Strategies and Theories in Management: A Future Manager's Perspective

As a future manager, it is important to understand the different types and theories of management. This understanding will help in making informed decisions and implementing effective strategies to ensure the success of the company. In this article, we will explore the key theories and provide insights on how these can be applied in a modern business context, with a particular focus on results from Elliott Jaques' work and ethical leadership.

The Requisite Organization: A Broad and Systematic Approach

One of the foundational theories in management is Elliott Jaques' “The Requisite Organization.” This wide-ranging and systematic approach to management provides a solid framework for understanding the complex interactions within an organization. According to Jaques, the essence of management lies in creating a structure that can adapt to changing environments and achieve its goals effectively. This theory emphasizes the importance of hierarchy, clear communication, and the right distribution of tasks and responsibilities.

Jack of All Trades: How Employees Build a Company's Success

The well-being and satisfaction of employees are deeply intertwined with the success of a company. As a manager, it is crucial to maintain a kind and ethical approach when leading teams. Employees who feel valued and supported are more likely to perform at their best and contribute positively to the company's growth. Ethical leadership does not just mean treating employees with kindness; it also involves ensuring fair treatment, providing a safe working environment, and fostering a culture of respect and accountability. By valuing and supporting your employees, you create a virtuous cycle where they will, in turn, take care of the company.

Optimizing Resources for Long-Term Sustainability

To manage any organization effectively, it is essential to use all available resources optimally. This means carefully balancing money, manpower, marketing, and other resources to achieve the highest return on investment. A simple yet crucial principle is to ensure that expenses are less than earnings, which helps in maintaining financial health. Although borrowing can be a useful tool for initial investment, it's essential to avoid excessive debt, as this can undermine the long-term financial stability of the company.

One effective strategy for resource optimization is entering into collaborations rather than going it alone. This not only helps in reducing initial asset requirements but also allows companies to utilize the ideal capacities of their surroundings. For instance, OLA, Uber, and Airbnb (BnB) have been successful in leveraging existing assets and infrastructure rather than building everything from scratch. By doing so, these companies can focus more on innovation and providing added value to their customers.

Expanding Horizons: The Importance of Globalization and Innovation

Today's competitive landscape demands that businesses expand beyond their local markets to tap into global opportunities. This expansion involves covering wider markets and constantly bringing innovation to products and services. However, it's important to differentiate from competitors by adding unique value rather than merely copying their offerings. A well-thought-out strategy is to aim for modest margins with high volume. This approach can help in sustaining competitive pressure and ensuring the company's long-term success.

Conclusion

In conclusion, a future manager must have a deep understanding of management theories and practical strategies. Whether it's relying on Elliott Jaques' “The Requisite Organization,” embracing ethical leadership, or optimizing resources, these approaches can provide a strong foundation for effective management. By prioritizing employee well-being, optimizing resources, and expanding globally with a focus on innovation, future managers can lead their companies to success in today's competitive and rapidly evolving business environment.