Foundation of Management Financial Crisis

Question: Discuss about theFoundation of Managementfor Financial Crisis. Answer: Introduction In todays competitive business world, every organisation faces fierce competition, economic pressures, financial crisis and demanding consumers. Therefore, Besson and Rowe (2012) have mentioned that in order to overcome such situation, the management should reduce the operation cost, service quality, improve the product quality and find new ways of responding to the new opportunities. On the other hand, the rapid innovation, competition level and the product diversity has contributed to the basic crisis of the organisations. Fordism is concerned with the social systems as well as the economic systems which are based on the mass consumption and the industrialised mass production. It is not possible for a Fordist organisation to response to the changing demands of the manufacturing and production processes. Such organizations are unable to meet the changing demands of the modern organizations. There are issues with the function of organizing as well as managing. Economies of scale of a n organisation include the reduction of the average cost, which arises from improving the basic scale of the production for single type of products. A significant reduction in the costs should be done by increasing the production. However, economies of scope include reducing the average production cost with increasing the production of the goods. A considerable amount of saving is done by the production of two or more similar products. This implies that combined cost of production of two goods is less than the production cost of the individual goods. The management of the company should incorporate effective strategy and potential leadership style in order to produce more products than before in order to manage and organise a flexible business operation. The management can use modern technology for cutting down the business cost, for instance inventory and labour. The new system should be flexible and adopt alternative collaborative systems of production (Drew and Coulson?Thomas 201 3). The labour management collective bargaining process would be concerned with the incorporation of technology. This process is concerned with the negotiation between the employers and the unions and arriving at a consensus. The adversarial climate and reinforced rigid work rules are also interconnected with the incorporation of the new technology. All of these processes will make an organisational structure flexible in proper manner with the high performance systems and flexible manufacturing procedures. It is important for carrying out the organizing functions in a perfect manner since it would lead to efficient utilisation of the resources which would increase the organizational productivity. References Besson, P. and Rowe, F., 2012. Strategizing information systems-enabled organizational transformation: A transdisciplinary review and new directions.The Journal of Strategic Information Systems,21(2), pp.103-124. Drew, S. and Coulson?Thomas, C., 2013. Transformation through teamwork: the path to the new organization?.Team Performance Management: An International Journal.