MBA and B.tech class
notes
Modern Management Theory
Management is one or the other form has existed in
every nook and corner of the world since the dawn of civilization. Modern
Management has grown with the growth of social-economics and scientific
institution. Modern view consists that a worker does not work for only money.
They work for their satisfaction and happiness with good living style. Here
Non- financial award is most important factor.
Modern management theories started after 1950s.
Modern management theory focuses the development of each factor of workers and
organization. Modern management theory refers to emphasizing the use of
systematic mathematical techniques in the system with analyzing and
understanding the inter-relationship of management and workers in all aspect.
It has
following three Streams-
- Quantitative Approach
- System Approach
- Contingency Approach
Quantitative
Approach:
Quantitative approach also called Operation
Research. Quantitative approach is a
scientific method. It emphasizes the use of statistical model and systematic
mathematical techniques to solving complex management problems. Its helps the
management to making decisions in operations. It can only suggest the
alternatives based on statistical data. It cannot take final decision.
It helps the management for improving their decision
making by increasing the number of alternatives and giving faster decisions on
any problem. Management can easily calculate the risk and benefit of various
actions.
Major contributors in Quantitative Approach are-
Johan
MacDonald
George R.
Terry
Andrew
Szilagyi
System
approach:
System approach was developed inlate1960s. Herbert
A. Simon is the father of system theory. A
System is defined as a set of regularly interacting or inter - dependent
components that create as a whole unit. The system concept enables us to see
the critical variables and constraints and their interactions with one another.
According
to Cleland and King; “ A system
is composed of related and dependent elements which when in interaction from a unity whole”.
Characteristics of
system approach:
- A system must have some specific components, units or sub units.
- A Change in one system affects the other subsystems.
- Every system is influenced by super system.
- All systems along their subsystem must have some common objectives.
- A system is a goal-oriented.
- A system cannot survive in isolation.
Major contributors
in system theories are-
- Daniel Katz,
- Robert L. Khan,
- Richard A. Johnson.
Contingency
Approach:
Contingency
Approach also knows as situational approach. In 1980s, it is recognized as a
key to effective management. This approach accepts the dynamics and
complexities of the organization structure. An organization is affected by its
environment and environment is composed by physical resources, climate,
persons, culture, economic and market conditions and their laws.
This approach argues that there is no one
universally applicable set of rules by which to manage organization.
Major contributors
in the contingency theories are-
- G.M. Stalker,
- Joan Woodward,
- Tom Burns,
- Paul R. Lawrence,
- L.W. Lorsch.
Conclusion
Modern management
theory depends upon System approach and Contingency approach. Management is influenced
by Internal and external environment. Appropriate techniques are determined by situation
and Environmental factors of an organization.
Thus the conclusion is that there cannot be
any fixed universal principles of management and organizations.
Nb: In near future I will be sharing a
post on “Objectives of management”.
Note: This post shared here are base on my
study in case you find anything wrong and missing points than please bring it
to my notice.
the above information was very useful please keep writing such subject related articles :)
ReplyDeletethanks
Deletegreat job, very useful. Thankyou!
ReplyDeleteCan u give examples where early management approaches and modern management approaches are used?
ReplyDelete