Different Theories of Business Management
So what s your most important business management lesson? Empower your employees. Embrace employee growth. Systemsize your organization.
Many of the largest corporations in the world are comprised of a small number of legendary companies and a large number of medium-sized companies that have adapted management theories to fit their business model. Large corporations use a variety of different management theories to accomplish their goals. Small business use various theories to achieve their goals as well. The theories can be categorized into five areas of focus. The focus areas of the larger corporations are more on the development of corporate values and vision, expansion of the company, and the utilization of the company’s assets for growth and company direction.
On the other hand, there are theories of modern management developed by people such as Taylor, Wal-Mart, Microsoft, and Walmart. These companies have developed their theories on how to better optimize the performance of a business unit. Some of these theories include behavioral economics, technical economics, decision theory, economic reasoning, and nonlinear systems thinking. These are just a few of the many theories that modern management developed to improve business performance. Below is an example of a current management concept.
A large corporation that desires to expand will develop a business strategy that takes the form of a classical management concept. The large corporation will analyze large and small business performance. They will also examine the behavior of internal and external factors that affect the performance of large and small businesses. Finally, they will implement a new or modified approach based on their findings.
On the other hand, a medium sized business that desires to expand will develop a new business theory that bears a resemblance to the classical management concept of maximizing profits. This medium sized business will also examine the large corporation’s performance in terms of its profits. This medium sized business will then implement a new or modified approach based on its findings. The last business to examine is a small company that desires to expand. Its study will be devoted to developing and implementing theories that are based on the principles of optimum performance and value creation. Many times these small businesses will use quantitative methods in order to obtain a better understanding of how the costs of doing business interact with the profits that are created.
A good representative of modern management theory is Henry Fayol, who worked with the United States military during World War II. While he was a senior engineer, he developed and implemented several important concepts such as the pull-back, which is described as the process of counteracting any force that would overpower a company. Another example of a relevant theoretical framework is fiedler analysis, which utilizes historical data in order to forecast future trends. According to fiddle analysis, trends arise due to economic forces, political situations, and technological advances. In addition, the strategies used by large and medium sized companies in their daily operations need to be studied in order to improve and make changes to the way they operate. Finally, there is contingency management, which is designed to assess and monitor the status of a company, especially if it is a large corporation that has large investments and operations that have long term effects.
There are many people who disagree with the above mentioned business management theories, including some who base their opinions on the work of Sol Price, an Irish social philosopher. The main issue with this argument is that Price did not include any mathematical elements into his arguments, which makes his work extremely difficult to analyze. In fact, most modern day business management books will not contain any information about any of the above-discussed business management concepts. In order for one to learn how these concepts are used in practice, it will be necessary to begin studying more complex business models.
The above mentioned are just a few of the more popular business management theories that are used in modern management systems. Each of these concepts can be expanded upon in order to create a complete business management system. It should be relatively easy to find a qualified business management consultant that can help you in understanding any of the above theories, as well as provide you with the tools and skills you need to learn how to successfully implement them into your own business management system. For those with a more specific set of business skills, there are also many private tutoring services available to help students learn the theories and practice the theories themselves.