The document discusses several approaches to management including:
1) The systems approach which views an organization as an interconnected system consisting of subsystems like tasks, structure, people, and environment.
2) The contingency theory which states there is no universally best way to manage and the approach should depend on internal and external situational factors.
3) Theory Z which aims to combine American and Japanese management philosophies by emphasizing long-term employment, consensus decision-making, and holistic concern for employees.
4) Total quality management which focuses on integrating all organizational functions and processes to achieve continuous quality improvement and customer satisfaction.
2. ā¦ Organization is a system consisting of four subsystems-
task,structure,people and environment
ā¦ Subsystems are interconnected and interdependent
ā¦ Management regulates and modifies the system to optimize
performance
OPERRATIONAL APPROACH
ļ¼ Production ā oriented field of management
dedicated to improving efficiency and cutting
waste
3. QUANTITATIVE APPROACH
ā¦ A problem is expressed in the form of quantitative
or mathematical model
ā¦ Different variables in management can be
quantified and expressed in the form of an
equation
ā¦ Management =decision making,
organization=decision making unit
CONTINGENCYTHEORY
ā¦ There is no universal or one best way to manage
ā¦ Wide range of external and internal factors must be
considered and the focus should be on the action that
best fits for the situation.
4. THEORY Z
ā¦ Theory Z has been called a sociological description of the
humanistic organizations
ā¦ āTheory Z is an approach to management based
upon a combination of American and Japanese
management philosophiesā. Proponents of Theory Z
suggest that it leads to improvements in
organizational performance.
TOTALQUALITY MANAGEMENTAPPROACH
ā¦ Wide effort to improve quality of products and services
ā¦ People and organizations mainly focus on quality given by
Quality = results of work efforts
total costs
6. LUDWIG VON BERTALANFFY IS RECOGNIZED
AS THE FOUNDER OF GENERAL SYSTEM THEORY.
SYSTEM: A system is a set of INTERRELATED but
separate parts working towards a common
purpose.
TYPES OF SYSTEMS:
1)Open system.
2)Closed system.
7. KEY TERMS
ā¢ SUBSYSTEM : parts of system that
depends on each other.
ā¢ Internal subsystem.
ā¢ External subsystem.
ā¢ SYNERGY : cooperation between
subsystems.
ā¢ SYSTEM BOUNDARY:separation
b/n internal and external
subsystems.
8. COMPONENTS OF A SYSTEM
ā¢ Inputs
ā¢ Transformation process
ā¢ Outputs
ā¢ Feedbacks
ā¢ environment
9. ā¢ Subsystems have proper order and
communication b/n them.
ā¢ Decisions are based on impacts on various
subsystems.
11. THREE FUNCTION SYSTEMS MODEL
ā¢ Benchmarking
ā¢ Leadership
ā¢ Employee involvement
ā¢ Process involvement
ā¢ Customer focus
12. FEATURES OF SYSTEM APPROACH
ā¢ Dynamic
ā¢ Adaptive
ā¢ Multilevel and multidimensional
ā¢ Managers will have a good view
ā¢ Gives importance to interdependence of
different parts
ā¢ Forecasts consequences and plans actions
13. ADVANTAGES
Closeness to reality.
The approach may be utilised by any of the
other approaches.
DISADVANTAGES
Complex when used in large
organisations.
Increased difficuilty for managers.
14.
15. ā¦ What is operational approach?
ā¦ Systematic management of all
processes to achieve world class
performance by:
ā¦ Efficient utilisation of tools
ā¦ Optimisation of resources
ā¦ Elimination of process
wastes/inefficiencies
16. ā¦ By following the above three
conditions, there is a continuous
improvement and standardization in a
process.
17. ā¦ CHARACTERISTICS:
ļDraws together concepts, principles,
techniques and knowledge from other
fields and managerial approaches.
ļThe conceptual framework of
management can be constructed on
the basis of the analysis of
management process and
identification of management
principles.
18. ā¦ ADVANTAGES:
ļIncrease in Productivity.
ļImprovement in Quality.
ļPotential savings.
ļSimplification of Tasks.
19. ā¦ Operational Approach emphasises
static conditions whereas the
organizations have to function in
dynamic conditions.
ā¦ It claims universality or management
principles while management differs
from organization to organization and
from level to level.
20.
21. ļ¬ Quantitative techniques are those
statistical and programming techniques,
which help decision makers solve many
problems, especially those concerning
business and industry
ļ¬ Quantitative techniques are those
techniques that provide the decision
makers with systematic and powerful
means of analysis, based on quantitative
data, for achieving predetermined goals
23. ā¦ It is a mathematical technique for optimum
allocation of scarce or limited resources to several
competing activities on the basis of given criterion
of optimality, which can be either performance,
ROI, cost, utility, time, distance etc.
24. ā¦ Formulate the problem
ā¦ Convert all inequalities to equations
ā¦ Plot the graph of all inequalities
ā¦ Find out the feasilble region
ā¦ Find out the corner points
ā¦ Substitute the objective function
ā¦ Arrive at the solution
25. ā¦ A special kind of optimization problem in which
goods are transported from a set of sources to a
set of destinations subject to the supply and
demand constraints. The main objective is to
minimize the total cost of transportation.
26. ā¦ A flow of customers from finite/infinite
population towards the service facility
forms a queue due to lack of capacity
to serve them all at a time.
27. The decision making environment
ā¦ Under certainity
ā¦ Under uncertainity
ā¦ Under risk
29. ā¦ Inventory is vital to the successful functioning of
manufacturing and retailing organizations. They
may be raw materials, work-in-progress, spare
parts/consumables and finished goods.
30. ā¦ It involves developing a model of some real
phenomenon and then performing experiments on
the model evolved. It is descriptive in nature and
not an optimizing model.
31. ā¦ Definition of the problem
ā¦ Construction of an appropriate model
ā¦ Experimentation with the model
ā¦ Evaluation of the results of simulation
32. A project is a series of activities directed to the
accomplishment of a desired objective.
ā¦ PERT
ā¦ CPM
34. Contingency approach states that there is āno
one best wayā to manage an organisation.
It is also known as situational approach.
āTHE BEST W
AY TO ORGANIZE DEPENDS ON
THE NATURE OF THE ENVIRONMENT TO
WHICH THE ORGANIZATION RELATES.ā -
William Richard Scott
35. In 1970s, it is recognized as a key to effective
management.
CONTRIBUTORS:
ļ L.W. Lorsch
ļ Joan Woodward
ļ Burns
ļ George Stalker
ļ Paul R.Lawrence
36. Joan Woodward (1916-1971)
āāManagement and Technologyā, 1958,
āIndustrial
Organizationā, 1965
ā Studied a large number of firms (100) in the
South Essex area
of England in the 1950s
āFound that organizational form varied, and
correlated with
production technology
ā Concluded that there was not āone best wayā
to organize ā the
nature of the production process would
determine which form
that would be most suitable.
37. Tom Burns (1913-2001) and G. M. Stalker
ā āThe Management of Innovationā (1961)
ā Studied the introduction of electronics in Scottish
industry
āDescribed two ideal types of organization on each
side of a
continuum ā the mechanistic and the organismic
(organic)
organization
āThe organization as a result of the simultaneous
working of (at
least) three different social systems:
ā¢Formal authority: aims, technology, relations with
the environment
ā¢Cooperative systems of people with different
aspirations
ā¢The political system ā the competition and
cooperation for power
38. Paul R. Lawrence (1922-2011) and Jay W. Lorsch (1932 )
ā āOrganization and Environment: Managing Differentiation and Integrationā (1967)
ā Question: Why do people seek to build organizations?
Answer: In order to find better solutions to the environmental problems faced by
them.
ā Therefore:
ā¢ It is people who have purposes, not organizations
ā¢ People come together to coordinate their different activities into an organization
structure
ā¢The organizationās effectiveness is judged from the extent to which the membersā
needs are satisfied
through the planned transactions with the environment
ā In order to cope with the environment, organizations develop units and formal
structures
suited to the particular environment(s) they operate in.
39.
40. What you do ādependsā on the
āsituationā.
-internal contingency factors
-external contingency factors
43. General Environment of Coca Cola
Economic
ā¢Slow economic growth
ā¢Prospect of economic recovery
Technological
ā¢New recycle friendly canning tech.
ā¢New promotional opportunities
via the internet
ā¢Threat of substitute drinks
Sociocultural
ā¢Concerns about health
ā¢Easier access to refrigeration
ā¢Baby boomers drinking less
ā¢Immigrants drink less
ā¢Concerns about recycling
ā¢Increased acceptance in China
and India
Coca Cola
Government
ā¢Increased health standards
for bottling
ā¢Stricter liability legislation
44. ļInstead of propagating universally applicable
organisation-management principles, this theory tries
to demonstrate that different circumstances require
different organisational structures
ļWhat works for one organisation may not work for
the other.
ļManagers need to understand the key contingencies
that effect the management practice for a given
situation.
45. EXAMPLE OF A SHOE MANUFACTURING COMPANY:
Ashoe manufacturing company is faced with the problem of decreasing
profits;
Solution can be:
May establish a committee of sales and production personnel to
coordinate the production and distribution of goods under the assumption
that large inventories are responsible for the decline in profits
- (Systems theory)
By application of a contingency perspective:
Would enable to examine the situation and to determine the cause of
decreased profits before a new procedure or program is implemented.
46. Example of a super market manager:
Problem:
CustomersAre complaining that queing lines and time for
billing are high.
Solution:
Manager identifies that,
1)The waiting times and queue lengths are always changing.
2)So a flexible approach is required.
Then he observes the customers and assings duty to the
workers according to the changing situation.
47. Studies show that companies that operate in less structured
environments are more successful with a flexible approach to
management, while companies in a more stable environment
do better with a more rigid and structured management style
of operations.
When the uncertainity of environment is high, an organic
structure(more flexible one) is suitable and when
uncertainity is low a mechanistic structure is suited.
48. ļContingency theory is designed to provide the manager with the
capabilities to examine numerous possible solutions to a
problem.
ļAdapting to changing circumstances- No two situations are
absolutely identical, therefore each situation requires its own
unique solution.
ļTo adopt this approach managers must sample all the past and
present ideas, some refer this to the āsmorgasbord approachā.
49. ļ The way you manage should change depending on the
circumstances.
ļ Sometimes a bureaucratic organization is most effective,
sometimes a more loosely structured one; sometimes a
more classical approach is best, sometimes a more modern
one.
ļ The most effective management style will vary depending
on the type of organization, its size, its environment, and
the particular situation/problem it faces at the time.
50. Limitations of Contingency Approach:
ļ Difficulty in determining all relevant contingency
factors and showing relationship between them may be
complex.
ļ It is totally practical approach without support of
theoretical and conceptual frame work.
ļ Sometimes manager finds difficulties in analyzing the
situation and discovering appropriate management
technique in absence of proper research and lack of
proper understanding of the situation.
51.
52. ā¦ Theory Z has been called a sociological description
of the humanistic organizations
ā¦ āTheory Z is an approach to management
based upon a combination of American and
Japanese management philosophiesā.
Proponents of Theory Z suggest that it
leads to improvements in organizational
performance.
53. American Organisations
ā¦ Short-term employment
ā¦ Individual decision
making
ā¦ Individual responsibility
ā¦ Rapid evaluation &
promotion
ā¦ Explicit control
mechanisms
ā¦ Specialized career paths
ā¦ Lifetime employment
ā¦ Collective decision
making
ā¦ Collective
responsibility
ā¦ Slow evaluation &
promotion
ā¦ Implicit control
mechanisms
ā¦ Non-specialized career
Jap
pa
at
n
he
sse Organisations
54. ā¦ LONG-TERM EMPLOYMENT
ā¦ CONSENSUAL DECISION MAKING
ā¦ INDIVIDUAL RESPONSIBILITY
ā¦ SLOW EV
ALUA
TION AND PROMOTION
ā¦ INFORMAL CONTROLWITH FORMALIZED
MEASURES
ā¦ MODERATELY SPECIALIZED CAREER PATH
ā¦ HOLISTIC CONCERN
55. ā¦ Type Z organizations generally make life-
long commitments to their employees and
expect loyalty in return, but Type Z
organizations set the conditions to encourage
this. This promotes stability in the
organization and job security among
employees.
56. ā¦ The type-z organisation emphasizes
communication,collaboration,consensus in
Decision making
57. ā¦ Type z organizations retain the emphasis on
individual contributions that are characteristic
of most american firms by recognizing
individual achievements,albeit within the
context of the wider group
58. ā¦ The type z organisation,conversely adopts the
model of slow evolution and promotion
59. ā¦ The type z organization relies on informal
methods of cotrol,but does measure
performances through formal mechanisms.
This is an attempt to combine elements of
both the Type A and Type J organisations.
60. ā¦ The type z organization is characterized by
concern of employees that goes beyond the
workplace.This philosophy is more consistent
with the japanese model than the U.S model
63. ā¦ TOTAL QUALITY MANAGEMENT(TQM) is the
integration of all functions and processes
within an organization to achieve
continuous improvement of the quality of
goods and services.
ā¦ The goal is customer satisfaction.
64. ā¦ Quality is defined as conformance to
requirements, not goodness.
ā¦ The system for achieving quality is prevention,
not appraisal.
ā¦ The performance standard is zero defects, not
āThatās close enoughā.
ā¦ The measurement of quality is price of non
conformance, not indexes.
65. Different people interpret quality differently. Few can
define quality in measurable items that can be proved
operationalized. When asked what differentiates their
products of service
The banker will answer āServiceā.
The health care worker will answer āQuality health
careā.
The hotel employee will answer āCustomer
satisfactionā.
66.
67. ā¦ According to Phil Crosby, Quality isā¦..
ā¦ An attitude:
- zero defects
- continuous improvement.
Ameasurement:
- price of Conformance, plus
- price of Non Conformance (defects)
68. ā¦ A belief in employees ability to solve
problems.
ā¦ A belief that people doing the work are
best able to improve it.
ā¦ A belief that everyone is responsible for
quality.
69.
70. - 22,000 checks will be deducted from the
wrong bank accounts in the next 60
minutes.
- 20,000 incorrect drug prescriptions will
be written in the next 12 months.
- 12 babies will be given to the wrong
parents each day.
71. ā¦ Visible, committed and knowledgeable.
ā¦ AMissionary zeal.
ā¦ Aggressive Targets.
ā¦ Strong Drivers.
ā¦ Communication of values.
ā¦ Customers Contact.
72. ā¢ Systems viewpoint
ā¢ Dynamic process of interaction
ā¢ Multilevelled and multidimensional
ā¢ Multimotivated
ā¢ Probabilistic
ā¢ Multidisciplinary
ā¢ Descriptive
ā¢ Multivariable
ā¢ Adaptive