Management theory can be traced back hundreds of years. It seems to have started at the beginning of the nineteenth century together with the emergence of industrial revolution. There are four main areas that management theories tend to follow. These basic theories can be classified as Classic, Human Relations, System and Contingency. Most recently, the contingency theory has become popular (Mullins, 1999).
The contingency theory is similar to situational theory in making the assumption that there is no answer to management. No simple or correct way in every situation. The situational theory is focused on the leader’s behaviors with given situational factors (ChangingMinds.Org, 2010). The ...view middle of the document...
Result of interaction of two factors, this theory explains that group performance. These two factors are leadership style and situational favorableness (Value BasedManagement.net, 2010). In Fiedler's model, of the situation that leader works determine the leader's effectiveness is the interaction between the leader's style and the situational characteristics.
Revert back to the structure of the business rather like the classical approach is the basis of contingency theories (Thomas, 2005). Organizational structure has major influence on the organizational performance. Set upon the nature of the task, the success and the structure of the business are dependent. Based upon the contingencies of the situation of each organization are the best structure and systems of management.
Circle K Management
Looking at a company like Circle K, we find they use a Feilder-type model and a human relations approach to business. Management seems to be rather informal and appears to know the importance of keeping their workforce happy.
Circle K recognizes the must pay attention to their staff. Staff reviews start after one month for new employee and continue every six months. Asking employee about their needs and if they have any problems are parts of the review process when the manager evaluates the performance of the employee. An employee does not have to wait six months before bring up any problems if the need arises. Managers keep everyone motivated and very accessible to the staff.
Circle K has relatively flat organizational structure comprised of five levels from Store Manager to General Manager. With only five levels, managers have large spans of control with 20 to 30 employees reporting to each manager. The use of functional grouping has been adopted into their structure allowing different sections to specialize. This grouping also fostered more cohesive work groups and a strong sense of teamwork among the sections.