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The Evolution of Management Theory

(Comprehensive Analysis of Management)Systems TheoryContingency ApproachQuantitative Theory1What do you think influence the development of these management theories

Modern ManagementQUANTITATIVE THEORYSYSTEM THEORYCONTINGENCY THEORY

Modern Management has grown with the growth of social-economics and scientific institution. Modern management theories started after 1950s. Modern management theory focuses the development of each factor of workers and organization. MODERN MANAGEMENT

SYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORY

CONTINGENCY THEORY/SITUATIONAL APPROACH

Thequantitative approach to managementincorporates many analytical and numeric techniques into management methods. DEFINITION

SYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORYQUANTITATIVE THEORY

There are three main areas generally considered part of quantitative management:

Management Science/ Operations ResearchOperations ManagementManagement Information SystemsTHREE MAIN AREAS

SYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORYQUANTITATIVE THEORY

This area, also calledoperations research, applies mathematical models and statistical techniques to management decision making. Management Science

SYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORYQUANTITATIVE THEORY

Examples:

Mathematical ForecastingInventory ModelingLinear ProgrammingQueuing TheorySimulationsOPERATIONS RESEARCH

QUANTITATIVE THEORY

Operations managementapplies management science methods to improve the timing of delivery and streamline production processes. OPERATIONS MANAGEMENT

SYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORYQUANTITATIVE THEORY

Examples:Business Process AnalysisWorkflow DesignsFacilities Layouts and LocationsWork Scheduling and Project ManagementProduction PlanningInventory ManagementQuality ControlOPERATIONS MANAGEMENT

SYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORYQUANTITATIVE THEORY

Management information systemsare computer-based systems that generate information useful in managing a business from raw data.MANAGEMENT INFORMATION SYSTEM

SYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORYQUANTITATIVE THEORY

The five primary components:

Hardware,Software,Data (information for decision making),Procedures (design,development and documentation), and People (individuals, groups, or organizations).MANAGEMENT INFORMATION SYSTEM

SYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORYQUANTITATIVE THEORY

MANAGEMENT INFORMATION SYSTEM

QUANTITATIVE THEORYSoftwareprocessinputoutputdatainformation

Origin of System Approach to ManagementBiologist Ludwig von Bertalanffy first introduced the idea of a systems approach as part of his General Systems Theory, which he used to explore the relationships between organisms and the environment. Von Bertalanffy wanted to further identify the connection between business organizations and their environment. To do this, he explored the relationships between employees, customers, and company output.

SYSTEM THEORYSYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORY

A system composed of interrelated and interdependent parts arranged in a manner that produces a unified whole.

DEFINITIONSYSTEM THEORYSYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORY

Systems theory gives a manager a way of looking at the organization as a whole.

DEFINITIONSYSTEM THEORYSYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORY

The parts that makes up the whole system are called SUBSYSTEMS.

Sub - SystemsSYSTEM THEORYSYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORY

SYSTEM THEORYSYSTEMProductionMaintenanceSupportiveAdaptiveManagerialProduction (technical) Subsystems - concerned with throughputs-assembly lineFive Main Types ofSub - System

SYSTEM THEORYSupportive Subsystems - ensure production inputs are available-import raw materialFive Main Types ofSub - SystemSYSTEMProductionMaintenanceSupportiveAdaptiveManagerial

SYSTEM THEORYMaintenance Subsystems - social relations in the system-HR, trainingFive Main Types ofSub - SystemSYSTEMProductionMaintenanceSupportiveAdaptiveManagerial

SYSTEM THEORYAdaptive Subsystems - monitor the environment and generate responses (PR)Five Main Types ofSub - SystemSYSTEMProductionMaintenanceSupportiveAdaptiveManagerial

The combined and coordinated actions of the parts of the system achieve more than all of the parts acting independently.

SynergySYSTEM THEORYSYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORY

SYSTEM THEORYSynergyOrganizationPurchasing Product development MarketingProductionExecutiveOrganizationPurchasing Product development MarketingProductionExecutive

Closed system is the one which does not interact with the environment at all.

ex.Classical Management theories

Open and Closed SystemSYSTEM THEORYSYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORY

The part of the system that separates it from its environment.

BoundarySYSTEM THEORYSYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORY

Flow in an Open SystemSYSTEM THEORYSYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORYOrganization ENVIRONMENTPHYSICALLINGUISTICPSYCHOLOGICALSYSTEMATIC

Open system is the one where the elements of the system can interact with the environment.

Ex.Systems theory

Open and Closed SystemSYSTEM THEORYSYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORY

Flow in an Open SystemSYSTEM THEORYSYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORYTRANSFORMATIONPROCESSINPUTSOUTPUTSENVIRONMENTFEEDBACKSUPPLIERCONSUMER

"The best way to organize depends on the nature of the environment to which the organization must relate".

- William Richard Scott

Contingency TheorySYSTEM THEORYCONTINGENCY THEORYCONTINGENCY THEORYQUANTITATIVE THEORY

Fred Fiedler was one of the foremost proponents of contingency leadership. He stated that the effectiveness of types of leadership styles was determined on three factors.

Psychologist Fred Edward Fiedler is one of the leading researchers in Industrial and organizational psychology of the 20th century. He was business and management psychologist at the University of Washington.

Contingency TheoryCONTINGENCY THEORY

It is based on the theory that management effectiveness is contingent - or dependent - upon the interplay between the application of management behaviors and specific situations.

It suggests that management principles and practices are dependent on situational appropriateness.

NO best way to do things

DEFINITIONCONTINGENCY THEORYSYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORY

What you do depends on the situation.-internal contingency factors-external contingency factors

FACTORSCONTINGENCY THEORYSYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORY

Internal Contingency FactorsCONTINGENCY THEORYPurposeTasksPeopleTech-nologyStructureSYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORY

External Contingency FactorsCONTINGENCY THEORYSocio-cultural FactorsPolitical/Legal FactorsEconomic FactorsTechnological FactorsSYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORY

General Environment of COCA-COLACONTINGENCY THEORYSocioculturalBaby boomers drinking lessImmigrants drink lessConcerns about recyclingConcerns about healthIncreased acceptance in China and India Easier access to refrigerationPoliticalIncreased health standards for bottling Stricter liability legislationEconomicSlow economic growthProspect of economic recoveryMideast crisis affect oil pricesTechnologicalNew recycle friendly canning tech.New promotional opportunities via the internetThreat of substitute drinksCoca ColaSYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORY

Contingency Model of OrganizationsCONTINGENCY THEORYIOPurposeTasksPeopleTechnStructureSocio-culturalPoliticalTechnologicalEconomicSYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORY

There is no universal or one best way to manage. Wide range of external and internal factors must be considered and the focus should be on the action that best fits the given situation

Effective organizations not only have a proper fit with the environment but also between its subsystems

IMPORTANT IDEASCONTINGENCY THEORYSYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORY

The needs of an organization are better satisfied when it is properly designed and the management style is appropriate both to the tasks undertaken and the nature of the work group. Each managerial situation must be viewed separately.

Managers need to be developed in skills that are most useful in identifying the important situational factors.

IMPORTANT IDEASCONTINGENCY THEORYSYSTEM THEORYCONTINGENCY THEORYQUANTITATIVE THEORY