Systems Theory
- Earliest in the 1930’s but not accepted till the 60’s
- Business viewed as a system:
Inputs – raw materials, HR, capital etc
Process – work activities, management activities, production etc
Output – final products/services, financial results etc
- The success of a business is dependant on how it interacts with its environment (internal/external)
Contingency Theory
- Suggests that no one theory always applies to a business or situation
- Business face ever changing contingencies and thus react differently to each
- Management must be ever-aware of environmental changes and adopt adequate contingencies to maintain productivity and competitive advantage.
Adapting Management and Organisational approaches to circumstances Main circumstances that require adapting to:
- Size of business – a growing business requires an evolving approach to coordinating it
- Routine of Tasks – management must change according to staticty/dynamicity of tasks performed
- Environment – uncertainty affects management (Political, technological, economic and social sources of uncertainty)
- Difference in Individuals – this impacts the approach to communication, leading and motivating workers by management
the strengths and weaknesses of each theory are not required for systems and contingency according to the syllabus
only classic scientific, behavioural and political