contemporary management- final

8/3/2019 Contemporary Management- Final

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CONTEMPORARY THEORIESIN MANAGEMENT

LUIS A. ABIODA, Ed.D.Institute of Management

West Visayas State UniversityLa Paz, Iloilo City


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Basically, contingency theory asserts thatwhen managers make a decision, theymust take into account all aspects of thecurrent situation and act on those aspectsthat are key to the situation at hand.Basically, its the approach that itdepends. For example, the continuingeffort to identify the best leadership ormanagement style might now conclude thatthe best style depends on the situation.

Contingency Theory


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Systems Theory

Systems theory has had a significant effect onmanagement science and understanding

organizations. First, lets look at what is a system? A system is

a collection of part unified to accomplish anoverall goal. If one part of the system is removed,

the nature of the system is changed as well. A system can be looked at as having inputs,

processes, outputs and outcomes. Systems sharefeedback among each of these four aspects of thesystems.


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Systems Theory (continued)

Lets look at an organization. Inputs would

include resources such as raw materials, money,technologies and people. These inputs gothrough a process where theyre planned,organized, motivated and controlled, ultimately

to meet the organization

s goals. Outputs wouldbe products or services to a market. Outcomeswould be, e.g., enhanced quality of life orproductivity for customers/clients, productivity.


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Feedback would be information from human

resources carrying out the process,customers/clients using the products, etc.Feedback also comes from the largerenvironment of the organization, e.g.,influences from government, society,economics, and technologies. This overallsystem framework applies to any system,including subsystems (departments,programs, etc.) in the overall organization.


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Systems theory may seem quite basic. Yet,

decades of management training and practicesin the workplace have not followed this theory.Only recently, with tremendous changes facingorganizations and how they operate, have

educators and managers come to face this newway of looking at things. This interpretation hasbrought about a significant change (orparadigm shift) in the way management studies

and approaches organizations.


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The effect of systems theory in management is

that writers, educators, consultants, etc. arehelping managers to look at the organization froma broader perspective. Systems theory hasbrought a new perspective for managers tointerpret patterns and events in the workplace.They recognize the various parts of theorganization, and, in particular, the interrelationsof the parts, e.g., the coordination of centraladministration with its programs, engineering with

manufacturing, supervisors with workers, etc.


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This is a major development. In the past,

managers typically took one part andfocused on that. Then they moved allattention to another part. The problem

was that an organization could, e.g.,have a wonderful central administrationand wonderful set of teachers, but thedepartments didnt synchronize at all.


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As chaotic and random as world events seemtoday, they seem as chaotic in organizations,too. Yet for decades, managers have acted onthe basis that organizational events can alwaysbe controlled. A new theory (or some sayscience), chaos theory, recognizes that

events indeed are rarely controlled. Many chaostheorists (as do systems theorists) refer tobiological systems when explaining their theory.

Chaos Theory


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Chaos Theory (continued) They suggest that systems naturally go to

more complexity, and as they do so, these

systems become more volatile (orsusceptible to cataclysmic events) and mustexpend more energy to maintain thatcomplexity. As they expend more energy,they seek more structure to maintain stability.This trend continues until the system splits,combines with another complex system orfalls apart entirely. Sound familiar? This trendis what many see as the trend in life, in

organizations and the world in general.


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Human Relations Theory Human Relations theory was created in

the 1930s as a direct response to theHawthorne StudiesHuman Relations theorists assumed thatunder the right conditions, work could beenjoyable.

They argued that workers are motivatedby needs other than money.There is ample evidence to support thesenotions, even today.


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Human Relations Theory

Criticisms of Human Relation Theory

There was too much emphasis on the employee.

Managers misunderstood and misused the theory.They manipulated employees by offering boguspraiseMisuses ultimately diluted the theorys impact by

offering superficial praise, causing it to becounterproductive.


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Resulted from a critical assessment of

human relations theory by RaymondMiles.

Miles argued that although many people

touted human relations approaches, theywere rarely meaningfully implemented.

Human Resources Theory


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Human Resources Theory

(continued)

Assumptions of Human Resources TheoryEmployees are as capable as management inmaking meaningful contributions at theworkplace.Managers have the responsibility to cultivate aclimate that will facilitate employeecontributions instead of just acknowledging thecontributions as a way to gain cooperation.


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Theory X and Theory Y

Douglas McGregor

assumed managers look at employees inone of two ways similar to the classicaltheory approach and the humanrelations/resource approaches ofmanagement. He labeled theseperspectives Theory X and Theory Y.


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Theory X Assumptions

People dislike work and will avoid it when

possible.Workers are not ambitious and preferdirection.Workers do not seek responsibility and are

not concerned with overall organizationalneeds.Workers must be directed and threatenedwith punishment to achieve organizational

productivity.


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Theory Y Assumptions

Under the right conditions, work can be as

natural as play or rest.Workers are ambitious and prefer self-direction.Workers seek responsibility and feel

rewarded through their achievements.Workers are self-motivated and require littledirect supervision.Workers are creative and capable of

organizational creativity.


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Problems with Theory Y

Assumes that all people are the same andwould enjoy work under the rightcircumstances.There are some who would ultimately enjoy alife of leisure.

Assumes that it is possible to always haveworkers working under the right conditions.Not all jobs can be made interesting to allpeople.


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A perspective that assumes that

organizations create their own identitieswhich affect organizational life andsuccess.Functionalists consider organizationalculture to be a function of communicationmessages generated by management.

Cultural Theory


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Cultural Theory (continued)

Interpretivists disagree, suggesting thatorganizational culture emerges from the

communication activity of all organizationalmembers. Deal and Kennedy1982 book Corporate Culture: Rites andRituals of Corporate Lifeargued that an

organizational culture is a composite of itsenvironment, espoused values, identifiedheroes, established rites and customary rituals.


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Maintained that informal communication

systems promote and maintain corporatevalues.Their work was important in that it helpedidentify and define organizational culture,explained elements of culture, andacknowledged the importance ofcommunication as a factor that creates and

maintains culture.


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Peters and Waterman wrote a book called, InSearch of Excellence: Lessons from AmericasBest Run Companies. They identified culturaltrademarks that are shared by successfulcompanies. They argued that organizations

would be wise to instill these trademarks tohelp ensure success.


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Eight Trademarks of

Successful Companies 1. A bias for action.

2. Close relations to the customer.3. Autonomy and entrepreneurship.4. Productivity through people.5. Hands-on value driven.

6. Stick to the knitting7. Simple form, lean staff8. Simultaneous loose tight properties.


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Critical Theory

Critical theorists are concerned with theabuse of power and work to eliminateoppressive practices.They consider organizations as sites of

domination and communication asfraught with power.


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Critical Theory abuses of management include:

Privileging certain members over others. Controlling access to technology and

stipulating the rules for its use. Determining the communicative processes that

are employed for decision making.

Prescribing the chain of command, therebylegislating who should talk to whom.

Using language as a means to debilitateemployees.


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Terms used by Critical Theorists

Ideology - describes the beliefs of employeesabout the normal and natural order of things,

that may not be normal or natural. Hegemony - refers to the domination of one

group by another, leading the oppressed groupto accept or even support the ideology of the

group in power. Emancipation - refers to the goal of critical

theorists to liberate those who are oppressed.


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Problems with Critical

Theory

It assumes that the critical theoristsideology is the correct one.Critical theory intimates that

organizations can be divided into threedistinct groups, oppressors, oppressed,and enlightened which is not an accuratedepiction of humankind.


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The objective of emancipation is challenging

and may be unrealistic in some ways.

Feminism and Critical Theory organizations

have certain perceptions of appropriate rolesfor women and men.Feminist critics argue that male voices areprivileged over others.

This makes it harder for women and otherminority groups to function and advance atwork.


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How are you feeling today?

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