1.2 EVOLUTION OF MANAGEMENT THEORY (modern approach) Flashcards
recent trends in management basic forms of business ownership
WHAT IS MODERN APPROACH?
- QUANTITATIVE APPROACH
- SYSTEM APPROACH
- CONTINCENGY APPROACH
WHEN DID MODERN MANAGEMENT THEORY START?
1960
WHO IS THE FATHER OF MODERN MANAGEMENT?
PETER F DRUCKER
OTHER NAMES OF QUANTITATIVE APPROACH?
- MATHEMATICAL APPROACH
- OPERATIONS RESEARCH APPROACH
- MANAGEMENT SCIENCE APPROACH
WHAT IS MATHEMATICAL APPROACH?
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.
WHICH APPROACH WAS USED TO SOLVE PROBLEMS OF MANAGEMENT AFTER WW2?
QUANTITATIVE APPROACH
WHEN WAS SYSTEMS APPROACH DEVELOPED?
1960s
WHAT IS THE SYSTEM APPROACH?
“A system is composed of related and dependent elements which, when in interaction
form a unitary whole”.
CHARACTERISTIC OF SYSTEMS APPROACH?
(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.
OPEN SYSTEM VS. CLOSED SYSTEM?
- An open system is sensitive to its environment.
- A closed system does not recognise external factors as it does not interact with the
environment.
WHAT IS SITUATIONAL APPROACH?
CONTINGENCY APPROACH
WHAT IS CONTINGENCY APPROACH?
This approach advocates that there is no one best way of dealing with any of the
management problems.
WHAT IS CONTINGENCY APPROACH?
This approach advocates that there is no one best way of dealing with any of the
management problems.
3 PARTS OF SITUATIONAL APPROACH
1) Environment
2) Management concepts, principles and techniques
3) Contingent relationship between the first two.
WHAT ARE THE BASIC FORMS OF BUSINESS OWNERSHIP?
- SOLE PROPRIETORSHIP
- PARTNERSHIP
- COOPERATIVE
- CORPORATION
- FRANCHISING
- LEASE
- LICENSING
- JOINT STOCK COMPANY
WHAT IS SOLE PROPRIETORSHIP?
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.
WHAT IS PARTNERSHIP?
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.
WHAT ACT REGULATES PARTNERSHIP?
INDIAN PARTNERSHIP ACT 1932
WHAT IS FRANCHISING?
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.
WHAT IS LICENSING?
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.
WHAT IS JOINT-STOCK COMPANY?
A joint-stock company is a business owned by its investors, with each investor owning a
share based on the amount of stock purchased.
