Managerial Theory Meeting Managerial Practice

In the following essay, the contemporary theories of management will be explored, and compared to real-life management in today s business world. In other words, this essay investigates whether managerial theories meet actual managerial practice. Katz model of conceptual skills, along with Taylor s scientific principles will be compared to actual managing practices in order to determine whether the theories are relevant, applicable and in use in the workplace of the 21st century. In preparation for this text, a support co-ordinator of a large hardware store was interviewed about their roles and skills in their managerial position in their company. This interview forms the basis of comparison between theory and practice, to determine how the conceptual theories are utilised in the work environment. For privacy reasons, the manager shall be given the false name, Jane Smith. The company will be called Hardware Co.. Jane is a mid-level manager. She is the Support Coordinator for Hardware Co., a large-scale, Australian-based multinational organisation. The company is part of the service sector and is a public corporation. Jane coordinates the support staff and manages other duties relating to the support department, such as organising rosters and interviewing potential support team members. As discovered in the interview, Mrs. Smith practices many aspects of the contemporary managerial concepts. The contemporary management theory regarding conceptual skills is outlined in Katz model of effective management. Katz model involved three distinct categories of skills: technical, human, and conceptual (Peterson and Van Fleet, 2004). Technical skills relate to the use of specialised tools and human skills are concerned with cooperating with others (Peterson and Van Fleet, 2004). Conceptual skills entail the ability to view the organisation as a whole and comprehend how each part of the organisation relate to one another (Robbins et al., 2006). This skill involves abstract concepts (Katz, 1955) that focus more on ideas and concepts (Yukl, 2002) rather than things (technical skills) or people (human skills). Put simply, conceptual skills are closely related to visionary skills. Although conceptual skills are described as an innate ability that is of great importance to upper level management (Katz, 1955), Jane does, however, still require and uses conceptual skills as a middle level manager. Jane Smith has the conceptual ability to step back from a situation, observe its components to see what is happening, and then construct a solution to remedy the problem. This skill has assisted Jane in dealing with events that arise from day-to-day. A true conceptual skill of an effective manager is to be able to properly analyse a situation, without being caught in the chaos of the problem at hand. When assessing issues such as resolving customer dissatisfaction, or evaluating the current efficiency of her environment, clarity and a clear vision are vital aspects that Jane repeatedly requires in order to better the harmony between customers and the company, as well as further align Hardware Co. to achieve its goals. By stepping back and identifying the most efficient practices within the support department, Jane s conceptual skills enable her to properly assign tasks and manage time, thereby arranging work to accomplish organisational goals.

Frederick Taylor s scientific management model is a contemporary management theory in practice today. Scientific management is the use of scientific methods to define the one best way to do a certain job (Taylor, 1911). Taylor was a mechanical engineer who mostly worked in Steel Companies. Taylor was continually disgusted with the inefficiency of the employees (Robbins et al., 2006). He observed how different workers performed the same task in different ways. Using time-motion studies, Taylor was able to determine which employee was best suited to each job, consequently discovering the one best way of doing each job (Somers et al., 2004). Taylor developed four principles of management to achieve the greatest results for staff and management: Developing a science for each aspect of a worker s duties; select, train and develop workers in a scientific manner; Willingly cooperate with employees to ensure work is carried out according to procedure; equally distribute both responsibility and work between management and staff (Robbins et al., 2006). Taylor s principles can be demonstrated in the practices of Jane Smith at Hardware Co.. Jane makes use of multiple aspects of Taylor s principles in order to extract the highest level of productivity from her staff. She ensures that each employee has a clear understanding of their work and what is required of them; she is involved in a very planned and organised method of staff selection and thorough training; she is adamant about strong communication within her team and cooperates with her team to ensure work is carried out according to plan. There is one of Taylor s principles which Jane is not well aligned with, and that is the equal division of work and responsibility between management and workers. Although work is shared fairly evenly, Jane retains authority and has a greater responsibility in the decision making process. Jane is well engaged in attaining the organisational goals of Hardware Co., and therefore bears the majority of the responsibility in making decisions in order to position her department in line with those objectives. Taylor s scientific management theory is not necessarily the best managerial method to use in all situations. Hence a contingency approach should be adhered to, in order to accommodate differing circumstances. The theory states that manager s should adapt their style to suit the situation, or contingency (Robbins et al., 2006). In Jane s case, following all of Taylor s principles would not have been appropriate to the situation as it would hinder Hardware Co. s ability to achieve its set goals (as discussed previously). Considering the large scale of Hardware Co., a persuasive management style may best be suited for Jane. With this style, she can deliver instructions to employees in an explanatory way, which helps workers understand the reason behind her decisions. This minimises staff resistance, as well as allowing the organisation to continue to reach toward its goals (Somers et al., 2004). Perhaps Douglas McGregor s human relations approach would be ideal since it defines two separate types of employees and discusses how to motivate them in the most effective way. Identifying the theory X employee, the type of employee who dislikes work and needs constant direction, and theory Y individuals, self motivated people who are more self-directed (McGregor, 1960), will help Jane knowing how to handle her staff. In essence, Taylor s principles are very useful, however not all of them for every occasion. Katz model on conceptual skills is, for the most part, useful and effective in the workplace. Jane is able to handle occurrences effectively and with great confidence. She is able to understand the situation, the

company and its processes as a whole. Jane can accurately predict the consequences of her decisions and how they can positively affect not only her department but other areas of Hardware Co.. Katz conceptual skills are effective in running a prosperous business, but are not as necessary for middle managers, such as Jane, as they are to senior managers, such as a complex manager. It seems that contemporary management methods are both valid and effective in today s workplace. Katz model assists managers in seeing the bigger picture, and how they can achieve superior results for the organisation as a whole. His conceptual skills allow a company to head toward its vision, through managers like Jane striving to make the business the best that it can be. Taylors principles are a testament to scientific measures of management. Through analysing the most efficient measures of accomplishing tasks, Taylor was able to implement the ultimate work regime. Although his theories are still in use, they are not followed in their entirety. They are augmented to accommodate the companies circumstances, Jane, for example, only followed three of the principles. It appears that these fundamental theories of management will always be useful, whatever form that they are in. Analysing a real-work environment, it can be concluded that the contemporary theories are in use, hence, managerial theory has met managerial practice.

Sam Tucker