Read this article to learn about contemporary management concepts and theories…
Contemporary Management Concepts
The contemporary theory of management is a kind of modern techniques to administrating people in non-profit organizations, business organizations, and government bodies. It indicates the formal relation between the current and up-to-date trends in the field of management.
It means that the individual who is involved in contemporary management should be aware of the current variations of management action theories and experiment with the changes in their business organizations.
This management is very useful for newbie managers because this will give them a lot of learning and managerial activities.
Contemporary Management Theories
These management theories help to represent the series of management which is given by various thinkers. Some of the theories are discussed below…
1. Theory of Peter F. Drucker (1909-2005):
Peter F. Drucker (management thinker) was born in 1909. He wrote on various subjects like religion, education, economics, psychology, sociology, management, and many other related areas. He is considered very popular for all these contributions and as well as he is also known as the ‘Father of Modern Management’. He is very famous in the field of management because it provides a lot of management theories, formulas, solutions, and practices.
He wrote various books on management like: The Age of Discontinuity (1969), The Practice of Management (1954), Management Challenges for 21st Century (1999), The Effective Executive (1967), and so on.
2. Theory of Michael Porter (Born on May 23, 1947):
Michael Porter is a writer of 18 books and many articles on competitive advantage and strategy of nations. He is one of the most famous writers in economics and business but their main core field is company strategy. He is known as the father of the modern strategy.
He contributes many topical headings on the topic of management:
(i) Five Force Analysis: (a) Bargaining power of buyers, (b) Threat of new competitors, (c) Threat of substitute products, (d) Rivalry among the existing firms, (e) Bargaining power of suppliers.
(ii) Generic Competitive Strategies: (a) Cost leadership strategy, (b) Differentiation strategy, (c) Focus strategy.
(iii) Value Chain Analysis: (a) Coordination and collaboration, (b) Leadership, (c) Organizational process, (d) Human resources.
3. Theory of Tom Peters (Born on November 7, 1942):
Mr. Peter worked as a management consultant employer at Mckinsey & Company from 1974 to 81. In 1981, he left their job company and became an independent management consultant. He gives solutions to their management problems and tries to solve them in an efficient manner.
His ideas on management are as follows:
(i) He introduces the topic of ‘liberation management’ and make organization structure flexible.
(ii) He provides 2 empowering ways to redesign or modify jobs are:- (a) Job enlargement, (b) Job enrichment.
(iii) He said that all organizations should work according to rules and procedures.
(iv) The organization should be flexible in nature.
4. Theory of Michael Hammer (1948-2008):
He was an American engineer, former professor, and management author of computer science at Massachusetts Institute of Technology (MIT). He is known as the founders of the management theory of business process re-engineering.
He is also known as the father of re-engineering. His thoughts on management are as follows:-
(v) Participative decision-making.
(vi) Revolutionary change.
5. Theory of Peter Senge (Born in 1947):
Peter Senge is a writer of organizational development guide. He also wrote his book on this topic and the book name is ‘The Fifth Discipline’ in 1990. He develops the way of learning and their improvement techniques. He suggests the following pattern for creating a learning organization like systems thinking, mental models, personal mastery, shared vision, Team learning, and so on.
6. Theory of C.K. Prahlad (1941-2010):
C.K. Prahlad was also known as a famous management guru. He is popular for his book ‘The Core Competence’. His thoughts on management focus firstly on core competence. Core competence is an organizational capability and skill which is not influenced by competing firms. It is a type of bundle which provides extra benefits to our customers.
His management ideas are:-
(i) With the use of core competence, organizations can easily outrank our competitors from the market.
(ii) It helps to focused on strategical importance like total quality management, statistical quality control, production planning and control, and so on.
7. Theory of Mary Parker Follett (1868-1933):
The theory of Mary Parker Follett suggests the behavioral approach of management theory. She was a social worker and solve the issues related to the working condition of employees. She believed in coordination, mutuality, and trust between the employers and employees.
She established the group on social relationships in business organizations.
8. Theory of Chester I. Barnard (1886-1961):
It is a theory which is based on the education of social systems. It fills the gap between the modern and traditional theories of management. He tries to define the organization as a system of coordinated activities and the forces of two or more persons. He also focused on the principles of management which are given by the Henry Fayol.
He suggests a various point of things for this:
(i) Balance of internal and external forces of the business environment.
(v) Leadership Qualities.
So, I hope you have learned about Contemporary Management Concepts and Theories…