The Four Contemporary Approaches to Management
- Sociotechnical Systems
- Quantitative Management
- Organizational Behavior
- 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 group behaviors
Systems theory shows that the organization’s performance depends on how effective it is in providing goods or services using inputs from the external environment. Emphasis: Changing inputs into outputs
Definition: Open System
In the systems theory contemporary approach to management, an open system is a set of components and processes, i.e. the organization, subject to the influence of the external environment. The organization is an open system because its components and processes change due to external factors.
Internal, Competitive, and Macro-environments of an Organization
The internal environment of an organization is the set of employees, processes and components inside the organization.
The competitive environment of an organization involves the organization and other players that compete in the market.
The macro-environment of an organization involves other variables beyond the market, such as the social, political, legal and technological variables.
How the Contemporary Approaches are Relevant in the Three Environments
The sociotechnical systems approach is relevant to the internal environment, because the focus of this contemporary approach to management is on the organization’s employees and their knowledge, training and tools.
The quantitative management approach is relevant to the internal environment, competitive environment, and macro-environment, because this contemporary approach to management uses data from all environments for analysis.
Organizational behavior is relevant to the internal environment, because this contemporary approach to management focuses mainly on behaviors of the firm’s workers.
Systems theory is relevant to the internal environment, competitive environment, and macro-environment, because this contemporary approach to management considers all factors inside and outside the organization.
- Anderson, D., Sweeney, D., Williams, T., Camm, J., & Martin, R. (2011). An Introduction to Management Science: Quantitative Approaches to Decision Making, Revised. Cengage Learning.
- Bateman, T., & Snell, S. (2013). Management, 3rd Ed. McGraw-Hill.