Literature Review

Topics: Management, Organizational studies, Organizational studies and human resource management Pages: 12 (4042 words) Published: August 27, 2013
Chapter II
Literature Reviews

2.1.Five (5)Theories of Management
2.1.1.Theories of Management-1: Dimensions of Change (Pettigrew and Whipp) The Theory of management by objective is the practice of running a company by it goal and mission. The Dimensions of change theory has three dimensions which Pettigrew and Whipp emphasized the continuous interplay between these change dimensions. The three dimensions are content, process, and context.

A successful change that the company will achieve is a result of the interaction between the content or what of change, the process or how of change, and the organizational context or where of change. Also, there are five change factors of Pettigrew and Whipp. Firstly, Environmental assessment is a continuous monitoring of both internal and external environment of the organization. Secondly, Human resources is that employees should know that they are seen as valuable. Thirdly, Linking strategic and operation change is that intentions are implemented through time. Fourthly, Leading the change is to move forward, creating the right climate of change, coordinating activities and steering. Lastly, Overall coherence is to set a change strategy should be clear with its environment and provide a competitive edge.

This theory will change the company by changing content, process, and context, if the company changes the objectives and how to implement. Then, the company can handle with the change when the company wants to change something.

2.1.2.Theories of Management-2: The Path-Goal Theory (Robert House)
The Theory of management by objective is the practice of running a company by it goal and mission. This theory is an idea of Robert House that a leader can the affect the performance, satisfaction, and motivation of a group.

The Path-Goal Theory is offering rewards for achieving performance goals, clarifying paths towards these goals, removing obstacles to performance. There are four different types of leadership styles depending on the situational. Directive Leadership is the leader gives specific guidance of performance to subordinates. Supportive Leadership is friendly and shows concern for the subordinates. Participative Leadership is to consults with subordinates and considers their suggestions. Achievement-oriented leadership is that the leader set high goals and expects subordinates to have high-level performance.

If the company applies the Path-Goal theory in the company, the leader can affect the performance, satisfaction and motivation of a group by offering rewards. However, it will depend on the situation.

2.1.3.Theories of Management-3: The Levers of Control (Robert Simons)
The Theory of management by objective is the practice of running a company by it goal and mission. The Levers of Control theory is a formal information-based routine or procedure that is used by management. It is to maintain or alter patterns in organizational behavior.

There are four levers of control of Robert Simons. Firstly, Belief Systems that an organization must put in the place so that it can control commitment to the organization’s vision. Secondly, Boundary Systems which an organization must have so that it can stake out the territory of each participant. Thirdly, a company to optimize outcomes puts Diagnostic Control Systems in place. Lastly, Interactive Control Systems is used for tracking new ideas.

The company must use this theory by putting in procedure in order to maintain or alter patterns in organization behavior. This theory can help the company to control effectively.

2.1.4.Theories of Management-4: Groupthink (Irving Janis)

The Theory of management by objective is the practice of running a company by it goal and mission. Groupthink theory is a mode of thinking of people when they are deeply involved in a cohesive group.

Groupthink is a result of cohesiveness in groups; it is an important factor to consider in decision processes,...
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