Current Developments in Management Practices Principles of Management

Management problems vary with situation and require to be handled differently as situation demands. Where the problems are of repetitive nature, this approach proves very useful. A firm or company can also be viewed as a system and the subsystems there include HR, Finance, Marketing, R&D, Operations, IT, etc. The system works based on the information, material or energy from other subsystems as inputs. The input so received from each system gets processed and moves to other systems as output. IT approach to management has contributed to improvement in quality of life, shortening of transaction time, large number of jobs in both software and hardware.

Types of modern management systems

Contingency or situational approach explains the managerial practices in the event of a contingency or situation. Socio-technical system approach explains that every organisation has a social and a technical dimension. It is important to design managerial roles considering the technical and social dimensions in the organisation.

A leader should be quick to identify the particular management style suitable for a particular situation. An organisational system has a boundary that determines which parts are internal and which are external. The various sub-systems should be studied in their inter- relationships rather, than in isolation from each other. Human relations skill is necessary to managers for accommodate and stabilise change. Torn Burns, G.W. Stalker, Joan Wood Ward, James Thampson, Paul Lawrence, Joy Lorsch and Jay Galbraith have made significant contributions to contingency approach.

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Bureaucracy described a set of characteristics or attributes who deal with or who work with the organisations. In the 1930 Max Weber, a German sociologist described the bureaucracy as being a way of organising government agencies. The characteristics of bureaucracy management is based on the rational authority would be more adaptable to changes. Besides, system of written rules and standard operating procedures are prescribed to provide certainty and facilitate coordination. Impersonal relationship is maintained between the managers and employees.

To accomplish this goal, we analyzed 773 source articles published between 1980 and 2012 using bibliometric techniques including citation and co-citation analysis. We broadly searched for research articles that focused on IP management in the two largest academic databases and manually refined the search results. The results indicate that intellectual property management is a fast-growing research field with theoretical roots in law, economics, and management. Based on the citation data, we identified the most cited studies that form the intellectual core of IPM research. A co-citation diagram was plotted and five main research themes were uncovered.

In order to run the daily activities of an organisation, unimpeded various systems are laid down. Apart from some expert economists who developed the Decision Theory Approach, C.I. Barnard and Herbert Simon happen to be the chief exponents of this approach. There is essentially coordination between the organization and environment. This means Types of modern management systems a certain dividing line which separates a system from its environment. The dividing line in a closed system is rigid while in respect of open system, it is flexible. It is not easy to determine the dividing line in respect of physical and biological systems, e.g., a dividing line can easily be drawn between the two pieces of land.

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Similarly, there is ‘organising in planning’, and also, vice versa. The different problems are capable of being quantified and expressed in the form of models . Contingency approach is pragmatic, specific and action oriented. Process – A mechanical process is carried on to convert the shape or form of raw materials. Information is to be interpreted and analyzed in a systematic way to get clear cut idea or conclusion.

These factors are discussed in more detail in the following module. Finally, operations management works with marketing and sales to make sure goods and services are delivered where and when they are needed. They use sophisticated technology, such as point-of-sale data collections and integrated ordering systems, to forecast demand for products and services.

This process totally depends upon the type of output required. Output may be in the form of product or services, product is the output which we can see and services are the output which we can’t. Feedback is taken in order to compare the output with the targeted result. If any changes or any deviations are found then those deviations are corrected. This approach is termed as ‘behavioral science’, ‘leadership’ or ‘human relations’ ap­proach by different group of scholars.

Types of modern management systems

A system also to be a whole composed of elements that are related to each other. (Wouter et al. 2002) It seeks to understand how they interact with one another and how they can be brought into proper relationship for the optimum solution of the problem. The systems approach relates the technology to the need, the social to the technological aspects. (Simon & Robin 1998) The interaction has two components which is input and output.


It shows that in the planning function , there are other functions of management such as – organising, staffing, directing, and controlling. The letter X shows the overlapping area, and hence, it is to be ignored. Figure 2.3 shows that each of the management functions can be f6und in the other functions also. Figure 2.3 explains the feature of interdependence among the functions of management. Though, in the chart, it is shown that planning is the first function and control is the last function, in reality, there is no such starting and ending function.

  • It can be difficult to apply to large and complex organizations.
  • This approach is also known by the name of Operational Research or Operational Analysis.
  • Thus, the attributes to be a good leader will be discuss and identified as well.
  • It receives information, material and energy from other systems as inputs.
  • This factor is highly important and remains constant among the other six factors.
  • If the existence of the organisation is threatened or obliterated their own existence will be blown away.

The center of the diagram is formed by studies on the role of IP in improving firms’ appropriability. Surrounding the center are studies on the openness of IP strategy and the economic impact of the patent system; the former has become a heated topic over the recent decade, while the latter has lost popularity. Another two groups of studies emerged at the rear of the diagram, namely IP valuation and optimal IP licensing strategy. The article concludes by providing suggestions and implications for future research.

Management Theories

Input is use to enters the system from the outside whereas for the output is use to leaves the system for the environment. In order to differentiate about the inside and outside of a system, the system itself and its environment shall be distinguished and separated by a boundary. According to Laurie J.Mullins also mentioned that the classical approach is encouraged the scientific view of the management and provide some common universal principles applicable to all organisation circumstances. Classical approach can be classified into three management includes scientific management, administrative management and bureaucratic management. However, the activation energy of implementing a robotic surgery program is often viewed as prohibitive in the arenas of both time and expenditure.

Therefore a change in one part has an impact on other parts according to the nature of relationship. An organisation as a system is consisting of several interconnected, interacting and interdependent parts. Output – The input of raw materials is available as finished goods in output. The input of information is available as alternatives or conclusions in output. Skill means the ability of an individual which converts knowledge into the realms of practicality.

What are Closed and Open Management Systems?

Synergy – The collective output of the whole system is greater than the sum of output of its sub-systems. Structured Query Language What is Structured Query Language ? Structured Query Language is a specialized programming language designed for interacting with a database…. The Structured Query Language comprises several different data types that allow it to store different types of information… There is no one specific technique for managing an organization.

It tracks alignment across the organization, including individuals.

Humans can never achieve the kind of error-free performance that machines provide. On the upside, there are tons of things that machines aren’t capable of doing, making humans indispensable assets. For such reason, proper management is one of the most crucial things for an organization. Moreover, mathematics quantitative techniques provide tools for analysis but they cannot be treated an independent system of management thought. A lot of mathematics is used in the field of physical sciences and engineering but mathematics has never been considered as separate school even in these fields. The exponents of this school believe that all the phases of management can be expressed in quantitative terms for analysis.

Secondly, they must manage the throughputs that use the received inputs to make whatever products or services the business produces. Then they need to handle the outputs, which are those same products or services the business introduces into the environment; the environment is the system itself and all the parts woven into it. The last and final step is the leader must receive and analyze the positive and negative feedback loops which occur in open systems before addressing the negative feedback and correcting any issues. Moreover, in terms of interpersonal communication, the message easily get distortion when directives move through a traditional hierarchy organization.

It links to your HR and finance systems to provide a more comprehensive view of the data.

The interactions between the sub-systems of an organisation have long been recognised by the systems approach. Contingency approach also recognises that organisational system is the product of the interaction of the sub systems and the environment. Besides, it seeks to identify exact nature of inter-actions and inter-relationships. Thus behaviour within an organisation is contingent on environment, and if a manager wants to change the behaviour of any part of the organization, he must try to change the situation influencing it. Tosi and Hammer tell that organization system is not a matter of managerial choice, but contingent upon its external environment.

Fiedler believed there are three main variables for determining what leadership strategy to employ — organization size, technology being used, and the overall style of leadership in the company. Collecting and identifying the data itself doesn’t provide any value—the organization needs to process it. If it takes a lot of time and effort to convert the data into what they need for analysis, that analysis won’t happen.

The system approach or system theory approach in business considers the entire business organization as one large system. This system, which can be either open or closed, meaning it is either affected by environmental impacts or not, determines what management approach is better suited. Most approaches treat the business organization as an open system as it’s affected by environmental impacts called inputs, throughputs, and outputs. Conditions are much different now than they were a hundred years ago when many management theories were developed.

Each of these categories is a unique genre of management theory. There are various other modern theories discussed in this material. Contemporary or Modern Management Theory began with the work of Peter Drucker. His work was a departure from the classical and behavioral or human relations approaches of the past. Closed systems are the internal sub-units of the organization that do not interact with the external environment. The system is considered open, as organizations receive varied forms of inputs from other systems.