7 NEW Modern Management Theories

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Management
Past to Present
CLASSICAL MANAGEMENT THEORISTS
Taylor’s Scientific Management
Fayol’s Administrative Principles
Weber’s Bureaucratic Organization
The focus is moving away from
Scientific Management &
productivity
The HUMAN SIDE
People want to be social
& self-fulfilled!
BEHAVIOIURAL MANAGEMENT THEORISTS
Mayo’s Hawthorne Studies
Maslow’s Theory of Human Needs
McGregor’s Theory of X & Theory Y
Argyris’ Theory of Adult Personality
…at the same time HR approaches
were being developed
Others were investigating
QUANTITATIVE MANAGEMENT
APPROACHES
QUANTITATIVE MANAGEMENT APPROACHES
 Applying mathematical techniques to management
problems
 Focus on rational decision making
 Techniques use “economic” decision criteria, such
as costs, revenues & return on investment
 Mathematical solutions should be used to
“support” NOT replace good managerial
judgement!
MODERN MANAGEMENT
APPROACHES
build upon the foundations of
classical, HR & quantitative ideas
People are complex…their needs vary over
time…they possess a range of talents
& capabilities that can be
continually developed
MODERN MANAGEMENT THEORIES
ORGANIZATIONS AS SYSTEMS
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CONTINGENCY THINKING
LEARNING ORGANIZATIONS
ORGANIZATIONS AS SYSTEMS
 High performance by the organization as a
whole occurs only when each subsystem
both performs its tasks well and works well
in co-operation with others.
 It’s the organization’s managers
responsibilities to make this coordinated
action possible!
CONTINGENCY THINKING
 KEY  no one theory applies universally in
all situations or to the exclusion of others
 Match the managerial response to the problems &
opportunities in different settings
 There is NO “one best way” … what may be a good
structure for one organization, may not work well
for another… OR, what has worked in the past may
not suit the future
LEARNING ORGANIZATIONS
 continuously change & improve, using the
lessons of experience
 KEYS learning is encouraged & made
available to everyone…emphasis on
information sharing, teamwork,
empowerment & participation.
 Leaders in learning organizations set an
example for others by embracing change
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