CONTEMPORARY THEORY 1
Contemporary Theory
Introduction to Management
MT140
November 25, 2014
CONTEMPORARY THEORY 2
Contemporary Theory
There are 4 contemporary theories. The first one is sociotechnical system theory and this one is different from the other contemporary approaches because it deals with the interpersonal relations. It promotes team work and also promotes the use of some autonomous work groups as part of an important factor to create a very good production system. Then we have Quantitative Management that is different from the others because in this approach managers use math to help them make a decision to solve problems. It uses statistical decision theory, linear programing, breakeven analysis, etc. Not everyone had adopted it because not every problem can be solved with math. The next contemporary theory is Organizational Behavior and it studies and identifies how employees act under their managers. This approach believes that employees would act accordingly as to how they are treated by their managers. If treated as a lazy person then they would act lazy. The last contemporary theory is the System Theory and it is different because depends on the inputs from the outside world. A system is part of a group of subsystems which all work together to achieve a goal or objective. The organization is a closed system rather than an open system.
Open System is a system that in a regular basis exchanges feedback with its external environment like raw materials, human resources and capital and they transform these inputs into outputs. Internal Environment refers to anything inside a firm’s boundaries like employees, managers, resources and organization culture. Competitive Environment is the rivalry between
CONTEMPORARY THEORY 3
existing competitors and the threat of new competitors, also the threat of complementary and substitute products and...