Principles and Functions of Management Essay Example | Topics and Well Written Essays - 1500 words

Principles and Functions of Management - Essay Example This theory focused upon the achievement of short term objectives as a means to fulfilling the long term goals of the organization. (Birnbaum 2000:43-52). Employees in every department were to set out short-term objectives, which were to be achieved within a certain deadline. Companies such as General Motors and RCA Foods adopted this method of management. However, in actual practice, this theory failed to take into account the political bickering and rivalry that existed between various departments. In actual practice, the departments rarely bothered to make and adhere to short-term objectives and the theory was soon scrapped by 1985, because it was found to be ineffective. The reason for this was because the theory failed to take into account the unpredictable human factor, that often results in problems arising with the practical execution of a management theory that may be sound good on paper but fails in practice. Managers therefore failed to make use of this theory on a wide ra nging basis, because while it sounded good as a theory it was not effective in actual practice. This is a commonly used management practice today and the tool through which it functions is commonly known as the SWOT analysis. This theory was also derived from Peter Drucker’s rational approach with an attempt to also include political inputs. This method involves the analysis of the Strengths, Weaknesses, Opportunities and Threats to a business. This was a management technique that was set out with the purpose of identifying a particular niche for every business. The aim and objective behind this management theory was to enable an organization to survive and compete effectively in a rapidly changing, globalizing environment. According to this theory, the SWOT analysis helps to analyze external and internal data within the organization and compare it with others in the industry in order to evaluate the exact