Introduction of Management:
Different authors define management in their own way. Basically, management is a technique used in every organization or business to run the system of business. Different group of people involve managing the system, creating the system and verifying the working of business.
According to FW Taylor “Management is an art of understanding that you want a specific task and then check , is that task done according to your requirement under reasonable ways and using less expenses”.
Management is a complete setup of organization where you create environment of doing work by using different techniques and methods, by following different rules and regulations, where employees work in different groups with efficiently and effectively. With the passage of time the concept of management is going vast. Organizations become more advance and more technical. Employees working style is going to change. The authority of doing specific tasks is distributed. We can say that Modern Management is adopted instead of basic management criteria. Without better management theories, no any business can run in market. and the demand of time and employees also says that new and unique techniques and methodology are helpful in proving the better setup of business and smooth management requires at every step of business for earn good ratio of profit and make employees sincere with the company and they work with more interest and loyalty.
Modern Management Theory:
The new thought of management theory was introduce in 1950s. Organizations want to adopt new techniques and methods that improve their working efficiency and also give more attention to employees and customers. Modern management theory gives more attention on the satisfaction of employees. According to this theory, employee work not only to earn money, it doesn’t mean that they work free but their main focus is different instead of earning money. They want respect and proper attention between their other employees and want some appreciation towards their working abilities, which increase their working productivity in a positive manner. This methodology encourages employees to work with more loyalty and efficiency and give maximum benefit to organization and improve its profitability. In other words, we can say that modern management theory not only focus on working setup, strategies and techniques but also pay attention on employees satisfaction area to enhance the productivity of organization.
Approaches of Modern Management Theory:
Different types of approaches used in modern management according to different need of organizations, few are given below:
This approach is mainly focus on managerial decision making. Also known as management science approach. In this approach, all the decisions related to management are considered. Decisions should be according to need and requirement of organization which are created by management. Further three areas in this approach are: Operation research, Operation Management and Management information system. Operation research is work in gathering the all information related to specific tasks. All previous and current data related to all operations in organization is collected. And different techniques are used like query, linear programming etc. Operation Management checks all the production process; supervise all the system by suing different methods like statistical quality control, networking etc. Management information system helps to provide computerized information which helps management to make a better decision , all meaning full information helps to improve business process and working techniques. Meanwhile, this approach is focus on informative data and its maximum usage of making better decision.
This approach is specifically used to resolve the management problems .this is an integrated approach to find out the solutions of major management issues. This approach is working as all the points or systems are interconnecting with each other, their working depends on each other in a specified regularity to make a single product or achieve a single task. This approach focuses on units and its sub units. It means with great care study the every part of system. Verify the starting and ending of system boundaries. Every system is produce due to some specific reason. To accomplish any task or producing any product, a complete and improved system should be developed. A system is produced with interdependent and interlinked elements and parts to make a complete and single unit. It focus on hierarchy of subsystem which is a major part of every system. In simple words, this approach is helpful to study any system by parts and then improve the quality and efficiency of system. This approach is used in both general and specialized systems. It helps to achieve the objective of organization and also view all organization as an open system to verify each and every portion and part of system.
Contingency or Situational Approach:
This approach is helpful to resolve the problems of organizations with the help of analyzing the environment and conditions. This approach says that one set of rules are not enough to solve every type of problem. Different problems needs different solutions and it’s the responsibility of management to study the problem and then make its solution according to requirement but not according to specified rules. Management face different problems in different situations and need a solution according to demand of problem. This approach is better than system approach. This approach is focus on behavior of one unit in environment and in specific relationship that affect the other sub unit. Managers should use contingency approach because it directly suggesting solutions according to organization designed situation. This approach is focus on practical answers of current organizational problems instead of old rules and standards.
Modern Management Theory Limitations:
Her we are going to discuss some basic limitations of using these approaches:
These may not give maximum attention on human effort who gives their full attention to sort out the problems. In some cases, senior management team has to take quick actions without gathering any detailed information. Decision making is part of management but fully management is not depending on it. It is consider that all the measurements and calculations are done before decision making but in real it cannot be possible. Some tools or models may out date which used in these approaches. Sometimes, with the changes of organization environment, these approaches may not applicable. Some time, we pay less attention on basic management issues while busy in making or adopting new approaches, so this is not a healthy thing for any organization. Normally, theory is based on some one’s analysis or study, so theory is not a solid thing on which large or important decisions are based or changed.
Modern Management Theory Improvements:
Every organization has its own specialty and specifications. Same situations may not occur in every organization. It is the responsibility of managements to focus on all areas of business. All informative data and its usage should do properly. While making strategies or business plans, it should be considering that which area requires more attention. While using these approaches or modern management theories, it is responsibility of executives and management to realize the need of approach and then apply it according to situation. Every business has different way of working, and then their problems must be different from each other. Now it’s the duty of decision makers and team to use that methodology where it suits best. Old ways of management not suitable for current and new environment of organization. We should adopt new strategies and set targets according to current need and also give proper facilities to our employees, so that they happily with organization and work with their full efficiency, and interest and improve the productivity and profitability of business.
Modern Management Theory Example:
Here we discuss the example of a company, who produce computers and laptops in the market and cover a huge market share. The management of this company adopts new techniques and methodology that fulfill the need of customer. Now customer wants a smart computer having all features that is current need of customer. Laptops should be smart in looks and having more advance technologies that fulfill all needs of users. For this company use new working techniques and adopts such methods that develop parts of computers and laptops having high capacity and keeping less space. Company focus on all parts of system and verify which area need more advancement and which need less, also identify and problems faced by employees because they have the knowledge of old method ,so new training courses arranged for them to learn more new technologies and working methods and improve the productivity of company.