Modern concepts of management

Nowadays there are many concepts and methods of management. The public in general tend to believe that a skilled manager is a manager who knows his job in details, knows how to organize the work process as part of a modern management system and proficiently uses relevant management methods according to every possible case.

First of all, let us try to understand what is the unique feature of the modern management. The clue feature of the modern management is attaching particular importance to the using of mathematical techniques and systems in order to analyze all aspects of management, including communication inside the system, coordination of functioning processes and decision-making.

Furthermore, one should not forget that modern management approach is to state the fact that it is not only money that a worker works for, but feeling of satisfaction, good standard of living and confidence in the future.

We can distinguish three main streams in the modern management theory:

1. Quantitative Approach

This approach emphasizes the use of statistical model and systematic mathematical techniques to solving complex management problems. It also requires transition from quality value to quantity value. In other words we can call it “Operational research” due to applying scientific research methods to the organization’s operational processes.

Benefits:

• The risk and benefit of any action can be easily calculated
• Accuracy
• Ability to make a projection

1. System Approach

This approach is not about management process but the concept of organization as an open system, which parts cannot be changed without further changes in the other parts of the system. There are two types of systems:

• Closed operational system
• Open operational system

System approach states that “system” is a complex of correlated and regularly performed actions. It let the system to manage the company and have long-time success.

System approach has some principles:

1. Cohesion – every system’s element depends on its’ place and functions inside the system.
2. Strict structure – it is possible to describe the system through its’ structure.
3. Hierarchical pattern – every system’s element is seen as a whole system and the system itself as a part of a bigger system.
4. Contingency Approach

This approach accepts the dynamics and complexities of the organization structure. The clue idea of this approach is the situation when there are inner and external factors which affect the result of the activity in that very moment.

This approach doesn’t have any rules or tutorials how to manage a company effectively. It could be described as a way of thinking about company’s problems and its’ solutions.

To sum it all up it should be said that modern management theory depends upon System approach and Contingency approach. Management is also influenced by Internal and external environment. Appropriate techniques are determined by every possible situation and environmental factors of an organization.

Thus the conclusion is that there cannot be any fixed universal principles of management and organizations, but special way of thinking about how the system itself should be working and regulated.