Managerial Theories Adopted by BWTV


Robert II Smith

World War II gave birth to the quantitative management perspective. Large companies during the post-war period adopted quantitative techniques adopted by the military for the effective management of resources.

Daft (1998) noted that the classical management perspective worked well in the United States during the 1950s to 1960s. He attributed the success of this management perspective to World War II which shuttered the economies of Japan and Europe, leaving the playing field to the North Americans.

The 1980s according to Daft (1998) created a paradigm shift in management as companies changed corporate cultures. Companies began to value leaner organizations, flexibility and the capability to serve customers fast. This was the period when the management perspective shifted from the classical to the contingency management perspective which belongs to the domain of the contemporary management theory. The paradigm shift became necessary to address the changes in the rapidly changing business environment. Such changes include, among others, globalization, advances in technology and communications, and diversity. Organizations also started to be concerned about ethics and social responsibility as it started to have a public face as a corporate citizen.

The shift from the older management approaches does not necessarily mean that they have no value to the companies today. Davidson and Griffin (2006) explains that the contemporary management theory seeks to integrate the valuable elements of the classical, behavioral and qualitative management perspectives through the systems theory and the contingency theory.

The challenge now for companies is how to successfully blend the theories by drawing lessons from the past and adopt to a management style that will drive the organization to effectively accomplish its mission and realize its vision.

With the mention of DVDs in the case, BWTV is obviously a company that started after the 1980s. The company should, therefore, be concerned about the contemporary challenges that it must face to operate viably and effectively.

Joseph’s interest in knowing the managerial theory that BWTV is currently adopting indicates that he is on the right track.

The organizational environment contains forces that operate around an organization and have potential impact on the operations and resources of the company. Davidson and Griffin (2006) explained that a company has its internal and external environment. The external environment is defined to be anything outside of the organization while the internal environment refers to the conditions and forces within the organization.

Organizations can manage the internal environment more effectively because they are in direct control of the conditions and forces within the organzition. The external environment, on the other hand, represents forces that cannot be controlled by the organziation. Environmental uncertainties posed by the external environment can only be managed but not controlled by an organization.

The extenal forces have been categorized by David (2001) into (1) economic forces, (2) social, cultural, demographic and environmental forces, (3) political, governmental and legal forces, (4) technological forces, and (5) competitive forces. Davidson and Griffin (2006) included international dimension as the sixth force and collectively termed these forces as the general environment which is one of the layers of the external environment.

The other layer, according to Davidson and Griffin (2006) is the task envrironment which is composed of the cumpetitors, customers, suppliers, regulators and strategic alliances.

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