What are some of Henry Fayol’s main contributions to the field of management?
In 1916, Henry Fayol provided 14 principles of management, which have become indispensable in modern management. The main principle is the use of specialization in organizations. Henry Fayol argues that inefficiencies in the workplace emanate from the inability of individuals to perform different duties (Andersson & Miles 2009, p.32). Thus, specialization provides a means through which workers increase their productivity due to increased efficiency. Another major contribution pertains to the principle of unity of command. Unity of command enhances order and accountability in the workplace, as workers are only answerable to one line of command. Centralization and decentralization of authority is also a major contribution of Fayol. He asserts that management should have appropriate and effective centralization and decentralization of authority in an organization (Baron 2006, p.45).
What is competitive advantage and why is it important for contemporary organisations?
Competitive advantage is the benefit that an organization has over its rivals in a given business environment. Competitive advantage enables an organization to provide quality yet cheap products and services by utilizing its human resources effectively. In terms of workforce, contemporary organization can gain significant competitive advantage over its competitors (Dew 2008, p.78). By using innovative strategies, contemporary organizations can train and equip their employees with matchless skills for them to be innovative and generate unique goods and services for competitive markets. Moreover, modern organizations can also utilize a strategy of operational effectiveness to increase productivity of human resources, thus reducing the cost of producing goods and services (Baron 2006, p.96). The capital base attributable to a firm also contribute to the prosperity of a business in an industry. As such, a company can acquire the required resources for its business and venture into diverse markets.
Why do people make the difference in organizations?
The success or failure of an organization depends on the nature of human resources since they are responsible for making a difference in organizations. An organization with good human resources has a potential to make significant changes (Drucker 2006, p.88). One of the reasons why human capital can make a significant difference is due to the organization culture, which creates a good environment that motivates employees to work effectively. Another reason is that individual attributes determine the overall performance of employees (Dew 2008, p.105). Individual attributes such as creativity, knowledge, skills, integrity, and ambition are some of the factors that drive employees to make a difference in various capacities that they serve in an organization.
What are the international management challenges of globalisation?
Globalization has come up with numerous challenges in the realm of human capital. One of the challenges facing international management is harmonization of knowledge and skills that diverse employees have depend on their country of origin. While developed countries have the ability to train, attract, and maintain highly skilled labour force, developing countries hardly have the capacity to do the same (Drucker 2006, p.96). Additionally, globalization enhances the interaction of diverse employees having different cultural backgrounds. Hence, the management faces a challenge of integrating diverse employees into organizational culture where they can communicate and coordinate their activities well (Terry 2009, p.189). Brain drain is also another challenge that management in developing countries faces in attracting and maintaining human resources.
References
Andersson, C., & Miles, D. 2009. Business management. Heinemann, London.
Baron, D. P. 2006. Business and its environment (5th ed.).Pearson Education, Upper Saddle River, N.J.
Dew, P. 2008. Business environment. GMB Pub., London.
Drucker, P. F. 2006. The practice of management. Harper & Row, New York.
Terry, G. R. 2009. Principles of management (7th ed.). Earthscan. ITC, London.