Management in context Essay Example | Topics and Well Written Essays - 1250 words - 1

Management in context - Essay Example These damaging theories have made students to believe that managers cannot be trusted. I also noticed that the theories suggest that strict supervision and control of employees is the optimal manner of operating a business. The article showed that academic research associated with business and management conduct, influences management negatively in that students relinquish their moral responsibility by learning its theories (Ghoshal, 2005). Surprises in JA2 This article demonstrated that the theories taught in universities and business schools are to blame for the managers’ poor performance. This is because the managers underutilise the available resources when they follow incorrect channels that lead to bad decisions as a result having of inadequate knowledge. Possession of relevant knowledge was emphasized in this article, where Donaldson implies that managers do not make bad decisions intentionally, but it is because of inadequate knowledge that these errors arise. â€Å"T hese errors are not intended by the managers, and are due to deficiencies in their knowledge† (Donaldson, 2002:97). A new thought was introduced when Donaldson wrote that social theories taught in business schools have had contradictions with the assumptions made in management education. â€Å"There is contradiction between the views expressed by some major contemporary social science theories taught in management schools and the assumptions on which management education is founded† (Donaldson, 2002:97). The way Donaldson proved the incompatibility of the economic and finance, strategy theory, agency theory, institutional theory, and judgmental bias theory was so convincing that I come to completely agreed with the article. The evidence In the article, Ghoshal argued that the negative management and conduct of business have been influenced by academic research learnt in business school by students who later become managers. I observed that the argument on assumptions an d ideas that Ghoshal was talking about were indeed true. â€Å"Our theories and ideas have done much to strengthen the management practices that we are all now so loudly condemning† by â€Å"adoption of a particular theory and more at the incorporation†, which have â€Å" ideologically inspired amoral theories† that are taught in business school(Ghoshal, 2005:76-76). The ideology of pessimism also known as liberalism brought a gloomy vision in management where the owners of a business do not trust the managers as it is evident in the many companies across the globe. Looking into Donaldson’s article and how he had argued, the five theories he had highlighted really contradicted optimal management of business and what students learnt in business schools. In economics and finance, when information is made public it cannot help one firm as all the other firms will have it and use it to their advantage. â€Å"Thus research-based knowledge, once public, confer s no economic advantage in (even semi strong) efficient markets. Only knowledge that is kept private can confer an advantage to the investor† (Donaldson, 2002:96). This shows that the research done in business school once made public cannot give students an upper hand. In the theory of strategy, when a firm has unique resources, it cannot disclose them to the managers, as they can reveal them to rival firms. This in turn results to resources being underutilised; therefore, failing to realize the full potential of the