Management Theories

Discuss how important it is in 2014 for managers to be able to understand and apply management theories in the workplace.

The purpose of Theories is to guide and direct the foundation for expansion, and change of corporations as they conduct activities. A theory is a body of rules, methods, and predictions which are used to achieve a corporation’s short and long run objectives (Campbell, 2002). As a business expands, management becomes more challenging. Large Plc.’s Managers will have more employees to control and more responsibilities Therefore most large industries use management theories, strategies, and styles that have been about for many years and are well-known to be effective when inferred to an organization‘s management (Meyer, 1998). It is important for managers to be able to understand and apply management theories, especially while controlling large companies. To become a manager, one should be familiar with some management theories, and know when the theory s should be applied. In 2014, a high proportion of businesses that are successful use these theories. This essay describes four management theories which are used in businesses today, and whether they are useful to the business

According to Porter “Competitive advantage will rise if a manager makes the correct selection of the generic strategy that best suits his organization’s environment and then organising value added activities to support the strategy”(Campbell, 2002) This means that a firm should choose the generic strategy that best fits its surroundings. Michael Porter’s Generic strategies have been very useful to companies such as Wal-Mart and Victoria’s secret. There are three generic strategy alternatives for managers to choose from. The three choices a company could use are the cost leadership theory, differentiation theory, and the focus theory. The Cost leadership strategy is when a firm sells products at a lower cost than the competitors to gain an advantage in sales levels...