Applied Management Theory Of The World Of Business Management
We are at a crossroads in the world of business management. At a time of fast changes in the workplace, companies that are not adapting are failing at an increasing faster rate. In the past 50 years, the life expectancy of a typical Fortune 500 company has fallen from 75 to 15 years. Not only that, but employee engagement is also at an all-time low. Global figures show that only 13% of employees can be considered fully engaged, while the number of people that can be considered passionate about their work hovers around 25% (Hlupic, 2015).
This puts into question the validity of classical organizational theories such as those championed by the historical organizational theorist, Max Weber. Weber was a strong supporter of bureaucracy as the ideal organization type. The characteristics of the ideal bureaucracy would include formal rules and regulations with rigid division of labor, where workers have specialized roles and perform clearly defined tasks. In a bureaucracy there is a firmly defined hierarchy of authority where supervisors issue order and the subordinates carry them out. There is little room for personal treatment or for the employees to participate in the decision-making process. (Cummings & Bridgman, 2011).
This is in stark contrast with what the modern employee requires in order to be successful in the workplace. People need to be praised and recognized as a source of value to the company instead of being treated as another…