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Contemporary Approaches Essay

Explain how the four contemporary approaches to management are different from one another. Define “open systems” and describe the internal, competitive, and macro environments of an organization. Lastly, indicate whether the four contemporary approaches to management are relevant in these three environments and why or why not. You may research external sources to support your answer. Cite any external sources used. Sociotechnical Theory suggests that organizations are effective when their employees have the right tools, training, and knowledge to make products and services that are valued by customers. Sociotechnical promotes the use of teamwork and semiautonomous work groups as important factors for creating efficient production systems. They believed that workers should be given the chance to correct problems at an early stage of production rather than wait until products were finished creating waste. Quantitative Management helps a manager make a decision by developing mathematical models of the problem. Computers facilitated the development of specific quantitative methods.

It included techniques such as: statistical decision theory, linear programming, queuing theory, simulation, forecasting, inventory modeling, network modeling, and break even analysis. Despite having all these methods, many managers will use results that are consistent with their experience, institution, and judgment. Many managers have not been trained to use these techniques. Organizational Behavior studies and identifies management activities that promote employee effectiveness through an understanding of the complex nature of individual, group, and organizational processes. Organizational behavior draws from a variety of disciplines, including psychology and sociology, to explain the behavior of people on the job. Systems Theory organizations are open systems, dependent on inputs from the outside world, such as raw materials, human resources, and capital. They transform these inputs into outputs that meet the market’s needs for goods and services.

The environment reacts to the outputs through a feedback loop; this feedback provides input for the next cycle of the system. System Theory also emphasizes that an organization is one system in a series of subsystems. “Open Systems”/ organizations are open systems meaning they are affected by and in turn affect their external environments. They use inputs like goods and services from their environment to create goods and services that are outputs to their environment. Open System is a system that interacts with its environment by exchanging energy, materials, and information with an aim of system renewal and growth. A feature of an open system is negative entropy, where the open system continues to import energy, information and resources to function while becoming more heterogeneous and complex.- http://education-portal.com/academy/lesson/open-system-in-management-definition-example-quiz.html#lesson.

Internal Environment is the conditions, entities, events, and factors within an organization that influence its activities and choices, particularly the behavior of the employees. Factors that are frequently considered part of the internal environment include the organization’s mission statement, leadership styles, and its organizational culture.  Competitive Environment is the immediate environment surrounding a firm; includes suppliers, customers, rival and the like. This includes the consisting of rivalry among existing competitors and the threat of new entrants, the threat of substitute and complementary products, and the bargaining power of suppliers and buyers. Macro environment is the general environment that includes governments, economic conditions, and other


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