Role of Management in an Organization the Essay

  • Length: 7 pages
  • Sources: 5
  • Subject: Business - Management
  • Type: Essay
  • Paper: #22363501

Excerpt from Essay :

Role of Management in an Organization

The management and unions are two important entities within an organization. For decades, these two entities have assumed an adversarial role towards one another. In some cases, unions believe that organizations do not compensate its employees fairly, or the working conditions are not favorable and secure. On the other hand, the managements sometimes feel that unions interfere with the decisions of management and impede on positive relationships between employees and managers. Such an adversarial relationship between the management and unions has given rise to competition with the organization that affects the competitive advantage of an organization. For an organization to retain its competitiveness in the current business world, the union and company management must establish some corporation. This paper identifies strategies for creating a good working relationship between the management and the union (Kyo-kai, 2008).

The role of management in an organization

Management assumes an integral role in an organization, aligning resources and giving directions to achieve goals. It operates through functions that are often classified as organizing, directing, controlling, planning, motivating, staffing, and leading.

The management is responsible for identifying gaps inside the company and utilizing the fitting strategies like recruitment, promotion and training to fill these gaps. Directing is the procedure of supervising the organization representatives and guaranteeing that they work towards shared objectives. In present day managerial context, this part is considered leadership (Debroy & Kaushik, 2010). This is in view of attention on transformative approach to giving directions, which includes effective communication, motivation, and coordination. Controlling is the methodology of guaranteeing that the objectives set up by the management are actualized as planned. This process includes exercises such program evaluation, program assessment, and employee performance assessment (Kyo-kai, 2008).

The management likewise assumes another paramount role in the company. The management is likewise answerable for guaranteeing that organizational resources are used in a productive and viable way. With a defined end goal to remain competitive in the current business environment, an organization should guarantee that its resources are put into optimal utilization. This incorporates fiscal assets, space, offices and supplies and additionally the human resources. When unions demand wages that are inconsistent with the profit of the employee they meddle with this critical role of management (Blackard, 2010).

The management likewise acts as the custodian for the organization's shareholders. The role of custodian is ordinarily to manage assets entitled to the principle with the best interest of the principle at hand. In an organizational setting, the shareholder is the principle while the management should act as the custodian. This implies that the management should guarantee that decisions made in the organization are guided towards accomplishing the best interests of the shareholders and employees (Fernando, 2011). For instance, when the union request higher pay for the workers the costs of the organization bounces up hence reduced profitability for the business. A reduction in profitability reduces interests of the shareholders and consequently the interest of the management who are the overseers. The management is likewise answerable for guaranteeing that the interests of all stakeholders of the company are met. This is an ethical obligation for all business managers. Employees are the most fundamental stakeholders in all organizations: the management is responsible in guaranteeing that their interests are satisfied fully (Debroy & Kaushik, 2010).

The role of a union in an organization

While focusing on management's inevitability, the major function of unions cannot be overlooked. Assuming the management is the key engine that drives the whole machine of an organization, it will not be a misrepresentation to call the union its energy supply. It is the union, which channels the deliberations of labor in the direction instructed by the management. The unions form organizations, which fundamentally identifies the terms and conditions of employment and find conceivable and the best solutions for the issues, which employees face while work at an individual level (Sloane Witney, 2010). Evidently, unions serve all the circles like the politicians, the business sector front, the regular and democracy fronts. Unions must pay most the extreme respect to the interests of the labor force and are partial towards a country's interest. These unions have a colossal quality of their togetherness and leadership. It is through this collection that these unions have the possibility to influence the decisions, if not dominating the management. Unions are required to guarantee that there is a sufficient and regular funding for the re-engineering of the infrastructure (Kyo-kai, 2008).

Unions have solid and profound duty towards the members. They even negotiate the compensations of their employees choosing the most suitable amounts relying upon the working hours and the level of work. They especially focus on expanding the quality of their work and even form training projects and instructive provisions to build the value of their employees. In the same breath, they legitimize their improvement role in the advancement of their members (Blackard, 2010). Unions are the connection between the management and the workforce and fill any gaps in the correspondence between these two. They total up their endeavors in furnishing democracy within an industry and guaranteeing that no labor is misused. They also work towards the promotion of intercession among their members. With all these efforts, Unions assume an imperative role in the welfare of their labor.

With both, the union and the management assuming crucial roles in the result oriented organization performance, it is extremely imperative for the two forces to a build a favorable working connection between the two. A miscommunication or a gap in communication might be adverse to the improvement of the organization. With an auspicious connection between these two, the employers understand the vitality of the work satisfaction of the representatives and hence energize the voicing of their thoughts and ideas fostering the fulfillment of the workers and a support to their productivity. This additionally incentivizes the loss of talent and labor that was overall created by their dissatisfaction (Debroy & Kaushik, 2010).

Strategies an organization can implement to create and maintain a conducive, working relationship with unions

Worker Participation: A study focusing on employees in Indonesia and Malaysia highlights the significance of Employee support and joint working council in making the decision in a company. The worker cooperation could be of two sorts in an association: Direct and Indirect. The direct and indirect participation needs to be consolidated to get a viable execution of the strategies recommended by Management of any company. The indirect participation is lawfully needed by certain nations like the Netherlands, which is instructed to be shown through the work councils (Sloane Witney, 2010).

The indirect worker participation in the Management decision making is accomplished through Joint consultative committees (JCC), Collective Bargaining (CB) Machinery, director-workers schemes and work related health and well-being. In certain different nations, self-determination and work councils are the instruments through which Indirect involvement of the workers is accomplished. A JCC is an instrument for managers and worker representatives to meet on a consistent premise. This enables them to exchange perspectives, utilize members' expertise and knowledge, and manage matters of regular interest, which are not the subject of collective bargaining (Ebrary, 2009).

There are two diverse contending perspectives with respect to JCCs. Both managers and representatives value JCCs as a useful manifestation of inclusion or cooperation. Besides, the management might utilize the JCCs to undermine the force of trade unions in the working environment (Blackard, 2010). As such, JCCs is ill-disposed to Collective Bargaining (CB), which has an overwhelming impact in the accepted industrial relations viewpoints. Subsequently, JCCs can assume distinctive roles in companies effecting diverse results relying upon the chosen blend of the essential segments. Businesses introduce JCCs for some reasons relating to success. First, JCC can improve productivity by expanding the supply of ideas, which are accessible inside the organization because of the extensive presentation of a problem or issue (Debroy & Kaushik, 2010). Furthermore, JCC can diminish industrial actions because they give a chance for representatives to express their perspectives. Thirdly, there is a contention that JCC might accelerate expanded worker fulfillment. This arises from the coveted dedication that comes along with it. JCC more often than not embody a 50:50 mix of union representatives and management (Kyo-kai, 2008). Participation could be delegated by management, the union, or a blend of both or members might be chosen by workers. JCCs assume an advisory function to the management and can have decision making power for certain issues (Ebrary, 2009).

Successful communication is essential in addressing changes in the organization. This is an alternate paramount strategy, which organizations can utilize to make workers cognizant of the approaching changes to the workplace. This system helps in realizing an adequate change as well as making a state where representatives have made up their psyche for any approaching change. With a specific goal to execute this procedure, Management may as well form correspondence sessions with unions to make them familiar with the approaching changes and in this manner takes their upfront interests into it (Kyo-kai, 2008). The…

Cite This Essay:

"Role Of Management In An Organization The" (2013, October 12) Retrieved January 21, 2017, from

"Role Of Management In An Organization The" 12 October 2013. Web.21 January. 2017. <>

"Role Of Management In An Organization The", 12 October 2013, Accessed.21 January. 2017,