This website uses cookies to ensure you have the best experience. Learn more

Management Theories Essay

1247 words - 5 pages

Management Theories: Application of Theories
Patti Barnett
AIU

Abstract
The purpose of this essay is to write a memo to the manager discussing the application of management theories pertaining to moving toward an employee empowered culture and the theory of penetration pricing. It will also discuss any given issues that resulted in such actions as well as any alternative theory or theories that could have been applied.

Management Theories: Application of Theories
Several companies implement theories of how to make their business run better. Two of those theories include moving toward an employee empowered culture and penetration pricing. Were there any issues that led to these ...view middle of the document...

However, it only concerns the task at hand. In the corporate world, this theory “reflects the values, vision, and leadership style of a given company” (Simon, 2012). It simply creates employee satisfaction and boosts company morale, which results in high productivity and more profits.
An example of an empowered employee (or employees) comes from a company called Nucor Corporation. Nucor, which is based in North Carolina, is a small steel mill that takes the steel from cars, dishwashers, etc., and recycles it to make new steel. In 2011, their plant in Hickman, Arkansas lost power, and what management expected to take at least a week to repair, only took three days (Clark, 2011). This was because three of their own electricians from different plants, a few hours after hearing the news, took on a monstrous task without even being asked. They drove from their plants in Alabama and North Carolina, to the plant in Hickman to repair the damages. It only took them three days since they each worked twenty hour shifts until it was done (Clark, 2011). This action was taken by empowered employees, because Nucor had created a culture with its employees to “adopt a mindset of owner-operators” (Clark, 2011).
As a senior manager of this company, I might have taken it upon myself to travel to Arkansas to survey the damages myself, perhaps with other upper management. This could have in turn, prolonged repairs and cost the company more money.
Another example comes from a small company called Indus League Clothing Limited who rents retail space in malls (Rao, 2009). They too, have adopted the theory of an employee empowered culture. Although no specifics were mentioned as to what led the company to this mindset, the assistant retail manager is very appreciative of the upper management to have enough confidence in him to allow him to make self-governing decisions that would be in the best interest of the business and those employees who work for him. Such empowerment created a pleasant work environment, which promoted better customer service.

Penetration Pricing
A second management theory is called penetration pricing. According to Amy Handlin (2012), this theory involves “setting the price of a product or service as low as possible to facilitate rapid sales”. She also states that it most likely succeeds in large markets versus the smaller ones, when a new product is introduced and is chosen to attain the highest market share.
My belief is that penetration pricing arose when businesses were losing money to their competitors and used it to gain revenue, even though the same service or product was offered. But does penetration pricing really work? In order to answer that question, we need to take a good look at what businesses actually sell: image, innovation, and time savings ("Penetration", 2011).
If image is your primary decision maker, then perhaps you...

Other Essays Like Management Theories

Syllabus of Sales Distribution Management with Detail Explanation About the Theories

776 words - 4 pages Situation - Theories of Selling The Sales Effort: Planning: Sales Forecasting – overview of Qualitative and Quantitative Methods Budgeting – setting quotas, managing sales profitability analysis Designing and Managing Territories –- Routing methods. Sales Force Management: Setting up a sales organization – Basic Types of Sales organization structures including outsourced sales force : Estimation of Sales Force – Workload, Breakdown and Incremental

Risk Theories Essay

1913 words - 8 pages Risk Theories 1 Information Security and Risk Management Theories William Butler Risk Theories 2 Information Security and Risk Management Theory Leaders use risk management framework to describe an organizations risk management process (Jones, 2007). There are risk management models from which organizational leaders can choose to base their risk management framework upon. All of the risk management models are based on one of

Motivation Theories

611 words - 3 pages Gabriela Tunney MAN 301 Written Assignment 5 Part 1 Motivation Theories Companies rely on their employees to produce products or provide services in a timely fashion. While employees can easily learn the tasks and procedures required to carry out their roles, organizations can benefit from providing motivational incentives for a good job performance. A motivated employee is someone that works hard because they feel fulfilled when they do so

Motivational Theories

2543 words - 11 pages . The employee may achieve his goal, or may not. Satisfaction/dissatisfaction, the consequence of the behavior could lead to satisfaction or dissatisfaction. Feedback, if the goal of getting the award is not achieved the motivational process will start again Motivation theories, in its simplest from, are seeking to explain the driving force that converts our thoughts into behaviors. There are numerous theories of motivation, where each is either

Leadership Theories

720 words - 3 pages Provide at least two examples of leadership theories and how to implement them in order to improve the relationship between management and floor workers. “Transformational Theory states that leadership is the process by which a person engages with others and is able to create a connection that results in increased motivation and morality in both followers and leaders” (Wolinski, 2010, p. 2). This theory suggest that a leader must first

Traditional Theories of Leadership

1384 words - 6 pages ). References Antonakis, J., Day, D., & Schyns, B. (2010). Leadership and Individual Differences. The Leadership Quarterly, 23(4), 670-685 Badshah, S. (2012). Historical study of leadership theories. Journal of Strategic Human Resource Management, 1(1), 49-59. Retrieved from http://search.proquest.com. ezproxy.libproxy.db.erau.edu/docview/1478028083?accountid=27203 Cherry, K. (n.d.). Leadership Theories: The 8 Major Leadership Theories

Analyzing Counseling Theories

810 words - 4 pages  Analyzing Counseling Theories Analyzing Counseling Theories Part 1: Chart Theory 1: Cognitive Behavioral Therapy Theory 2: Reality/Choice Therapy Background Theory Origins of cognitive therapy can be traced back to the Stoic philosophers Modern roots stem back to the 1960’s Therapeutic history derived from classical conditioning Developed by William Glasser in the 1960’s Concepts of reality therapy

Learning Theories in Teaching

2337 words - 10 pages MODULE LL113 LEARNING THEORIES INTRODUCTION I would like to discuss and evaluate a range of learning theories, linking these discussions of each theory to health and safety in the workplace and other such health and safety subjects that I teach to a range of learners. I am going to be looking at behaviorism, and how the learners adapt to enthusiasm, and their environment, when learning about health and safety. Secondly, looking at

Theories Of Leadership

583 words - 3 pages According to the e-text, Management Theory, Practice and Application, there are four main types of leadership theories. The trait theory is the idea that leaders are characterized by certain traits which are present at birth. Early researchers believed that by studying the personality and intelligence of such leaders, they could create the combination of traits that makes a great leader. Early research was inconclusive, but it did reveal the

The Organizational Theories

572 words - 3 pages Chapter- 6     During the past two decades, organizational theories and writers on business management have increasingly emphasized “corporate culture” as the factor that makes one company succeed while another languishes. Although intangible in comparison with things like sales revenue and price-earning ratio, corporate culture is often the key to an firms success.   About corporate culture one writer describe”it is the shared

Competing Theories of Corrections

2010 words - 9 pages Competing Theories of Corrections Eric Mack American Intercontinental University Abstract This paper will discuss the competing theories of corrections that are prevalent in today’s justice system. A series of suggestions on ways to implement some of the nontraditional theories of corrections will be reviewed. In recent years, parole and probation have been criticized for increasing the risk of community victimization by known

Related Papers

Management Theories Paper

2003 words - 9 pages interesting and constructive then the students are more bound to pay attention which in result will partly cure these management problems. Although there are important features in each management theories, three that fit me the most are William Glasser, Alfie Kohn, and Rudolph Dreikurs because they all believe in some way that the children need to take part in the planning of their education. As a teacher, there are many roles that have to be

The History Of Scientific Management Theories

1226 words - 5 pages In the history of management thinking, there are many ways to manage an organization, such as scientific management and administrative management. This essay will discuss the notion that scientific management was a ‘good’ idea in the history of management thinking, by looking at the historical backgrounds and political beliefs of economist, also how the develop management theory by conducting experiments, and how their theories made it into the

Different Theories Of Human Resource Management

1741 words - 7 pages interconnections linking SHRM to HRM. However, the concepts are slightly different. Thus, we can ask, what is strategic human resource management? What are the main theories and how do they work? What do they take into account and how are they integrated? What are the links between SHRM and organization strategy? In order to answer to these questions, we will precisely define strategic human resource management, followed by a look at the different

Management Theories & Practices Past, Current & Future

4710 words - 19 pages Final Paper Management Theories & Practices - Past, Current & Future Introduction The action mind-set describes the association between managers and subordinates to ensure the achievement of goals (Gosling and Mintzberg, 2003). The mind-set focuses in the role of the manager as the sole responsible of ensuring that employees work tenuously to attain those goals (Gosling and Mintzberg, 2003). However, Gosling and Mintzberg (2003