Resentation of Report_Modern_Management_Theory.pptx

This is a discussion on modern Management theory

1. MODERN MANAGEMENT THEORY Presenter: Charlie Jr. D. Pedrosa

2. Quality School of Management The Quality School of Management (also known as Total Quality Management , TQM) is a relatively recent and comprehensive model for leading and operating an organization. The prime focus is on continually improving performance by focusing on customers while addressing the needs of all stakeholders. In other words, this concept focuses on managing the entire organization to deliver high quality to customers.

3. PRIMARY ELEMENTS OF TQM 1. Customer-focused:  The customer ultimately determines the level of quality. No matter what an organization does to foster quality improvement—training employees, integrating quality into the design process, or upgrading computers or software—the customer determines whether the efforts were worthwhile. 2. Total employee involvement:  All employees participate in working toward common goals. Total employee commitment can only be obtained after fear has been driven from the workplace, when  empowerment  has occurred, and when management has provided the proper environment. High-performance work systems integrate  continuous improvement  efforts with normal business operations. Self-managed work  teams  are one form of empowerment. Total Quality Management (TQM): What is TQM? | ASQ. (n.d.-b). https:// asq.org /quality-resources/total-quality-management

4. 3. Process-centered:  A fundamental part of TQM is a focus on process thinking. A process is a series of steps that take inputs from suppliers (internal or external) and transforms them into outputs that are delivered to customers (internal or external). The steps required to carry out the process are defined, and performance measures are continuously monitored in order to detect unexpected variation. 4. Integrated system:  Although an organization may consist of many different functional specialties often organized into vertically structured departments, it is the horizontal processes interconnecting these functions that are the focus of TQM. 5. Strategic and systematic approach:  A critical part of the management of quality is the strategic and systematic approach to achieving an organization’s vision, mission, and goals. This process, called strategic planning or strategic management, includes the formulation of a strategic plan that integrates quality as a core component. Total Quality Management (TQM): What is TQM? | ASQ. (n.d.-b). https:// asq.org /quality-resources/total-quality-management

5. 6. Continual improvement:  A large aspect of TQM is  continual process improvement . Continual improvement drives an organization to be both analytical and creative in finding ways to become more competitive and more effective at meeting  stakeholder  expectations. 7. Fact-based decision making:  In order to know how well an organization is performing, data on performance measures are necessary. TQM requires that an organization continually collect and analyze data in order to improve decision making accuracy, achieve consensus, and allow prediction based on past history. 8. Communications:  During times of organizational change, as well as part of day-to-day operation, effective communications plays a large part in maintaining morale and in motivating employees at all levels. Communications involve strategies, method, and timeliness. Total Quality Management (TQM): What is TQM? | ASQ. (n.d.-b). https:// asq.org /quality-resources/total-quality-management

6. The quality school of management considers the following in its theory: 1. Quality of the Company’s Output - Focuses on providing goods and services that satisfy the customer requirements, which is presumed to be a key to organizational survival and growth. 2. Organizational Structure - Every organization is made up of complex systems of customers and suppliers, and every individual will need to function as both a supplier and a customer. 3. Group Dynamics - Organization should foster an environment of working in groups. Management should recognize and nurture harmony and efficiency in these groups, which are the catalysts for planning and problem-solving Module 10: Modern theory of management. (n.d.-a). https:// epgp.inflibnet.ac.in / epgpdata /uploads/ epgp_content /S001610/P001794/M025724/ET/1516710503Module_10_Q1_.pdf

7. 4. Continuous Improvement - Constantly review the company’s policies and processes. This will lead to specialization and ultimately better outcomes 5. Transparency and Trust - Connect with employees at all levels and create a culture of trust and stability. Module 10: Modern theory of management. (n.d.-a). https:// epgp.inflibnet.ac.in / epgpdata /uploads/ epgp_content /S001610/P001794/M025724/ET/1516710503Module_10_Q1_.pdf

8. Figure 1. The diagram of quality school of management Module 10: Modern theory of management. (n.d.-a). https:// epgp.inflibnet.ac.in / epgpdata /uploads/ epgp_content /S001610/P001794/M025724/ET/1516710503Module_10_Q1_.pdf

9. Kaizen Approach Kaizen means that everyone is involved in making improvements. Kaizen (pronounced ky-zen ) is based on the Japanese management concept for incremental change and improvement. The idea of continuous improvement suggests that managers, teams, and individuals learn from both their accomplishments and their mistakes. It is a long-term approach to work that systematically seeks to achieve small, incremental changes in processes to improve efficiency and quality. While the majority of changes may be small, the greatest impact may be improvements or changes that are led by senior management as transformational projects, or by cross-functional teams as Kaizen events. Module 10: Modern theory of management. (n.d.-a). https:// epgp.inflibnet.ac.in / epgpdata /uploads/ epgp_content /S001610/P001794/M025724/ET/1516710503Module_10_Q1_.pdf

10. REENGINEERING APPROACH Reengineering Approach sometimes called Business Process Reengineering (BPR), involves a complete rethinking and transformation of key business processes, leading to strong horizontal coordination and greater flexibility in responding to changes in the environment. The reengineering approach focuses on sensing the need to change, anticipating changes, and reacting effectively when it happens. Reengineering Process Following are the steps involved in reengineering process. 1. Develop business vision and process objectives 2. Identify business processes 3. Scope and measure existing processes 4. Design and build new method prototypes 5.Implement and manage changes Module 10: Modern theory of management. (n.d.-a). https:// epgp.inflibnet.ac.in / epgpdata /uploads/ epgp_content /S001610/P001794/M025724/ET/1516710503Module_10_Q1_.pdf

11. Behavioral Approach:   An approach that recognizes the practical and situational constraints on human rationality for making decisions. Behavioural scientists attach great importance to participative and group decision-making. They are highly critical of the classical organization structures built on traditional concepts and prefer more flexible organizational structures. Module 10: Modern theory of management. (n.d.-a). https:// epgp.inflibnet.ac.in / epgpdata /uploads/ epgp_content /S001610/P001794/M025724/ET/1516710503Module_10_Q1_.pdf

12. Two major theorists Abraham Maslow and Douglas Mcgregor , came forward with ideas that managers found helpful. Module 10: Modern theory of management. (n.d.-a). https:// epgp.inflibnet.ac.in / epgpdata /uploads/ epgp_content /S001610/P001794/M025724/ET/1516710503Module_10_Q1_.pdf

13. Abraham Maslow: He developed the theory of motivation that was based on three assumptions. First, human beings have needs that are never completely satisfied. Second, human action is aimed at fulfilling the needs that are satisfied at a given point in time. Third, needs fit into a hierarchy, ranging from primary and lower-level needs at the bottom to higher level needs at the top. Module 10: Modern theory of management. (n.d.-a). https:// epgp.inflibnet.ac.in / epgpdata /uploads/ epgp_content /S001610/P001794/M025724/ET/1516710503Module_10_Q1_.pdf

14. Douglas McGregor: He developed a concept of Theory X versus Theory Y dealing with possible assumptions that managers make about workers. Theory X managers tend to assume that workers are lazy, need to be coerced, have little ambition and are focused mainly on security needs. Theory Y managers assume that workers do not inherently dislike work, are capable of self-control, can be creative and innovative and have higher level needs. This approach helped managers develop a broader perspective on the nature of workers and new alternatives for interacting with them.   Module 10: Modern theory of management. (n.d.-a). https:// epgp.inflibnet.ac.in / epgpdata /uploads/ epgp_content /S001610/P001794/M025724/ET/1516710503Module_10_Q1_.pdf

15. Quantitative Approach: The quantitative approach to management uses statistics and mathematical techniques to solve complex problems. Depending on the business area, managers may use techniques like computer simulations or information models to assess performance. This analysis enables them to understand what is working and what is not within the business, then develop solutions to solve or improve the issues they find. Managers can also use these techniques and data to determine the benefits or risks of different ideas. This approach can help managers make objective decisions based on data and facts, rather than personal opinions or feelings, that support the business. An approach that focuses on the use of quantitative tools for managerial decision-making. The quantitative management viewpoint focuses on the use of mathematics, statistics and information aids to support managerial decision making and organizational effectiveness. Three main branches have evolved: operations research, operations management and management information systems. Module 10: Modern theory of management. (n.d.-a). https:// epgp.inflibnet.ac.in / epgpdata /uploads/ epgp_content /S001610/P001794/M025724/ET/1516710503Module_10_Q1_.pdf

16. Operations Research: Operations Research is an approach aimed at increasing decision effectiveness through the use of sophisticated mathematical models and possibilities as they can accomplish great calculation. Some operations research tools are linear programming, querying, waiting for line, routing and distribution models. Operations management: In operations management, managers implement practices that help make business and production processes more efficient. Depending on the situation, this method may require managers to restructure or redesign their processes. Some of the tools they use include forecasting, quality control methods and project planning. Often, these managers aim to make more or better products through the more efficient processes they implement. Service management is a field that is responsible for managing the production and delivery function of an organization's products and services. Operations management is applied to manufacturing industries and uses tools such as inventory analysis, statistical quality control, networking etc. Module 10: Modern theory of management. (n.d.-a). https:// epgp.inflibnet.ac.in / epgpdata /uploads/ epgp_content /S001610/P001794/M025724/ET/1516710503Module_10_Q1_.pdf

17. Management Information System: A management information system (MIS) represents a database that organizes an organization's data, and managers use this system to support informed decision-making. This system collects and stores real-time data, allowing managers to run reports on areas like financials, timelines, personnel and inventory. Managers can then monitor this information and use it to assess performance and make improvements or develop solutions as needed. Management Information System refers to the designing and implementing computer-based information systems for use by the management. Such systems turn raw data into information that is required and useful to various levels of management. Module 10: Modern theory of management. (n.d.-a). https:// epgp.inflibnet.ac.in / epgpdata /uploads/ epgp_content /S001610/P001794/M025724/ET/1516710503Module_10_Q1_.pdf

18. Contingency Approach: A viewpoint which believes that appropriate managerial action depends on the peculiar nature of every situation. This approach is a viewpoint which argues that there is no best way to handle problems. Managerial action depends on the particular situation. Hence, rather than seeking universal principles that apply to every situation, this theory attempts to identify contingency principles that prescribe actions to take depending on the situation. Module 10: Modern theory of management. (n.d.-a). https:// epgp.inflibnet.ac.in / epgpdata /uploads/ epgp_content /S001610/P001794/M025724/ET/1516710503Module_10_Q1_.pdf

19. Systems Approach to management: Systems theory is an approach based on the notion that organizations can be visualized as systems. A system is a set of interrelated parts that operate as a whole in pursuit of common goals. Every system has four major components: 1. Inputs are the various resources required to produce goods and services. 2. Transformation processes are the organization managerial and technological abilities that are applied to convert inputs into outputs. 3. Outputs are the products, services and other outcomes produced by the organization. 4. Feedback is information about results and organizational status relative to the environment. Module 10: Modern theory of management. (n.d.-a). https:// epgp.inflibnet.ac.in / epgpdata /uploads/ epgp_content /S001610/P001794/M025724/ET/1516710503Module_10_Q1_.pdf

20. Resources: 1. Human 2. Materials 3. Equipment 4. Financial 5. Informational Managerial and Technological Abilities: 1. Planning 2. Organizing 3. Leading 4. Controlling 5. Technology Outcomes: 1. P roduct and services 2. Profits and losses 3. Employee growth and satisfaction. Module 10: Modern theory of management. (n.d.-a). https:// epgp.inflibnet.ac.in / epgpdata /uploads/ epgp_content /S001610/P001794/M025724/ET/1516710503Module_10_Q1_.pdf

21. Summary   The Modern Management Theory is the integration of valuable concepts of the classical models with the social and behavioral sciences. This theory posits that an organization is a system that changes with the change in its environment, both internal and external. It emphasizes the use of precise mathematical techniques in the system with analyzing and understanding the inter-relationship of management and workers in all aspect. Modern theories emphasized that an employee does not work for money only. Non-financial rewards such as affection and respect for co-workers are also important factors. Module 10: Modern theory of management. (n.d.-a). https:// epgp.inflibnet.ac.in / epgpdata /uploads/ epgp_content /S001610/P001794/M025724/ET/1516710503Module_10_Q1_.pdf

22. THANKS!