Assignment #9:

• You are kindly requested to show how you will apply the new
foundations of management on an organization using the six
steps of development
 Foundations for continuing developments in management

Quantitative analysis and tools

Systems view of organizations

Contingency thinking

Commitment to quality and performance

Knowledge management and learning organizations

Evidence-based management
1. Quantitative analysis and tools:
 Quantitative analysis is the process of collecting and
evaluating measurable and verifiable data such as market
share, and wages in order to understand the behavior and
performance of a business. In the past, business owners
and company directors relied heavily on their experience
and instinct when making decisions. However, with the era
of data technology, quantitative analysis is now considered
a better approach to making informed decisions.

 Analytics – the use of large data bases and mathematics to

solve problems and make informed decisions using
systematic analysis. Typical quantitative approach to
 managerial problem-solving Problem encountered, it is
systematically analyzed, appropriate mathematical models
and computations applied, optimal solution identified

 Applications of Quantitative Analysis in the Business Sector:

Business owners are often forced to make decisions under
conditions of uncertainty. Luckily, quantitative techniques
enable them to make the best estimates and thus minimize
the risks associated with a particular decision. Ideally,
quantitative models provide company owners with a better
understanding of information, to enable them to make the
best possible decisions.

2. Systems view of organizations:

 System: A system is a set of interrelated and
interdependent parts arranged in a manner that produces a
unified whole. It's a concept taken from the physical
sciences and applied to organizations.
 Subsystem: A smaller component of a larger system.
 Managing Systems: Another way to look at the manager's
job is from the perspective of managing systems.
 The two basic types of systems are Closed systems are not
influenced by and do not interact with their environment.
 Open systems dynamically interact with their environment.
Today, when we call organization systems, we mean open
systems, that is, an organization that constantly interacts
with its environment.

3. Contingency thinking:
 Tries to match managerial responses with problems and
opportunities unique to different situations
  Appropriate way to manage depends on the situation
 Effective leadership is one of the most attractive qualities in
an employee. There are dozens of theories that argue which
leadership style is best suited for improving team
productivity and maintaining employee morale. The
contingency theory of leadership focuses on how specific
situations affect a leader’s effectiveness and how a leader’s
ability to adapt can be their most important tool in the
workplace.
 The contingency theory of leadership supposes that a
leader’s effectiveness is contingent on whether or not their
leadership style suits a particular situation. According to this
theory, an individual can be an effective leader in one
circumstance and an ineffective leader in another one. To
maximize your likelihood of being a productive leader, this
theory posits that you should be able to examine each
situation and decide if your leadership style is going to be
effective or not. In most cases, this requires you to be self-
aware, objective and adaptable.

4. Commitment to quality and performance:

 Managers and workers in progressive organizations are
quality conscious. Quality and competitive advantage are
linked
 Comprehensive approach to continuous quality
improvement for a total organization. Creates context for
the value chain
 Total Quality Management (TQM) is a participative,
systematic approach to planning and implementing a
constant organizational improvement process. Its approach
is focused on exceeding customers’ expectations,
identifying problems, building commitment, and promoting
 open decision-making among workers. There are five major
steps to TQM, and each are essential to successful
implementation.

I. COMMITMENT AND UNDERSTANDING FROM EMPLOYEES

 It is key to ensure that all employees within your
organization know about the Total Quality Management
(TQM) policies and make them an fundamental part of their
work.

II. QUALITY IMPROVEMENT CULTURE

 The organizational culture needs to be modernized on a
continuous basis to encourage employee feedback. If
employees have an idea on how to improve operations,
they need to know management respects their ideas or
they will not share.

III. CONTINUOUS IMPROVEMENT IN PROCESS

 There is no standing still. Total Quality Management (TQM)
is a continuous process and not a program. This requires
constant improvement in all the related policies,
procedures and controls established by management.

IV. FOCUS ON CUSTOMER REQUIREMENTS

 In today’s market, customers require and expect perfect
goods and services with zero defects. Focusing on
customer requirements is significant to long term survival
and essential in order to build relationships with customers.
documented and understood by everyone that touches the
account.

V. EFFECTIVE CONTROL
  It is essential to monitor and measure the performance of
the business. It’s easy to forget how many times in a year
an employee does not conform to a controlled procedure or
how many times a piece of equipment was down due to
unplanned maintenance.

5. Knowledge management and learning organizations:

 Appropriate way to manage depends on the situation.
Businesses have to go through constant innovations on
management, and innovation principles must be acquired
through constant learning. Learning principles are realized
through knowledge and wisdom sharing with colleagues,
clients, and others in such learning activities as instruction,
sharing, and self‐study. Such knowledge and wisdom
sharing activities include study circles, on the job training,
and technology exhibitions. Different learning activities
such as survival learning, benchmark learning and leading
learning are subject to different sharing mechanisms.
Moreover the mastery of each sharing function is
fundamental to enhancing the performance of knowledge
management in a learning organization.

6. Evidence-based management:
 Evidence-based management is the practice of making
managerial and people-related decisions with the use of
critical thinking and the best available evidence. Evidence-
based practice has its origins in the field of medicine, but it
has quickly spread to other disciplines like education,
nursing, criminology and public policy.
 Evidence-Based Positive Human Resource Management
Practices:
o Employment security
o Selective hiring
o Self-managing teams
o High pay based on merit
o Training and development
o Reduced status distinctions
o Shared information