During the past decades the world underwent a lot of changes. Such factors as rapid developing globalization, climate changes and changing demographics made the industrialized world more complicated than many years ago. Communication systems improved and the connections between different parts of the world become tighter. That was one of the reasons of globalization and the emergence of such phenomenon as outsourcing, when businesses and corporations move their production to the countries where the labor force and manufacturing is cheaper. For example Toyota Corporation increased its profit significantly when it switched its areas of production from Tokyo to North America, Asia and Europe. The same progress may be noticed by another big corporation, Mc Donald’s, that sells burgers in India and hamburgers in China as well as most Wal-Mart products are manufactured in India.
The cheap labor force and means of productions are not the only one reason of globalization. Further developing technological progress contributes to increased carbon dioxide emissions and causes the climate changes. The society is extremely worried with this problem and continues to introduce fines for the corporations which exceed the allowed amount of carbon dioxide in the atmosphere. Some world immense corporations such as Toyota Corporation direct their production to the output of environmental friendly cars as well as Wall-mart, the largest retailer in the US, is seriously determined to reduce energy consumption in its stores and is currently trying to persuade its 60,000 suppliers in the worldwide supply chain to follow its goal.
Changing demographics results in multicultural workplaces on the one hand, but can bring undesirable changes for the biggest corporations on the other hand. For example, experts suppose that Toyota Co may suffer from decrease in sales because of changes marked at the European labor market in 2010. It was for the first time in their history when the number of retired workers exceeded the number of new ones. If this staff gap is relatively manageable and makes 200,000 now, it will increase up to 8.3 million by 2030.
Frederic Taylor, Max Weber and Henri Fayol are outstanding historical figures, who are known for their suggested principles on business and administration policies. Fayol said that managing system consists of commanding, planning, coordinating, controlling and organizing. He stressed that it would be more beneficial for the company if it divided its complicated tasks into shorter and simpler ones and built managing process around them.
In his theory Max Weber proposed a robust structure of hierarchy or roles with clearly defined responsibilities. As well as Fayol, he insisted on the written recording of all possible transactions. He introduced his own theory of ideal bureaucracy where he complemented Fayol’s views and noted that the distribution of accountabilities helps to perform effective organization and management, where every person knows his tasks and accountabilities. Taylor, as well as Fayol, also proposed some ways that could help an organization to run in a better way. He shared some views of Fayol and Weber saying that the ideal bureaucracy has the categories of hierarchy, division of labor and centralization.
Despite that all these theorists created their works long ago when the world and economic system differed considerably from the current ones; their theories remain up to date now. They are adopted in the modern society because these principles of management were widely applied and proved their efficiency and reliability. In the modern society everyone may notice that organizations and big corporations have the hierarchy of tasks and distributed accountabilities. For example, when the Toyota Company was founded its staff counted no more than several thousands of workers, who were responsible for a lot of tasks. It was quite obvious that they could not cope with all of them and therefore the idea of distributed responsibilities proved to be a reliable and a workable one. The organization system in this company can explain its success. Being consisted of several subdivisions that are responsible for commanding, planning, coordinating, controlling and organizing it widens the borders of production and gains more profit. Having analyzed the theories on the example of the biggest car manufacturer it could be said that it is not the only one example of how these theories work currently. Nowadays it is impossible to find a company that became successful and does not have the division of labor and hierarchy of control and power. The hugest retailer Wall-mart and Ford Motor Corporation may also serve as a good example.
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