Applicable Management Theories, Essay Example

The purpose of writing is to address the management theories applied in the human resource and marketing departments. Since the human resource, area deals with employees, their empowerment is crucial to the productivity of the business. From the research carried out, many organizations are using modern management theories of employee empowerment with the aim of getting a group of entities to achieve certain goals and objectives the most common being behavioral management theory, which makes businesses focus on their employees. Their main concern is the worker’s condition, which affects the quality and quantity of his work. What led to the rise of this adoption was that employees of different companies compare themselves with their counterparts in terms of pay and working conditions. In order not to lose their employee, some companies went along with the “rule of the thumb” in terms of management style. Actions taken, by the company, to implement the strategy were trusting the employees to do the right thing; delegation of authority and impact opportunities to subordinates; share the leadership vision as it makes employees feel they are part of something bigger and also providing feedback. As a result, there were:

• Increased employee contribution in solving problems, and the attainment of goals.
• Team work enhanced performance of employees and led to better productivity.
• Less conflict reported with managers and employees.

Penetration pricing employed by the organization wanted to introduce new goods to the market, as a marketing strategy. It involves a method of pricing a standard product. First, they set a low initial price for a product with heavy promotions to enable it get quick acceptance in the market. Although they lose out on short-term profits it is an effective way of establishing a market share.

The reasons for using this approach were that;

• New products, which are of, good quality, stand out to be better than competing products.
• Organizations we able to discourages competitors from entering the market due to the low penetration prices.
• Once the product secured a desired market share, its producers could then decide increase the price to gradually.

The results of this approach were greater initial sales volume and a solid customer base because of the loyalty on demand by customers; a company gets a high stock turnover and leads to more efficiency because of cost reduction.

Supposedly being the senior manager, I would not have addressed the situation any differently because they are evidently beneficial to the companies that are already using them. For example, Facebook, a successful company has design team members reaching out to target themselves and having turned out to bringing ‘big guns’ in the industry. Although if the products to be introduced were unique or of high-prestige, skimming pricing would be the best strategy to use. It has a greater profit margin than penetration pricing and products are of significant cache.

References

Les Dlabay, J., & Burrow, B. L. (2011). Principles of Business. New York: Cengage Learning.

Guffey, M. E., & Loewy, D. (2010). Business Communication: Process and Product (with Meguffey.com Printed Access Card). New York: Cengage Learning.

Peters, C. (1983). How Washington Really Works. Reading, MA: Addison-Wesley

Zelkowitz, M. (2000). 40th Anniversary Volume: Advancing Into the 21st Century. New York: Academic Press.