Modern Approaches to Management Flashcards
the process of planning and organizing the resources and activities of a business to achieve specific goals in the most effective and efficient manner possible
management
key management issues
- understanding/responding to the external environment
2.developing a culture - developing and empowering employees
- creating climate of excellence
- finding competitive advantage
- managing change
- applying new technology
- establishing vision, mission, and goals
- improving strategic thinking
adopts an approach to management that balances scientific methodology with humanistic psychology. It uses emerging technologies and statistical analysis to make decisions, streamline operations and quantify performance
modern management theory
“management is art of getting things done through people”
modern concept of management
major modern approaches used for work management
- quantitative approach
- system approach
- contingency or situational approach
4 modern management theories
- the scientific management theories
- administrative management theories
- the general systems theory
- X&Y management theory
a method of improving efficiency in the workforce. As its name implies, this management theory uses scientific methods to assess work processes.
The Scientific Management Theory.
The scientific method consists of three steps:
- observation
- experimentation
- analysis
five vital principles of scientific management
- replacing rules of thumb with science (organized knowledge)
- obtaining harmony in the group action, rather than discord
- achieving cooperation of human beings, rather chaotic individualism
- working for maximum output, rather than restricted output
- developing all workers to the fullest extent possible for their own and their company’s highest prosperity
attempts to find a rational way
to design an organization as a whole.
Henri Fayol’s Administrative Management Theory
features of administrative management
- formalized administrative structure
- division of labor
- proper information flow
- defines role and responsibility
- official record
the set of general rules that guide the managers to manage an organization
The General Systems Theory
Contingency approach to managing
- contingency audit
- develop the intervention strategy
- implement the change strategy
- evaluate results and update the GCT data base
are part of motivational theories. Both the theories, which are very different from each other, are used by managers to motivate their employees.
X and Y management theories
gives importance to supervision
theory x
stresses on rewards and recognition.
theory y
types of business organization
- limited companies
- sole traders
- partnerships
- cooperatives
The corporation so formed is treated in English law as a separate entity, independent of its members. The corporation, or ‘company’, as it is generally called, is capable of owning property, employing people, making contracts, and of suing or being sued
limited companies
two categories of limited companies
- Public Limited Companies
- Private Limited Companies
the system of rules, practices, and processes by which a firm is directed and controlled
corporate governance
essentially involves balancing the interests of a company’s many stakeholders, such as shareholders, senior management executives, customers, suppliers, financiers, the government, and the community
corporate governance
the structure of rules, practices, and processes used to direct and
manage a company
corporate governance
The board of directors must treat shareholders, employees,
vendors, and communities fairly and with equal consideration.
fairness
The board should provide timely, accurate, and clear information about such things as financial performance, conflicts of interest, and risks to shareholders and other stakeholders.
transparency
The board and management must determine risks of all kinds and how best to control them. They must act on those recommendations to manage them. They must inform all relevant parties about the existence and status of risks
risk management
The board is responsible for the oversight of corporate matters
and management activities.
responsibility
The board must explain the purpose of a company’s activities
and the results of its conduct.
accountability
the principles of corporate governance
- fairness
- transparency
- risk management
- responsibility
- accountability
4P’s of corporate governance
*People
*Process
*Performance
*Purpose
this approach suggests various mathematical and statistical formulas to solve the management issue
quantitative approach
this approach suggest to split the main tasks to into small inter-related units to manage all the units separately
system approach
provides the suggestion of using different methodologies in different situation
contingency or situational approach
various metrics used in this approach are theory of probability, sampling analysis, correlation analysis, time series analysis, ratio analysis, variance analysis etc.
quantitative approach
this approach work on the concept that single style of leadership cannot be applied to all the situations
contingency or situational approach
4 C’s of modern marketing
- customer
- communication
- convenience
- cost
3 scientific method of scientific management theory
- observation
- experimentation
- analysis
the primary force influencing corporate governance
board of directors
value creation
- position
- human resource
functions of management
- planning
- organizing
- leading
- controlling
- staffing
demographic profiles
- age
- gender
- civil status
- monthly income
