Management students are destined to be the next generation of business managers. Whether they are undergraduates, Masters or MBA students, the ability to lead organisations and build teams are key elements that organisations look for. For some, the ability to manage large teams comes from experience. One truly appreciates management lessons when having to lead a major restructure or re-organise a business. However, management is already an applied field, which takes insights from Sociology, Engineering, and even Philosophy to guide students toward success. As Aristotle once said, “Practical wisdom depends as much on practice as it does on scholarship”. Both are necessary to guide action and build the all-round capabilities we respect in organisational leaders.
It is in this context that Organisational Theory becomes a relevant field of study for business school students, and management students in particular. Over the past few decades, Organisational Theory has emerged as a scholarly field defining the constructs and concepts necessary to administer organisations. In the early 20th century, theories of the organisation stemmed from sociologists like Max Weber, Emile Durkheim and Frederick Winslow Taylor. Their models were built around the organisation as efficient, structured, and organised, with a symmetrical form and a regular rhythm.
Evolving models
While these still apply to some degree today, the contexts in which organisations operate are far more complex. For example, organisations now need to manage their incumbent business while supporting entrepreneurial activity to attack new market opportunities. This has given rise to the theory of the ‘ambidextrous organisation’ or the ability to do two things at once. Management students learn many models for how to structure organisations to achieve these twin goals simultaneously under a similar (and different) executive leadership team.
In addition, disruption to business models has introduced the notion not simply of strategy, but also design-led and open strategy. These provide inputs into the strategy of organisations that extend beyond the boardroom: in-depth customer insights, qualitative surveys with key stakeholders, and entering new markets in partnerships with other players in your supply chain. It is not always the case that organisations are best served by building it themselves.
Future managers, therefore, need to study Organisational Theory in order to have relevant constructs and concepts to inform their future experience. They can get these constructs through an MBA programme. Otherwise, they can do a Bachelor of Commerce or Bachelor of Business degree and take majors in fields like Management, Strategy, Innovation and Entrepreneurship, or International Business. Each will take a slightly different focus. For example, Management will tend to skew toward Human Resources and people-related subjects. Strategy, Innovation and Entrepreneurship will focus on business model innovation and strategic planning, and International Business will focus on how to build teams that traverse multiple regions. These studies can be well-complemented by internships or work placements that situate students within business units, in customer-service teams, or in the strategy offices of organisations. Over time, students will either specialise in a cross-function like Strategy, Human Resources, or even Marketing, or they will work within a business where they will be responsible for operations and delivery.
A final piece of career advice for Management students. Leading organisations is a difficult job. As you rise to leadership positions, you will come to learn that success depends as much on what you do as on what you can inspire in others. Therefore, the ability to work with people and help them understand their business environment is crucial to long-term organisational success. Organisational Theory is well placed to teach students the key elements of how that success is possible.
The writer is Executive Dean, Macquarie University Business School, Sydney, Australia.
