MODERN

MANAGEMENT
THEORY
MODERN MANAGEMENT THEORY

 depends upon System Approach and Contingency Appproach.

Management is influenced by Internal and External environment.
Appropriate techniques are determined by situation and
Environmental factors of an organization.
 Is the integration of valuable concepts of the classical models with
the social and behavioral sciences. The modern theory considerd
the organization as an open system.
 This means an organization consistently interacts with its
environment , so as to sustain and grow in the market
 8 Characteristics of Modern
Management:
 Modern Management Thought: Characteristic # 1.
 The Systems Approach:
 An organisation as a system has five basic parts:
 (1) Input,
 (2) Process,
 (3) Output,
 (4) Feedback, and
 (5) Environment.
 It draws upon the environment for inputs (resources). Management
allocates and combines these resources or inputs to produce
certain desirable outputs.
Modern Management Thought:
Characteristic # 2
 Dynamic:
We have a dynamic process of interaction occurring within the
structure of an organisation. The equilibrium of an organisation and its
structure is itself dynamic or changing. The classical theory assumed
static equilibrium
Modern Management Thought:
Characteristic # 3.
 Multilevel and Multidimensional:
Systems approach points out wheels or complex multilevel and
multidimensional character. We have both a micro and a macro
approach. A company is micro (little world) within a business system. It
is macro (the great world) with respect to its own internal units.
 Within a company as a system we have: (1) Production subsystem,
(2) Finance subsystem, (3) Marketing subsystem, (4) Personnel
subsystem.
 All parts or components are interrelated. Both parts as well as the
whole are equally important. At all levels, organisations, interact in
many ways.
Modern Management Thought:
Characteristic # 4.
 Multi-Motivated:
Classical theory assumed a single objective, for instance, profit.
Systems approach recognises that there may be several motivations
behind our actions and behaviour.
Modern Management Thought:
Characteristic # 5.
 Multidisciplinary:
Systems approach integrates and uses with profit ideas emerging
from different schools of thought. Management freely draws concepts
and techniques from many fields of study such as psychology, social
psychology sociology, ecology, economics, mathematics, operations
research, systems analysis, etc.
Modern Management Thought:
Characteristic # 6.

 Multivariate:
It is assumed that there is no simple cause-effect phenomenon. An
event may be the result of so many factors which themselves are
interrelated and interdependent. Some factors are controllable, some
uncontrollable. Intelligent planning and control are necessary to face
these variable factors.
Modern Management Thought:
Characteristic # 7.
 Adaptive:
The survival and growth of an organisation in a dynamic
environment demands an adaptive system which can continuously
adjust to changing conditions. A viable organisation and its
environment are in a dynamic equilibrium.

An organisation is an open system adapting itself through the process

of feedback. We have a human or machine controller to provide
necessary corrections on the basis of feedback of information to
achieve the desired results.
Modern Management Thought:
Characteristic # 8.

 Probabilistic:
Management principles point out only probability and never the
certainty of performance and the consequent results. We have to face
so many variables simultaneously.
 THEORITICAN

 Almost simultaneously with Taylor, Henry Fayol (1841 – 1925), a

French industrialist and manager, developed his theory of
management.
 He is regarded as the ‘Father of Modern Management Theory’, for
he was the first to suggest the functions of management which are
recognised as the essential part of a manager’s work by the modern
authorities on management.
 Fayolism- was a theory of management that analyzed and
synthesized the role of management in organizations, developed
around 1900 by the French management theorist Henri Fayol (1841-
1925).
GROUP: REAL QUICK WINGS INC.

 Julie banta
 Hershey marie villegas
 Eunice ann ordoñez
 Strawberry joy burata
 Angelou gaon
 Giliane aubrey reyes