Theories of Management

Human resources are defined as individuals working in an organization and the concept of human resource management mainly deals with the manner of managing these people. Management theories similarly aim at identifying and making efficient use of a wide range of techniques and methods for offering human resources in an organization and ensuring their best possible utilization. This paper presents a discussion of two management theories, namely employee empowerment culture ad and the theory of penetration pricing and how they are used in Coca-Cola and Toyota Japan.

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First of all the theory of employee empowerment culture is widely employed by various companies to ensure smooth running of the organization.  Employee empowerment means initiating a culture in an organization where employees are encouraged to make decisions as far as running the company is concerned, offering a setting of open communication and recognition of new ideas. Heller points out that the reason why these two organizations, coca-cola and Toyota use this theory is to boost employee satisfaction where by empowerment gives them a sense of belonging. For instance employee satisfaction in Coco-Cola has been responsible for high turnover due to various management benefits. Low engagement of employees was also a concern for Coca-Cola. On the other hand, Toyota has also been at the top of the car manufacturing industry due to the atmosphere of honor and contentment at the firm.

The other theory employed by these two organizations is the theory of penetration pricing. Penetration pricing is a technique or rather a strategy that marketing representatives use to obtain new customers and persuade them to be loyal. There are various issues that gave rise use of this strategy but lately Coca-Cola has used it to market its new beverages in the market for example Novida, in India and African markets. The initial prices are set so low but after gaining grounds, they are gradually on the rise. On the other hand, due to changing consumer needs when it comes to cars, Toyota has constantly launched new models to the market hence a need to set up price penetration strategy. For Coca-Cola, the outcome has been very magnificent because currently, many people are consuming the product. The same case applies for Toyota because its low cost cars have been the most preferred all over the world especially in developing countries.

As a manager within these two organizations, there is nothing I could have done differently to handle the situation because as far as I am concerned the solution provided was effective. Other theories that can be used in this case include team building to ensure that employees are motivated and product branding.

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