Theories of Organizing and Managing Business Organizations Essay

This essay delves into the multifaceted world of foundation management, presenting a critical analysis of various theories concerning the organization and management of business entities. It begins by acknowledging the increasing complexity of the contemporary business environment and the emergence of diverse, sometimes contradictory, management theories. The essay explores different leadership styles, including transformational and situational approaches, and evaluates their effectiveness in addressing organizational challenges. It discusses the merits of singular versus adaptable management strategies, considering factors like employee motivation, market dynamics, and the importance of flexibility in response to changing conditions. Through the examination of multiple perspectives and the analysis of advantages and disadvantages inherent in each management style, the essay concludes that a situational style of management, which blends different approaches based on specific internal and external conditions, is most beneficial for contemporary business organizations. The essay emphasizes the need for adaptability to meet evolving market demands and equip internal stakeholders effectively.

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Foundation management
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Introduction
In the present business scenario, contemporary business organizations face more diverse
business challenges in their daily operations than ever. The contemporary business scenario is
more complex and challenging than it is being a few years ago. Thus, more and more new
theories are being originated for the business organizations in order to enable them to cope up
with the change in business scenario (Van Wart 2013). However, majority of the management
theories being originated are contradictory to one another. Various different criterions are being
emerged by them for the business organizations to face the organizational challenges in
effectively organizing and managing the organizational procedures (Clegg, Kornberger and Pitsis
2015). This essay will discuss about the various theories of organizing and managing the
business organizations. A critical analysis will be done to evaluate the effectiveness of these
theories. It will enable to determine that whether there is only one best way to manage or the
managerial decision will depend on the situation.
Critical analysis of different theories
As told earlier, different theories and opinions are being given by the authors in view to
the managerial roles and effectiveness of the organization. Several authors are of the opinions
that, the policies and strategies in the particular organization should have singular approach and
it should not be changed in any situation. According to them, changing of the unified
organizational procedures and management styles will affect the organizational cultures. Similar
opinion being given by Sahin (2012), regarding the management styles. According to him, the
attitudes and beliefs of the managers are one of the key determinants in influencing the best the
way to manage. He stated that according to the McGregor’s theory of x and y, managers lead

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their employees accordingly. Managers following the theory x follows the authoritarian style of
leadership. According to him, this style helps in directing the employees effectively in any given
situation. Moreover, due to lack of accumulation of the opinions from the employees, it becomes
easy for the managers to initiate the decision making process by own and in more effective
manner. On the other hand, managers following the theory y, offers more options of participation
of the employees. According to this theory, decision making process is being initiated with the
opinions of the employees. Though, it involves more time but is more effective for the
organizational procedures.
Effectiveness of transformational leadership
Some other authors such as García-Morales, Jiménez-Barrionuevo, and Gutiérrez-
Gutiérrez (2012) are of the opinion that, transformational style of leadership is the most effective
managerial style for driving the organizational excellence. This is due to the reason that, in the
case of the transformational style of leadership. Employees are being motivated for generating
innovative ideas along with the visionary goals of the higher level management. According to the
authors, this managerial style helps the organization in effectively determining the requirement
of the market and initiates the organizational strategies accordingly. The employees are being
kept motivated and equipped, which eventually helps the organization in facing the challenges
effectively. According to the authors, initiation of this managerial style helps the organizations in
handling the negative business environment also. In addition, the motivation of the employees in
generating the innovative ideas helps the organizations in gaining the competitive advantages
from the market.
Initiation of singular approach of management

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According to Ertureten, Cemalcilar and Aycan (2013), initiation of singular approach of
management in the organization have their own set of advantages for the business organizations.
This is due to the reason that, according to the authors, the internal stakeholders in the
organization including the employees and different managerial levels are being accustomed with
a particular type of management style. Thus, with the sudden change in the existing style of
management, they may have adverse impact on their effectiveness. It will take time for them to
get adjusted with the new set of regulations. The authors also stated that, other related aspects of
the internal management such as communication channels should also have to change with the
change in the style of management. Thus, according to them, it will be favorable for the business
organizations to stick to a single style of management and modify it according to the situation.
There is no best way to manage
On the other hand of the opinion that, business organizations should initiate a singular
approach of management style, some other authors have given several valid points, which
conclude that there is no best way to manage. According to Thompson and Glaso (2015),
business organizations should not have a singular approach in maintaining their style of
management. This is due to the reason that, according to the authors, business organizations from
around the world are operating in different and diverse business environment. Thus, a singular
approach is not applicable for all. In addition, the current business scenario is rapidly changing
and following of same and similar approach will make hard for the business organizations in
handling the business situation effectively.
According to DuBois, Hanlon, Koch, Nyatuga and Kerr (2015), it is necessary for the
business organization to change their style of management according to the current situation.

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This is due to the fact that, the requirement of the internal as well as external stakeholders of the
organization are changing rapidly and thus, to meet the emerging requirement, they cannot have
a single way of management. According to the authors, if the internal stakeholders of a particular
business organization are well equipped and motivated in their workplace, then a more
democratic management style can be initiated. However, on the other hand, if the internal
stakeholders are more comfortable in directive style of management then, authoritarian style will
be applicable.
They also stated that, the style of management is also determined by the business
competitiveness. If the operating area for the particular organization is more competitive and
dynamic, then motivation of the employees to generate innovative ideas will have favorable
outcome (Aziz and Rizkallah 2015). On the other hand, if the business scenario is less sensitive
or elastic to change and it operates in same conventional way, then directive style will be more
favorable. Thus, the management style of the organizations should be based on the situation and
environment where they are currently operating.
Adhering to every management styles
As told by Yukl (2012), there are advantages and disadvantages in every kind of
managing the business organizations. According to him, if an organization initiates the
democratic style of management, then also they will face issue in involving more time in the
decision making process. Moreover, it will be difficult for the organization to bring consensus
from among the varied opinions of the employees. On the other hand, if the organization initiates
the directive style of management then also they will face the issues of dissatisfaction of the
employees in their workplace (Sageer, Rafat and Agarwal 2012). In addition, the effective

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identification of the requirement of the employees will also not be possible. Thus, according to
him, business organizations should initiate the situational style by adhering to the merits of all
the available management styles. It will prove more effective for the organizations.
Discussion
From the above critical analysis, it is been seen that several authors have given varied
opinions about the best possible way of organizational management. The situational mode will
be more applicable and favorable for the business organization due to the reason that, it will help
the organization to be flexible enough in coping up with the changing business scenario.
Moreover, the current global business scenario is more of customer oriented rather than
manufacturer oriented (Adekola and Sergi 2016). Thus, effective determination of the market
requirement is important for the organizations to stay ahead in the competition.
However, one aspect that needs to be considered by the business organizations is that,
strategies and approaches are to be initiated in according to the requirement of the market. Thus,
to initiate strategies according to the requirement of the market, the organizational management
should be flexible to change with the situation (Santos-Vijande, Lopez-Sanchez and Trespalacios
2012). In addition, the situational style of management will further help the organizations to train
and equip the internal stakeholders according the current need. Based on the internal and external
situation or environment of the organization, the management style should be initiated.
Conclusion
Thus, from the above discussion, it can be concluded that, for the contemporary business
organizations, managing the internal operation is more complex than ever. Thus, they should be
flexible enough in order to get adjust with the changing scenario of the business. It is been

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discussed in this essay that, sticking to a single type of management style will not help the
organization in dealing with the changing scenario. Analysis done by various authors is being
evaluated in this essay and it concludes that initiation of situation style of management will help
the organization to change or modify their management approach with the change in the external
and internal situation. It is being discussed briefly in this essay that situational style of
management will prove beneficial for the contemporary business organizations.

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Reference
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