General Research

Quality of management represents numerous aspects, including four important managerial functions, which are planning, organizing, leading and controlling. These functions determine the efficient and effective utilization of resources. Management theories have evolved since the early 1900’s and include theories X and Y. Organizations may defer to or incorporate one of these theories to manage the behavior of its managers in order to optimize worker productivity. Additionally, organizational structures, controls to measure output and organizational culture determine the success of an organization. (Jones, et al., 2000) 

The book, Contemporary Management, states that “the job of management is to help an organization make the best use of its resources to achieve its goals.” (Jones, et al., p. 8) It begins with planning, which Jones defines as “identifying and selecting appropriate goals.” (p. 8) After goals have been established, the strategy of how to use resources is determined and implemented to achieve goals. The second managerial function is organizing, which is defined as “structuring working relationships in a way that allows organizational members to work together to achieve organizational goals.” (p. 9) In order to be effective, an organizational structure consisting of formal task and reporting relationships needs to be developed to ensure coordination and motivation between working resources. The third management function is leading, which Jones defines as, “articulating a clear vision and energizing and enabling organizational members so that they understand the part they play in achieving organizational goals.” (p. 10) The fourth element of management is controlling, defined as, “evaluating how well an organization is achieving its goals and taking action to maintain or improve performance.” (p. 10)
(Jones, et al., 2000)

Beginning with the late 1900’s management theories began to evolve as a result of the Industrial Revolution. Because machinery automated processes, management needed to find ways to manage, control, and motivate employees. Although there are five significant theories, we will only focus on Behavioral Management Theory. This theory is defined as, “the study of how managers should behave in order to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals.” (p. 53) (Jones, et al., 2000) 

Worker’s attitudes and behavior have a significant impact on productivity and subsequently on a manager’s behavior. During the 1920’s Douglas McGregor developed two assumptions he named Theory X and Theory Y. Theory X suggests workers cannot be trusted, are lazy and need to be closely supervised. With Theory X, management needs to control workers with standard operating procedures and a system of rewards and punishments. The second assumption, Theory Y, suggests that workers do not need close scrutiny and are capable of taking initiative and making decisions. It states management should provide a supportive environment, since workers are deemed to be
committed to the success of the organization. (Jones, et al., 2000) 

An important aspect of management focuses on functional structure and organizational design. Both represent processes that develop organizational departments to establish the structure of working relationships. Once the functional reporting relationships have been defined, and depending upon the size of an organization, divisional structures may be determined. There are three types of divisional structures: product, geographic, and market structures. The product structure is used according to types of goods or services provided. For example, General Electric would use product structure to manage its Washing Machine & Dryer Division, its Lighting Division and its Television & Stereo
Division. The geographic structure is used based on where an organization operates. A good example is Federal Express with demanding delivery objectives managed through Global Divisions. The market structure is used depending upon the type of customer served. Target Corporation is an excellent example of market structure with 3 divisions: Discount Stores, Middle Market Stores and Department Stores. (Jones, et al., 2000) 

Organizational control and culture are also very important aspects of management. Measurement tools must be put into place and organizational control systems used to monitor and motivate employees. Output control can be managed through measurements of financial performance, organizational goals, or operating budgets. Behavior control can be monitored using direct supervision, management by objectives (MBO), or rules and standard operating procedures (SOP). Organizational culture control is established by values and norms instilled and reinforced by its senior management. The company
mission and code of ethics help employees understand the type of behavior that an organization expects. Standards of behavior are fostered using socialization programs such as company picnics, ceremonies, stories, and jargon. (Jones, et al., 2000)