Contemporary Approaches in Management

          Contemporary approaches in management have changed the business landscape, leading to an open system better for all.  Businesses today are managed upon the construct of these contemporary approaches.  This essay will attempt to explain the differences of the approaches and how they are used by management today.   Explaining the relevancy of the contemporary approaches in today’s modern workplace will also be a goal of this essay.  We have been part of a revolution in modern business management these approaches are the pillars of that success.

The contemporary approach to managing business grew in use in the mid-twentieth century.  The contemporary approach to management is consistent of four types of theories and processes: sociotechnical systems theory, quantitative management, organizational behavior and systems theory.  Sociotechnical systems theory suggests that if the company provides the employee with the right training and skills to complete the task the organization will prosper.  Quantitative management is the mathematical method to solving problems in a company, using data and forecasting management can make decisions based on this knowledge.  Organizational behavior is a more psychological approach to management focusing on the company and its employees.  Organizational theory has been accused of being to vague, its idea of solving a problem by understanding the mental side of the employee and organization is not widely used.  Systems theory is the idea that the business is an open system subject to outside influence, and should change and manage according to the needs of the market.  These are the four main approaches in modern business era, each one is different yet important to successful businesses today.

Systems theory describes the concept of an open system chron.com defines an open system as having “open, or porous boundaries that allow feedback exchanges from inside and outside the business” (Griffin, 2018, para.3).  Open systems are comprised of three important factors: internal, competitive, and macro.  The internal forces of open systems are that of management, employees, resources and culture.  Having a healthy work environment with the free exchange of ideas, and an accepting culture is an internal force that will help businesses succeed.  Competitive forces also referred to as outside forces such as suppliers, customers, rivals, are factors that will affect your company from the outside.  Late deliveries from a supplier, large amounts of competition are debilitating to businesses and can be a challenge.  Macro environments are an outside force that sometimes cannot be controlled, the economy, government, demographics.  A government mandate on electric cars could really stifle Tesla’s production, these are outside forces that a company can not control.  The three factors to an open system are a guide for any management team.

In conclusion, to stay relevant in todays modern work environment you must pay attention to all aspects of your business.  The open system provides a template for management to apply when making decisions to open a business or deciding the future of a current business.  Knowing internal and external forces that may guide the direction of your enterprise are key.  Control your internal environment by creating a healthy workplace for employees, realize the macro environment and its unknowing effect on your product.  Competition is and external force that could derail a management idea quickly, being educated on the external forces are crucial.  Sam Walton was quoted as saying “Control your expenses better than your competition.  This is where you can always find the competitive advantage” (Walton & Huey, 1992).  Today most companies use an open-system, it allows a company to be nimble and adapt to the changes that get thrown at them. 

References

Griffin, D. (2018). Open System Organizational Structure. Retrieved from Chron.com:        http://smallbusiness.chron.com/open-system-organizational-structure-432.html

Walton, S. & Huey, J. (1992). Sam Walton: Made in America. In S. Walton, & J. Huey, Sam Walton: Made in America. Doubleday. Retrieved from http://archive.fortune.com/magazines/fortune/fortune_archive/1992/06/29/76578/index.htm