1.2 EVOLUTION OF MANAGEMENT THEORY (modern approach)

Question 1

WHAT IS MODERN APPROACH?

Answer 1

1. QUANTITATIVE APPROACH
2. SYSTEM APPROACH
3. CONTINCENGY APPROACH

Question 2

WHEN DID MODERN MANAGEMENT THEORY START?

Answer 2

1960

Question 3

WHO IS THE FATHER OF MODERN MANAGEMENT?

Answer 3

PETER F DRUCKER

Question 4

OTHER NAMES OF QUANTITATIVE APPROACH?

Answer 4

1. MATHEMATICAL APPROACH
2. OPERATIONS RESEARCH APPROACH
3. MANAGEMENT SCIENCE APPROACH

Question 5

WHAT IS MATHEMATICAL APPROACH?

Answer 5

In this approach scientific tools for providing a quantitative base for managerial
decisions were provided.
F.W.Taylor advocated problem formulation, fact-finding, modelling, developing tentative solutions, and testing etc.

Question 6

WHICH APPROACH WAS USED TO SOLVE PROBLEMS OF MANAGEMENT AFTER WW2?

Answer 6

QUANTITATIVE APPROACH

Question 7

WHEN WAS SYSTEMS APPROACH DEVELOPED?

Answer 7

1960s

Question 8

WHAT IS THE SYSTEM APPROACH?

Answer 8

“A system is composed of related and dependent elements which, when in interaction
form a unitary whole”.

Question 9

CHARACTERISTIC OF SYSTEMS APPROACH?

Answer 9

(i) It consists of several sub-systems which are interdependent and interrelated.
(ii) Each system has its own boundary which separates it from other systems.

Question 10

OPEN SYSTEM VS. CLOSED SYSTEM?

Answer 10

1. An open system is sensitive to its environment.
2. A closed system does not recognise external factors as it does not interact with the
   environment.

Question 11

WHAT IS SITUATIONAL APPROACH?

Answer 11

CONTINGENCY APPROACH

Question 12

WHAT IS CONTINGENCY APPROACH?

Answer 12

This approach advocates that there is no one best way of dealing with any of the
management problems.

Question 13

WHAT IS CONTINGENCY APPROACH?

Answer 13

This approach advocates that there is no one best way of dealing with any of the
management problems.

Question 14

3 PARTS OF SITUATIONAL APPROACH

Answer 14

1) Environment
2) Management concepts, principles and techniques
3) Contingent relationship between the first two.

Question 15

WHAT ARE THE BASIC FORMS OF BUSINESS OWNERSHIP?

Answer 15

1. SOLE PROPRIETORSHIP
2. PARTNERSHIP
3. COOPERATIVE
4. CORPORATION
5. FRANCHISING
6. LEASE
7. LICENSING
8. JOINT STOCK COMPANY

Question 16

WHAT IS SOLE PROPRIETORSHIP?

Answer 16

Simplest, oldest, and most common form of business ownership in which only one individual acquires all the benefits and risks of running an enterprise.
In a sole proprietorship, there is no legal distinction between the assets and liabilities of a business and those of its owner.

Question 17

WHAT IS PARTNERSHIP?

Answer 17

A type of business organization in which two or more individuals pool money, skills, and other resources, and share profit and loss in accordance with terms of the partnership agreement.

Question 18

WHAT ACT REGULATES PARTNERSHIP?

Answer 18

INDIAN PARTNERSHIP ACT 1932

Question 19

WHAT IS FRANCHISING?

Answer 19

An arrangement where one party (the franchiser) grants another party (the franchisee) the right to use its trademark or trade-name as well as certain business systems and processes, to produce and market a good or service according to certain specifications.

Question 20

WHAT IS LICENSING?

Answer 20

A Licensing agreement is an arrangement whereby a licensor grants the right to
intangible property to another entity for a specified period, and in return, the licensor
receives a royalty fee from the licensee.

Question 21

WHAT IS JOINT-STOCK COMPANY?

Answer 21

A joint-stock company is a business owned by its investors, with each investor owning a
share based on the amount of stock purchased.