Management Theories and Practice Research Paper by Douglas

Management Theories and Practice
This paper discusses whether bad management theories are affecting good management practice.
# 117217 | 3,521 words | 9 sources | APA | 2009 | CA
Published on Nov 22, 2009 in Business (Companies) , Business (Administration) , Business (Management)


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Description:

In this article, the writer examines the effect of arguably bad management theory and its potential effect on good management practices by discussing agency theory. Three businesses models are also examined in this essay: Porter's five forces, value-based management and triple bottom Line. The writer concludes that bad management theories have clearly corrupted good management practice in the years leading up to the world wide economic collapse. The writer further maintains that there is a tangible shift of contemporary management theories and models towards ideas such as triple bottom line that are aligned with a gradual shift in cultural paradigms.


Table of Contents:
Introduction
Discussion Agency Theory
Discussion Porters 5 Forces
Discussion Value-Based Management
Discussion Triple Bottom Line
Conclusion
Annotated Bibliography

From the Paper:

"Self interested behaviour by the agents is expected by shareholders, and encouraged as the principals actively seek to harness it to their own interest through lucrative performance-based incentive packages for the agents. Unlike the investment and management priorities in the triple bottom line model, the central objective carried out in agency-based management model is generating revenue rather than corporate social responsibility. This short term priority can negatively affect good management practices, as a manager's nearsighted focus on increased revenue can often lead to his neglect of long-term shareholder value. The result of this behaviour pattern is a high degree of financial systemic risk for the organization. While the interests of the agent and the principals may be considered to be aligned, the control measures outlined in agency theory do not take into account the agents motivation and ability to seek short term company gains to maximize their own immediate gain. These control measures end up inadequate as they are based on the premise rational self interest of the part of the agent, irrational behaviour based on greed isn't or can't be effectively controlled at all times. A further pitfall with this theory is that shareholders may accidentally introduce incentives that push the agents to perform irrationally, in effect the principals performance criteria for the agents emphasises short term gains as opposed to long term corporate health."

Sample of Sources Used:

  • Crawford, David., (2005, July 13) Triple Bottom Line Reporting: A Strategic Introduction to Economic, Environmental and Social Performance Measures, Audio Seminar. Retrieved 10/13/09, from http://www.bettermanagement.com/seminars/seminar.aspx?l=12031
  • Ghoshal, Sumantra, (2005) Bad Management Theories Are Destroying Good Management Practices, Academy of Management Learning & Education, Volume 4 No.1 pages 75-91
  • Ghoshal, Sumantra, (2005) Sumantra Ghoshal On Management: A force for good, UK: Financial Times / Prentice Hall 1st Edition
  • Malonis Jane A., Cengage, Gale (2000) (eNotes.com 2006) "Agency Theory." Encyclopedia of Business. Retrieved 10/13/09, from http://www.enotes.com/biz-encyclopedia/agency-theory
  • Meckling, William H., Jensen, Michael C., (July 1, 1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure Harvard University Press, December 2000; Journal of Financial Economics (JFE), Vol. 3, No. 4, 1976. Available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=94043&CFID=15589898&CFTOKEN=14360210 (Oct 13, 200)

Cite this Research Paper:

APA Format

Management Theories and Practice (2009, November 22) Retrieved April 23, 2024, from https://www.academon.com/research-paper/management-theories-and-practice-117217/

MLA Format

"Management Theories and Practice" 22 November 2009. Web. 23 April. 2024. <https://www.academon.com/research-paper/management-theories-and-practice-117217/>

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