Premium Essay

Contemporary Approaches and the Environments of a Business

In: Business and Management

Submitted By dredizz
Words 621
Pages 3
Contemporary Approaches and the Environments of a Business
Andre Scarlett

The contemporary approach is the most modern approach to management; it has improved on and even integrated the key concepts created by the classical approach to management. The Contemporary approach has four main theories; Sociotechnical systems, Quantitative management, Organizational behavior, and Systems theory. The Sociotechnical Systems theory is an approach to job design that attempts to redesign tasks to optimize operation of a new technology while preserving employees interpersonal relationships and other human aspects of the work, this approach mainly focuses on the management of quality and the control of processes to ensure the quality of goods or services, which just means doing everything right the first time around. Quantitative management is an approach that emphasizes the application of quantitative analysis to managerial decisions and problems, basically the company tries to guess the outcome of a decision using mathematical models, however many managers do not rely on this approach to make a decision they normally use there own judgment to make a decision, that being said they would still use this approach to compare or remove different options. The Organizational Behavior approach studies and identifies management activities that promote employee effectiveness by examining the complex and dynamic nature of individual, group, and organizational processes, this approach draws from psychology and sociology to explain exactly how people behave in a job environment, Studies showed that managers who assumed their employees wanted to work were more productive than the employees whose manager thought they were lazy and irresponsible. The Systems Theory states that an organization is a managed system that changes inputs into outputs, which simply means organizations take...

Similar Documents

Premium Essay

Sandwich Blitz Unit 2

...Tyler MT140 Introduction to Management Prof Pouraryan 7 April 2015 Contemporary Management Approaches and Business Environments The human race has always striven to figure out the best way to manage certain aspects of life; whether it be in the home, in recreation or in work. The last few decades people have been systematically researching on how to best improve management in the workplace. They want to make businesses run faster, produce more, and produce better quality products. Business owners and managers have finally developed four contemporary approaches to management; the sociotechnical systems theory, quantitative management, organizational behavior, and the systems theory, and they all differ. These four approaches to management are also relevant in the three environments that a business contains which are the macroenvironment, the competitive environment and the internal environment. As mentioned previously there are four contemporary approaches to management. The first being sociotechnical systems theory which is a combination of several classical approaches. This theory suggests that organizations are effective when their employees (the social system) have the right tools, training and knowledge (the technical system) to make products and services that are valued by their customer (Bateman 35). The second approach is quantitative management. This approach was developed after Word War II and emphasizes the application of quantitative analysis to......

Words: 1465 - Pages: 6

Premium Essay

Open System

...Explain how the four contemporary approaches to management are different from one another. • The contemporary approaches to management include: sociotechnical system theory, quantitative management, organizational behavior, and system theory. The sociotechnical system theory is an approach to understanding the relationship between technology, individuals, organizations and society in work place design. "The sociotechnical systems approach says that a change in one part means there will have to be corresponding changes in other parts. “The sociotechnical systems approach says that a change in one part, means there will have to be a corresponding change in other parts. “The quantitative management approach involves the use of mathematical modeling to find the best solutions to problems. One important component of the quantitative management approach is an ability to objectively collect information about a problem and possible solutions to develop appropriate, and useful, mathematical models. Organizational behavior theory usually represents concepts that help a company create better management practices. Concepts such as leadership, decision making, team building, motivation, and job satisfaction are all facets of organizational behavior and responsibilities of management. Systems theory is a broad perspective that allows managers to examine patterns and events in the workplace. This helps managers to coordinate programs to work as a collective whole for the overall goal or......

Words: 565 - Pages: 3

Premium Essay

Contemporary Approaches to Management & Environments

...Contemporary Approaches to Management & Environments Organizational management can have many approaches. Keeping employees, suppliers and consumers happy can be a complex process. It has been determined that contemporary approaches to management directly relate to an open system and the environments of an organization. Not all contemporary approaches to management relate to every organizational environment directly, but can have an overall impact. Sociotechnical systems theory is a contemporary approach to management that says that the right combination of workers along with their knowledge, training and tools leads to organizational effectiveness in satisfying customers. Quantitative management is another contemporary approach that prioritizes mathematical or statistical analysis as basis for decision making. This approach helps a manager make a decision by developing formal mathematical models including linear programming, queuing theory, simulation, forecasting, inventory modeling, network modeling, and breakeven analysis to resolve a problem (Bateman & Snell, 2013). The organizational behavior contemporary approach studies and identifies management activities that promote employee effectiveness by examining the dynamic nature of individual and group behaviors and interactions along with organizational processes. Systems theory shows that the organization’s performance depends on how effective it is providing goods or services using inputs from the external environment.......

Words: 695 - Pages: 3

Premium Essay

Contemporary Approaches to Management

...Unit 2 AB140 Assignment Danielle Irvine Kaplan University The evolution of management has greatly evolved since the classical approaches beginning early as 4000 BC. During this time managers didn’t draw a strong enough correlation between production and its employees. Although classical approaches had a strong influence on contemporary, it was not until these approaches that organizational managers began to focus less on the organizations capital and more on ever changing environments and the welfare of the organizations counter parts. Through contemporary approaches theorist began to realize successful managerial decisions would need to affect employees on a psychological equal to satisfy an organizations goals. By 1950 the contemporary approaches became the foundation of management from all aspects including recognizing an organization as an open system with external influential factors. Contemporary approaches to management are; Sociotechnical Systems, Quantitative Management, Organizational Behavior and Systems Theory. Within systems theory it has be established that an organization changes inputs into output through a process that will be determined and effected by internal, competitive and macroenvironments. Each approach focuses on a specific aspect of management that would affect the external environments of an organization. In the sociotechnical system the main focus of obtaining effectiveness is by strengthening the relationship between the social system and......

Words: 741 - Pages: 3

Premium Essay

Four Contemporary Approaches to Management

...The four contemporary approaches to management are: systems theory, organizational behavior, quantitative management and sociotechnical systems. Each contemporary approach is influenced by an environment factor. These impacts are macro-environment, competitive environment and internal environment. The macro-environment of an organization involves variables such as political, social, legal and technological. Competitive environment of an organization involves the organization and professional players whom compete in the market place. Internal environment of an organization are components and processes within, such as employees, managers and resources. Each environment is relevant to the contemporary approaches however the approaches are unique in their own way. To elaborate more, the systems theory demonstrates that the organization’s execution relies on how efficient it is administering goods and services utilizing inputs from the external environment, in a matter that changes inputs to outputs. An open system is associations that would influenced by, and that affect, their surroundings, continually interacting with its environment (Bateman & Snell, 2012, p. 42). Internal, competitive and macro-environment are relevant to the systems theory because this approach to management deals with circumstances inside and outside of the organization. Quantitative management organizes scientific or measurable data as premise for......

Words: 568 - Pages: 3

Premium Essay

Levels of Management

...Unit 2 Assignment Management, simply put management is dealing with or controlling things or people. A manager is someone that is in control of these things or people. Every person is going to have different skills and styles of management. Contemporary approaches to management are widely used guidelines for managers. There are four contemporary approaches to management; Sociotechnical systems theory, Quantitative management, Organizational behavior, and Systems theory. Sociotechnical systems theory is an approach to management that suggests organizations are effective when their employees have the right tools, training, and knowledge. Employees being the social system and their knowledge being the technical system. This theory ascertains the idea that by ensuring the employees have these factors they will be able to make or produce product valued by consumers. Developed in the late 1950’s researchers believed workers should be given the freedom to fix mistakes early on that would result in waste, rather than later in the process. This approach promoted teamwork and work groups as an important factor for creating an efficient product system. Quantitative Management, adopted in the late 1940’s-1950’s is an approach that focuses on the use of science and math formulas as a management tool. By making a mathematical model of a problem managers can get a better view at the situation and have some aid in the decision making process. However typically managers do not focus......

Words: 916 - Pages: 4

Premium Essay


...There are four contemporary approaches to management: sociotechnical systems theory, quantitative management, organizational behavior, and systems theory. The sociotechnical systems theory was first proven to the U.S. to be effective by the Japanese in the late 1980s, and it expresses that management should focus on making sure that they have well trained employees with the right tools and knowledge for the job. In this sense, the employees can put their heads together and produce innovative products in a productive manner, creating business success. However, quantitative management takes tides a different direction. It suggests that to be a successful business, you must use statistics and a form of visual modeling to influence management decision. This was proven to be effective when introduced to large corporations by military planners in solving the complex issues. Both ideas are arguable, yet there are still two more. Organizational behavior states that the way you treat your employees influence your company’s productivity, therefore its success. If you treat them poorly they’ll work poorly, and if you treat them like they’re motivated they’ll act motivated. Which will increase productivity. Yet, there is there is the systems theory that says bluntly that a business is nothing but an open system that turns inputs into outputs. Businesses are affected by and affect their environment therefore they are open systems, and management needs to be made on the contingencies......

Words: 601 - Pages: 3

Premium Essay

Unit 2

...The four types of contemporary management are sociotechnical systems theory, quantitative management, organizational behavior and system theory. These approaches to management have all been developed at various times since World War 2 and continue to represent the corner stones of modern management thought (Vital source). Sociotechnical systems theory was developed in the 1950’s by the London based Tavistock Institute of Human Relations (Vital Source) .This is an approach to complex organizational work design that recognizes the interaction between people and technology in workplaces. The term also refers to the interaction between society's complex infrastructures and human behavior. In this sense, society itself, and most of its substructures, are complex sociotechnical systems (wiki). Quantitative management stems for the 1940’s and 1950’s and emphasizes the application of the quantitative analysis to management decisions and problems. This helps a manager make a decision by developing formal mathematical models of the problem which can be facilitated by the development of computers. This method is usually used in a supplement role in decision making (Vital source). Organizational behavior, also developed in the 1950’s, studies and identifies management activities that promote employee effectiveness by examining the complex and dynamic nature of individual, group, and organizational processes. Organizational behavior comes from a variety of disciplines including......

Words: 564 - Pages: 3

Premium Essay

Dalman and Lei Unit 2

...Sociotechnical Systems Theory, Quantitative Management, Organizations Theory, and System Theory approaches and Macro, Internal, and Competitive environments all have their place and relevance to managing a business. Some are more helpful than others and can be a great asset to building a business and some seem to lack importance or stability. Which ones are best for certain situation depends on what business a person is in and what position they are holding at the current time and place in the business. There are differences between the four contemporary approaches to management. Sociotechnical Systems Theory is different from the other approaches in that it deals with the people or human side of business. Human interactions and interpersonal relationships are considered in the decision making process. The people are handled more hands-on and allows people to correct any mistakes or problems early on. Quantitative Management is unique from the other approaches because it deals mostly with management issues in a mathematical way. Though there seem to be issues with this because most problems that arise cannot be solved in a mathematical way as in dealing with a management issue that an employee is misbehaving or not completing work on time. Organizations Theory differs from the other approaches as it is more cause and effect. How the manager treats the employee is how the employee will in turn act or work. If a manager does not know what they are doing or does not train......

Words: 651 - Pages: 3

Premium Essay

Contemporary Business Approach Essay

...assumes their employees want to work and are not in need of constant supervision. Team “X” perspective is referred to the self-fulfilling prophecy, using negativity as a motivation for production. Team “Y” uses a culture of positive, advocating and individual motivations and challenges, and produces superior results. The Systems Theory approach depends heavily on the organizations relationship with outside contributions. This approach thrives on open systems, taking raw materials, human resources and capital and transform them into whatever product they are marketing. This stresses that one organization is part of a subsystem of organizations. Along with management strategies, all organizations have varying environments which they work within. The outermost environment in management is the macroenvironment. This layer includes all of the laws and regulations for the...

Words: 527 - Pages: 3

Premium Essay

Acc Handout Solution

...Lawton. Barcelona prides itself as being an “antichain” restaurant because every dish has the color, flavor, and touch of the neighborhood in which it is located. The dishes are custom made by the chef, and wine is imported from various countries around the world such as Spain and Portugal. What makes this restaurant particularly unique is the style of management that both Lawton and Pforzheimer use when there is running their business. Andy’s approach is both consistent and inconsistent to the modern development and way of thinking in today’s world of management. According to Robbins’, Decenzo’s, and Coulter’s textbook “Fundamentals of Management” book, there are four primary definitions of management. There are multiple definitions because every organization is different in terms of ownership. However, for the purposes of this report we will use the most general definition, which defines management as the process of getting things done effectively and efficiently with and through people. (Fundamentals of Management, Pg. 461). When running his business, Andy primarily uses the behavioral approach to management. According to Robbins’, Decenzo’s, and Coulter’s textbook “Fundamentals of Management” book, the behavioral approach to management is an approach that focuses on the...

Words: 1515 - Pages: 7

Premium Essay


...Learning Outcomes Analyze business environments in terms of transformation systems and internal and external environments Identify the most relevant elements of the business environments using PESTLE analysis and Porter’s five forces model Discuss the classical, human relations and systems approaches to organizations Describe and compare the various structures that may be used within organizations. The business as a transformation system Transformation Process: Businesses utilize the inputs in order to produce the outputs. Types of Environments A simple/static environment is the easiest to analyse. A detailed, systematic, historical analysis is probably sufficient in order to understand it. University of Sunderland Contemporary Developments In Business Management Unit 1: Introduction To The Business Environment In a dynamic environment, all aspects of the environment are subject to change. When changes are rapid or sudden, such environments are referred to as turbulent. Complex environments are becoming more and more common in modern times. Technology, markets, politics, etc. are becoming more difficult and more involved The Organization’s Environment PESTEL Factors PESTEL Analysis Political Economic Socio - Cultural Technological Environmental Legal Political Environment Government policy affects the whole economy and governments are responsible for enforcing and creating a stable......

Words: 896 - Pages: 4

Premium Essay

Discussing the Role of Organization Analysis, Person Analysis, and Task Analysis in Needs Assessment

...A competitive business environment is a combination of internal and external factors that influence a company‘s operations positively. The business environment factors include: clients and suppliers, its competitor and owners, market, social and economic trends. competitive business environment has developed the management accounting system by increasing use of timely information in the planning and control functions to a place which has the best view of existing and potential competitor activity ,by creating a strong information base on competition, all with the aim of creating added value and making strategic decision in improving the business and its operations. Because of globalization, the business environment has become increasingly competitive, just following the traditionally management accounting system will lead to low efficiency and loss of customer loyalty and satisfaction. So it is vital to develop new management accounting system in order to solve this problem. The Balanced Scorecard is one of the new approaches in the contemporary development in management accounting. It provides a frame work that translates the aims and objectives of the business into series of key performance measures and targets. from using a balanced scorecard ,each company/business can find out its performance contributes to their goals and objectives. PERFORMANCE MEASUREMENT SYSTEMS Measurement must support the company`s strategy and operation. it also helps employees......

Words: 907 - Pages: 4

Premium Essay

Foundations of Management

...Many of the differences of the four contemporary approaches to management are similar but not the same the ways we can tell them apart are the key features they hold that make them unique in their own ways however closely related still. Quantitative Management has a bit of variance of the other theories because it deals and relies solely on managerial problems and solutions this theory was designed strictly to fix and address situations within the organization/environments managers to allow them to make better decisions when acting on a problem many times this is not the best way to deal with things because management problems cannot be solved by simple algorithms sometimes Organizational Behavior is the act of studying how the employee will act under supervision many of the times it will test how the managers treat the employee and how the employee will react to the treatment we think of this one like a mini social experiment in some case Systems Theory is the one approach that seems to be a bit more pushed away than the others because it relies on outside connections in order to operate systems theory is not one vast system but many subsystems to allow flow to maintain operations, this one however is very unorganized and sloppy compared to the rest of the approaches Sociotechnical Systems is one of the stranger ones to this list because of how it deals with the environment and more geared to the human aspects of running the business because of the employee is considered...

Words: 533 - Pages: 3

Premium Essay

Unit 2 Intro Manangement

...Sociotechnical systems theory was created by researchers in human relations in the early 1950s. They found the two were important and needed for the effectiveness of businesses could reach higher potential when they focused on having the internal workplace and the external of the business (the customers) all uniform. Sociotechnical systems theory is when organizations are effective. This is broken down into two parts: social and technical. The employees make sure they follow orders correctly are the social part. The technical part is having right training knowledge and tools so the business can be productive and effective in making sure the customers are happy and return consistently. Social technical systems theory was started being used by Japanese companies which integrated technical systems and management to achieve high performance. Large U.S. automakers like Ford and Chrysler also started to look this way. They wanted to understand how the Japanese were applying these tactics to make their business and their products achieves. The second approach is called quantitative management. This approach helps analysis the decisions and problems of the manager. This helps them to develop formal mathematical models of whatever the problem is. This is the use of science. This started during the World War II around 1940s. Private companies started to use this theory to get a grip of more complex issues they were having. They use computers to develop certain quantitative......

Words: 710 - Pages: 3