Introduction
Common management theories provide a base upon which students can build their knowledge of management concepts and practices. Regardless of the specific industry setting, theories such as…… Single and Double Loop Learning, Theory Z, Five Competitive Forces, Three Competitive Strategies…. are universally applicable to management situations. Studying and becoming familiar with common management theories leads the way toward in-depth studies of management and the application of management practices to specific industry situations. Single and Double Loop Learning, Theory Z, Five Competitive Forces, Three Competitive Strategies….have made significant contributions to the development of management concepts and practices that are being used in today’s workplace.
Single and Double Loop Learning Theory
Single and Double Loop Learning is a theory created by Chris Argyris. This theory expands on contrasting learning systems to acknowledge errors with efficient methods and strategies to avert them in the future. “The simple loop learning process is used by the majority of companies when managing small problems in line with pre-defined goals. In this sense, the process of learning in a simple loop results in maintaining the initial situation while adjusting to changes in the environment” (Mo, 2017). Single loop learning is how people in companies, organizations, or groups adapt to maintain a performance high enough to meet a forecasted target. When an employee makes an error at a business that negatively impacts their performance, it is necessary for a manager to review that error and communicate with the worker so that they can resolve the error that was made. Usually, there is a basic set of choices the company has to solve any mistakes made in single loop learning. Additionally, improvements are essential for the employee to proceed with a high performance at the company in the future.
Double Loop Learning centers around challenging people to question beliefs, assumptions, and the framework behind them when problem solving in a work environment.
Lesley Graybeal writes:
Double-loop learning, also known as reframing, contrasts with single-loop learning by questioning the purpose and function of work being done within an organization and does not take existing organizational structures for granted. Double-loop is concerned with understanding the basis for the tasks being completed, rather than a more efficient process for completing them (Graybeal, 2017).
It is indicated that this learning type differs from Single Loop Learning because instead of using standard and fundamental options to fix an error, different methods like questioning and analyzing are utilized to create a deeper level of thinking. This deeper level of thinking helps employees and organizations to understand what happened to cause the mistake. By the worker taking responsibility and being honest about what caused the error to occur, he or she can correct the error and learn from their mistake moving forward. Learning from the mistake is fundamental for preventing it from reoccurring in the future.
Theory Z
Theory Z, or the “management theory,” is a theory developed by William Ouchi that he based off pieces of the Japanese management style and incorporated into American business styles. Theory Z focuses exclusively on the loyalty of employees to create a work environment that is enjoyable for both the employer and the employees. Teamwork is utilized for decision making, and other projects to include everyone. Loyalty is also created when the company provides a job that a person will have for life. A job for life means that there is a considerable amount of time to learn every aspect of the job. This long period of learning results in slow advancement in the company. Furthermore, this management style creates a work environment where the managers and employers can create a bond with the workers. Employees that work in a solid and safe work environment benefit the company by having high performance, and being content working there.
The Five Competitive Forces Theory
The Five Competitive Forces is a theory constructed by Michael E. Porter. Competitive rivalry is a competitive force that considers the power of other competitors that run the same type of business. Examining the quality and services of other competitors, and determining how well they compare to an owner’s business, gives the owner an idea of the strength that the competitors have against his or her business. Bargaining power of suppliers is the second competitive force and is an important force to evaluate because suppliers can have a great deal of power over a business, especially when there are only one or two suppliers. This few number of suppliers can control the prices to supply a good or product, which will likely overcharge these prices. When a company has several suppliers that they can choose from, it is the easiest way to get the best deal without compromising quality.
The power of the buyer is a competitive force that is determined by how many customers there are buying products at a business. In a business where there are only a few buyers, the customers can collectively come together to lower the prices. The business has power over the customers either when there is a product that is unique to the store, or when there is an abundance of customers buying the products. The threat of substitution is a competitive force that is a huge threat when a business owner sells a product that buyers can either do it themselves at home or find the product being sold elsewhere for cheaper. The fifth and final competitive force is threat of new entry. The threat of new entry is controlled by the ability for another company to potentially enter the same type of business. If the cost to enter is low, there’s an immense risk for other companies to start a business in the same industry.
Three Competitive Strategies Theory
The Three Competitive Strategies is a theory also produced by Michael E. Porter. Cost leadership is a competitive strategy that a company uses to become a low-cost producer. A low-cost producing company is successful when the producing costs are lower than the competitors. A company that uses the differentiation strategy takes essential characteristics that buyers desire and puts a twist on them to make a product unique. This strategy is utilized to promote a company or business that sells a unique and rare product that is different from all other competitors. A company that sells a rare product can be very profitable for the business. The focus strategy is used to adapt marketing from one or more segments of customers and exclude the remaining segments. This means to market products that are designed specifically for groups of people that would buy an exclusive product made for them. Two parts exist in the focus strategy. The first part of the focus strategy is forecasting a business’ cost advantage to be more successful than all their competitors by looking at a target segment. The second part of the focus strategy is to market products that are designed specifically for groups of people that would buy an exclusive product.
Conclusion
Management theories such as…. Single and Double Loop Learning, Theory Z, Five Competitive Forces, Three Competitive Strategies…are all theories that provide insight into important ideas of management in a work environment and are widely used today. Each one of these theories are paramount not only for students to study and learn, but also is more significant to implement these concepts in a cooperate setting. These management theories are all vital to understand the different types management concepts and operations that occur inside the workplace today.
References
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Graybeal, L. (2017). Single-loop learning key terms. Retrieved from https://www.business.com/articles/single-loop-learning-key-terms/
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Jurevicius, O. (2013). Porter’s five forces. Retrieved from https://www.strategicmanagementinsight.com/tools/porters-five-forces.html
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Mo, S. (2017). Organizational learning process in single, double and triple loop companies in a post-crisis situation in the textile sector in tunisia. Journal of Entrepreneurship &Organization Management, 6 (2), 6-219. doi: 10.4172/2169-026X.1000219
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Stotz, A. (2017). Michael Porter’s three types of business strategies. Retrieved from https://www.valuewalk.com/2017/05/michael-porter-three-types-business-strategies/
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Theory Z. (n.d.). Retrieved from https://www.communicationtheory.org/theory-z/
