ORGANISATION and MANAGEMENT THEORY

Five Functions

Henry Fayols five functions were based on his experience as a managing director of a mining company. He derived that with the complexity of a business, the management needed to be more professional.

The five functions were focused on key relationships between personnel and its management.

1. Planning - This requires the participation of the entire organisation. It must be on different levels and time horizons.


2. Organising - This provides the capital, personnel and materials for daily running of the business. It depends on a number of employees.


3. Commanding - This creates an effective workplace, where all involved in a business, feel valued.


4. Coordinating - A business can build an equal balance between working activities and social activities. This can be achieved by ways of meetings, to enable problem solving.


5. Controlling - This identifies weaknesses and errors. By having appraisals, the employee can give opinions and the employer can give them the chance to improve. Communication and feedback are important ways of identifying problems. (provenmodels, 2010)

Virgin

The management of Virgin provides adversary and managerial support throughout the vast virgin network. They offer support to all their sector teams, and manage Virgins financial assets. This enables the management to maximise the virgin brand and ensure it is an employer of choice. (virgin.com, 2010)

John Lewis

The managements responsibilities lie with their employees. Every employee is a partner and have a share in the profits. The management pride themselves on their customer service, and their commitment to their suppliers. As a partnership, their corporate responsibilities determine the priorities of the business. How they manage and monitor performance, set goals and objectives and keep up their promise and commitment enables them to be a finely tuned operation. (johnlewispartnership, 2010)

By ensuring a good employer to employee relationship, both Virgin and John Lewis have managed to be successful. The management of both companies use the five functions to full effectiveness. Their commitment stands out, and their names are known by everyone.

Scientific Management

Formulated by frederick Taylor in 1911, he proposed scientific methodologies to improve productivity on the shop floor. Many problems, such as low productivity and poor relationships, between management and employee were caused by improper work ethics.

The problem with Taylors theory was that it contained both pros and cons.

Pros

It could increase productivity

Increase management and employee relationships

with increase of productivity came increase of salary

describes management as a proffesion

gave individual sectors responsibilities

Cons

reduction in staff requirements

it was internally orientated

unfair to employees as it falsified figures

only concentrated on money, and not the job

de-motivating for the employee (Mullins,L. 2007)

Conclusion

With the aid of Fayol, businesses are able to commit their efforts in providing a service, which benefits both themselves and their employee. Virgin and John Lewis maintain their success through implementing the five factors. Although Taylor looked at improving the productivity and finance of a business, it lacked the requirements of good relations between management and employee.

References

Johnlewis partnership, 2010 [Online] Available at: http://www.johnlewispartnership.co.uk/display.aspx [Accessed on 8 May 2010]

Mullins,L. 2007. Management and organisational behaviour.Harlow:Pearsons

provenmodels, 2010 [Online] Available at: http://www.provenmodels.com/3 [Accessed on 8 May 2010]

Virgin, 2010 [Online] Available at: http://www.virgin.com/management/ [Accessed on 8 May 2010]