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Theoretical Management and Its Modern Day Applicability

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The ability and means by which an organisation is run, requires for strong managerial expertise and leadership. The ability to realistically plan, organise resources effectively and efficiently, co-ordinate and control resources in this every changing, complex, dynamic environment is at the forefront of quality managerial practices. Good management has demonstrated itself more important than ever, with the peak Global Financial crisis in 2008/2009 proving that the historical theory’s and innovations in managerial practices are absolutely paramount to thriving economic prosperity. It is through the functions, approaches included in the literature of Henri Fayol’s 1949 English translated General and Industrial Management, Henry Mintzberg’s …show more content…

Planning also is inclusive of determining strategies to meet objectives and usually includes an organization forming a mission statement to which serves and guides an organization. For example the managers at the Bendigo Bank reinforce and state in their ‘mission statement’: “we will focus on building and improving the prospects of our customers, communities and partners in order to develop sustainable earnings and growth for our business and thus provide increasing wealth for our shareholders” (Bendigo Bank, 2010 cited in Krachler et al 2010, p.36). Fayol also assesses and stresses the roles of then organizing and mobilizing “raw materials, tools, capital and personnel”, commanding or selecting ideal labour inputs (human capital)to best accomplish the goals as crucial (Schermerhorn et al 2011, p.90). Without such effective resource allocation, organizations would be unorganized and without direction. With the co-ordination and then control by managers, organizations are able to “harmonize all activities of concern so as to facilitate its working and its success”(Fayol, 1949 cited in Lamond 2004 pp.331-332). Fayol’s theoretical concepts and analysis has built the foundations for modern day managers. The five functions he developed are fundamental and relevant to current day senior managers performing anything from capital

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