Modern Management Theories

MODERN MANAGEMENT

THEORIESTHE LATEST OF EVOLUTION

Theories and approaches to explain management in modern era

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By:

Haniiful Wahib Su’ud (13210039)Bimadanta Prakosa (13210060)Iqbal Novramadani (13210063)Angga Pratama Putra (13210072)

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Definition

Modern :Relating to the present or recent times.Characterized by or using the most up-to-date techniques, equipment, etc.

Management :The process of managing: administer and regulate (resources under one’s control).

Theory (pl. Theories) :1. A supposition or a system of ideas intended to explain something, especially

one based on general principles independent of the thing to be explained.2. A set of principles on which an activity is based.

(Oxford Dictionary)

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Modern Management Theories

1. System Approach .......................................................................................

2. Quantitative Approach ................................................................................3. Total Quality Management Approach ........................................................4. Learning Organization Approach ...............................................................5. Team Building Theory ...............................................................................6. Chaos Theory ............................................................................................7. Open System Theory ................................................................................8. Contingency Theory/Approach ..................................................................

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System Approach

• An organization is a system consisting four subsystems namely task, structure, people, and environment.

• The subsystems are interconnected and interdependent one another. Maintaining the balance.

• An organization is an open adaptive system which continuously interacts with its environment.

• Management regulates and modifies the system to optimize performance.

• An organization is more than just the aggregate of various parts. This is called ‘synergy’. Focus on the system.

6Modern Management Theories

Quantitative Approach

• Management = decision-making. Organization = decision-making unit.• Organizational efficiency depends upon the quality of managerial

decisions.• A problem is expressed in the form of a quantitative or mathematical

model.• The different variables in management can be quantified and expressed in

the form of an equation.


Total Quality Management Approach


“..by adopting appropriate principles of management, organizations can increase quality and simultaneously reduce costs (by reducing waste, rework, staff

attrition and litigation while increasing customer loyalty). The key is to practice continual improvement and think of manufacturing as a system, not as bits and

pieces.“ – Dr. W. Edwards Deming



a) When people and organizations focus primarily on quality, defined by following ratio:

quality tends to increase and costs fall over timeb) However, when people and organizations focus primarily on

costs, costs tend to rise and quality declines over time



• Japan (1950-1960)

• US Navy (1985)

• US Navy (1985)

Plan-Do-Check-Act


• Malcolm Bridge National Quality Award

• European Quality Award, Australian Quality Award, Canadian Quality Award, Deming Prize,etc

Quality Award


Total QualityManagement

ISO 9000,Six Sigma,

Lean Manufacturing


Learning Organization Approach


“…..'learning organizations' are those organizations where people continually expand their capacity to create the results they truly desire, where new and expansive

patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning to see the whole together.“

– Dr. Peter M. Senge

• Knowledge management is the process of using intellectual capital for competitive advantage

• Portfolio of intellectual assets include:– Patents– Intellectual property rights– Trade secrets– Accumulated knowledge of the entire workforce

Learning Organization & Knowledge Management


The Fifth Discipline


Learning Organization Approach


Building a Learning

Organization

System thinking

Personal mastery

Team Learning

Shared Vision

Challenging of Mental models

(Systems Approach)

(Chaordic Organization)

(Classical/Management science)

(Theory Z/Behavioral)

(Theory Z/Behavioral)

Team Building Theory

A team is a small group of people with complementary skills, who work actively together to achieve a common purpose for which they hold themselves collectively accountable (Adair, 1986)

A team is a workgroup or unit with a common purpose through which members develop mutual relationships for the achievement of goals/tasks. Teamwork, then, implies cooperative and coordinated effort by individuals working together in the interests of their common cause. It requires the sharing of talent and leadership, the playing of multiple roles (Harris , 1986)

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What is a Team?


Characteristic of a Team

(i) It is a group that has a job to do, whether as paid participants or as volunteers.

(ii) It is a group that achieves cohesiveness(iii) It is a group with a common objective, whose members are

very clear about working toward one purpose. (iv) It is a group whose members are interdependence.

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What is Team Building?

According to Cleland (1996), team building is the process of forming, growing, and improving the knowledge, skills and attitudes of individuals with different needs, backgrounds, and abilities into an integrated, high-performance team.

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Types of Team Building Theory

1. Beldin’s Team Role Theory 2. Isabel Briggs-Myers’ MBTI Theory3. Jung’s Colour Works Theory4. Douglas McGregor X and Y Theory5. Abraham Maslow Hierarchy of Needs Theory6. Tajfel, Social Identity Theory7. John Adair Leadership Theory8. Tuckman’s Theory of Group Development

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Belbin’s Nine Team Roles

Myers-Brigss Type Indicator (MBTI)

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Essentially within the MBTI, there are 16 types and a survey will tell individuals which type they are most like.

Four dichotomies– Extrovert / Introvert (E/I)– Sensation / Intuition (S/N)– Thinking / Feeling (T/F)– Judging / Perceiving (J/P)

Myers-Brigss Type Indicator (MBTI)

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Colour Works Theory

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• The Colour Works uses a psychological model of behaviours that helps teams to understand similarities and differences in order to become more effective.

• How does it work? We are all made up of 4 distinct colour energies of behaviour, each of which has distinct characteristics.

• Forming 72-type, based on 8 Archetype:The Director, Motivator, Inspirer, Helper, Supporter, Co-Ordinator, Observer, Reformer

X and Y Theory

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• Leaders and managers who hold Theory X assumptions believe that employees are inherently lazy and lack ambition.– A negative perspective on human behavior.

• Leaders and managers who hold Theory Y assumptions believe that most employees do not dislike work and want to make useful contributions to the organization.– A positive perspective on human behavior.

Maslow’s Hierarchy of Needs

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Social Identity Theory

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• Social identity theory was developed by Henri Tajfel and John Turner in 1979.

Social Identity Process

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1. Categorization: we categorize object in order to understand them and identify them. Similarly, we categorize people (including ourselves) in order to understand the social environment. We use social categories like Black, White, Christian, Muslim, Student, Bus drivers because they are useful.

So if we can assign people to a category then that tells us things about those people.

Similarly we can find out things about ourselves by knowing what categories we belong to.

The norms of groups also tell us about appropriate behaviours of individuals in the group.


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2. Social identification: We adopt the identity of the group we have categorized ourselves as belonging to.

For example if you have categorized yourself as a student, the chances are, you will adopt the identity of a student and belonging to act in the ways you believe students act (and conform to the norms of the group).

There will be an emotional significance to your identification with a group, and yourself esteem will become bound up with group membership.


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3. Social comparison: Once we have categorized ourselves as part of a group and have identified with that group, we then tend to compare that group with other groups.

If our self-esteem is to be maintained our group needs to compare favourably with other groups.

If two groups have identify themselves as rivals they are forced to compete in order for the members to maintain their self-esteem.

John Adair’s Action-Centered Leadership

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Adair approached leadership from a more practical and simple angle; by describing what leaders have to do and the actions they need to take.John Adair's Action-Centred Leadership model is represented by Adair's 'three circles' diagram, which illustrates Adair's three core management responsibilities.

Tuckman’s Theory of Team Development

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Bruce Tuckman first published this model of team development in 1965. It is effectively a theory of how teams develop from the very start of a project to the end. It describes four main stages, although he added a fifth stage (adjourning) later in his career.

Tuckman’s Theory of Team Development

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Chaos Theory

• First stated by Edward Lorentz in 1960s.• Introduced by James A. Yorke and his partners as a new

paradigm in 1975 (Yorke, 1975)• Dr. Kellert (1993) defines Chaos Theory as a qualitative study

of unstable aperiodic behavior in deterministic nonlinear dynamical systems (p.2).


Chaos Theory

Chaos theory wasn't "first published' - like most theories it evolved over time - however this is an exact statement:

"sensitive dependence on initial conditions"

This is the statement they used before the term "chaos theory" came into popular speech.

It means that systems can be greatly affected by tiny changes in initial conditions, that would have normally been thought of as so small they could be neglected.


Chaos Theory

Chaos theory is a promising framework thataccounts for the dynamic evolution of industriesand the complex interactions among industryactors. By conceptualizing industries as chaoticsystems, a number of managerial implicationscan be developed. Long-term forecasting isalmost impossible for chaotic systems, anddramatic change can occur unexpectedly; as aresult, flexibility and adaptiveness are essentialfor organizations to survive. Nevertheless, chaoticsystems exhibit a degree of order, enabling short-term forecasting to be undertaken and underlying patterns can be discerned.


Open System Theory


System Input

Environtment:GoalOutput

Feedback

Open System Diagram


Notable Persons


• Daniel Katz,• Robert L. Khan,• Richard A. Johnson.

Contingency Theory/Approach


SYSTEMCulture

Technology

Government Economy

Geography

Demography

Notable Persons


• G.M. Stalker• Tom Burns• Joan Woodward• Paul R. Lawrence• L.W. Lorsch.

Theory Developed

• Organic Organization

Conclusion

System Approach, Quantitative Approach, Total Quality Management Approach, Learning Organization Approach, Team Building Theory, Chaos Theory, Contingency Theory/Approach, Open System Theory are included into modern management theories because these theories were developed in late 20th century (after 1950) and haven’t found yet in the classical and neo-classical era.

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Conclusion

Strength:• The organization can survive many

different situation• The organization will be more adaptive to

change by predictions• Continuous Improvement• Solve complex and detail problem

Weakness:• Hard to understand • Need advance math and modelling

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References• Gomez-Meija dan Balkin, Management,

McGraw Hill, New York, 2002.• Schermerhorn, Management, John Wiley &

Sons, USA, 2010• A Comparative Analysis of National and

Regional Quality Awards, Robert Vokurkas et.al.

• The Fifth Discipline, Peter Michael Senge,• http://

www.slideshare.net/Gambari/perspective-of-civil-service-on-team-building

• http://www.faculty.umb.edu/david_levy/smj94.pdf

• http://en.wikipedia.org/wiki/Chaos_theory

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http://www.slideshare.net/Gambari/perspective-of-civil-service-on-team-building



http://www.faculty.umb.edu/david_levy/smj94.pdf



http://en.wikipedia.org/wiki/Chaos_theory

http://en.wikipedia.org/wiki/Chaos_theory

References• Dr.M. Thenmozhi, EVOLUTION OF

MANAGEMENT THEORY• http

://managementlearningcenter.blogspot.com/2012/09/modern-management-theory-in-principle.html http://www.healthknowledge.org.uk/public-health-textbook/organisation-management/5c-management-change/basic-management-models http://www.referenceforbusiness.com/management/Comp-De/Contingency-Approach-to-Management.html

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http://managementlearningcenter.blogspot.com/2012/09/modern-management-theory-in-principle.html




http://www.healthknowledge.org.uk/public-health-textbook/organisation-management/5c-management-change/basic-management-models




http://www.referenceforbusiness.com/management/Comp-De/Contingency-Approach-to-Management.html



Question and Answer Session

Leadership & Management

Modern Management Theories