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2–1
Management Theories
• Quantitative
1. Operations Research
2. Operations Management
3. MIS
2–2
Management Theories
• Quantitative Management Viewpoint
• ‘Focus on Mathematics, Statistics and Information Aid to support managerial decisions making and organization effectiveness.’
2–3
Management Theories
• Quantitative Management Viewpoint
• 1. Management Science or Operation Research
• Approach aimed at increasing decision effectiveness through use of sophisticated Mathematical models & Statistical models.
• e.g. Japan, Media, VU
2–4
Management Theories
• Quantitative Management Viewpoint
• 2. Operation Management
• Function or field of expertise primarily responsible for managing Production & delivery of an organization’s Product and Services.
2–5
Management Theories
• Quantitative Management Viewpoint
• 2. Operation Management
EfficientBetter (Cost)Faster (Speed)
e.g courier co.ProductionDeliveryService
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Management Theories
• Quantitative Management Viewpoint
• 2. Operation Management
• Logistic Management• Transportation Management• Supply chain Management
e.g Export items, Cotton to cloth
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Management Theories
• Quantitative Management Viewpoint
• 3. Management Information System (MIS)
• Field of management focused on designing and implementing Computer Based Information systems for use by management.
• e.g PIMS, HR system, Production line
2–8
Management Theories
Contemporary
1. Systems Theory
2. Contingency Theory
3. Emerging Theories
(Theory Z, TQM, Km, LO)
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Management Theories
Contemporary Viewpoints
1. Systems Theory
Approach based on the idea that
organizations can be viewed as systems.
2–10
Management Theories
1. Systems Theory
System mean certain components or certain subunits have
integrated activities
A set of interrelated and interdependent parts arranged in a
manner that produces a unified whole.
e.g. Any organization, Computer
Basic Types of Systems Closed systems
Are not influenced by and do not interact with their environment (all system input and output is internal).
Open systems Dynamically interact to their environments by taking in inputs and
transforming them into outputs that are distributed into their environments.
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Management Theories
Implications of the Systems Approach
• Coordination of the organization’s parts is essential for proper functioning of the entire organization.
• Decisions and actions taken in one area of the organization will have an effect in other areas of the organization.
• Organizations are not self-contained and, therefore, must adapt to changes in their external environment.
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Management Theories
Contemporary Viewpoints
2. Contingency Theory
Viewpoint arguing that appropriate
managerial action depends on the
particular parameters of the situation.
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Management Theories
Contemporary Viewpoints
2. Contingency Theory Also sometimes called the situational approach.
There is no one universally applicable set of management principles (rules) by which to manage organizations.
Organizations are individually different, face different situations (contingency variables), and require different ways of managing.
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Management Theories
Contemporary Viewpoints
2. Contingency Theory Popular Contingency Variables
– Organization size
– Routine ness of task technology
– Environmental uncertainty
– Individual differences
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Management Theories
Contemporary Viewpoints
3. Emerging Theories
3.1 Theory Z
Prof. Villiam Auchie
Japanese cars and American Cars
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Management Theories
Contemporary Viewpoints
3. Emerging Theories
Total Quality Management (TQM)
Approach highlighting collective responsibility for
product and service quality, and encouraging
individuals to work together to improve quality.
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Management Theories
Contemporary Viewpoints
3. Emerging Theories
3.2 Total Quality Management (TQM) A philosophy of management driven by continual
improvement in the quality of work processes and responding to customer needs and expectations
Inspired by the total quality management (TQM) ideas of Deming and Juran
Quality is not directly related to cost
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Management Theories
Total Quality Management (TQM)
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Management Theories
Contemporary Viewpoints
3. Emerging Theories
3.3 Knowledge Management (KM)Art of creating value from organization’s intangible assets.
The cultivation of a learning culture where organizational
members systematically gather and share knowledge
with others in order to achieve better performance.
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Management Theories
Contemporary Viewpoints
3. Emerging Theories
3.4 Learning Organization (LO)
An organization that has developed the capacity to
continuously learn, adapt and change.
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Management Theories
Learning Organization (LO)
