Contemporary

management theories
REPRESENTED BY GROUP ONE BSC NURSING STUDENTS OF 2010
SUMMITED TO: ASHENAFI H (MPH-ASSI’T PROF. OF HEALTH SYSTEM
MANAGEMENT)
SAT,28 AUGUST
 Prepared by

1.Abdella Ahmed 3725/10

2.Abdi Beker 3617/10
3.Ahmed Aliyi 3623/10
4.Abraham Ebisa 3719/10
5.Ararse Birhanu 3642/10
6.Age Mosisa 3722/10
7.Bekemtu Abdi 3697/10
8.Bethelhem Tsetadrgachew 5169/10
9.Chala Bacha 3639/10
Chala Yadeta
10. 3638/10
Cherinet Dame
11. 3634/10
Dabela Waja
12. 3645/10
 Out line

 By the end of this session students should be able to understand and able
to explain :
 What is contemporary management theories
 What are the approach of contemporary management theories
 What are importance of contemporary theories
Introduction
 Contemporary management theories began with the work of Peter
Drucker. He proposed the concept of management by objective.
 Contemporary management action is delightful to customary up the
overall complaint, afterwards the 1950‟s the modern management
theories stated the action on the spotlighting organizational issues,
process, system, culture, behavior , organizational environment
culture ,societal matter ; are deliberate as the theories up-to-the-
minute replication.
 Intro….
.
 Contemporary management skills include
- managing people to accomplish tasks
- maintaining authority
- establishing discipline and ensuring direction and plans are consistent
throughout the company.
 Other types of required skills involve handling conflict, providing equitable pay,
centralizing operations as appropriate, organizing work flow, maintaining order and
ensuring fairness.
It
 tend to account for and help interpret the rapidly changing
nature of today’s organizational environments.

Contemporary
 management includes entrepreneurship.

Skills development in this area involves learning to identify

realistic goals, manage risk appropriately and capitalize on
opportunities.

Establishing
 an entrepreneurial culture enables creative and
innovative ideas to be executed, which result in competitive
advantage.
Features
 Contemporary management emphasizes working effectively in a global
marketplace, so managing diversity is essential.

 A modern managerial strategy includes establishing values that reflect a

commitment to a safe workplace for employees at all levels of the organization,
so leadership training in ethics and compliance is featured.

 Contemporary management also features strong ties to the community and

ensuring a sustainable environment, therefore building collaborative skills are
included.
Contemporary approach

 Definition
contemporary approach means new, recent or current
approaches in the filed of management
Classification of contemporary approaches

Closed system
System theory
Contemporary Open system
approach
Contingency
approach
A. System theory

 A set of interrelated and interdependent parts arranged in a manner that produce a

unified whole .
 Organizational systems operate on the basis of four elements:
1. Inputs - the organizational resources, e.g. raw materials, human resources,
financial resources, information and equipment.
2. Transformation processes - the conversion of inputs into outputs through
managerial functions, technological operations and production activities
System …

3. Outputs - the results of the transformation processes, which include

profits/losses, goods/services and so on. Some of these outputs, like for
example products and services, are returned to the environment for use
by other organizations and individuals.
4. Feedback - the environment's reactions to these outputs are relayed
back to the system. 
 This approach allows managers to assess their organization’s
interaction with the larger environment..
System…

 Types
A) closed system : system that are not by and do not interact with
their environment, is therefore self-sufficient.
E.g. ; a production line is an example of a closed system within
organization .
 However, in reality, an organization cannot be a totally closed
system because for survival, an organization has to interact with its
environment
System….

 B) opensystem : system that interact with their

environment .
E.g. a cooperation needs to gather resources and information
from its environment such as capital, employees, natural
recourses and information from the market, government
regulators and customers in order to function and grow
B. contingency approach :

 A management which says that organizations are different, face

different situations and require different ways of managing .

- E.g. ; if the production line is too good in an organization and the

consumers are not satisfactory according to it, then the manger of an
organization should use the contingency approach in order to maintain
the situation in the best way
Cont.…
 Contingency theorists argue that each organizational circumstance is unique and
as a result management approaches should be selected and applied based on the
specific situation at hand.
 The contingency theory therefore supports the view that "there is no one best way
to manage" and emphasizes the use of any management approach - scientific,
behavioral and quantitative - provided it is suited to the organizational situation
and helps managers to manage more effectively.
Cont.…

 This theory implies that managers can make decisions

based on the situation at hand rather than a "one size fits
all" method.

 A manager takes appropriate action based on aspects most

important to the current situation.
Manger tool in contingency approach

 Personal evaluation
 One on one meeting
 Building rapport with the team going to meeting
 Having outings
 Team building exercises
The importance of contemporary
management
 Contemporary management theories teach managers on
how to get the most of human assets.
 help in encouraging staff to have more participation in
decision making and improve interpersonal relations,
between employees and with supervisors.
Thank you
Reference

 https://thebusinessprofessor.com/en_US/management-leadership-organizational-
behavior/contemporary-management-theories
 http://economic-mgmt.blogspot.com/2017/01/theories-of-management-
contemporary.html?m=1
 Managing modern healthcare .knowledge , network and practice ..Mike Bresen,
Damian Hodgson, Simon Bailey, Paula Hyde and John Hassard