CLASSICAL MANAGEMENT & GLOBAL RECESSION

Classical Management Principles' Implications for Organizations in Economic Crisis

Classical Management Principles' Implications for Organizations in Economic Crisis

Introduction

Classical management principles can serve as a very effective tool for Irish companies to counter the effects of financial crisis. The global financial crisis has demonstrated already that it is no respecter of persons, or of particular industries, or of national boundaries. It is a crisis which is simultaneously individual, national and global. It is a crisis of both the developed and the developing world. It is a crisis which is at once institutional, intellectual and ideological. It has called into question the prevailing neo-liberal economic orthodoxy of the past 30 years - the orthodoxy that has underpinned the national and global regulatory frameworks that have so spectacularly failed to prevent the economic mayhem which has now been visited upon us.

Discussion

The practice of management has been around for decades and has been through several evolutions. According to Gomez-Mejia and Balkin (2002 19), the art and practice of management in Irish companies have been used for many centuries to plan, organize, direct, and control people and other resources. (p.1) Organizations has to know what type of management structure to employ that will suit the financial crisis environment. Which management practice will yield the best results? There have been various management practices such as classical management perspective, including scientific management, the behavioural perspective, and contemporary management perspectives such as systems theory, contingency theory, total quality management, and the learning organization (Gomez-Mejia and Balkin 2002, 1). This type of management practice would be perfect for a political environment in which an organization operates. It is also perfect for the police force, as they go about tackling the crime in Jamaica. These forces have a great impact on any organization that operates in the local or international market. In layman terms an organization is defined as a business entity that operates with the purpose of making a profit. According to Carter McNara (1997 25) an organization is basically a group of people intentionally organized to accomplish an overall, common goal or set of goals. Business organizations can range in size from two people to tens of thousands. (p.1) Examples of organizations include banks, credit unions, retail stores, information technology business, and many more. All these organizations have to make decisions based on the economic climate that prevails, the political atmosphere in a country and the social environment from which they employ potential work force.

Another area of management was influenced by Niccolò Machiavelli who believed that leaders should be feared rather than loved. Machiavelli's leadership philosophy was that “the end justifies the means.” Contemporary leaders are called Machiavellian if they engage in manipulative and self-serving tactics. (Gomez-Mejia and Balkin 2002, 1) This type of management practice would be influenced by a political persuasion of a country's government such as a communist environment. Further, a strategic outlook is necessary for all organizations to adapt so that they can foresee future problems that can be circumvented ...