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Management Theory & Practices (Contemporary Approaches)

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Management Theory & Practices (Contemporary Approaches)

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  • June 2008
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Management Theory & Practices

“CONTEMPORARY APPROACHES”

I.QUANTITATIVE MANAGEMENT
Although Taylor introduced the use of science as management tool, but most organizations did not adopted the use of quantitative management until World War – II by military planners for defense & logistic problems.

The approach helps managers make decisions by developing the formal mathematical models of the in hand problems. Computers have facilitated the development of scientific quantitative methods. EXAMPLES: - Statistical decision theory, breakeven analysis, simulation, for casting inventory modeling, etc.

Reasons of the limited use of approach:
Managers do not depend on the technique & use it only as supplement & a tool in decision making & the reasons are: –Many managers will use results that are consistent with their experiences, intuition (sixth sense), and judgment and they may reject results that contradict their beliefs. –Most managers have not been trained to use quantitative management tools. –Finally many managerial decisions are non – routine & unpredictable.

KEY CONCEPTS
Application of quantitative analysis to management decisions.

CONTRIBUTIONS
Developed specific mathematical methods of problem analysis. –Helped managers select the best alternatives among a set.

LIMITATIONS
Models neglect non quantifiable factors.
Managers not trained in these techniques & may not trust or understand the techniques, outcomes. –Not suited for non routine or unpredictable management decisions.

II.ORGANIZATIONAL BEHAVIOR
During the 1950’s a transition [change] took place in the human relations approach. Scholars begin to recognize that workers productivity & organizational success are based on more then the satisfaction of economic or social needs. The revised prospective, known as organizational behavior, studies & identifies management activities that promote employee effectiveness through an understanding of a complex nature of...