HC

MODERN THEORY
M
122 OF MANAGEMENT
MARIA NOVA D. ORTIZ
 QUESTION? M o ne
y
Passi ?
on?

...

Why do employees
work?
What is modern theory of management?
 What is modern theory of management?

The modern management theory believes that

employees work for numerous reasons, including
to achieve satisfaction, happiness and desired
lifestyles. With this theory, managers understand
employees' behaviors and needs and can
implement strategies to meet those needs and
support their skill development over time.
Management theories represent ideas that provide
recommendations for management strategies,
frameworks and tools that organizations can
implement to aid their workforce or culture.
Leaders can use these theories as guidance to meet
organizational goals or motivate employees. They
can also apply ideas from different theories rather
than solely relying on one management theory
The modern management theory
offers guidance on practices you
can apply within your
organization to lead individuals
and processes effectively.
This theory combines mathematical
analysis with an understanding of
human emotions and motivation in
order to create a working environment
that is maximally productive.
Modern Management Theory is actually comprised of three approaches of
management theories

Quantitative Contingency
01 02 Approach
Approach

03 System
Approach
 01
Quantitative Approach
This is a simple number-based theory that relies on
calculating the risks, benefits, and drawbacks of any
action before it is taken
 Quantitative Approach
● The quantitative approach to management uses statistics
and mathematical techniques to solve complex problems.
● Depending on the business area, managers may use
techniques like computer simulations or information
models to assess performance.
● This analysis enables them to understand what is working
and what is not within the business, then develop solutions
to solve or improve the issues they find.
 Quantitative Approach

● Managers can also use these techniques and data to

determine the benefits or risks of different ideas.
● This approach can help managers make objective
decisions based on data and facts, rather than
personal opinions or feelings, that support the
business
 This modern management approach often consists of three
branches:

Operations
Management science
management
This focuses on the use of
In operations management,
mathematical and managers implement
statistical methods to practices that help make
form effective business business and production
solutions and achieve processes more efficient.
Depending on the situation,
goals. this method may require
Ex. Program Evaluation Review
managers to restructure or
Technique (PERT), the critical
path method (CPM) and sampling redesign their processes.
Management
Information System
A management
information system
(MIS) represents a
database that organizes
an organization's data,
and managers use this
system to support
informed decision-
making.
 02
Contingency Approach
The Contingency Management Theory holds that every
situation requires a different leadership style, and
therefore no one theory can work for an entire office
 Contingency Approach

● The contingency management approach states that

there is not just one management approach that fits
every organization. It believes that the optimal
management style depends on the situation. Leaders
who utilize this theory do not adopt a single
management style and instead must identify and use
different styles for different situations.
 Contingency Approach

● As a result, these leaders also develop additional traits

and skills that ensure they can employ various
management approaches effectively. The use of
diverse styles can help make these leaders more
flexible and adaptable in the workplace.
 Contingency Approach

● This theory outlines three variables that it believes

influence an organization's structure: the
organization's size, the technology it uses and the
leadership styles. An effective manager understands
these factors and how they may impact performance.
 03
System Approach
This theory treats companies like a living organism, with all
parts necessary for the company to survive.
 System Approach

● The systems approach of management states that

organizations represent a complex collection of various
components that work together to reach a common
goal. An organization is made up of numerous
subsystems, such as different departments.
 System Approach

● Managers using this theory examine how these

subsystems interact with and affect one another,
rather than analyzing them separately. They must also
consider their surrounding environment and external
factors that influence or affect these systems. The
systems approach further defines an organization by
dividing it into different components.
These components demonstrate how different parts of the organization
work together toward a common goal:

Inputs Outputs
Outputs represent the results produced by an
Inputs represent the factors that are organization. These outputs may include
needed to create goods and products, services and financial results, such as
services profits.

Transformational process: Feedback

This represent the activities or
abilities that convert the
organization's inputs into
outputs.
Feedback represents information related to the
organization's outcomes or outputs. Leaders
can use this information to influence or make
decisions related to the organization's inputs.
In the systems approach,
management staff members
develop goals and processes that
support their organization's overall
objectives and performance
● For example, department managers can look to
the department above them in the hierarchy to
determine their department's purpose and
priorities. They may implement deadlines for their
team that ensure that the other department can
begin and complete its necessary tasks. Aligning
their department's activities with the next
department's goals can help processes run more
smoothly and efficiently throughout the
organization.
 BENEFITS
of the Modern Management Theory
Benefits of the modern theory of management

Boosts productivity: Modern management theory uses

mathematical and statistical methods to assess
performance within an organization. Managers can use
this data to understand employee behaviors and
develop solutions that maximize the potential of their
workforce
Benefits of the modern theory of management

Aids decision-making: Modern management theories

often provide managers insights into the factors they
need to examine, which they can use to evaluate their
organization or department
Benefits of the modern theory of management

Improves employee engagement: As mentioned, the

modern management theory examines employees'
motivation for working beyond financial gain.
Managers who utilize this theory can then identify and
implement processes or procedures that take
employees' varying needs into account
Benefits of the modern theory of management

Promotes objectivity: The modern management

theory emphasizes the use of mathematical techniques.
These techniques allow managers to make decisions
based on data and evidence rather than personal
opinions or feelings
Benefits of the modern theory of management

Enables adaptability: Modern management theory

recognizes that today's organizations often exist within
rapidly changing environments. This theory
emphasizes the importance of recognizing the influence
of internal and external factors on business and
encourages managers to use several techniques and
approaches to work with them
THANK
YOU!