SYSTEMS AND CONTINGENCY THEORIES OF MANAGEMENT
Systems Management Theories
This theory is based on the idea that biz can be viewed a systems. A system is a set of interrelated parts that operate as a whole in order to achieve a common goal. The system management approach views organizations as an integrated process where all the individual parts contribute to the whole. According to this approach, an organization consists of 4 main components.
Characteristics of System Approach
- Commitment to a shared purpose & direction, supported by common values
- Empathy & sensitivity towards the needs of all members within the group
- Cooperative interaction between all groups within the org.
- Emphasize on the need for openness to info, teamwork integrated systems & responsiveness to changing market conditions.
CONTINGENCY MANAGEMENT THEORIES
Contingency theory stresses the need for flexibility and adaptation of management practices and ideas to suit changing circumstances. Contingency theory advocates that managers extract the most useful ideas and practices from a wide range, to best suit their organizations present requirements. Managers must sample all the past and present theories on offer - "smorgasbord" approach.
- Mission Statement
- Organizational objectives
- Strategic planning
- Vision
- Objectives
- Tactical plans
- Resources
- Tasks
- Responsibilities
- Operational plans
- Support services
- Determine task
- Evaluate performance
- Select and delegate
- Monitor progress
- Set parameters
- Check on understanding
1. Establishing standards in line with the firm's objectives
2. Measuring the performance of the org against the standards of benchmarks
3. Take corrective action - changing activities, processes & personnel to ensure that the objectives have been met.
THE CONTROL PROCESS
- Management makes decision & tells staff
- Management makes decision & invites questions.
- Management presents problems, asks for suggestions & makes decision
- Management presents problems & staff & management work together 2 make decision.
- Problem presented & staff makes decision, with little or no input from management.
The control process of various management styles:
- Autocratic or authoritarian (high task/low process)
- Participative or democratic
- Laissez-faire (low task//high process)
- Set as an
- Example
- Listens to the opinions & ideas of others
- Understands the technical aspects of the industry/biz
- Conveys the goals of business & motivate people to achieve goals
- Avoids jargon and has empathy & understanding
- Flexibility
- Allows others to take responsibility
- Delegate tasks 2 suitable employees
- Earns the respect of employees
A good leader is some one who:
INPUTS
The various are needed to produce the products.
- Human
- Equipment
- $$$
- Informational
- Materials
- Management
TRANSFORMATION PROCESSES
The managerial & technological process, which converts inputs into finished products
- Managerial abilities:
- POLC
OUTPUTS
- Outcomes:
- Products - goods & services
- Profits & losses
- Employment
- Waste & pollution
