Modern Management Theories


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Modern theories of management era

Published in: Leadership & Management
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Modern Management Theories

  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
  5. 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. 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. 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. 8. Total Quality Management Approach “ 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. 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. 10. Total Quality Management Approach • Japan (1950-1960) • US Navy (1985) • US Navy (1985) Modern Management Theories 10
  11. 11. Plan-Do-Check-Act Modern Management Theories 11
  12. 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. 13. Total Quality Management ISO 9000, Six Sigma, Lean Manufacturing Modern Management Theories 13
  14. 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. 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. 16. The Fifth Discipline Modern Management Theories 16
  17. 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. 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) 18 What is a Team? Modern Management Theories
  19. 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. 19 Modern Management Theories
  20. 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. 20 Modern Management Theories
  21. 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. 22. Team Building Theory 22 Belbin’s Nine Team Roles Modern Management Theories
  23. 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. 24. Myers-Brigss Type Indicator (MBTI) Team Building Theory 24 Modern Management Theories
  25. 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. 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. 27. Maslow’s Hierarchy of Needs Team Building Theory 27 Modern Management Theories
  28. 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. 29. Social Identity Process Team Building Theory 29 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. 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. 31. Social Identity Process Team Building Theory 31 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. 32. Team Building Theory John Adair’s Action-Centered Leadership 32 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. 33. Team Building Theory Tuckman’s Theory of Team Development 33 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. 34. Team Building Theory Tuckman’s Theory of Team Development 34 Modern Management Theories
  35. 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. 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. 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. 38. Open System Theory System Input Environtment: Goal Output Feedback Modern Management Theories 38
  39. 39. Open System Diagram Modern Management Theories 39
  40. 40. Notable Persons • Daniel Katz, • Robert L. Khan, • Richard A. Johnson. Modern Management Theories 40
  41. 41. Contingency Theory/Approach Technology Government Economy Culture SYSTEM Geography Demography Modern Management Theories 41
  42. 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. 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. 43
  44. 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 44
  45. 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 • The Fifth Discipline, Peter Michael Senge, • • • 45
  46. 46. References • Dr.M. Thenmozhi, EVOLUTION OF MANAGEMENT THEORY • theory-in-principle.html 5c-management-change/basic-management-models De/Contingency-Approach-to-Management.html 46
  47. 47. Question and Answer Session