During the financial crisis of 2007-08 Wall Street’s five biggest banks paid $39 billion in bonuses to their employees for 2007. Some of these companies had accepted government bailout money. As a result President Obama announced a salary cap of $500,000 for top executives at companies that receive large amounts of bailout money. Consider both the large payouts and the salary cap as it relates to the following statement: “One of the major themes of the neoclassical theorists was that organizations did not and could not exist as self-contained islands isolated from their environments” (Shafritz et al. 2005). The response should include a discussion of what the theory proposes as the task of the manager? In addition to, what are the managerial implications of the theory?
“Organizations did not and could not exist as self-contained islands isolated from their environments.” The statement highlights the most important task of the manager is coordination. The manager is responsible to lead the works to work efficiently.
Wilson thought that administrative efficiency as well as administrative responsibility would be enhanced through hierarchical structures. During the financial crisis, the manager is responsible to enhance their management and improve work efficiency through centralization, which ensures trustworthiness and efficient operations.
Taylor developed management as a science. He thought that the tasks of the manager include four points: to design and conduct experiments, to discover the most efficient techniques available, to plan work processes that would take advantage of these techniques, and to train and supervise workers using these techniques. In this sense, the task of the manager is to explore the effective and practical method to motivate workers to work more productively.
Gulick raised four steps for manager to carry out new programs: 1) to define the job to be carried out; 2) to select a director, 3) to determine the nature and number of units required, and 4) to establish a structure authority through which the director can coordinate and control the activities of the units. The manager’s task is to have a work proceeded in order under his control. Gulick also raised the theory of POSDCORB, which represents planning, organizing, staffing, directing, coordinating, reporting and budgeting. The manager is responsible to outline the things that need to be done and the methods for doing them in the very beginning. The manager needs to organize people to form a formal structure of authority. The manager is required to choose people and give them proper training. The manager is responsible to make decisions. The most important task is coordination. As the statement said, organizations could not exist, being isolated from their environments. The manager not only need to coordinate the employees’ inter relations, but the external environment as well. The coordination should be based on the objectives and duties, natures of different works, staff and space. The manager is responsible informed as to what is going on. The manager is also responsible to do the budgeting in the form of fiscal planning, accounting, and control. The chief executive undertakes the responsibility of POSDCORB.
White defined public administration as the management of men and materials in the accomplishment of the purposes of the state. Similarly, in an organization, it is the manager’s task to manage people and resources in the accomplishment of the purposes of the organization. The tasks of the manager include direction, coordination, and control of many persons to achieve some purpose or objectives.
They statement also implies Fayol’s opinion that firms’ goals should contain individuals’ interest. The manager represents the firms’ ideals and goals. The announcement of salary cap reflects the government’s concern of protecting workers’ interest. In addition, according to Freud, individuals use groups and organizations not only to accomplish established ends but also to serve as direct sources of need gratification—to provide a sense of security, a defense against the vagaries of an uncertain world. During the financial crisis, the manager should undertake the risks and vagaries with their workers, overcoming the difficulties.