MODERN MANAGEMENT

THEORIES
THE LATEST OF EVOLUTION
Theories and approaches to explain
management in modern era

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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)

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MODERN MANAGEMENT THEORIES

1. System Approach
.......................................................................................
2. Quantitative Approach
................................................................................
3. Total Quality Management Approach
........................................................
4. Team Building Theory
...............................................................................
5. Open System Theory
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6. Contingency Theory/Approach 4
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 5

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 6

TOTAL QUALITY MANAGEMENT
APPROACH

“..by 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

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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

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TOTAL QUALITY MANAGEMENT
APPROACH
 Japan (1950-1960)

 US Navy (1985)

 US Navy (1985)

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 Plan-Do-Check-Act

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 ISO 9000,
Total Quality
Six Sigma,
Management
Lean Manufacturing

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TEAM BUILDING THEORY

What is a Team?
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 12
Modern Management
(Harris , 1986)
 Team Building
Theory
CHARACTERISTIC OF A TEAM

(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.

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 Team Building
Theory
WHAT IS TEAM BUILDING?

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.

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 Team Building
Theory
TYPES OF TEAM BUILDING THEORY

1. Beldin’s Team Role Theory

2. Isabel Briggs-Myers’ MBTI Theory
3. Jung’s Colour Works 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

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 Team Building
Theory
MYERS-BRIGSS TYPE INDICATOR (MBTI)

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)

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 Team Building
Theory
MYERS-BRIGSS TYPE INDICATOR (MBTI)

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 Team Building
Theory
X AND Y THEORY

 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.

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 Team Building
Theory
MASLOW’S HIERARCHY OF NEEDS

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 Team Building
Theory
TUCKMAN’S THEORY OF TEAM DEVELOPMENT

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.

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 Team Building
Theory
TUCKMAN’S THEORY OF TEAM DEVELOPMENT

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OPEN SYSTEM THEORY

Input Output
Environtment:
System Goal

Feedback

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 OPEN SYSTEM DIAGRAM

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 NOTABLE PERSONS

• Daniel Katz,
• Robert L. Khan,
• Richard A. Johnson.

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CONTINGENCY THEORY/APPROACH

Government Economy

Technology Geography

Culture
SYSTE Demograph
M y

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 NOTABLE PERSONS
 G.M. Stalker
 Tom Burns
 Joan Woodward
 Paul R. Lawrence
 L.W. Lorsch.

Theory Developed

 Organic Organization

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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.

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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
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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 et.al.
 The Fifth Discipline, Peter Michael Senge,
 http://www.slideshare.net/Gambari/perspective-
of-civil-service-on-team-building
 http://www.faculty.umb.edu/david_levy/smj94.pd 29
REFERENCES

 Dr.M. Thenmozhi, EVOLUTION OF

MANAGEMENT THEORY
 http://managementlearningcenter.blogspot.com/
2012/09/modern-management-theory-in-
principle.html
http://www.healthknowledge.org.uk/public-
health-textbook/organisation-management/5c-
management-change/basic-management-
models
http://www.referenceforbusiness.com/managem
ent/Comp-De/Contingency-Approach-to- 30
Management.html
QUESTION AND ANSWER SESSION