Critical Analysis: Management's Contribution to Organization Success

This report critically examines the contribution of management to the successful operation of an organization. It explores various perspectives, including the crucial role of management functions, as argued by Drucker, and considers alternative viewpoints on the impact of management practices. The analysis delves into key management principles and practices, such as leadership, organizational behavior, and control mechanisms, illustrating their application through real-world examples like McDonald's and Google. The report discusses leadership styles, the influence of organizational culture, and the importance of controlling strategic plans. It also highlights the significance of management in achieving organizational goals, reducing operational costs, and fostering a positive work environment, emphasizing that effective management is essential for a company's market success. The report concludes by summarizing the importance of management to the organization with the support of the practice and principle.

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Contents
Introduction......................................................................................................................................2
Contribution of management to the successful operations of an organisation................................3
Leadership....................................................................................................................................3
Organisation behaviour and culture.............................................................................................5
Control and power.......................................................................................................................6
Importance of management to the organisation’s success...............................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
In the dynamic world, the different researcher has different opinions related to the contribution
that the management and managers contribute to the operation and success of an organisation.
Some of the professors like Drucker, 2012, argue that functions that are performed by the
management are crucial to the operation of companies and for the success. Thus, this means that
the organisations are not successful without the practice of management. Other say that functions
of management play only a minor role in the success of the business.
The aim of the paper is to exhibit the critical understanding of the principles and practice of
management with their applicability on organisations. Moreover, it includes the factors that
create an influence on organisation and management. The paper includes the debate on the
critical contribution that the management makes successful operations of the organisation and
analyse the importance of management to the success of organisations.

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Contribution of management to the successful operations of an
organisation
In the competitive world, the contribution of the management is essential which helps in the
success of operations that are performed by the organisation through their principles and
practices. The principles and practice of management support the operations of the organisation
which leads to success.
Leadership
According to Satyendra, 2015, Leadership is one of the crucial practices of management that is
performed by managers which helps them to provide direction, implement the plan and motivate
the plans. In simple words, leadership is the ability of the company’s management to set and
achieve the challenging goals, decisive actions, outperform the competition and to inspire the
employees to work effectively. Further, Bolden 2016 exhibits Leadership practice of
management helps in influencing people to perform the aligned task willing, efficiently and
competently. This practice brings the clear follow of communication and makes the employees
aware of the vision and mission of the company which makes them successful. The leaders of the
company provide a structured approach with this they engage the employees and try to form an
effective relationship. Management of the company requires the leadership skills which is the
only way to bring the operations successful (Bolden, 2016).
For instance; Leadership at McDonald’s, Jim Skinner who was CEO of the company worked as a
leader of the company since the past 35 years. Skinner is a very excellent leader with the skills of
management and the leader follow the transformational and charismatic style of leadership. Jim

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said to revitalize the organisation and bring a new fast food business with an innovative vision
(Kowitt, 2012). While managing the operations of the company he gave the importance to the
customer’s satisfaction and their needs. The leader promotes the creativity that provides the
benefit to operations of the company. Moreover, he was the one who effectively managed the
entire operations effectively due to which the company was able to expand their business in
different countries across the world. Contrasting this, Sharma and Jain, 2013 leader found
numerous challenges related to cutting the cost of production because the company wants to
maintain the quality for which they need to manage the cost because they need to earn the profit
from the operations. Further, the leader also faced the conflicts, issues of assigning the roles,
issues related to performance and many others.
Thus, this shows that the leadership practice of management is one of the essential practices that
lead to the successful operations of the company. Though, the leaders in the company face the
issues while managing the operations. In those challenges, the leaders apply the skills that help
them in getting the solutions to the problems which are majorly faced by the company (Sharma
and Jain, 2013).
According to Mayhew, 2018 there are some factors that can affect the leadership of the company
and these factors include technology. Technology is the critical factor they can affect the
business and performance of the managers and supervisors present in the organisation (Mayhew,
2018). Most of the companies allow using social media and mobile phones at the workplace
which affects the performance of employees as they spend most of the time in mobile phones or
they remain a physical presence and mentally absent. This impact on the employee’s
performance directly influences the decisions that the leaders are supposed to take for the
company.

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Organisation behaviour and culture
Considering the view of Bhattacharyya, 2016, Organisation behaviour is the study that is related
to human behaviour in the setting of the organisation. Further, the organisation culture includes
the values and behaviour that leads to the social and psychological environment of business
(Bhattacharyya, 2016). The principle and practice of management in the organisation include
effective management of the behaviour and culture. This helps them in hiring the employee’s
effectively, generating the loyalty of employees, getting the effective performance from them
and many others.
The behaviour of the employees in the company is governed by their ideas, feeling and activities.
Though, the diverse people of the company have different behaviour which leads to the problems
in the company and affects the performance. In addition, the behaviour of the employees also
changes because of the culture of the company.
For instance: Google company is at the list of the company with the great organisation culture.
The company value their employees by offering them benefits and perks which include free
meals, employee’s trips, bonus, and parties on a quarterly basis, vouchers, and many others
(Entrepreneur, 2018). All these values lead to the positive culture due to which the behaviour of
employees remain positive and the company drive innovation and talent. This culture helps the
company to recruit talented employees easily which leads to the success of the company. The
company also faced numerous issues and has taken a long time in managing the behaviour of the
employee which leads to a positive culture.
This shows that the success of the organisations majorly depends on the effective management of
its people that can be in terms of the organisational behaviour and culture (Huczynski, Buchanan

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and Huczynski, 2013). No doubt the companies who deal with management issues won’t be able
to understand that employees are a key to success. Moreover, this can be said that employee’s
behaviour can be influencing factor for the management and organisation.
Control and power
Schraeder, Self, Jordan and Portis, 2014 said that in the process of management, the major
functions that are required to follow include planning, organising, leading and controlling.
Controlling the strategic plans include the measuring of actual and standard performance which
helps them to take the correct steps (Drucker, 2012). This function helps in checking the major
mistakes done by the company and shows the way to eliminate the same which offer success. For
instance; McDonald’s company is able to effectively control their actions which helps them in
checking the mistakes and rectifying them.
Further, Drucker, 2012 said that power is allocated right to a manager which is formed with the
motive to achieve the objections of the company. In the management, the power of taking the
decision is one of the factors that can influence the success of the company. In the organisation,
the power can be centralised or decentralised (Schraeder, Self, Jordan and Portis, 2014). The
power is the ability of a person to influence the actions and belief of people. Though, the
company who have power can get influenced by different factors which lead to the failure of the
company. For instance; the company with the power centralised can make an effective decision
and leads to the success of companies like McDonald's, Google and others. Though, on the other
hand, the delegation of power might leads to the failure of business in the market.

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Importance of management to the organisation’s success
The importance of management is increasing as this is the basis of the success of the company.
The effective management helps in forming the goals of the company for which the practice and
principles are required to be followed. The management is important for the organisation as
without it the company won't be able to perform the operations effectively which leads to the
failure in the market. The management helps in achieving the gaols, reducing the cost of
operations, forming the organisation a sound company, establishing the equilibrium and
essentials for the prosperity of the society (Management study guides, 2018). There is a need to
support the practice and principle of management that helps in accomplishing the goals of the
business. The goal of the organisation in the current era is to achieve success by expanding the
business.
According to Bhattacharyya, 2016 lack of management will leads to the loss of the company in
terms of the profit as the company won’t be able to achieve the goals effectively. Moreover, if
there will a high cost of operations then the company will bear the loss which will lead to the
shutdown of the business. The management of effective people will contribute to improve the
organisation culture and understanding the behaviour. Thus, management within the organisation
is essential for the success of the business.

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Conclusion
In the end, it can be concluded that the management is important for the organisation with the
support of the practice and principle. The report shows the findings that reflect that contribution
of management to the successful operations of an organisation with the support of leadership,
organisation behaviour and culture with the control and power. These practices and principles are
supported with the examples based on the real-life organisation. Further, the importance of the
management to the success is discussed in the report with the consequences of the failure of
same.

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References
Bhattacharyya, B. (2016) Importance of organizational behaviour [Online]. Available from:
https://www.keka.com/importance-of-organizational-behaviour/ [Accessed on 15th December
2018]
Bolden, R. (2016) Leadership, management and organisational development. In Gower
handbook of leadership and management development. New York: Routledge.
Drucker, P. (2012) The practice of management. New York: Routledge.
Entrepreneur (2018) 10 Examples of Companies With Fantastic Cultures [Online]. Available
from: https://www.entrepreneur.com/article/249174 [Accessed on 15th December 2018]
Huczynski, A., Buchanan, D.A. and Huczynski, A.A. (2013) Organizational behaviour.London:
Pearson.
Kowitt, B. (2012) McDonald's CEO Skinner on retirement: 'It's the perfect time' [Online].
Available from: http://fortune.com/2012/03/23/mcdonalds-ceo-skinner-on-retirement-its-the-
perfect-time/ [Accessed on 15th December 2018]
Management study guides (2018) Importance of Management [Online]. Available from:
https://www.managementstudyguide.com/management_importance.htm [Accessed on 15th
December 2018]
Mayhew, R. (2018) Factors That Affect Business Leadership [Online]. Available from:
https://smallbusiness.chron.com/factors-affect-business-leadership-48565.html [Accessed on 15th
December 2018]

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Satyendra (2015) Importance Of Leadership For Organizational Excellence [Online]. Available
from: http://ispatguru.com/importance-of-leadership-for-organizational-excellence/ [Accessed on
15th December 2018]
Schraeder, M., Self, D.R., Jordan, M.H. and Portis, R. (2014) The functions of management as
mechanisms for fostering interpersonal trust. Advances in business research, 5(1), pp.50-62.
Sharma, M.K. and Jain, S. (2013) Leadership management: Principles, models and
theories. Global Journal of Management and Business Studies, 3(3), pp.309-318.