Free Essay: Application of Management Concepts

Published: 2023-07-13
Free Essay: Application of Management Concepts
Type of paper:  Essay
Categories:  Planning Organizational behavior Business management Leadership management
Pages: 6
Wordcount: 1641 words
14 min read

Management is the process by which corporations employ planning, organizing, leading, and controlling resources to efficiently and effectively attain their goals (Rothaermel 2019, p. 7). Over the years, companies have utilized different management concepts to improve employee performance and productivity; thus, becoming more economically valuable. Organizations incorporate a variety of management strategies to counter current and future problems and achieve their objectives (Rothaermel 2019, p. 7). In this paper, we take a look at five managerial concepts and how some popular organizations in the country have applied them to improve their performance. The study focuses on one technique from each of the main factors of management which include; planning, organizing, leadership, motivation, and control. The integration of appropriate concepts from each sector not only ensures improvement in employee performance but also prevents the occurrence of expected challenges. Implementation of management functions on resources that exhibit ability and effort equates to improved performance in an organization.

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Option-Based Planning

In management, planning is the first function that provides direction for the implementation of other factors, whereby the manager develops an effective and efficient strategy to accomplish an objective (Kerzner 2009, p. 411). A company has to use planning concepts to set up a sequence of well-organized actions to meet its target. The option-based planning concept involves an investment company that makes several simultaneous investments in projects from a few alternative plans (Kerzner 2009, p. 415). The strategy offers companies the following advantages; potential success from promising options and maintaining of limited resources (Kerzner 2009, p. 415). Due to low-risk factors, option-based planning is the best concept for small start-up companies.

With the recent advancement in technology, companies have invested their plans in computer technology to improve their performance. Tech giants have taken the initiative to adopt small start-up applications that have the potential to succeed in a demanding market. Recently, the Facebook company acquired Instagram, WhatsApp, and Giphy applications for billions of dollars. The move significantly improved its market value and shares but at a high-cost capital investment. Alternatively, the company could invest in several start-ups with high potential. The option-based plan would significantly reduce its investment cost capital. Working with young developers, Facebook can use its resources to intensify its effort, increase persistence, and provide direction; thus, ensuring success. However, the plan is also bound to face challenges due to the impending changes and false sense to succeed. Managers have to take charge and ensure consistency in the implementation of the plan to improve the company's performance.

Geographic Departmentalization

The organization process is the arrangement or subdivision of members of a company into teams based on their roles to ensure the smooth running of operations (Kerzner 2009, p. 91). A company can divide workers into separate departments responsible for completing a particular task to improve productivity. The geographic departmentalization of corporations involves a company organizing teams that work in specific geographic locations to meet the demands of that area (Kerzner 2009, p. 95). The concept monitors the availability of unique resources located in an area and then generates a response that works efficiently with the targeted audience. The flexibility of geographic departmentalization makes the strategy useful to international brands that market their products worldwide.

Companies have the option to set up their production industry in areas with access to necessary resources such as raw materials, machinery, and labor. Then, market their products in locations that have the highest demands to generate more revenues. Nike and Adidas are the leading sportswear brands in the world with the majority of their sales coming from America and Europe. The corporations have established their manufacturing units in Asia, where they have access to raw materials and cheap labor. Due to this initiative, the brands have reduced their operational cost. The corporations provide citizens of Asian countries with job opportunities, while the American and European market receives high-quality products at reasonable prices. Geographical departmentalization can be challenging because of the coordination between production and marketing teams. Nonetheless, well-organized departments can integrate their efforts and improve the performance of a company.

Charismatic Leadership

Leadership is the act of motivating others to achieve a common or organizational objective (Northouse 2018, p. 5). In businesses, a manager is not necessarily a leader, but to be a great manager one requires leadership skills to be a role model and motivate other colleagues. To improve organizational performance, a leader has to understand the context they are working in and apply appropriate leadership strategies. Charismatic leadership comprises of a leader that establishes a strong relationship with other colleagues (Northouse 2018, p. 23). The leader projects a clear vision based on values. They also enchant confidence in the ability of others and set high standards of quality performance. The concept has some advantages which include; the creation of developmental opportunities, reliable feedback, and valuation of the interests of others (Northouse 2018, p. 24).

Leaders play a vital role in the overall performance of a company, especially during a crisis. Crisis management requires the implementation of an efficient process to counter new unprecedented problems (Kerzner 2009, p. 971). Great leaders establish themselves by their contribution to recovery from disaster situations. Recently, the Coronavirus outbreak has caused havoc in the health systems of countries globally. The World Health Organization (WHO) led the line in responding to the pandemic by issuing equitable funds to nations with extreme cases. Other members of the WHO offered grants and donations to affected African countries with limited resources to prevent the spread of the disease. However, some government officials and health providers see this as a business opportunity and might manipulate people for their financial benefit. Therefore, WHO has agents who monitor the use of funds to ensure transparency and accountability.

Goal-Setting Theory

Motivation is a factor that initiates and encourages individuals to persist in their pursuit to achieve a specific goal (Kanfer 2009, p. 119). The use of motivation concepts inspires and directs workers in an organization; thus, helping them to focus on ways to improve their performance and attain the company's objective. The goal-setting theory of motivation states that individuals get motivated when they accept specific challenges and then receive feedback from consumers indicating their advancement to accomplishing the goal (Kanfer 2009, p. 122). The availability of feedback enables workers to assess their progress and get motivated to attain a single goal-oriented test. Furthermore, companies may offer rewards to employees who display significant improvement in their performance.

Corporations with independent workers can use the goal-setting theory to motivate their employees and evaluate their performance using consumer feedback in the form of ratings or reviews. Then reward them with more job referrals as they progress to achieve their goal. Uber is a ride-hailing corporation that offers transportation services and uses a driver rating system to motivate its workers. Good ratings and positive feedback from passengers earn the drivers more opportunities from previous and new customers. Therefore, improving the performance of the organization. Goal-setting theory encourages workers to focus on a single objective; hence drivers might manipulate the feedback to mislead consumers. The corporation should frequently review the rating system to ensure the legitimacy of the concept.

Bureaucratic Control

Controlling is an act of comparing the actual performance of an organization to the aimed objective, then taking corrective action to improve performance (Malina & Selto 2001, p. 49). Corporations evaluate their progress and establish their strengths and weaknesses, which exhibit points for potential improvement. The bureaucratic control method uses higher authority to influence the actions of other employees by rewarding compliance and punishing non-compliance to the organization's policies (Malina & Selto 2001, p. 67). The strategy has the following benefits, a systematic top to down control that is manageable and motivating rewards (Malina & Selto 2001, p. 70).

In businesses that involve relationships between the employees and customers, such as large-scale retail shops, managers can employ the method to influence the behavior of other workers (Kerzner 2009, p. 193). Wal-Mart retail stores have regular staff, supervisors, heads of departments, and store managers. The hierarchy order keeps every member in check; hence improving the performance of the company. The organization also offers rewards in form of cash bonuses and promotions to higher ranks. Non-compliance to company regulation leads to demotion or contact termination depending on the severity of the action. In some cases, the rewards and authoritative order are usually inefficient to influence behavioral change in the workers. Therefore, the corporation should be strict in the implementation of its policies and offer better motivation factors.


Managers play a significant role in improving the performance of a company through planning, organizing, leadership, motivation, and control of resources. Different companies have employed several concepts of management in all departments of their organization to counter specific challenges and meet the demands of their consumers. Successful corporations such as Facebook, Uber, Nike, and Adidas display proper planning, great leadership, motivating rewards, and control; thus, they have grown into multi-billion brands. Crisis management is a challenging aspect that a manager has to face and conquer to ensure the success of an organization. The Coronavirus outbreak has posed new challenges, but with great leaders such as the WHO, the world is slowly recovering. The managerial concepts used by these corporations integrate the contribution of all their members to accomplish goals effectively and efficiently.


Kanfer, R 2009, 'Work motivation: advancing theory and impact', Industrial and Organizational Psychology, vol. 2, no. 1, pp. 118-127.

Kerzner, H 2009, Project management: a system approach to planning, scheduling and controlling, 10th edn, John Wiley & Sons, New York.

Malina, MA & Selto, FH 2001, 'Communicating and controlling strategy: an empirical study of the effectiveness of the balanced scorecard', Journal of Management Accounting Research, vol. 13, no. 1, pp. 47-90.

Northouse, PG 2018, Leadership: theory and practice, 7th ed, Sage Publications, Los Angeles.

Rothaermel, FT 2019, Strategic management, McGraw-Hill Education, New York.

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