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- 1. Classical Management Contingency Management Modern Management Presentors: Group 3 Abuan, Dianne Kareen Boado, Rhea Joy Boquil, Kimberly Potingan, Kate Ubando, Myla
- 2. Classical Management introduced during the Industrial Revolution as a way to improve productivity within factories and other businesses. Three Main Concepts Centralized structure of leadership / hierarchical structure Labor specialization Wage incentives This theory is based on the following principles: • Scientific management should be used to determine the most efficient way to do a job. • Employees are selected to perform tasks based on their skills and specializations • Operations should be streamlined as much as possible. • Decisions are made by a single person or by a select few authority figures. • Productivity is the primary goal. • Increased profit is given priority.
- 3. ADVANTAGES Clear Organization Hierarchy An easy-to-understand division of labor Increased productivity through monetary rewards Single-leader decision making DISADVANTAGES Limited emphasis on employee job satisfaction and human relations Increased levels of pressure placed on employees Restricts the implementation of new ideas and concepts
- 4. Tips for implementing the classical management theory in your business Establish a standard operating procedure Complete the task selection process in a considerate way Regularly provide worker incentives
- 5. Contingency Management often called the Situational Approach that is based upon the premise that all management is essentially situational in nature. All decisions by managers will be affected (if not controlled) by the contingencies of a given situation. Environmental contingencies: • Internal contingency factors –size, people, technology, structure • External contingency factors – socio- cultural factors, legal/political factors, economic factors, technological factors
- 6. Primary characteristics of the Contingency Approach Non-universality of management theory Information and Communication Contingency Environment Diagnostics Human How do Contingencies Affecting Organizational Structure? According to theorists Burns and Stalker, in their text "Management of innovation" (1968), there are two types of organizational structure (mechanistic) and (organic) and two categories of the environment (stable and dynamic).
- 8. ADVANTAGES It provides a realistic view of management and organization. It discards the universal validity of principles. Managers are situation-oriented and not stereotyped. Lends itself to an innovative and creative management style. DISADVANTAGES It does not have a theoretical base. Executive is expected to know all the alternative courses of action before taking action in a situation that is not always feasible. It does not prescribe a course of action. A situation can be influenced by many factors. It is difficult to analyse all these factors.
- 9. The contingency approach to management is based on the idea that there is no single best way to manage. Contingency refers to the immediate contingent circumstances. Effective organizations must tailor their planning, organizing, leading, and controlling to their particular circumstances. In other words, managers should identify the conditions of a task, the requirements of the management job, and people involved as parts of a complete management situation. The leaders must then work to integrate all these facets into a solution that is most appropriate for a specific circumstance.
- 10. Modern Management This theory recognizes that workers are complex and have many reasons for wanting to succeed in their job. This theory also believes that rapidly changing technology can both cause and solve many problems in the workplace employees work for numerous reasons: to achieve satisfaction Happiness desired lifestyles
- 11. Modern management theory gives more attention on the satisfaction of employees. It does not only focus on working setup, strategies and techniques but also pay attention on employees satisfaction area to enhance the productivity of organization.
- 12. Benefits of the modern theory of management ● Boosts productivity ● Aids decision-making ● Improves employee engagement ● Promotes objectivity ● Enables adaptability
- 13. Types of Modern Management Theories 1. Quantitative Theory. uses statistics and mathematical techniques to solve complex problems. Depending on the business area, managers may use techniques like computer simulations or information models to assess performance. 2. Contingency Approach. every situation requires a different leadership style, and therefore no one theory can work for an entire office. 3. Systems Approach. all parts of a company, from the CEO to the entry-level employee, must work in harmony for the company to survive.
- 14. Evaluation of the Types of Modern Management Theories 1. Quantitative Theory. helps in defining and solving complex problems but too narrow 2. Contingency Approach. the manager is expected to know all the alternative courses of action before making a decision 3. Systems Approach. Cannot be easily applied to large and complex organizations . Has an edge over the other approaches because it is very close to reality.
- 15. CREDITS: This presentation template was created by Slidesgo, including icons by Flaticon, infographics & images by Freepik Thank you! If it’s okay with you, palagay po picture nyo :D
Notes de l'éditeur
- a style of management that emphasizes hierarchy, specialized roles and single leadership for optimized efficiency in the workplace. advocates a specialization of labor, centralized leadership and decision-making, and profit maximization. The autocratic leadership model is the central part of the classical management theory. In an autocratic system, there is no need to consult large groups of people for decisions to be made. A single leader makes a final decision that is communicated downward for all employees to follow. This management style can be beneficial when decisions need to be made quickly by one leader, rather than a group of company officials.
- There are several different modern management approaches that managers can implement within an organization. Managers can choose to use a combination of these approaches as guidance for leading their teams and supporting organizational objectives. The three approaches of modern management are:………………….. Quantitative Theory This approach can help managers make objective decisions based on data and facts, rather than personal opinions or feelings. For example, in project management like what we are using in our agency involving infrastructures, we use tools such as Program Evaluation and Review Technique and the Critical Path Method. Under the PERT, we are able to analyze the time required to complete each task and ung mga associated dependencies in determining the minimum time to complete a project. By using this, managers can estimate the shortest possible time each activity will take, the most likely length of time, and the longest time that might be taken if the activity takes longer than expected. So in here there are three-time estimates which are obtained (optimistic, pessimistic, and most likely) for every activity along the Critical Path. I am sure the engineers here are very familiar with this one. Another tool in Quantitative approach is the use of management information system. This system collects and stores real-time data, allowing managers to run reports on areas like financials, timelines, personnel and inventory. Managers use this system to support informed decision-making. Contingency approach = so in here, it believes that there is not just one management approach that fits every organization. = believes that the optimal management style depends on the situation. Leaders who utilize this theory do not adopt a single management style and instead must identify and use different styles for different situations. So ung management style employed is nakadepende sa situation or problem which the organization is facing. Thus the leaders are expected to develop additional traits and skills that ensure they can employ various management approaches effectively. Systems approach = Under this approach, the organizations represent a complex collection of various components that work together to reach a common goal. In here, an organization is regarded as made up of numerous subsystems, un ung mga different departments. Managers examine how these subsystems interact with and affect one another, rather than analyzing them separately in consideration with the surrounding environmental and external factors that influence or affect these systems. The systems approach further defines an organization by dividing it into different components. Companies using this theory think that departments and employees must work as a collective group and not an isolated unit. Synergy and interconnectedness between departments are key with this theory.
- Evaluation of the Quantitative Approach =no doubt that it helps in defining and solving complex problems resulting in orderly thinking but critics regard it as too narrow since it is concerned merely with the development of mathematical models and solutions for certain managerial problems. Since this is data-based and mathematical, it does not give any weight to human element which plays a dominant or important role in all organisations. There are times din that executives have to take decisions quickly without waiting for full information to develop models so it means pag quick decisions, hindi sya always readily available. And one thing more, the information available for developing mathematical models are not up to date and may lead to wrong decision-making. Evaluation of the Contingency Approach: The managers use diverse styles which can help make them be more flexible and adaptable in the workplace. In this approach, situation-oriented si manager not stereo-typed, ung actions nya is hinde nakakahon… at ung management style is nag aadjust depending on any given situation, and of course he has to have a good diagnostic skills so as to anticipate and be ready for any environmental changes that could happen which would affect the organization. Along with it is kelangan meron din syang sufficient human relations skill to accommodate and stabilize the change and at the same time be able to communicate the changes to the other employees of the organization. Evaluation of System Approach: Cannot be easily applied to large and complex organizations. =This system has been utilized mostly in project management organization because if this is effectively applied, it could bring out the inter-relations in various functions like planning, organising, directing and controlling. has an edge over the other approaches because it is very close to reality =In the systems approach, management staff members develop goals and processes that support their organization's overall objectives and performance. For example, department managers can look at the department above them in the hierarchy to determine their own department's purpose and priorities. Para ung purpose and priorities ng bawat department are nakaalign with each other. So pwede silang mag implement ng deadlines for their team to ensure that the other department can begin and complete its necessary tasks. Dito kase, they adhere to the idea that their department receives information, material and energy from other department as their inputs. Tapos these inputs undergo a transformation process within their department and then their output will become the input of the next department. So makikita dito ung interconnection and dependency between and among the departments in the organization. Ang main goal kase is towards the overall effectiveness of the system rather than the effectiveness of the sub-systems. So that concludes our report on Modern Management Theory. Thank you for listening.
- So that concludes our report on Modern Management Theory..Thank you for listening.