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    Human Resources Management: Management Models

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    You have been the manager of human resources for a firm headquartered in the United States for many years. The firm has divisions all over the United States, as well as overseas. A new chief executive officer (CEO) has just come on board after receiving his master's degree in business from an ivy-league institution. He has great academic credentials but little work experience. The management model that the former CEO preferred was more formal and autocratic, with most decision making being centralized to a great degree. Some of the firm's challenges include the following:

    - The firm expects to be in a much more competitive environment in the future.
    - To add to this, there has been talk about the possibility of employees forming a union because of the way they were treated under the former CEO.
    - The overseas divisions, where a much higher growth potential is expected, have repeatedly complained about the time it takes to have decisions made by the staff that is headquartered in the United States. On the other hand, there have been times where the international divisions have made decisions that are at odds with the company's overall strategy.

    Management models to discuss are as follows:
    - The use of an autocratic versus a participative management style toward decision making
    - Having a more centralized versus a more decentralized decision making
    - Adopting a more informal versus a more formal management style

    Search for articles that deal with actual examples of each of the 3 management models regarding the management of the employees in this firm.

    Explain why that particular model of management was chosen by the senior management in the article that you researched. In your opinion, was this approach toward management a success? Why or why not?

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    Solution Preview

    Autocratic versus participative management style:

    An autocratic management style is one in which senior management make all the decisions without involving junior workers. An actual example of this management style is as seen in the military where commands and missions come from the top military officials and passed down to junior military officials who obey them with no question. This management model was chosen by the military because in a military the highest discipline, respect and obedience are required by junior military officers, where the senior military officers do not interact with the junior. This approach towards management is successful in this matter as the junior do as they are commanded of which failure to obey is deemed as the disobedience (Management Style, 2011).

    A participative management style on the other hand allows employees to be actively involved in the decision making process within an organization. An actual example of participative management style is the one used by British Airways where employees' suggestions helped the company cut operation costs by 4.5 million pounds during the economic recession. This management was chosen by British Airways as it operates in a more competitive environment and effective harnessing of all its resources including human resources gives it a competitive advantage and makes it more innovative in the way it does business aside from enabling customer services according to the needs of customers in various ...

    Solution Summary

    This solution discusses why a particular model of management was chosen by the senior management in the article researched, providing an opinionated discussion about whether the approach toward management a success.

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