1.How has the systems approach influenced current management techniques? 2.What
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Question
1.How has the systems approach influenced current management techniques?
2.What is the significant key variable that emphasized in the human relations approach of management theory?
3.Which theory applies most to the controlling function of management and why?
4.How do classical management theories differ from contingency theories?
5.A medium-sized consumer products company is not reaching its sales goals. The leadership team can’t understand why they’re not reaching their sales goals after having put in place an impressive incentive structure. One member of the team has suggested that perhaps the issues with the sales people are related to more intrinsic issues and have nothing to do with compensation. Which organizational theory could help the team diagnose their issues?
Explanation / Answer
1. Systems approach of management means that the organization is considered as a whole, made up of different inter-related and inter-dependent elements. A system may be a close system in which the outer environment does not affect or it may be a open system in which the outer environment affects the organization.
In this approach, various sub-systems are to be studied in relationship with each other rather than different from each other. Here, the effectiveness of the organization as a whole is considered rather than only focusing on sub-systems. Interdependence of the sub-systems is considered.
This approach influences current management techniques because it focuses on achieving the objectives and considers the organization as an open system. This approach helps in studying the functions of various complex organizations and so is useful in management techniques.
2. The human relations approach of management is the one which focuses on its employees and their relation with the organization. This theory says that employees are motivated not only by financial means, but also other social factors such as appraisal, sense of belonging, achievement feeling play an important role.
The significant key variable which is emphasized in human relations approach of management theory is Motivation and its result as Productivity. This theory also emphasizes on productivity and its relationship with the social factors. Productivity is largely dependent on the satisfaction of employees in their work situations and thus other social factors apart from financial means also play an important role. So, the effectiveness of the organization is mainly dependent on the quality of relationship between the people working in it.
3. The Systems theory of management is the most controlling or dominant theory of management. It considers organization as a whole which consists of a set of inter-related and interdependent elements of the organization.
The systems approach considers both the general and the specialized systems. The general systems include mainly formal organizations and the concepts of sociology, philosophy and psychology relating to it. The specific system focuses on the analysis of the structure of organization, its planning and controlling, mechanisms, job design, etc. Thus this approach covers all elements of organization and so it applies most to the controlling function of management.
4. Classical theory of management is also called Scientific management theory. This theory mainly focuses on the scientific way of doing things. This theory says that the leadership must have a standard method of doing the job. And wages were considered to be most important for the getting the job done. But the Contingency theory of management says that there is no standard way of leading. Leadership cannot follow a standard method every time. A leader should change his leading methods according to the situation. A leader should act as the situation demands and there cannot be only one way of doing it. Thus, Classical or Scientific theory is totally different from the Contingency theory.
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