Modern Management foundations

Modern management FOUNDATIONS

• Modern management uses quantitative analysis/tools, systems of organization contingency thinking, commitment to quality, role of knowledge management, leanring organization and imporatnace of evidence based management.

quantitative analysis/tools

• This is the use of mathematical tools through computer technology and software for better problem solving
• Management science and operation research use quantitative analysis and applied mathematics to solve problems
• THE PROCESS: Problem encountered -> systematically analyzed -> mathematical models/calculations applied-> optimum solution identified.

example

• A real estate developer seeking to control costs and finish building a new apartment complex will use network models, such as the one shown in figure 1.1, to break large tasks into smaller components. The quantitative approach will allow the project managers to better analyze, plan and control the different activities

Figure 1.1

organizations as systems

• Organizations are understood as a system ( a collection of interrelated parts working together to achieve a common purpose)
• Systems are made of various components called Subsystems.
• Organizations are co-operative systems that achieve goals by integrating the contributions of individuals

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• Cooperation is an essential feature of organizations
• Open systems -> interact with the environment in the process of transforming inputs to outputs.

-Example: Figure 1.2 shows various subsystems of one system (organization) as the center of the transformation process of input to output.

•Contingency thinking

• Modern management attempts to identify practices that best fit the demands of unique situations which require Contingency thinking.
• Contingency thinking tries to match management practices with situational demands.

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• Helps managers understand situational differences and respond to them in ways appropriate to unique characteristics.
• Required for all management functions: Planning, controlling, organizing and leading.