Discuss the contemporary approaches to management

Introduction
contemporary theories of management, also known as the modern approaches to management
came about from the need for organisations to adapt to the continuously changing
environment. Most of these theories are an improvement of the classical method and in some
cases, a combination of two or more classical theories. There are a number of these
contemporary approaches and these apply to different situations depending on the
environment that the business is in. the contemporary approaches include;

a) The systems approach

The systems approach to management is a concept whereby the company/organisation is

viewed as an interconnected system that consists of several sections. For the effectiveness of
the organisation, these different sections of the organisation have to be in sync, with the same
intended output. This approach was developed in the 1950s after the realization that classical
theories posed problems in the effective running of the organization. The classical approaches
treated organisations as closed systems. This meant that the organisation did not depend on
interactions with the external environment for its survival. In reality; these organisations
depended on suppliers for their inputs and a market for their outputs. These theories also
ignored the relationship between the organisation and its external environment. This meant
that no consideration was made on the changes in competition for inputs and markets for
outputs/products. The classical approaches only concentrated on internal efficiency only and in
some cases, other sections of the organisation were focused on, at the expense of others.

Generally, the systems approach views the organisation as a group of interrelated components
with a single purpose that is to ensure maximum possible productivity with equilibrium being
maintained between the different components of the system. These sections consist mainly of
inputs, process and output. The input includes the raw materials, capital, labour, technology,
and information while the process section involves the conversion of the raw materials to the
final product, which is the output. Since the systems theory acknowledges that all the sections
of the organisation contribute to the final productivity of the organisation. Taking for example,
Bata Zimbabwe may be considered as an open system. Since the company relies on the
supplied leather and skilled human resources to produce the leather products, and also

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depends on the market on which those products are to be sold. Therefore any change in the
external environment such as the shortage of leather or a flooded market, would impact
negatively on the whole organisation. Therefore the performance of an organisation as a whole
depends more on how well its parts relate and not on how each part operates.

In summary, the systems approach agrees with the concept of the organisation as an open
system. The organisation depends on the external environment for input and output. The
approach recognizes the relationship between an organisation and its environment. The only
critique is that this approach does not provide details on functions and duties of managers
working in open systems.

b) Contingency theory.

This management approach is also called the situational approach and it is also based on the
systems approach to management. The contingency approach argues that there is no
universally applicable set of management principles by which to manage organisations. The
contingency theory accepts the dynamics and complexities of the organisation structure. This is
because organisations are uniquely different and they face different situations and require
different ways of managing. A method that would work on one situation might not work on the
next situation.

The contingency theory also argues that even the different sections within the same
organisation are also unique and face unique challenges which require their unique respective
management solutions. An example would be the management of a large hospital, e.g. Mpilo
Hospital. There are many different departments at Mpilo hospital that would in turn, require
different and unique solutions to the challenges that they only face. For instance, the intensive
care unit would not face the same management challenges as the operating theatre. Therefore,
management would have to decide on the best approach to follow in order to address the
current challenge that is being faced. Even in the same section / department, challenges vary
and with the contingency approach, the management is expected to come up with a suitable
solution for the problem.

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When using the situational approach, managers have to be flexible in terms of finding solutions
to different management challenges. Since most cases differ, the appropriate management
approach has to be decided upon considering the characteristics of the solution. Not all
situations are completely unique though, therefore the managers have to look out for the
characteristics of the situation at hand. These characteristics are called contingencies and they
can be useful in assisting the managers to identify the challenge. If a situation arises and is
similar to a previously solved challenge, then the management approach that as used before
would most likely be used again in this situation. If however the situation has other different
contingencies, then a new approach has to be formulated in order to tackle the current
situation. The solution is usually adopting a certain management approach or combining two or
more approaches in order to suite the specific situation.

The main contingencies to be considered are;

I. The organisation’s external environment- in this case, we take note of its rate of change
and its degree of complexity.
II. The types of technology tasks and resources used by the organisation.
III. The organisation’s own capabilities- i.e. its strengths and weaknesses
IV. The values, skills and attitudes of the workforce.

The advantages of the contingency theory are that the managers are able to adapt to the
changing external environment hence making it easier to formulate appropriate management
approaches in order for the organsation to remain functional even with the continuously
changing environment. Most Zimbabwean companies that managed to survive the 2008
economic meltdown had adopted this management approach and were able to adapt to the
rapid devaluation of the currency and the sky-rocketing inflation. For such a volatile
environment, long term plans were not feasible hence the situational approach was more
appropriate. However, the situational approach also has its limitations. This is because it may
not be applicable to all managerial issues. Also, it is almost impossible to identify all
contingencies facing organisations.

c) Top quality management

This is another modern approach to management to long term success through customer
satisfaction. In a TQM effort, all members of an organisation participate in improving the

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processes, products, services and the culture in which they work. The methods for
implementing this approach come from the teachings of leaders such as Philip B. Crosby, W
Edwards Deming and others.

The TQM concept includes the following;

 Total: quality involves everyone and all activities in the organisation.

 Quality: meeting customer agreed requirements, formal and informal at lowest costs,
first time, every time.
 Management: quality must be managed.

William Edward Demining states that an organisation was one in which statistical control
resulted in uniform quality and resulted in reduced variability and predictable output.

The term “customer” in TQM includes everyone who interacts with the organisation’s products
and services either internally or externally i.e. employees, suppliers or the people who buy the
organisation’s products and services.

Deming believed that by improving quality, costs would decrease due to less reworking, fewer
mistakes and fewer delays in production. This in turn would result in greater productivity and
enable the organisation to capture a larger percentage share of the market with a lower price
and higher quality. He also believed that the more quality became embedded in the
organisation, the less it would cost over time. For all this to be achieved, all sections of the
organisation had to be involved and working together.

The principles of TQM are;

 Everyone has a customer. Since the organisation depends on their customers, they must
try and exceed the customer’s expectations.
 Everyone has a supplier. A mutually beneficial relationship between the organisation
and its suppliers enhances the ability to create value.
 Every employee is responsible for quality.
 Quality must be managed.
 Quality can always be improved, TQM is a commitment to continually improving quality.
 Desired outcomes are achieved more efficiently when related resources and activities
are managed as a process.
 Problems must be prevented, not just fixed.
 Systems approach to management must be adopted.
 Effective decisions are based on the analysis of data and information.
 The focus must be on life costs not just end costs.

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However, even though the TQM seems to be an ideal management approach, many
organisations fail to achieve radical organisational change within a short space of time. Also,
with differing attitudes and relations within the workforce may render it impossible to achieve
the synergy required for TQM.

d) Organisational culture

Organisational culture is another contemporary approach which is concerned with the shared
values, assumptions and beliefs held by members of the organisation and are communicated
through symbolic means. This management approach is developed from four interdependent
sources all of which influence the values and beliefs of the organisation. These sources are;

I. Prevailing national culture

II. Nature of the industry
III. Society
IV. Roles of the founders

The limitations of the organisational culture approach are;

 This approach is associated as being an unscientific approach.

 The organisational cultures are not easily identifiable.
 The approach ignores the role of structures and systems within the organisation and
their roles in acquiring success in the organisation.

e) Re- Engineering

Re- engineering is another management approach which involves the re-assessment of what a
particular organisation really is about. Managers would have a chance at re- inventing the
organisation and not incremental steps in doing so. Instead of stagnation, this management
approach involves re-thinking and re-designing the process connecting organisational members
with customers and suppliers, outside the organisation.

Re-engineering considers the entire organisation and it constantly focuses in integrating people,
processes, technology and infrastructure to sustain value for the customer while at the same
time

Conclusion

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 The above mentioned management approaches came about as a result of the change in the
external environments that in turn affected the organisations. The classical methods
concentrated only on the internal efficiency of the organisation while ignoring the outside
environment. With the growth of organisations, various methods such as the systems
approach, TQM, Contingency theory all had the same purpose, which is to ensure the
adaptation and the success of the organisation with the ever-changing external environment.

References

I. Civil engineering business studies notes.( chapter 2)

II. KM_8.2_Management_Contemporary.pdf
III. UNPAN025675.pdf
IV. www.businessmean.com//contemporary-management-approaches.html
V. www.freemanagementlibrary.com//business/contemporary.htm
VI. http://asq.org/learn-about-quality/total-quality-management/overview/implementing-
tqm.html
VII. www.ehow.com