Modern Management Theories

Modern Management Theories 

1. 1. MODERN MANAGEMENT THEORIES THE LATEST OF EVOLUTION
2. 2. Theories and approaches to explain management in modern era 2
3. 3. By: Haniiful Wahib Su’ud (13210039) Bimadanta Prakosa (13210060) Iqbal Novramadani (13210063) Angga Pratama Putra (13210072) 3
4. 4. 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) 4 

 

1. 5. Modern Management Theories 1. System Approach
2. 6. 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. Modern Management Theories 6
3. 7. 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. Modern Management Theories 7
4. 8. 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 Modern Management Theories 8
5. 9. Total Quality Management Approach a) When people and organizations focus primarily on quality, defined by following ratio: quality tends to increase and costs fall over time b) However, when people and organizations focus primarily on costs, costs tend to rise and quality declines over time Modern Management Theories 9
6. 10. Total Quality Management Approach • Japan (1950-1960) • US Navy (1985) • US Navy (1985) Modern Management Theories 10  read more..