This document discusses modern management theories. It begins by defining modern management and management theories. It then outlines several prominent modern management theories, including the system approach, quantitative approach, total quality management approach, learning organization approach, team building theory, chaos theory, open system theory, and contingency theory. For each theory, it provides a brief overview and definition. The document focuses on explaining key aspects of several theories in more depth, such as total quality management, learning organizations, team building theory and related models like Belbin's team roles and Myers-Briggs Type Indicator. Overall, the document serves to outline and define several important modern management theories.

1. MODERN MANAGEMENT
THEORIES
THE LATEST OF EVOLUTION

2. Theories and approaches to explain
management in modern era
2

3. By:
Haniiful Wahib Su’ud (13210039)
Bimadanta Prakosa (13210060)
Iqbal Novramadani (13210063)
Angga Pratama Putra (13210072)
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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)
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5. Modern Management Theories
1. System Approach .......................................................................................
2. Quantitative Approach ................................................................................
3. Total Quality Management Approach ........................................................
4. Learning Organization Approach ...............................................................
5. Team Building Theory ...............................................................................
6. Chaos Theory ............................................................................................
7. Open System Theory ................................................................................
8. Contingency Theory/Approach ..................................................................
5

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

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

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

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

10. Total Quality Management Approach
• Japan (1950-1960)
• US Navy (1985)
• US Navy (1985)
Modern Management Theories 10

11. Plan-Do-Check-Act
Modern Management Theories 11

12. Quality Award
• Malcolm Bridge National Quality Award
• European Quality Award, Australian Quality Award, Canadian
Quality Award, Deming Prize,etc
Modern Management Theories 12

13. Total Quality
Management
ISO 9000,
Six Sigma,
Lean Manufacturing
Modern Management Theories 13

14. Learning Organization Approach
“…..'learning organizations' are those organizations where people continually
expand their capacity to create the results they truly desire, where new and
expansive patterns of thinking are nurtured, where collective aspiration is set
free, and where people are continually learning to see the whole together.“
– Dr. Peter M. Senge
Modern Management Theories 14

15. Learning Organization & Knowledge Management
• Knowledge management is the process of using intellectual
capital for competitive advantage
• Portfolio of intellectual assets include:
– Patents
– Intellectual property rights
– Trade secrets
– Accumulated knowledge of the entire workforce
Modern Management Theories 15

16. The Fifth Discipline
Modern Management Theories 16

17. Learning Organization Approach
System thinking
(Systems Approach)
Building a
Learning
Organization
Personal mastery
(Theory Z/Behavioral)
Team Learning
Shared Vision
(Chaordic Organization)
Challenging of
Mental models
(Classical/Management
science)
(Theory Z/Behavioral)
Modern Management Theories 17

18. Team Building Theory
A team is a small group of people with complementary skills, who
work actively together to achieve a common purpose for which
they hold themselves collectively accountable (Adair, 1986)
A team is a workgroup or unit with a common purpose through
which members develop mutual relationships for the
achievement of goals/tasks. Teamwork, then, implies cooperative
and coordinated effort by individuals working together in the
interests of their common cause. It requires the sharing of talent
and leadership, the playing of multiple roles (Harris , 1986)
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What is a Team?
Modern Management Theories

19. Characteristic of a Team
Team Building Theory
(i) It is a group that has a job to do, whether as paid participants
or as volunteers.
(ii) It is a group that achieves cohesiveness
(iii) It is a group with a common objective, whose members are
very clear about working toward one purpose.
(iv) It is a group whose members are interdependence.
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Modern Management Theories

20. What is Team Building?
Team Building Theory
According to Cleland (1996), team building is the process of
forming, growing, and improving the knowledge, skills and
attitudes of individuals with different needs, backgrounds, and
abilities into an integrated, high-performance team.
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Modern Management Theories

21. Types of Team Building Theory
1. Beldin’s Team Role Theory
2. Isabel Briggs-Myers’ MBTI Theory
3. Jung’s ColourWorks Theory
4. Douglas McGregor X and Y Theory
5. Abraham Maslow Hierarchy of Needs Theory
6. Tajfel, Social Identity Theory
7. John Adair Leadership Theory
8. Tuckman’s Theory of Group Development
Team Building Theory
21
Modern Management Theories

22. Team Building Theory
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Belbin’s Nine Team Roles
Modern Management Theories

23. Myers-Brigss Type Indicator (MBTI)
Team Building Theory
23
Essentially within the MBTI, there are 16 types and a survey will
tell individuals which type they are most like.
Four dichotomies
– Extrovert / Introvert (E/I)
– Sensation / Intuition (S/N)
– Thinking / Feeling (T/F)
– Judging / Perceiving (J/P)
Modern Management Theories

24. Myers-Brigss Type Indicator (MBTI)
Team Building Theory
24
Modern Management Theories

25. Colour Works Theory
Team Building Theory
25
• The ColourWorks uses a psychological
model of behaviours that helps teams
to understand similarities and
differences in order to become more
effective.
• How does it work? We are all made up
of 4 distinct colour energies of
behaviour, each of which has distinct
characteristics.
• Forming 72-type, based on 8
Archetype:
The Director, Motivator, Inspirer,
Helper, Supporter, Co-Ordinator,
Observer, Reformer
Modern Management Theories

26. X and Y Theory
Team Building Theory
26
• Leaders and managers who hold Theory X assumptions
believe that employees are inherently lazy and lack ambition.
– A negative perspective on human behavior.
• Leaders and managers who hold Theory Y assumptions
believe that most employees do not dislike work and want to
make useful contributions to the organization.
– A positive perspective on human behavior.
Modern Management Theories

27. Maslow’s Hierarchy of Needs
Team Building Theory
27
Modern Management Theories

28. Social Identity Theory
Team Building Theory
28
• Social identity theory was developed by Henri Tajfel and John
Turner in 1979.
Modern Management Theories

29. Social Identity Process
Team Building Theory
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1. Categorization: we categorize object in order to understand
them and identify them. Similarly, we categorize people
(including ourselves) in order to understand the social
environment. We use social categories like Black, White,
Christian, Muslim, Student, Bus drivers because they are
useful.
 So if we can assign people to a category then that tells us
things about those people.
 Similarly we can find out things about ourselves by knowing
what categories we belong to.
 The norms of groups also tell us about appropriate behaviours
of individuals in the group.
Modern Management Theories

30. Social Identity Process
Team Building Theory
30
2. Social identification: We adopt the identity of the group we
have categorized ourselves as belonging to.
 For example if you have categorized yourself as a student, the
chances are, you will adopt the identity of a student and
belonging to act in the ways you believe students act (and
conform to the norms of the group).
 There will be an emotional significance to your identification
with a group, and yourself esteem will become bound up with
group membership.
Modern Management Theories

31. Social Identity Process
Team Building Theory
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3. Social comparison: Once we have categorized ourselves as
part of a group and have identified with that group, we then
tend to compare that group with other groups.
 If our self-esteem is to be maintained our group needs to
compare favourably with other groups.
 If two groups have identify themselves as rivals they are
forced to compete in order for the members to maintain their
self-esteem.
Modern Management Theories

32. Team Building Theory
John Adair’s Action-Centered Leadership
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Adair approached leadership from a
more practical and simple angle; by
describing what leaders have to do and
the actions they need to take.
John Adair's Action-Centred Leadership
model is represented by Adair's 'three
circles' diagram, which illustrates
Adair's three core management
responsibilities.
Modern Management Theories

33. Team Building Theory
Tuckman’s Theory of Team Development
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Bruce Tuckman first published this model of team development
in 1965. It is effectively a theory of how teams develop from the
very start of a project to the end. It describes four main stages,
although he added a fifth stage (adjourning) later in his career.
Modern Management Theories

34. Team Building Theory
Tuckman’s Theory of Team Development
34
Modern Management Theories

35. Chaos Theory
• First stated by Edward Lorentz in 1960s.
• Introduced by James A. Yorke and his partners as a new
paradigm in 1975 (Yorke, 1975)
• Dr. Kellert (1993) defines Chaos Theory as a qualitative study
of unstable aperiodic behavior in deterministic nonlinear
dynamical systems (p.2).
Modern Management Theories 35

36. Chaos Theory
Chaos theory wasn't "first published' - like most theories it
evolved over time - however this is an exact statement:
"sensitive dependence on initial conditions"
This is the statement they used before the term "chaos theory"
came into popular speech.
It means that systems can be greatly affected by tiny changes in
initial conditions, that would have normally been thought of as
so small they could be neglected.
Modern Management Theories 36

37. Chaos Theory
Chaos theory is a promising framework that
accounts for the dynamic evolution of industries
and the complex interactions among industry
actors. By conceptualizing industries as chaotic
systems, a number of managerial implications
can be developed. Long-term forecasting is
almost impossible for chaotic systems, and
dramatic change can occur unexpectedly; as a
result, flexibility and adaptiveness are essential
for organizations to survive. Nevertheless, chaotic
systems exhibit a degree of order, enabling short-term forecasting to be
undertaken and underlying patterns can be discerned.
Modern Management Theories 37

38. Open System Theory
System
Input
Environtment:
Goal
Output
Feedback
Modern Management Theories 38

39. Open System Diagram
Modern Management Theories 39

40. Notable Persons
• Daniel Katz,
• Robert L. Khan,
• Richard A. Johnson.
Modern Management Theories 40

41. Contingency Theory/Approach
Technology
Government Economy
Culture SYSTEM
Geography
Demography
Modern Management Theories 41

42. Notable Persons
• G.M. Stalker
• Tom Burns
• Joan Woodward
• Paul R. Lawrence
• L.W. Lorsch.
Theory Developed
• Organic Organization
Modern Management Theories 42

43. Conclusion
System Approach, Quantitative Approach, Total Quality Management
Approach, Learning Organization Approach, Team Building Theory, Chaos
Theory, Contingency Theory/Approach, Open System Theory are included
into modern management theories because these theories were developed
in late 20th century (after 1950) and haven’t found yet in the classical and
neo-classical era.
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44. Conclusion
Strength:
• The organization can survive many different situation
• The organization will be more adaptive to change by predictions
• Continuous Improvement
• Solve complex and detail problem
Weakness:
• Hard to understand
• Need advance math and modelling
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45. References
• Gomez-Meija dan Balkin, Management, McGraw Hill, New York, 2002.
• Schermerhorn, Management, John Wiley & Sons, USA, 2010
• A Comparative Analysis of National and Regional Quality Awards, Robert
Vokurkas et.al.
• The Fifth Discipline, Peter Michael Senge,
• http://www.slideshare.net/Gambari/perspective-of-civil-service-on-team-building
• http://www.faculty.umb.edu/david_levy/smj94.pdf
• http://en.wikipedia.org/wiki/Chaos_theory
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46. References
• Dr.M. Thenmozhi, EVOLUTION OF MANAGEMENT THEORY
• http://managementlearningcenter.blogspot.com/2012/09/modern-management-
theory-in-principle.html
http://www.healthknowledge.org.uk/public-health-textbook/organisation-management/
5c-management-change/basic-management-models
http://www.referenceforbusiness.com/management/Comp-
De/Contingency-Approach-to-Management.html
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47. Question and Answer Session