Theories of Management

Modern Theories

Systems Theory

Systems approach looks at

4 major components -

  1. Input
  2. Transformational Process
  3. Output
  4. Feedback

Says there are two types of systems

flowchart
a-->b(open systems)
a-->c(closed systems)
a(systems)

open systems - those that interact with its environment closed systems - those that do NOT interact w its environment

Contingency Theory

also called situational theory

it says there is no one best way to manage all situations

it was developed by managers, consultants, and researchers who tried to apply the concepts of the major schools for management through real life situations the task of managers is to identify which technique will in a particular situation or under particular circumstances and at a particular time, best contribute to the attainment of management goals”