1. Modern theories of
Management
SEMINAR

2. “It is worth reminding ourselves that
management does not really exist. It is
a word, an idea. Like science, like
government, like engineering,
management is an abstraction. But
managers exist. And managers are not
abstractions”
ABSTRACT

3. A brief Introduction
 The contingency approach to management finds its foundation in the
contingency theory of leadership effectiveness developed by
management psychologist Fred Fielder
 Management in one or the other form has existed in every nook and
corner of the world since the dawn of civilization
 Modern Management has grown with the growth of social-economics
and scientific institution.
 Modern view consists that a worker does not work for only money. They
work for their satisfaction and happiness with good living style.

4. The Modern Period (1960 to
present).
 The modern business ideologists recognize the social
responsibilities of business activities and think on similar
lines.

5. Under modern management
thought three streams of thinking
have been noticed since 1960:
 (i) Contingency Approach.
 (ii) Systems Approach.
 (iii) Quantitative or Mathematical Approach

6. Contingency or Situational
Approach:

7. What it is ?
 Contingency Approach is also known as situational approach
 During the 1970’s, contingency theory was developed by J.W. Lorsch
and P.R. Lawrence,
 Management problems are different under different situations and
require to be tackled as per the demand of the situation.
 A contingency approach is an approach, where behaviour of one
sub-unit is dependent on its environment and relationship to other
units or sub-units that have some control over the sequences desired
by that sub- unit.”

8. Major contributors in the
contingency theories are-
 G.M. Stalker,
 Joan Woodward,
 Tom Burns,
 Paul R. Lawrence,
 L.W. Lorsch.

10. Inside concept
 It says that organization system is not a matter of
managerial choice, but contingent upon its external
environment
 Contingency approach also recognises that
organisational system is the product of the interaction of
the sub systems and the environment.
 the contingency approach provides a pragmatic
method of analysing organisational sub-systems and tries
to integrate these with the environment.

11. Mark Richard Rosenzweig
was an American research psychologist who found in animal
studies on neuroplasticity that suggests
---the brain continues developing anatomically, reshaping
and repairing itself into adulthood based on life experiences,
--- overturning the conventional wisdom that the brain
reached full maturity in childhood.

12. Kast and Rosenzweig –what they
say
 The contingency view seeks to understand the inter-relationships
within and among sub-systems as well as between the
organization and its environment
 to define patterns of relationships or configurations of variables
 contingency views are ultimately directed toward suggesting
organization designs and managerial actions most appropriate
for specific situations.

13. Features of Contingency Approach
 the contingency approach does not accept the
universality of management theory. It stresses that there is
no one best way of doing things
 Management is situation, and managers should explain
objectives, design organisations and prepare strategies,
policies and plans according to prevailing circumstances
 managerial policies and practices to be effective, must
adjust to changes in environment.

14. Features of Contingency Approach
 it should improve diagnostic skills so as to anticipate
and ready for environmental changes.
 managers should have sufficient human relations skill
to accommodate and stabilise change.

15. Example -Arianna Huffington
(Huffington post)

16. Synopsis
 Born on July 15, 1950, in Athens, Greece, Arianna Huffington went
on to study economics at the University of Cambridge, eventually
moving to the United States.
 She was a conservative commentator before switching to liberal
politics and started the Web site The Huffington Post in 2005.
 The site, purchased by AOL in 2011, has gone on to become a
popular and powerful online news platform.
 Huffington is also the author of more than a dozen books on topics
ranging from feminism to corporate America to politics.

17. Contingency approach
 Huffington was initially known for her conservative political
views and commentary,
 and she made regular television appearances to support
her standpoints.
 But she eventually began to embrace more left-leaning
platforms(liberal) , including ecological activism and
corporate reform.
why ?

18. Conclusion
 This approach argues that there is no one universally
applicable set of rules by which to manage organization
 This approach takes a realistic view in management and
organisation.
 the way you manage should change depending on the
circumstances.