Classical Management Theories in Contemporary Management

Topics: Management, Organizational studies and human resource management, Knowledge management Pages: 21 (7632 words) Published: August 22, 2010
Journal of Management and Marketing Research

Infusing value: application of historical management concepts at a modern organization Andrew H. Clem Nova Southeastern University Bahaudin G. Mujtaba Nova Southeastern University Abstract History and the relative global marketplace have always proven to large organizations that there will continue to be wavering economic waters to navigate as well as deal with constant changes in the business environment. Today’s economy is no different, and management strategies are continually tested to withstand the slow return to prosperity. Science Applications International Corporation (SAIC) has historically been able to weather these environmental business factors through insightful management strategy, a focus on employees, and value creation. By analyzing various management theories and exploring SAIC, a set of recommendations for managers is presented along with an in-depth view of what has helped SAIC to become successful. Key words: Customers, competitors, technology, economy, value creation, management theories.

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Introduction In a modern economy, a corporation can expect many scenarios, events, and a wealth of market and economic fluctuations. Today’s economy is riddled with abyssal economic downturn and subsequently wild market fluctuations. Coupled with these events is marked competition from multiple avenues. As technology remains at the forefront of civilization, businesses not only must remain malleable to the aforementioned conditions, but continue to improve their technological infrastructure to keep a competitive edge since skilled and knowledge employees are likely to leave and take others jobs when better opportunities become available (Udechukwu & Mujtaba, 2007). Remaining at the forefront these factors create an impetus for success of an organization. However, all else aside, creating value and implementing positive, value-creating strategic management practices is the most practical direction to proceed to ensure a long-run outlook on organizational success and longevity (Chan, Fine, Khanfar, & Mujtaba, 2009). Science Applications International Corporation (SAIC) has found a way to implement various management theories and increasingly be successful, all the while creating value for the company through a host of value drivers. SAIC Background SAIC is an employee-owned corporation with a track-record of high-level client service and organizational success. J. Robert “Bob” Beyster, Ph.D. founded SAIC in 1969 and it has since grown into an international company with around 45,000 employees (SAIC, 2009, About…). He is also the author of The SAIC Solution, explaining how SAIC came to be successful. According to Reuters (2009), SAIC can be described as “a provider of scientific, engineering, systems integration and technical services and solutions to all branches of the United States military, agencies of the United States Department of Defense (DoD), the intelligence community, the United States Department of Homeland Security (DHS) and other United States Government civil agencies, state and local government agencies, foreign governments and customers in select commercial markets” (Reuters, 2009, p. 1). Through the years, SAIC has remained at the forefront of business decisions and management strategies to carry the company through both great times and economic turmoil. Through these, SAIC has been able to “position the company for sustainable growth,” even posting ten billion dollars in revenue for fiscal year 2009; the first time in the company’s history (SAIC, 2009, Annual…, p. 2). Part of this sustainable growth, however, can be found within how the company motivates itself. Employee-owned corporations are generally derived through some type of employee stock ownership program (ESOP) within the company. SAIC has chosen to remain employee owned, partly due to the fact that employee ownership is directly linked to one of the...

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Classical Management Theories
Pohlman, R. A., & Gardiner, G. S., Heffes, E. M. (2000). Value Driven Management: How to Create and Maximinze Value Over Time for Organizational Success. New York, NY: Amacom. Reuters. (2009). FullDescription. Retreived July 29, 2009, from: SAIC. (2009). About. Retreived July 28, 2009, from SAIC. (2004). Annual Report. Retrieved July 28, 2009, from: SAIC. (2005). Annual Report. Retrieved October 11, 2009, from: SAIC. (2006). Annual Report. Retrieved October 11, 2009, from: SAIC. (2009). Annual Report. Retreived July 28, 2009, from: SAIC. (2006). SAIC Announces Financial Results for Fourth Quarter and Fiscal Year 2006. Retrieved October 11, 2009, from: Stankosky, Michael Anthony (1997). Measures of organizational effectiveness based upon selected management attributes. D.Sc. dissertation, The George Washington University, United States -- District of Columbia. Retrieved September 13, 2009, from Dissertations & Theses: Full Text.(Publication No. AAT 9734917). Udechukwu, I. I. and Mujtaba, B. G. (2007). Determining the probability that an employee will stay or leave the organization: a mathematical and theoretical model for organizations. Human Resource Development Review, 6(2), 164-184. Author Biography Andrew H. Clem is a graduate researcher in leadership at Nova Southeastern University’s H. Wayne Huizenga School of Business and Entrepreneurship. Always having a passion for the environment and technology, his goal during his undergraduate degree was to pursue a career in combining these interests. Clem graduated from the University of Kentucky with a Bachelor of Science in Forestry. From there, he continued to pursue his combined interests while working through a series of forestry consulting, infrastructure, and GPS mapping projects. Clem is currently a full-time GIS Specialist with the engineering firm, Camp, Dresser, & McKee, Inc. Upon completion of his graduate research, he plans to continue to apply technological applications to the environment. Clem also intends to aggressively lead and develop a positive synergy between the environmental business sector and environmental issues. Andrew’s research areas include management, leadership, and knowledge management application. Bahaudin G. Mujtaba, D.B.A., is an Associate Professor of Management and Human Resources at Nova Southeastern University’s H. Wayne Huizenga School of Business and Entrepreneurship. Bahaudin has served as manager, trainer, and management development specialist in the corporate arena as well as a director, department chair and faculty member in academia. His areas of research are management, leadership and management history, and international management.
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