Organizational Theory. What is management?

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1 Organizational Theory What is management? Name: Sara Daigle Date: October 15, 2015 Professor: Dr. Ahlstrand Course Code: ADMN 2510

2 Examining Karl Marx and his theories on the modes of production, we can develop a greater understanding of what management is, and some tools that we can use to help improve our management skills. Using references from the book Management, It s not what you think, and quoting scholarly articles from Karl Marx s research, this essay will provide a more in depth understanding of management and its theories/ functions. Examining Marx s theory on Alienation, the Labour Theory of Value, and Capitalism, we can answer the question, what is management?, and learn the positives and negatives to the different forms of managing. Alienation is essentially the feeling of being isolated from a group, when one should belong or feel like they are involved. It is the feeling of becoming foreign to the world which one is living in. (Encyclopedia of Marxism,2015) Marx argues saying that a key component to the sense of one s self being and worth, is labour. Marx argues that labour is a display of one s identity. If someone does not feel as though they are of worth in their workplace, then they feel like they do not have a sense of self-worth. Referring to the book, Management, it s not what you think, managers are, Controlled by other people. I have asked hundreds of managers how much of their time is spent in such reflective activities as planning, thinking, or analyzing. They constantly say between 5 and 10 percent- and then admit to lying. (pg. 16, Management) Managers, to a sense, become dehumanized and alienated. They spend most of their time receiving criticism from other workers, which eventually begins to take a toll on one s self. There is no longer a sense of satisfaction for the manager, and he now views his work as merely a sense of survival and a source of income, or a way of just making the people who work for him happy (ignoring his own happiness). Management to an extent can drain one s personal identity, because when we really observe what it is a manager does, they spend, 55 to 60 hour weeks; the list of things to do that never get past the first item; 40 to 60 percent of their time spent in

3 meetings, 90 percent of which were called by others. (pg.16, Management) they start to become machines! The same strenuous work for fifty plus hours a week with a feeling of zero reward and the constant criticism of everyone in the workplace begins to alienate the manager, which results in losing their sense of belongingness. Using the concepts of Karl Marx, management, is essentially the act of becoming alienated and losing a sense of one s self in the workplace. The Labour Theory of Value fundamentally relates to the term commodity which refers to an external object that fulfills needs or wants. (pg.209, Philosophy 101) Marx made a connection between use value which ultimately is the ability or capacity to fulfill these needs and wants, and exchange value. This is the value or money aspect of things that relates to all other commodities. According to Karl Marx, commodities are the product of labour and its value should not be based on the statistics or supply and demand factors, but its labour. Marx states that a commodity should be based purely on the labour and production that went into it. (pg.209, Philosophy 101) As a manager, it is important to value your workers and let them know that you appreciate their work and efforts. If an organization is based merely on the analytical side than workers will become alienated and feel unappreciated, making their work meaningless and harmful to profit. The best leaders are servants of their people. I once conducted a study aimed at trying to understand how people achieve power in a group. We found that those people who were most successful served it. (pg. 40, Management) The key to a successful leader/ manager is one who proves to its workers that they are there to help benefit them and work with them on projects. Managers have to be able to take initiative and also reward its workers for their efforts. Management is about serving people within your organization and valuing them as individuals, because they are the ones who are the keys to success for the organization. The Labour of Value argues with alienation, expressing that although a manager s job may be strenuous and

4 sometimes meaningless, it also can be rewarding to its employees and employers. Then again, Marx also uses this theory as a basis of his concepts in the exploitation of profit and its result of exploiting workers; however, it depends on whether or not a manager wants a positive or negative workplace as either one can result in a profit for the organization, which at the end of the day is the main goal. Studying Karl Marx s theory on the labour of value and commodities, readers can learn that management is about serving employees and rewarding workers for their hard work and efforts in order to have a successful organization. The last theory to examine is Marx s theory on Capitalism. Marx s theory on the Capitalist mode of production is based on private ownership in the means of production. Marx believed that capitalism should be allowed to develop because it would create higher living standards; however, he was also aware of the fact that it was a very unfair, unjust system, where the poor workers would be exploited. Marx divided capitalism into two different classes: The bourgeoisie (which own the means of production) and the proletariat, (who make very little wages and are the working class). (Marxist Theory and Capitalist Class Structures,2015) Capitalism, to an extent, can also be referred to as leadership, especially when discussing the Bourgeoisie class. The text states that, We have this obsession with leadership. It s maybe intended to empower people, but its effect is to disempower them. By focusing on the individual, even in the context of others, leadership can undermine a service of community. (Pg.48, Management) Leadership can relate to the bourgeoisie, when Marx compares the two classes to management, then the managers would be the bourgeoisie, and its employees, the workers would be the proletariat class. Both classes are highly dependent on each other as the managers (Bourgeoisie) create the organizations and pay for wages, and the workers (Proletariat) supply the goods and services; however, it can also become a war between the two if one is not careful.

5 Capitalism is based highly on getting the most labour for the lowest cost that the workers can be paid to survive. Although this may seem like a very cost effective idea to CEO S and managers, it also isn t expected to last very long. Marx states that eventually workers will come to understand the exploitation, and this will ultimately lead to an overthrow by the working class (its downfall). Living in a modern society, running a capitalist organization will also cause a bad reputation for an organization. Managers who craft strategy do not spend much time in executive suites reading reports or industry analyses Managing strategy is mostly managing stability, not change (pg. 108, Management) It is important for managers to develop stable strategies that not only benefit themselves, but benefit it s organization and workers. As a manager running an organization, using a capitalist mode of production is never stable, as majority of the time it will lead to a revolt or strike. Although a manager s main job is to create revenue for an organization, a manager must also be a leader to its workers and respect/appreciate the work that they put into their jobs every day, or else the worker will become alienated. Management essentially is being a servant to your workers. Managers are responsible for ensuring that its workers do not feel alienated by their work, and insures that workers feel as though they are receiving appropriate pay for their labour. Reviewing Marx s theories on the mode of labour, readers were able to develop an understanding of positive and negative ways to run an organization, and the risk factors associated with Alienation, the Labour Theory of Value, and Capitalism. Managers have to develop stability within the workplace and reward their workers for their hard work and efforts. Examining Marx s theory on Alienation, the Labour Theory of Value, and Capitalism, we can answer the question, what is management? and learn positives and negatives to different forms of managing.

6 References Al (n.d.). In MIA: Encyclopedia of Marxism: Glossary of Terms. Retrieved October 15, 2015, from (2015). In Marxist Theory and Capitalist Class Structures. Retrieved October 15, 2015, from Kleinman, P. (2013). Philosophy 101 (pp ). Massachusetts: adams media. Mitzberg, H., Ahlstrand, B., & Lampel, J. (2010). Management? It's not what you think (p. 16). Mitzberg, H., Ahlstrand, B., & Lampel, J. (2010). Management? It's not what you think (p. 40). Mitzberg, H., Ahlstrand, B., & Lampel, J. (2010). Management? It's not what you think (p. 48). Mitzberg, H., Ahlstrand, B., & Lampel, J. (2010). Management? It's not what you think (p. 108).