Professional Documents
Culture Documents
Moderntheoriesofmanagement 150401115545 Conversion Gate01 PDF
Moderntheoriesofmanagement 150401115545 Conversion Gate01 PDF
OPERATIONAL APPROACH
QUANTITATIVE APPROACH
CONTINGENCY THEORY
THEORY Z
TOTAL QUALITY MANAGEMENT
Organization is a system consisting of four subsystems-
task,structure,people and environment
Subsystems are interconnected and interdependent
Management regulates and modifies the system to optimize
performance
OPERRATIONAL APPROACH
Production – oriented field of management
dedicated to improving efficiency and cutting
waste
QUANTITATIVE APPROACH
A problem is expressed in the form of quantitative
or mathematical model
Different variables in management can be
quantified and expressed in the form of an
equation
Management =decision making,
organization=decision making unit
CONTINGENCY 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 for the situation.
THEORY Z
Theory Z has been called a sociological description of the
humanistic organizations
“Theory Z is an approach to management based
upon a combination of American and Japanese
management philosophies”. Proponents of Theory Z
suggest that it leads to improvements in
organizational performance.
TYPES OF SYSTEMS:
1)Open system.
2)Closed system.
KEY TERMS
• SUBSYSTEM : parts of system that
depends on each other.
• Internal subsystem.
• External subsystem.
• SYSTEM BOUNDARY:separation
b/n internal and external
subsystems.
COMPONENTS OF A SYSTEM
• Inputs
• Transformation process
• Outputs
• Feedbacks
• environment
• Subsystems have proper order and
communication b/n them.
DISADVANTAGES
Complex when used in large
organisations.
Optimisation of resources
Elimination of process
wastes/inefficiencies
By following the above three
conditions, there is a continuous
improvement and standardization in a
process.
CHARACTERISTICS:
Increase in Productivity.
Improvement in Quality.
Potential savings.
Simplification of Tasks.
Operational Approach emphasises
static conditions whereas the
organizations have to function in
dynamic conditions.
It claims universality or management
principles while management differs
from organization to organization and
from level to level.
Quantitative techniques are those
statistical and programming techniques,
which help decision makers solve many
problems, especially those concerning
business and industry
Quantitative techniques are those
techniques that provide the decision
makers with systematic and powerful
means of analysis, based on quantitative
data, for achieving predetermined goals
1) Statistical Techniques
2) Programming Techniques
It is a mathematical technique for optimum
allocation of scarce or limited resources to several
competing activities on the basis of given criterion
of optimality, which can be either performance,
ROI, cost, utility, time, distance etc.
Formulate the problem
Convert all inequalities to equations
Plot the graph of all inequalities
Find out the feasilble region
Find out the corner points
Substitute the objective function
Arrive at the solution
A special kind of optimization problem in which
goods are transported from a set of sources to a
set of destinations subject to the supply and
demand constraints. The main objective is to
minimize the total cost of transportation.
A flow of customers from finite/infinite
population towards the service facility
forms a queue due to lack of capacity
to serve them all at a time.
The decision making environment
Under certainity
Under uncertainity
Under risk
Laplace Criterion
Maxmin Criterion
Minmax Criterion
Maximax Criterion
Minmin Criterion
Hurwicz Criterion
Inventory is vital to the successful functioning of
manufacturing and retailing organizations. They
may be raw materials, work-in-progress, spare
parts/consumables and finished goods.
It involves developing a model of some real
phenomenon and then performing experiments on
the model evolved. It is descriptive in nature and
not an optimizing model.
Definition of the problem
Construction of an appropriate model
Experimentation with the model
Evaluation of the results of simulation
A project is a series of activities directed to the
accomplishment of a desired objective.
PERT
CPM
CONTINGENCY APPRAOACH
OF
MANAGEMENT
Contingency approach states that there is “no
one best way” to manage an organisation.
It is also known as situational approach.
Technology
People Size
Purpose Structure
External Contingency Factors
Socio-cultural Technological
Factors Factors
Legal Economic
/Political Factors
Factors
General Environment of Coca Cola
Sociocultural Technological
•New recycle friendly canning tech.
•Concerns about health
•New promotional opportunities
•Easier access to refrigeration
via the internet
•Baby boomers drinking less
•Threat of substitute drinks
•Immigrants drink less
•Concerns about recycling
•Increased acceptance in China
and India
Coca Cola
Government
•Increased health standards Economic
for bottling
•Stricter liability legislation •Slow economic growth
•Prospect of economic recovery
Instead of propagating universally applicable
organisation-management principles, this theory tries
to demonstrate that different circumstances require
different organisational structures
What works for one organisation may not work for
the other.
Managers need to understand the key contingencies
that effect the management practice for a given
situation.
EXAMPLE OF A SHOE MANUFACTURING COMPANY:
An attitude:
- zero defects
- continuous improvement.
A measurement:
- price of Conformance, plus
- price of Non Conformance (defects)
A belief in employees ability to solve
problems.
A belief that people doing the work are
best able to improve it.
A belief that everyone is responsible for
quality.
- 22,000 checks will be deducted from the
wrong bank accounts in the next 60
minutes.
- 20,000 incorrect drug prescriptions will
be written in the next 12 months.
- 12 babies will be given to the wrong
parents each day.
Visible, committed and knowledgeable.
A Missionary zeal.
Aggressive Targets.
Strong Drivers.
Communication of values.
Customers Contact.
• Systems viewpoint
• Dynamic process of interaction
• Multilevelled and multidimensional
• Multimotivated
• Probabilistic
• Multidisciplinary
• Descriptive
• Multivariable
• Adaptive
• 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.
• The ancient approaches to management namely the
scientific approach and the human relations thought can be
described as the sources of the modern day management
thought.
While the scientific management theory focus on the efficiency of the
production process and the motivation of the worker, the human
relations thought emphasizes on the importance of behavioral
elements in employee satisfaction and consequently the levels of
satisfaction.
The combination of these two traditional models therefore covers the
most important aspects of management albeit in a retracted form.
The modern approaches to management tend to build onto these
provisions by providing meaningful insights that enable management
practices to be relevant and more effective in the modern day.
The conveyor belt production which is still common can also be
traced to the scientific model.
It therefore must be concluded that modern approaches to
management reinforce rather than repudiate the traditional
approaches to management.
THANK YOU