Similarities in Management Approaches: Profit vs Non-Profit

This essay provides a comprehensive overview of management approaches, comparing their application in both profit-based and non-profit organizations. It begins by highlighting the importance of management for achieving organizational goals, irrespective of the type of organization. The essay then delves into various management theories, including classical, behavioral, and modern approaches, illustrating how they are implemented by companies like Tesco and Oxfam. It emphasizes the similarities in the approaches used, despite differing goals, and discusses the positive and negative impacts of these theories. The analysis covers topics such as time management, employee motivation, financial management, and the importance of adapting to new technologies. The essay concludes that while management approaches are essential for organizational success, their effectiveness can vary, and organizations must consider potential drawbacks. The essay provides a detailed analysis of how management theories are applied and their overall impact on organizational performance.

Introduction to
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................5

INTRODUCTION
Management is essential for every type of organization as without this, nobody can
manage their activities in business. So, it is essential for enterprise to have proper management
for achieving its set targets and goals in an effective manner. Every business defines and set their
goals and objectives which are different from others. However, they use various approaches and
theories in their business process which are similar with other organizations. This report will
support the statement “Despite aiming for vastly goals, the approaches to management used in
profit and not for profit organizations are largely similar”. In this report, various types of
management theories are described to attain higher success in the market.
MAIN BODY
There are various profit and non-profit organizations having their own goals and
objectives depending on their size and scope. It helps to provide future direction of the
corporation which leads to increase their success. It assists in business activities in order to
achieve the positive results. Along with this, profit based organization like Tesco, which is a
multinational grocery store, generate huge profit every year. On the other hand, non-profit base
firm like Oxfam is international charitable organization which contributes in social welfare in
order to develop the standard of society.
According to Simon, the organization is a combination of various systems involved in
organizational process which include different sub systems that help in increasing the
effectiveness of business activities. For achieving targets, organization use various types of
management approaches. There are some effective and best theories which are used by the
company like classical, behavioural and modern approach. Classical approach is one of the best
theories that define an impressive process for management to maintain economic conditions and
develop universal principles in an effective manner (Fillmore and Baker, 2010). In this theory,
there are various approaches. One of the most common among all is scientific approach helps in
measuring the quality of business. It is based on technology which shows step by step process in
order to evaluate all the activities in an effective manner. It is a continuous activity in order to
collect relevant and specific information to eliminate all the obstacles in business. Administrative
approach defines the concept of departmentalization which assists in performing all activities in
order to achieve common goals. This approach focuses on the improvement in business
efficiency. It is a systematic process to manage information within organization related to
1

customers, employees, competitors, market trends, etc. On the other hand, according to Toma,
(2012) bureaucratic approach is based on the experience of manager and is related to structure of
organization. It also aids in avoiding all errors of judgement so that all the problems in
organization process can be removed and better solution to achieve set targets can be found. In
this, organization includes number of employees for completing different tasks. It also defines
technical qualification to perform selection and promotion process in business organization.
According to Neenan, (2017) behavioural approach defines human behaviour in
organizational process and also evaluates personality of the individual as well as employee at
workplace. Basically, it focuses on employee well-being and human relation in order to maintain
the overall performance of company (Hollensen, 2015). It believes in better understanding of
human behaviour at workplace like motivation, conflict, expectations, group dynamics and
improved productivity. Modern approaches help to measure and make use of quantitative tools
and techniques within organization in order understand employee-employer relation. It is also
known as financial management which is a vital part of the overall administration. It is an
analytical way which looks in financial problems of business. Modern approach is applied in
continuous process of the business which helps in taking the best and effective decision
regarding business activities and also measure overall performance of company (Three
Management Approaches, 2017). These management approaches are used by Tesco and Oxfam.
They define their separate goals and objectives but use similar approaches to achieve success in
industry.
According to Hislop (2013), the management theories are beneficial for both Tesco and
Oxfam. It is implemented in business process to measure the overall performance of company.
Evaluation of different processes is done by the firm that is important for manager to implement
in the organization to achieve set targets in an effective manner. It defines various strategies like
time management, communication style, coordination among employees and many more which
assist in managing employees to motivate them to perform their work effectively. These
approaches define a systematic process which are implemented in the organization so that the
positive results can be achieved within stipulated period of time. Tesco’s manager use and
implement these approaches in their business activities to achieve long term profits. For
developing employee’s morale, manager defines behavioural approaches in order to identify
workers needs and wants to fulfil them accordingly. With the help of these theories, manager of
2

company can easily motivate their employees so that workers will effectually complete their
allotted work in an effective manner. Every business depends on their employees as well as on
workforce. Therefore, it is more important for organization to encourage their employees and
boost up their morale in order to attain higher success at marketplace. It is essential for company
is to provide high quality products and services through management approaches. It helps to
generate profit and achieve short and long term objectives within stipulated period of time.
On the other hand, Oxfam also uses these approaches in their process so that they develop
their activities in an effective manner and provide the best services to their employees. This
organization contributes in the social welfare by delivering better solution of public problem.
Main objective of Oxfam is to provide better services to customers so that they will fulfil their
needs on daily basis and improve the living standard (Kerzner, 2013). These approaches are
beneficial for company because they define lots of opportunities to local people to increase their
social lifestyle and provide better solution of the problems.
According to Runyon (2013), both profit and non-profit based organizations use these
approaches, but sometimes, it defines negative impact on the overall performance of companies.
Every organization needs to use new technologies because they want to achieve their goals and
objectives. This is the responsibility of management to provide enough fund to various
departments of company so that they can acquire and implement new technology which will help
them in gaining competitive advantage. Limited resources and poor coordination create a major
issue for company and develop misunderstanding between employer and the employees.
Behaviour of every individual varies which create problems among staff as they get failed to
understand thinking of each other. Therefore, in order to manage such issues, they need an
effective management approach at the workplace.
3

(Source: Management structure, 2010)
Modern approaches depend on the management of financial problems so that they are
more important for both companies to select the right and skilled persons who manage all
activities of financial aspect (Moawad and Wong, 2010). Sometimes, manager is not able to
manage all these processes effectually and thus, organization faces many problems like lack of
financial funds and high risk in business activities as well as absence of coordination among
employees. Hence, all these approaches are not beneficial in every situation. It also defines the
negative impact on business process. Management theories are more important for organization
to plan and coordinate all processed of business which help in achieving organizational the goals
and objectives in an effective manner. All approaches are effective to implement in the
organizational activities to gain efficiency and motivate employees to perform their work to get
positive results.
CONCLUSION
From the above essay, it can be concluded that management approaches are essential for
the firm in order to achieve organizational targets. Every organization sets their specific and
different goals and objectives, but they use the same approaches to implement their process in
order to achieve predetermined goals. It has been assessed that all these approaches are important
4
Illustration 1: Management structure

for both Tesco and Oxfam which either impact positively or negatively on the organizational
functions. These theories as well as approaches are used by the manager of company to develop
their performance in marketplace in an effective manner.
5

REFERENCES
Books and Journals
Alvesson, M. & Willmott, H. (2012). Making sense of management: A critical introduction.
Sage.
Carter, C. R. & Liane Easton, P. (2011). Sustainable supply chain management: evolution and
future directions. International journal of physical distribution & logistics management.
41(1). 46-62.
Chance, D. M. & Brooks, R. (2015). Introduction to derivatives and risk management. Cengage
Learning.
Fillmore, C.J. and Baker, C., 2010. A frames approach to semantic analysis. In The Oxford
handbook of linguistic analysis. (C)
Guest, D. E. (2011). Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). 3-13.
Hall, A. & Antonopoulos, G. A. (2016). Introduction. In Fake Meds Online (pp. 1-17). Palgrave
Macmillan UK.
Hislop, D. (2013). Knowledge management in organizations: A critical introduction. Oxford
University Press.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education. (B)
Kerzner, H., 2013. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons. (non)
Liang, T. P. & Turban, E. (2011). Introduction to the special issue social commerce: a research
framework for social commerce. International Journal of electronic commerce. 16(2). 5-
14.
Moawad, F.J. and Wong, R.K., 2010. Modern management of achalasia. Current opinion in
gastroenterology, 26(4), pp.384-388. (M)
Neenan, M. M. (2017). Developing resilience: A cognitive-behavioural approach. Taylor &
Francis.
Runyon, B. A. (2013). Introduction to the revised American Association for the Study of Liver
Diseases Practice Guideline management of adult patients with ascites due to cirrhosis
2012. Hepatology. 57(4). 1651-1653.
Sovey, A. J. & Green, D. P. (2011). Instrumental variables estimation in political science: A
readers’ guide. American Journal of Political Science, 55(1), 188-200.
6

Toma, E. F. & Toma, M. (Eds.). (2012). Central bankers, bureaucratic incentives, and monetary
policy (Vol. 13). Springer Science & Business Media.
Online
Three Management Approaches. 2017. [Online]. Available through: <http://press-
files.anu.edu.au/downloads/press/p51511/mobile/ch02s03.html>. [Accessed on 4th
September’ 2017].
Management structure. 2017. [Online]. Available through:
<http://www.mmc-global.com/structure.asp>. [Accessed on 4th September’ 2017].
7