Contemporary Management Principles Essay Example | Topics and Well Written Essays - 2000 words

Contemporary Management Principles - Essay Example The contemporary manager must devise ways of incorporation of information communications technology, handle diversity, put up with frequent conflicting claims from stakeholders, and abide by charters that correspond with the business functions. The list of organisational challenges has become nearly incessant. As such, the process of management consists of controlling and directing a team of one or additional entities or people for the reason of harmonizing and coordinating that team towards achievement of a goal. Therefore, management frequently covers the manipulation and deployment of financial resources, human resources, natural resources, and technological resources. Various theories of management have been employed from earlier times. However, as the business world keeps changing, different concepts are continually applied in the contemporary era (Saxena, 2009, 1). In this context, one case study will be discussed with regard to the contemporary management principles. Different features of the principles will be applied to comprehend the drivers behind the occurrences in the case scenario. This essay aims to comprehend the main drivers of contemporary management principles when applied by different organizations. Task 1: Understanding and application of principles The Main Drivers for the Merger of AOL and Time Warner with regard to Contemporary Management Principles The case regards the leading merger ever to occur in the United States history with 2 completely distinctive organizations, Time Warner and American Online. The two organisations merged to create a $97 billion international information technology and entertainment media giant, AOL-Time Warner. Providing cable and internet service to 126 million consumers, a colossal management challenge is experienced by the Chief Operating Officer (COO) of the organisation, Bob Pittman (Verma No Year, p. 4). The Time Warner and AOL merger ties the bind to the old economy infrastructure with the candidness an d content of the novel-fangled economy. The AOL-Time Warner merger, which required nearly 12 months to be acknowledged through the FCC, triggered a flurry of online-offline mergers. Simply below three years later, investors of Time Warner, investments in the merged organisations were only worth $36 billion, incurring a $50 billion loss. The novel AOL-Time Warner anticipated to apply its numerous divisions to enhance group products, although ran into obstacles when in 2001, advertising income fell. Amid lawsuits from the organisation’s shareholders claiming that there was overstatement of the AOL’s value prior to the sale, Mr. Steven Case resigned as the organisation’s chairman in 2003. Under Richard Parsons, the named chief executive, Time Warner had to experience an obstacle from a notorious â€Å"corporate raider† Carl Icahn, who was not content with the organisation’s approach in early 2006. The company was expected to be made smaller by Jeff Be wkes, who was to succeed Mr. Richard Parsons in 2008. The management running these two organisations have still been incapable of obtaining the synergy benefits, which actually were the key drivers behind the activities of the merger. Underachievement of the organisatio