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Facultyname:
Award of Business
BBA and Law UWE Student Id:
18045075
Module code: UMCDMW-15-1
For checking by the student:
Module name: Introduction to Business and Management
Module run: September 2018
Coursework title: Critically analyse at least models of management on the competing values framework
and highlight the role they play in contributing to organizational success.
______________________________________________________________
Due Date: 13 Nov, 2018
Module leader: (In UWE): _Dr Paul Bennett and Dr Selen Kars
________________________________________________________
Module leader: (In TBC): Nistha Rajbhandari
TURNITIN Checked: YES
Submission date & time: Date: 13 Nov, 2018________________________ Time: 2 P.M
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INTRODUCTION

According to Harold Koontz Management is the act of getting things done in the effective way

through planning, organizing, directing and controlling in order to achieve an organizational

goals (Akrani 2011). The competing value framework which indicates of four corporate cultures,

was developed by Robert Quinn and Kim Cameron which shows how a company work and what

the corporates values are. A four corporate cultures are Open System Model, Rational Goal

Model, Internal Process Model and Human Relation Models. This report consists of the type of

organization is based on open system model which is flexible and a customer focused and

internal process model which is more controlled and focused on the internal surroundings and

how the organization has performed following these competing value frame work.

OPEN SYSTEM MODEL

Open system, the system that interacts with the external surrounding and has a flexible

organizational structure. The best example is living beings. We actively interact with the

environment which results to the change in both environment and us. For an instant we eat to

gain energy. We are even exposed to the natural chemical that can harm as wells benefit us.

We also gather information from different aspect whether from the internet or the educational

institutes. Human beings have also made many innovations subjected to the environment and

the growth of innovation is increasing with the time, hence this has effect on the both the

aspect, environment and human beings. The changes in the environment has affected the
environment in both the ways positively and negatively. Negative effect in the sense resulting

to pollution (Conroy 2017). Nursing and healthcare can also be considered as the major

example of the open system model characterized by negative entropy, integration,

coordination, energy transformation and equifinality. Open system is based on the inputs,

throughput, output, system as cycle of events and feedback. Energy inputs in the nursing is

associated with the staff member , funding information, supplies resources etc. in order to

achieve an outcome, nursing intervention is transformed by reorganizing the inputs. Then then

they achieve an outcome for egg patient volumes. Nursing health care receives the feedback

from the external environment looking at the organizational performance and the services they

have provided. This series is repeated in order to renew the system with the process of

exchanging and transforming energy. (Meyer and Pallas 2010). Thus nursing has a flexible

characteristics as it can grow with the changes in the surrounding.

Thus open system take the company’s environment and change it in if necessary. Open system

studies about how the environment, economy, customer needs affect the system of the

company. Effective problem solving, leadership, planning, commutation are the major benefits

of the open system. This model helps leader to understand the overall structure of the

organization and what must be done to guide the organizational goal. One of the most

important method for the success of the organization is ongoing feedback or communication

(Sherman 2018). Since open system focus on the interaction of external environment. Thus

organization can maintain a good public relation. Open system believes in decentralization,

even the lower level staff have the right to make the decisions. This may be very advantageous

to the organization. The disadvantage of the open system model is use to the large amount of
staff in many organizations, a consensus on a goal maybe difficult to achieve in a short space of

time. Increased employee interaction may lead to a decrease in professionalism due to

overconfident attitudes of workers

INTERNAL PROCESS MODEL

Internal process model focus mainly on the internal surrounding and emphasize control.

McDonalds is perfect example of the internal process model that demonstrate the Henri Fayol’s

management principles. From the Henry Fayol’s model, the work specialization in McDonald is

divided into different departments like packing department, front desk, makes of food stuff in

their work and many other departments. Fayol not only focus in the output but also address the

training of the employees. As per the Fayol’s believes McDonald has better customer services

and low employee turnover. Mc Donald has two-stage training for more than 4000 staff. First

stage is at welcome meetings about the McDonald operational procedure and to operate the

foodservice equipment and the second stage of training is done after the initial training period.

All the employees receive bonus each month based on mystery shopper. They provide service

awards for the employees recognizing their stuck services at five years interval. Thus the

company have less employee turnover (UK essay 2017). Espirit De corps: McDonald has been a

successful restaurant and doing well because of the “team spirit”.

As bureaucracy is good in internal process model, executive Steve Easterbrook said that for the

pace movement of the company McDonald will have layers of bureaucracy stripped away as

McDonald is reconstructing its units into four groups: international lead markets, the flagship us

market, high growth market such as China and Russia and the rest of the worlds. (Easterbrook

2015).
The advantages of following an Internal Process Model is that as mentioned by the Fayol’s

principles if organization follows these 14 principles of management than an organization

would not be biased. There will be no partiality among the employees and everyone will be

treated equally. There will be no confusion in the work process as different departments are

separated for a different post. There are set of rules and regulation that helps to achieve the

goal of the company in a disciplined manner. All the employees including top level and lower

level, everyone should be disciplined and follow the rules and regulation of the organization

strictly. Besides its positive aspect, Henry Fayol’s model also has disadvantage as it supports

centralization. Every decision is made by a top managers. Centralization can be the

disadvantages by some reasons like the employees will not have rights to keep their word and

ideas. It’s not mandatory that manager’s statements will always be correct and useful. Even

they can make a mistake so it is necessary to listen up to everyone voice in the office. This

encourages the employees to be more active and motivates them to do more.

Organization based on the Open System Model will be more effective rather than organization

based on Internal Process Model. Open System Model has a flexible structure and focus mainly

on the external environment. Thus, if any variation occurs in the structure of the management

then it can be easily changed. Most of the organization are customer centric if you are able to

keep the customers happy and satisfied than the business will automatically leads to a success.

Maintaining a good relation with seller and buyer benefits the organization in the process of

exchange of good and services. Thus internal process model may not be as effective as open

system model because they are controlled. Organization cannot make the change with the

situation. They are more focused on the internal environment than the external environment
though they may have good relation with the employees and may have less employee turn-over

but interaction with the external surrounding like seller, customer would not be good. So if the

company has no good relation with the external environment than the company will negatively

affected in the trading process. Hence preference of open system model in the organization is

more beneficial.

CONCLUSION

In the final analysis, the model of competing value frame work open system model emphasizes

more on the external surroundings and towards the expansion change whereas the internal

process emphasize more on the internal surrounding and is controlled. According to the open

system model based on the complexity theory which explain that the both the internal and

external should be focused and if any problem arises make the change. Internal process model

is based on the management principle by Henri Fayol’s which explain that the organization

should be centralized, disciplined, have unity of command and direction, remuneration policy.

Many organization like McDonald has followed Fayol’s principles and are regarded as the

successful company in the world.

Though, both of the model have the specific role for the successful growth of any organization.

Despite, I would recommend any organization to follow open system model of the

management as open system model is more flexible, any organization will be able to make the

change according the variation in the organizations. Also open system emphasize on the

interaction with the external environment like customers. Thus a good public relation leads to a

successful business.

REFERENCES
Delilah Conroy. 2017. Why live beings are open system?. [ONLINE] Available
at: https://www.lifepersona.com/why-live-beings-are-open-systems. [Accessed 13 November
2018].

Fraser Sherman. 2018. The Advantages of Open Systems Theory. [ONLINE] Available

at: https://bizfluent.com/info-8550487-advantages-open-systems-theory.html. [Accessed 13
November 2018].

Gaurav Akrani. 2011. What is Management? Definitions. [ONLINE] Available at: http://kalyan-

city.blogspot.com/2011/04/what-is-management-definitions-meaning.html. [Accessed 13
November 2018].

Raquel M Meyer and Linda L O’Brien-Pallas. 2010. Nursing Services Delivery Theory: an open
system approach. [ONLINE] Available
at: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3017742/. [Accessed 13 November 2018].
Steve Easterbrook. 2015. McDonalds strips out bureaucracy. [ONLINE] Available
at: https://www.independent.ie/world-news/mcdonald's-strips-out-bureaucracy-
31193679.html. [Accessed 13 November 2018].

UKEssays. November 2013. McDonalds Approach to Employee Motivation. [online]. Available

from: https://www.ukessays.com/essays/business/employee-motivation-the-integrated-
approach-at-mcdonalds-business-essay.php?vref=1 [Accessed 13 November 2018].