Contemporary Theories of Management
Contingency Theory
Basically, contingency theory asserts that when managers make a decision, they must take into account all aspects of the current situation and act on those aspects that are key to the situation at hand. Basically, it’s the approach that “it depends.” For example, the continuing effort to identify the best leadership or management style might now conclude that the best style depends on the situation. If one is leading troops in the Persian Gulf, an autocratic style is probably best (of course, many might argue here, too). If one is leading a hospital or university, a more participative and facilitative leadership style is probably best.
Systems Theory
Systems theory has had a
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As they expend more energy, they seek more structure to maintain stability. This trend continues until the system splits, combines with another complex system or falls apart entirely. Sound familiar? This trend is what many see as the trend in life, in organizations and the world in general.
Additional Sources of Management Theory
Information, Management Decision Making
Knowing What a Manager Does
Introduction to Management and Organizational Behavior
Freedom-Based Management
More Links on the History of Management
What is Scientific Management?
AOM's Management History Divisions' Web Site
Development of Management Thought
A Brief History of Management
The Four Contemporary Approaches to Management 1. Sociotechnical Systems 2. Quantitative Management 3. Organizational Behavior 4. Systems Theory
How the Approaches are Different from One Another
Sociotechnical systems theory is a contemporary approach to management that says that a proper combination of workers (the social system) and their knowledge, training and tools (the technical system) leads to organizational effectiveness in satisfying customers. Emphasis: Social + Technical
Quantitative management is another contemporary approach to management that prioritizes mathematical or statistical analysis as basis for decisions. Emphasis: Quantitative analysis
The organizational behavior contemporary approach mainly considers the behaviors and interactions of workers. Emphasis: Individual and
Believing that there is no solitary style of leadership and that there is no “black or white” way to display leadership, Contingency theory of leadership best fits me and my leadership style. I strongly believe that the way a leader is able to lead is not only based on their skills but also the situation. Certain situations, such as the make-up of the group and the task, may cause a leader to demonstrate several different skills in order to lead the group. In other words, a contingency leader would most likely be able to use different leadership styles and management skills based on multiple situations; instead of being a “one size fit all” leader, they offer a sense of variety and flexibility.
Kreitner, R., & Kinicki, A. (2013). Organizational behavior (10 ed.). New York, NY: McGraw-Hill/ Irwin. .). Retrieved from http://gcumedia.com/digital-resources/mcgraw-hill/2013/organizational behavior_ebook_10e.php
The work entitled "Challenges and Reflections on Knowledge Society & Sociotechnical Systems" reports that information technology (IT) is redefining the business basis" and that "customer attendance, operations, product strategies, marketing and distribution and even the society of knowledge depend sometimes even totally on Information System (IS)." (Balloni, 2010, p.21) The implementation of a new technology has been associated with problems that are "often linked to resistance by the work force and failure to achieve the expected benefits." (Balloni, 2010, p.21) Balloni (2010) reports that there must be a fit between the 'technical' and 'social' system, which form the organization. This means that business strategy, rules and processes determine the type of software and subsequently the type of hardware, database, and telecommunications system needed by the organization. The social system is comprised by the organization's
3) Contingency approach to leadership-this theory refers to the group atmosphere and to the degree of confidence, loyalty, and attraction the followers feel about their leader. If certain favourable situations occur then there has been a positive relationship between the followers and the leader which means that the task was clearly defined and there is a clear leader position power.
As the term indicates, organizational behavior describes how people interact in a workplace setting to achieve a common goal or purpose. In this regard, Kelly and Kelly (1998) emphasize that, "Organizational behavior is essentially concerned with what people do in organizations" (p. 4). Therefore, defining organizational behavior requires a consideration of how people actually behave in workplace settings at a given point in time as well as over time (Miner, 2002). As Kelly and Kelly point out, "A good working definition of organizational behavior is the systematic study of
The contingency theory of leadership works to predict which style is best in which circumstance, because what may work in one situation, may not work in another. Imagine that as a CEO, Helena always applied a democratic based leadership style, but one day the company was faced with a dilemma that she had to address immediately. Without the ability to consult her employees, Helena has to make a decision, and this will affect the entire company. This would be an example of the contingency theory of leadership, being able to change ones leadership style to suite the situation.
The systems theory gives the management a better ability to look at the organization in a broad way.
2.1.1.8 Contingency theory. The most important concept behind this theory is the belief that the leadership styles must match specific organizational situations to produce good results (Northouse,
According to this theory, there is not a leadership style that would be best in all situations. Contingency theory of leadership focuses on particular variables related to the environment that might determine which particular style of leadership is best suited for the situation. If the leader is highly effective in one situation, he or she may not necessarily be effective in another. Success depends upon a number of variables, including qualities of the followers, the leadership style or aspects of the situation (Wheeler, 2000).
McShane, S. L., & Von Glinow, M. A. (2015). Organizational behavior: Emerging knowledge, global reality (7th ed.). New York, NY:
The contingency theory is a theory that states that to be an effective leader we should rely on “not only on the style of leading but, on the control over a situation, so there needs to be a good leader-member relations” (“Fiedler 's Contingency Theory”, n.d., para. 3), and must have a task in mind with a clear procedure and goals, and the skill for rewards and punishments when needed. If these are not in the right combination and context in any way will result in failure for the leader. This theory in general state that effectiveness will depend on the nature of the task, situation, leader 's personality, make-up of the group being led, and the factors involved.
Rather than impede or benefit, systems archetypes promote research and examination of the complex systems. In fact, understanding that the use of archetypes does not dictate behavior, but leverages them, allows those within the conflict to manage it differently. Systems archetypes or generic structures embody the key to learning to understand the structures on personal and organizational levels (Senge, 2006). In other words, Senge (2006) explains that learning to perceive system structures liberates people from unseen forces and allows mastering the capability to work with and transform these forces (Senge, 2006). “Success to the Successful” may be discriminatory as it compensates the winner with the means to win again, and may penalize losers (Meadows, 1996), but it is also a powerful tool that shares a message superior to what is perceived. Learning and understanding archetypes can enhance management and communication skills. There are positives and negative feedback loops in life (Meadows, 1999). The positive serves as an uncontrollable source of growth if not managed; the negative loop serves as an intervention that diminishes the self-multiplying power (Meadows, 1999). Like with medical graduates, countless positive feedback loops in society reward the winners with the resources for bigger winning next time (Meadows, 1999). Therefore, strengthening and deepening communication is primordial to improve systems perspectives. However, the
The concept of sociotechnical systems was created in the 1960’s as a part of organizational development research by E. Trist and F. Emery. Ranging from a small system between you and your phone, to the interaction between human behaviors with massive technical infrastructures society has developed in hopes to boost performance and quality for both the societal and technical side of the system (Fischer).
The basic premise of Contingency Theory is that there is no one best way to organize a corporation, to lead a company, or to make decisions. There are too many external and internal constraints that will alter what really is the best way
Organizational behavior is the behavior of individuals, either one or a group. It is not the behavior of an organization, but rather the behavior of the people in an organization. This can be anywhere from a family at home to a church to a work group within a company. Some of the challenges that make behaviors challenging in today’s workplace are high performance, ethical behavior, productivity improvement, technology utilization, quality, diversity, work-life balance, and the global economy, (Schermerhorn, 2003, P. 1).