Management Theory & Practices (contemporary Approaches)

Management Theory & Practices

“CONTEMPORARY APPROACHES”

I. QUANTITATIVE MANAGEMENT

Although Taylor introduced the use of science as management tool, but most organizations did not adopted the use of quantitative management until World War – II by military planners for defense & logistic problems.

The approach helps managers make decisions by developing the formal mathematical models of the in hand problems. Computers have facilitated the development of scientific quantitative methods.

EXAMPLES: - Statistical decision theory, breakeven analysis, simulation, for casting inventory modeling, etc.

Reasons of the limited use of approach:

Managers do not depend on the technique & use it only as supplement & a tool in decision making & the reasons are:

– Many managers will use results that are consistent with their experiences, intuition (sixth sense), and judgment and they may reject results that contradict their beliefs.

– Most managers have not been trained to use quantitative management tools.

– Finally many managerial decisions are non – routine & unpredictable.

KEY CONCEPTS

– Application of quantitative analysis to management decisions.

CONTRIBUTIONS

– Developed specific mathematical methods of problem analysis.

– Helped managers select the best alternatives among a set.

LIMITATIONS

– Models neglect non quantifiable factors.

– Managers not trained in these techniques & may not trust or understand the techniques, outcomes.

– Not suited for non routine or unpredictable management decisions.

II. ORGANIZATIONAL BEHAVIOR

During the 1950’s a transition [change] took place in the human relations approach. Scholars begin to recognize that workers productivity & organizational success are based on more then the satisfaction of economic or social needs. The revised prospective, known as organizational behavior, studies & identifies management activities that promote employee effectiveness through an understanding of a complex nature of individual, group & organizational process.

OB draws from a variety of disciplines, including psychology & sociology, to explain the behavior of people on job.

During 1960 Douglas McGregor’s Theory X & Theory Y heavily influences & contributed to this approach.

Theory X: - theory X managers assume that workers are lazy and irresponsible and require constant supervision to achieve organizational goals.

Theory Y: - theory Y managers assume that employees want to work & can direct & control themselves.

Other major organizational behaviorists include Chris Argysis who recommended greater autonomy & better jobs for workers.

KEY CONCEPTS

– Promotes employee effectiveness through understanding of individual, group, & organizational processes.

– Stresses relationships among employees, managers, & the work they perform for the organization.

– Assumes employees want to work and can control themselves (Theory -Y)

CONTRIBUTIONS

– Increased participation, greater autonomy, individual challenge & initiative, & enriched jobs may increase performance.

– Recognized the importance of developing human resources.

LIMITATIONS

– Some approaches ignored situational factors such as the environment & the organization’s technology.

III. SYSTEMS THEORY

The classis approaches as a whole were criticized because they:

1. Ignored the relationship