20th Century Business Requires an Eclectical Approach to Management

Essay, 2010

6 Pages, Grade: 2


The speed of change in all parts of the business in 20th century requires a modification in management styles, too. If you modify the surroundings and requirements you will have to tackle management as well, because various business situations need a different management. Globalization is one of the many reasons why the speed of development and change is rapid and employees change their jobs more often. The society is getting separated into groups: uneducated workers or caseworkers and well educated employees. There are also different cultures in one company, and each culture has different norms and values. The workplaces get more intercultural which leads to new challenges for everyone. Nowadays more and more women are well educated in contrast to other women who like to have a family and work in part-time-jobs. If the modification of business life continues we need to change management styles as fast as we can because such employees call for a special leadership. Leaders play an important role in setting an example for all those values, behaviors and considerations expected from employees. Leaders have to ensure that these changes in an organization are accepted and implemented in a way that not only result in a better job performance but also in general understanding and satisfaction for all. Based on various literature, this essay examines the two management styles, called Management by Delegation and Management by Exception and shows that there are differences between them. Every management style has advantages and disadvantages for a particular business situation in the 20th century which will be described in the following essay.

Management by Delegation transfers the responsibility for work to employees. If employees like to analyze problems and critical thinking, they will prefer this management style which offers the possibility to take their own way to the target. It is important to make sure that employees enjoy working and thinking independently. Therefore management should ensure that employees are well educated. If the employee is not well educated or only a caseworker, he won’t be able to solve complex problems. Management should ensure that the assignments fit to skills and competences of employees. If the management does not ensure this, employees will feel overwhelmed. If they have to solve problems without any competences, the work will not get finished. The management style is suited for educated workers be it female or male workers, which like more hard factors, like structure, strategy and systems (cf. Franken 2004, 207). For a company it is important to weigh up the hard facts, because a company can not exist very long without looking at hard facts. An educated employee needs challenging tasks and measurable targets (cf. Ladwig 2006, 158) and does not think about soft factors which are not measurable (cf. Preißler 2009, 13). Most of these employees wish to have a leader who is consequent, creative and subject-specific competent. Many employees wish to have a leader who is decisive and self-assertive. For these employees it is important to have a leader who is not afraid of finalize decisions (cf. Ley 2010, 42), because a leader who reformulates in the same subject is not very trustful. (cf. BAVC, Die Chemie Arbeitgeber, 1ff)

If you speak of Management by Exception it means that the employees get a specific plan with rules and instructions from the management on how to work to achieve a given target. The system is used for standard decisions which are made every day. Only situations which differ from the established standard are taken by the management. (cf.Walter 2005, 354) The first advantage is that employees relieve the management by doing routine work. The management is able to concentrate on special requests only. Another advantage is that employees do not need special training or a degree, because they do the same work every day. Employees can work without too much thinking about their work. Competences and discretionary competence are clear for everyone. A disadvantage of this management style is that employees who like to analyze problems, critical thinking and find an answer by themselves will become demotivated, because the plan about how to reach the target is already given by management. They will not have an opportunity to add their own ideas or their own creativity. The second disadvantage is that the management intervenes only if there is a strong negative discrepancy between the target at the moment und the given target. This can lead to problems, because it could be too late to rescue the project. Another aspect is that the employees do not get praise, if the project or their work are successful. One of the five mistakes of a leader is to give no feedback to employees (cf. Ley 2010, 42). This could lead to a demotivation of employees, too. However the part of the employees was only to do the work and they were not the involved in the brain work. Finally, it is possible that negative information will be hushed up, because employees do not want to tell the management about it. In this case it does not make any difference, if the negative information results from their own fault or because of the surroundings. Therefore, it is necessary to control the work of employees from time to time. In conclusion, we can say that Management by Exception is suitable for uneducated employees who like to work the same tasks every day, who do not like to think about their work and like to go home in time. The management style is also perfect for women in part-time-jobs, because they do not have much time to analyze problems if they work only a few hours a day.

It is also important to know the peculiarities of various cultures. Terence Jackson (cf. Jackson 2002, 186) writes in his book, for example, that British employees like to communicate indirectly, whereas the German communicate directly about problems or decisions (cf. Jackson 2002, 186). Another difference is the opinion of changing the workplace. Germans are more constant and stay much longer at one workplace in contrast to a British employee, who is always looking for a new workplace (cf. Jackson 2002, 186). The British learn more by doing and by experience so they like to work at many companies. The Germans learn the theory about managing a business at university (cf. Jackson 2002, 186). However the speed of modification requires a change in the thinking of Germans. Workplaces get rationalized, because of more machines or because of the elimination of products. So Germans have to be more flexible and have to change the workplace more often. The atmosphere in the company is not as familiar as years before, because the relations between the employees cannot easily grow. Moreover, there is a lot of competition between employees when they have to realize targets. These are all facts which a leader should consider.


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20th Century Business Requires an Eclectical Approach to Management
University of Applied Sciences Vorarlberg
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century, business, requires, eclectical, approach, management
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Melanie Müller (Author), 2010, 20th Century Business Requires an Eclectical Approach to Management, Munich, GRIN Verlag, https://www.grin.com/document/189242


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