This presentation covers various modern management theories to be taught at MBA level.

1. MODERN
MANAGEMENT
THEORIES
THE LATEST OF EVOLUTION

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

3. 3
By:
HaniifulW
ahibSu’ud(13210039)
BimadantaPrakosa (13210060)
IqbalNovramadani (13210063)
AnggaPratamaPutra(13210072)

4. Definition
4
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)

5. Modern Management Theories
5
1. SystemApproach.......................................................................................
2. QuantitativeApproach................................................................................
3. T
otalQualityM
a
na
ge
m
e
n
tApproach........................................................
4. LearningOrganizationApproach...............................................................
5. T
e
a
mBuildingTheory...............................................................................
6. C
ha
osTheory............................................................................................
7. O
p
e
nSystemTheory................................................................................
8. ContingencyTheory/Approach..................................................................

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
Modern Management Theories 7
• 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.

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. • Malcolm Bridge National Quality Award
• European Quality Award, Australian Quality Award, Canadian
Quality Award, Deming Prize,etc
Quality Award
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. • 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
Learning Organization & Knowledge Management
Modern Management Theories 15

16. The Fifth Discipline
Modern Management Theories 16

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

18. Team Building Theory
Modern Management Theories 18
What is a Team?
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)

19. Characteristic of a Team
Modern Management Theories 19
(ii)
(i) It is a group that has a job to do, whether as paid participants
or as volunteers.
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.
Team Building Theory

20. What is Team Building?
Modern Management Theories 20
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.
Team Building Theory

21. Types of Team Building Theory
Modern Management Theories 21
1. Beldin’s Team Role Theory
2. Isabel Briggs-Myers’ MBTI Theory
3. Jung’s Colour Works 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

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

23. Myers-Brigss Type Indicator (MBTI)
Modern Management Theories 23
Team Building Theory
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)

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

25. Colour Works Theory
Team Building Theory
• The Colour Works 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 25

26. X and Y Theory
Modern Management Theories 26
Team Building Theory
• 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.

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

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

29. Social Identity Process
Modern Management Theories 29
Team Building Theory
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.

30. Social Identity Process
Modern Management Theories 30
Team Building Theory
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.

31. Social Identity Process
Modern Management Theories 31
Team Building Theory
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.

32. John Adair’s Action-Centered Leadership
Team Building Theory
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 32

33. Tuckman’s Theory of Team Development
Modern Management Theories 33
Team Building Theory
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.

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

35. Chaos Theory
Modern Management Theories 35
• 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).

36. Chaos Theory
Modern Management Theories 36
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.

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

41. Contingency Theory/Approach
SYSTEM
Culture
Technology
Government Economy
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
43
SystemApproach,QuantitativeApproach,TotalQualityM
anagem
ent
Approach,LearningOrganizationApproach,T
e
a
mBuildingTheory,C
h
a
o
s
Theory,ContingencyTheory/Approach,O
p
e
nSystemTheoryareincluded
intomodernm
a
n
a
g
e
m
e
n
ttheoriesbecausethesetheoriesweredeveloped
inlate20t
hcentury(after1950)andhaven’tfoundyetintheclassicalandneo-
classicalera.

44. Conclusion
44
Strength:
• T
heorganizationcansurvivem
a
n
ydifferentsituation
• T
heorganizationwillbemoreadaptivetochangebypredictions
• C
ontinuousImprov
e
m
ent
• Solvecom
plexanddetailproblem
Weakness:
• H
ardtounderstand
• N
eedadvancem
athandm
o
delling

45. References
• Gomez-MeijadanBalkin,Management,M
c
G
r
a
wHill,N
e
wYork,2002.
• S
c
herm
erhorn,M
a
nagement,JohnW
i
ley&Sons,U
S
A
,2010
• AComparativeAnalysisofNationalandRegionalQualityAwards,Robert
V
okurkaset.al.
• T
h
eFifthDiscipline,PeterMichaelSenge,
• 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
45

46. References
46
• Dr.M.Thenmozhi,E
V
O
L
U
T
I
O
NO
FM
A
N
A
G
E
M
E
N
TT
H
E
O
R
Y
• 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

47. Question and Answer Session