himself as a different person in different situations.
The Goleman theory of leadership can very well relate with situational leadership which defines
six styles of leadership:
a) Coaching leaders: This style of leadership works best on individuals who are open to
change and want self improvement. The leader can very well guide them for personal
development which will also stand useful in professional life as well.
b) Pacesetting leaders: They are vibrant leaders who can set examples for job starters to
excel in their job. They lead by their own work and set high expectations for other people
to get motivated and follow. However, it is used for a limited period of time so that the
employees do not feel stressed out.
c) Democratic leaders: This style of leadership takes the vote or opinion of employees in
decision making and it brings flexibility along with responsible action in the group. The
group becomes more participative however, it can be beneficial in some optimal
conditions (Zigarmi and Roberts, 2017).
d) Affiliative leaders: They are the leaders who put employees first and cheer and praise
them. This works when the team morale is low and needs confidence. This may happen
due to new technology evading away the use of previous style of operations and requires
high adaptability.
e) Authoritative leaders: They are those who are proficient in analysing hurdles and clearing
them and identifying challenges. This style of leadership is successful in making an
organisation move in the right direction when it is not able to reach its goals. The leader
will help guide employees to figure out solutions for the problem.
f) Coercive leaders: They are those who are in the perfect know how of the work and guide
the subordinates what to do. This style is of help to give a total overhaul to the
organisation.
7

CONCLUSION
The above addresses the four approaches i.e. Fayol’s principles of management, Maslow’s
hierarchy of needs, PESTLE analysis and Situational leadership which are most relevant in
today’s world which provides the clarity of organisational management. The following
approaches helps the managers in understanding their workforce and practices that which can be
opted to improve efficiency in the organisation. It also helps in explaining that what are the
factors that impact the organisation and what leadership can be best according to the situation.
These manager’s toolkits are described in the proper approach which explains the assumptions,
context and its effectiveness in today’s business.
8

REFERENCES
Books and journals
Fallatah, R.H.M. and Syed, J., 2018. A critical review of Maslow’s hierarchy of needs.
In Employee Motivation in Saudi Arabia (pp. 19-59). Palgrave Macmillan, Cham.
Hopper, E., 2019. Maslow’s Hierarchy of Needs Explained. Viitattu. 12. p.2019.
Jones-Washington, M., Effectiveness and Application of Fayol'sPrinciples of Management to
Contemporary Public Organization.
Nurmi, J. and Niemelä, M.S., 2018, November. PESTEL analysis of hacktivism campaign
motivations. In Nordic Conference on Secure IT Systems (pp. 323-335). Springer, Cham.
Pan, W., Chen, L. and Zhan, W., 2019. PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
Engineering. 35(1). p.05018013.
Rajković, J.Z., 2017. Theoretical approach to principles of management: Literature
review. Serbian Journal of Engineering Management, 2(2), pp.69-78.
Singh, T. and Behera, M.P., 2016. Application of the Maslow's hierarchy of need theory: Impacts
and implications on employee's career stages. Training & Development Journal. 7(2). pp.43-
52.
Song, J., Sun, Y. and Jin, L., 2017. PESTEL analysis of the development of the waste-to-energy
incineration industry in China. Renewable and Sustainable Energy Reviews. 80. pp.276-289.
Soni, B. and Soni, R., 2016, July. Enhancing Maslow's hierarchy of needs for effective
leadership. In Competition Forum (Vol. 14, No. 2, p. 259). American Society for
Competitiveness.
Tasie, G., 2017. A Review of the Role of Management as an Integrating Activity using Henry
Fayol Fourteen Principles. Advances in Social Sciences Research Journal, 4(22).
Thompson, G. and Glasø, L., 2018. Situational leadership theory: a test from a leader-follower
congruence approach. Leadership & Organization Development Journal.
Tortorella, G. and Fogliatto, F., 2017. Implementation of lean manufacturing and situational
leadership styles. Leadership & Organization Development Journal.
Zigarmi, D. and Roberts, T.P., 2017. A test of three basic assumptions of Situational
Leadership® II Model and their implications for HRD practitioners. European Journal of
Training and Development.
9