Modern Approaches,contingency Approach And System Approach.pptx

Modern Approaches -System Approach -Contingency Approach

(GROUP 3)

Introduction • In the early 1920s, a shift away from classical management theory took place as theorists began to consider the human side of an organization and the social needs of employees, called the Neoclassical Period. • And now the Modern Period takes place from(1960 to present). After, 1960 management thought has been turning somewhat away from the extreme human relations ideas particularly regarding the direct relation between morale and productivity. Present management thinking wishes equal emphasis on man and machine.

“System Approach” is set of interrelated and inter dependent parts arranged in a manner that produces a unified whole. A system is a set of interrelated but separate parts working towards a common purpose. A system may be defined as a goal-oriented organism that is composed of interrelated in such a way that the total system is greater than the sum of its parts.

Key Concepts:

Key Concepts: Subsystem -parts of system that depends on each other. • Internal subsystem. • External subsystem. Open System -open systems theory refers simply to the concept that organizations are strongly influenced by their environment. Closed System -closed systems are not influenced by and not interact with their environment.

Key Concepts: Synergy -cooperation between subsystems. System Flows -this system defines different work flows for different process types or tasks. System Boundary

-separation between internal and external subsystems. Feedback -process in which the effect or output of an action is 'returned' (fedback) to modify the next action.

Characteristics of System Approach: Systems have structure, defined by parts and their composition; Systems have behaviour, which involves inputs, processing and outputs of material, energy or information; Systems have interconnectivity : the various parts of a system have functional as well as structural relationships between each other. System(s) have by itself function(s) or group of functions .

Model of System Approach to Management

Types of System Level for Management: (Decision Support System) DSS

is a computer-based information system that supports business or organizational decisionmaking activities. (Management Information System) MIS

provides information that organizations require to manage themselves efficiently and effectively

DSS MIS TPS

(Transaction Processing Style) TPS

Transaction processing is a style of computing that divides work into individual, indivisible operations, called transactions

Types of System Level for Management: (Transaction Processing Style) TPS -Transaction processing is a style of computing that divides work into individual, indivisible operations, called transactions. A transaction processing system (TPS) or transaction server is a software system, or software/hardware combination, that supports transaction processing.

(Management Information System) MIS - provides information that organizations require to manage themselves efficiently and effectively. Management information systems are typically computer systems used for managing An organized approach to the study of the information needs of an organization's management at every level in making operational, tactical, and strategic decisions.

Types of System Level for Management: (Decision Support System) DSS -is a computer-based information system that supports business or organizational decision-making activities. DSSs serve the management, operations, and planning levels of an organization (usually mid higher management) helps in making decision.

Advantages of System Approach: Under system approach, manager have a good view of the organization. Closeness to reality It gives importance to interdependent of the different parts of an organization and its environment. It forecast consequences and plans action. Goal oriented.

Disadvantages of System Approach:

Does not offer specific tools and techniques for practicing manager. In smaller organization it is not relevant. Activity of any part affect activity of other parts. Unpractical: It cannot be easily and directly applied to practical problem.

“Contingency Approach” sometimes called as the situational approach. wide range of external and internal factors to be considered and the focus should be on the action that best fits for the situation. there is no one best way of organizing / leading and that an organizational / leadership style that is effective in some situations may not be successful in others. (Fred Fiedler,1964)

Characteristics of Contingency Approach 1. Management is entirely situational. The application and effectiveness of any technique is contingent on the situation. 2. Management should match its approach to the requirements of the particular situation. To be effective, management policies and practices must respond to environmental changes. The organisation structure, the leadership style, the control system all should be designed to fit the particular situation. 3. As management’s success depends on its ability to cope with its environment, it should sharpen its diagnostic skills so as to anticipate and comprehend environmental changes.

Characteristics of Contingency Approach

4. The managers should understand that there is no one best way to manage. 5. Because of the specific organisation-environment relationship, no action can be universal. • It varies from situation to situation.

Internal Factors in Contingency Approach:

Internal Factors: • Technology -can also be defined as the integrated planning, design, optimization, operation and control of technological products, processes and services, a better definition would be the management of the use of technology for human advantage. • Structure -determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management.

Internal Factors: • People - is one of the resources to perform and support the result in the success or failure of your business. • Purpose -a specific result that a person or system aims to achieve within a time frame and with available resources. • Size -a determining factor of "process scope", most simply defined as the degree and extent to which project management practices are formally applied.

External Factors in Contingency Approach:

Application of Contingency Approach: • will enable the manager to examine the situation and to determine the cause of decreased profits before a new procedure or program is implemented. • is designed to provide the manager with the capabilities to examine numerous possible solutions to a problem

Limitations of Contingency Approach: • Difficulty in determining all relevant contingency factors and showing relationship between them may be complex. • It is totally practical approach without support of theoretical and conceptual frame work. • Sometimes manager finds difficulties in analysing the situation and discovering appropriate management technique in absence of proper research and lack of proper understanding of the situation.

Advantages of Contingency Approach: • More complete information • More alternatives are generated • Acceptance of solutions are increased • The legitimacy of the solution is increased.

Disadvantages of Contingency Approach:

• Minorities can dominate (more powerful) • Pressures to conform are applied by more powerful members • Time consuming • Responsibility for the solution is ambiguous.

DIFFERENCE BETWEEN SYSTEM APPROACH AND CONTINGENCY APPROACH

Systems Approach: 1. The emphasis is on interdependence and interaction among sub-systems. 2. The focus is on the internal environment and sub-systems of the organization. 3. It treats all organizations alike and the background of the organization is not taken into account.

DIFFERENCE BETWEEN SYSTEM APPROACH AND CONTINGENCY APPROACH

4. The organization interacts with the environment and adjusts as per the changes. 5. It provides a theoretical model of understanding the organization and its sub-systems. 6. It is silent on the validity of classical principles of management

Contingency Approach: 1. It emphasizes the impact of environment on organizational design and managerial style. 2. The focus is on external environment of the organization. 3. Each organization is taken as unique entity. Different organizations have different nature and face different situations.

Contingency Approach: 4. The impact of the environment on organization structure and managerial style is the major concern of contingency approach. 5. It suggests practical solutions to organizational problems. 6. It rejects the blind application of classical principles of management.