MODERN THEORIES

QUANTITATIVE APPROACH
QAM
COTN
 BLACKETT of Manchester University was
 One of the exponent
 Plans were drawn for
 Resource Allocation and
 Resource utilization
 Quantitative specialist was employed
 He used the application of
 Mathematics
 Statistics and related information
 To help in
 Decision-making and
 Organizational effectiveness
Components of Quantitative
Approach
 Management Science
 Operations Management
 Management Information System
Management Science
 Mathematical models and
 Statistical methods to
 Increase decision effectiveness
 Operations Research is another name for mgt

science
 Computer helps in its operation
Operation Mgt
 Production
 Delivery of organization’s
 Products and services
MIS
 DESIGNING
 IMPLEMENTATION OF
 COMPUTER-BASED information system
MIS?
 Formal system which provides management
 With the necessary reports to be
 Utilizes in the decision making
SYSTEM APPROACH
 A system is an interrelated parts that function
 As a whole to achieve a common objective
 System Theory is an extension of the

humanistic view that sees an organization as

an open system characterised by
 entropy
 Synergy and sub-system
 interdependence
Systems Approach to Management Inputs;
External Human,
External Environment
Environment capital,
employees,
Managerial technology,
knowledge, goals etc.
of claimants, and
use of inputs

communication that also

Planning

links the organization

Reenergizing the

with the external

Environment

b. Constraints
Facilitated by

environment
Organizing

External
system

c. offers
Staffing

Leading

Controlling
To produce
outputs e.g.
Products, services,
profits, etc.
External
Environment
TYPES OF SYSTEM
 Open-system: A system that interacts with
the external environment.
 Close-system: A system that does not

interact with the external environment.

OPEN AND CLOSED SYSTEMS
 Systems may be characterized as open or
closed.
 A closed system is a set of interacting

elements without any interaction with the

outside environment.
 An open system, on the other hand, is the
one that interact with the external
environment.
Sub-System
 Depends on one another for functioning
 Systematic Thinking;
 the distinct elements
 The complex and
 The changing interaction among them
CONTINGENCY APPROACH


There is no one best way of doing something

 A resolution of organizational problems
 Depends on manager’s identification of
 Major issues at hand
 Management concept were thought to be

universal
 While business education case view is

applicable
Case view and universalist view
 Case view –every situation is unique
 Universalist view-there is one best way
 Contingency-what works in one setting
 Might not work in another
 Contingency suggests that one element

depends on other variables

 Therefore a manager’s response to a

situation
 Depends on identifying major issues in

organizational situation