History of Management Theory
History of Management Theory: New Zealand’s Biotech Industry Organization The act of management is one which comprises of the directing and controlling of a particular group. There must be obvious and evident principles of administrative theory involved in the business operations, with the purpose of it all being to coordinate this particular business group and harmonize it towards accomplishing specific goals.
The aim of this paper is to discuss one business in particular, a New Zealand based organization, New Zealand’s Biotech Industry Organization. They are an incorporated society which works by representing the New Zealand biotechnology sector, and which offers a broad range of...
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... included members, all of whom are working towards the same end goal, but who are engaged in a number of different activities in order to reach this goal.
Here we will be taking into consideration and discussing the organization itself in general, and in particular showing and discourse about the evidence of principles of the administrative theory in their business operations. This is what will be dissertated in the following. The subject of ideology is critical in any business organization, as it transubstantiates reality, and works “to provide conceptual filters that help us reconcile what is to what we wish it were. Ideology provides us symbol where substance is lacking. ” (Rozycki, 1999).
The system resource model used in the administrative theory used in business operations is critical to overall effectiveness, although it does have several alleged defects, especially when it is applied specifically to educational organizations. New Zealand’s biotechnology sector is seen as being a distinctive New Zealand strength, in particular the New Zealand Biotech Industry Organization. This is because biotechnology underpins New Zealand’s incredibly fast growing economy, and in turn is recognized as being a necessary tool when it comes to maintaining and improving the environment.
When we take a look specifically at the New Zealand Biotech Industry Organization’s administrative theory principles used in their business operations, we can see that there are several key points that need to be considered, namely the four administrative theory-related goals that are considered as being what will allow the organization to be able to have the greatest impact on building a prosperous and successful biotechnology sector.
These goals are as follows: generating valuable intellectual property and resources, creating a favorable operating environment for commercialization, developing strong and proper business connections, and promoting industry development. Their unit is basically structured into three key themes: the functions of administrative theory, the context of administrative theory, and the practice of administrative theory. These administrative theory themes are all very different in their own ways and yet similar at the same time, as they all operate through the same basic functions: planning, organizing, leading/motivating, and controlling.
The planning functions refer to what needs to happen in the future with the organization, organizing makes optimum use of the resources that are required in order to enable the successful carrying out of plans, leading/motivating involves the exhibiting of particular skills for getting others to play their proper roles, and controlling functions refer to those which check progress against plans to see which need modification and which are on track.
In Fayol’s opinion, planning is specifically the management of the organization’s future in an otherwise uncertain environment, and there are several different types of plans that can be used here, namely strategic and operational. Strategic and operational plans are very different from one another, with strategic plans being organizationwide, and which usually result in establishing overall objectives and goals.
Operational plans, on the other hand, specify the details that are involved in regards to how individual objectives are to be achieved. Plans on either side of this fence may be long-term or short-term, directional or specific. Contingency factors are critical to include in these planning processes, the most important being: organizational level, life cycle of the organization, environmental uncertainty, and length of future commitments.
All of this is critical to take into consideration, and it is also important to recognize that there are certain myths about planning that should be known as being false, including the fact that planning that proves inaccurate is a waste of management’s time, and that planning can eliminate change or reduce flexibility. Henry Fayol was one theorist in particular who agreed on these beliefs, as he considers management to consist of these same five functions.
Fayol in fact offered an idea which included 14 specific principles of management, which are: division of work, authority, discipline, unity of command, unity of direction, subordination of individual interest, remuneration, centralization, scalar chain, order, equity, stability of tenure and personnel, initiative, and Esprit de Corps. Fayol’s definition of management roles and actions very distinctly distinguishes between five particular elements, which are: prevoyance, to organize, to command, to coordinate, and to control.
However, although Fayol, one of the most influential contributors to modern concepts of management ever known, strongly believes in these particular concepts, most people find this definition to be much too narrow. Basically, with two exceptions, Fayol’s theories of administration worked by integrating nicely into the bureaucratic structure that previously existed, and Fayol always made sure to focus more on the personal ideas of management than anything else. Fayol is one theorist in particular who is credited with being one of the first individuals to ever write down a comprehensive management philosophy.
Not only that, but he was one of the first to actually recognize and make use of these principles, and he carefully ensconced the principles of management within much broader principles of anything else. Besides the New Zealand Biotech Industry Organization, which is specifically being discussed here, there are many other organizations in the world as well that interpret these same principles, although some quite differently from the way that they were interpreted in Fayol’s time.
Another theory of Fayol’s that relates here is one which was later developed into what we know today as being division of labor. There was a doctrine entitled The Wealth of Nations, which detailed a much more efficient method of breaking down the way that work is viewed and represented in general, and basically, this division of labor stated that “instead of having an individual do 10 steps to completing one task, use a specific person skilled at each step repeating nothing but their particular specialty.
This way you would use 10 people to complete the task, with each one bringing to the table their specialty and you could turn out twice, thrice or even quadruple the amount of production. ” (Wellen, 2003). There are many advantages and benefits that can be gained from this particular theory of his, namely in terms of economics. It was hugely successfully, partly due to the Industrial Revolution, as this made it possible to mechanize various different tasks done by humans, and the increased productivity that was gained from this resulted in adding a whole new realm to management in general.
“Managers were then necessary to either oversee those who would operate the machinery or ensure that there were enough supplies, especially in light of such increased demand for goods. Managers were a big part of the advent and transformation of these factors to become mechanized. ” (Rozycki, 1999). New Zealand’s biotechnology sector is built on a century of world class biological research, and they have extensive knowledge and experience when it comes to “applying research to pastoral and arable farming, horticulture, forestry and human healthcare.
” (New Zealand’s Biotech Industry Organization, 2006). By using three points in particular from Fayol’s 14 points, division, authority and discipline, we are able to prove the effectiveness of the principles of administration used in their business. Namely division, which states that specialization allows an individual to be able to build up experience and continuously tone and improve his skills, we can see evidence of this in New Zealand’s biotechnology sector in general, let alone the New Zealand Biotech Industry Organization.
It is obvious to see just how important a matter they consider division as being, and how dedicated they are to working towards the goal of making their existing employees as qualified as possible, and new employees to gaining experience and knowledge as quickly and effectively as possible as well. In terms of the second point to be used here, authority, again we can prove the principles of administration used in this organization, as the leaders involved offer the right to issue commands and do so if and when necessary in order to make the business as successful and effective as possible.
Finally, in terms of discipline, we can see that the New Zealand Biotech Industry Organization again shows great evidence of this, as they understand that employees must obey their commands and work by the leaders’ direction, but that this is also two-sided, because employees are only going to willingly obey orders if management works to play their part by providing good and proper leadership.
Management in organizations can absolutely be considered as being a dynamic discipline, and many of the presently used management concepts and practices can actually be traced back to early management theories, and this not only includes Fayol’s but others as well. Everyone needs to be willing and able to play their role in order for the entire operation to come together and be successful.
Due to the success and dedication of this particular organization, and namely of its effective administrative theory practices, New Zealand is now reaping the benefits of the various improvements that have been made in the primary production sector, and this only goes to prove that Fayol and related theorists were on track with their beliefs.
References New Zealand’s Biotech Industry Organization. (2006). Welcome to NZBIO. Retrieved August 15, 2007, from http://www.nzbio.org.nz/files/default.asp