What were some of the Henry Fayol’s main contributions to the field of management?
Fayol was a mining engineer who contributed immensely to the field of management. He came up with the theory of scientific management, which is now commonly referred to as Fayolism. Fayolism is one of the most comprehensive statements of management theory. The theory states that there are six primary functions of management, as well as fourteen principles of management. The principles of management include stability of tenure of personnel; equity order scalar; chain remuneration; subordination of individual interests to the general interest; unity of direction; unity of command; discipline; authority; division of work; esprit de corps; initiative; and centralization (Bose, 2002). In this regard, it can be asserted that Henry Fayol made a major contribution to the field of management. This can be reflected in the widespread use of Fayolism as a theory of management.
What is a competitive advantage and why is it important for contemporary organizations?
Competitive advantage refers to the incident whereby an organization chooses to offer services or products that are similar to those of competing organizations at reduced prices. The same applies when it charges a slightly higher price by providing a unique or a refined product through differentiation. Competitive advantage is very important to the growth and development of a contemporary organization. In a world where competition is fast becoming fierce, a strategic organization should find a way to cut itself from the rest of the pack. An organization that can cut a niche for itself in the market is also able to move forward (Ogrean, Herciu & Belascu, 2009). Therefore, every organization strives to attain competitive advantage over the others in the industry. This is a critical aspect that ensures the success of the organization (Dess, Lumpkin and Taylor, 2005).
Why do people make the difference in an organization?
The success of the organization can be measured, not just in the quality of its products or services, but also on the resources that the company has. One very important resource that an organization can have is its people. The people who are always behind the scenes, making decisions, carrying out different tasks, as well as running the organization are the most valuable resource that the organization can have. How the people in an organization perform their roles determines the products or service that the organization will produce. Even in this era of technology, organizations are investing in technology to help them perform different tasks. However, the technology still requires people to direct its performance (Harvey, Fisher, McPhail & Moeller, 2013). In this regard, it can be noted that people are the major component of an organization. Therefore, all organizations should ensure that the people are well motivated to ensure positive results.
What are the international management challenges of globalization?
Organizations that engage in international business have various benefits. The benefits include profits, increased market, increased suppliers, increased capital, as well as increased labor. However, partaking in this globalization portends several management challenges. One challenge that arises for managers is the currency of trade. Given that the organization does business in many countries with each country having its currency management, there is the challenge of managing international finance. The second major challenge is the challenge of cross cultural barriers. Managers come from certain backgrounds, and when they are transferred to areas that practice different culture, they have the challenge of adjusting. Other challenges include different legal and accounting practices, varying global strategies, as well as the increased competition (Parker, 2005).
Bose, DC 2002, Principles of management and administration, Prentice-Hall of India, New Delhi.
Dess, GG, Lumpkin, GT and Taylor, ML 2005, Strategic Management, McGraw-Hill Irwin, New York.
Harvey, M, Fisher, R, McPhail, R & Moeller, M 2013, Aligning global organizations’ human capital needs and global supply-chain strategies, Asia Pacific Journal Of Human Resources, vol. 51, no. 1, pp. 4-21.
Ogrean, C, Herciu, M & Belascu, L 2009, Searching for sustainable competitive advantage– From tangibles to intangibles, Journal Of US-China Public Administration, vol. 6, no. 4, pp. 1-9.
Parker, B 2005, Introduction to globalization and business: Relationships and responsibilities, SAGE, London [u.a.