This article throws light upon the top eight characteristics of modern management thoughts. The characteristics are: 1. The Systems Approach 2. Dynamic 3. Multilevel and Multidimensional 4. Multi-Motivated 5. Multidisciplinary 6. Multivariate 7. Adaptive 8. Probabilistic.
Modern Management Thought: Characteristic # 1.
The Systems Approach:
An organisation as a system has five basic parts:
(1) Input,
(2) Process,
(3) Output,
(4) Feedback, and
(5) Environment.
It draws upon the environment for inputs (resources). Management allocates and combines these resources or inputs to produce certain desirable outputs. The success of these output can be judged by means of feedback. If necessary we have to modify our mix of inputs to produce as per changing demands.
Modern Management Thought: Characteristic # 2.
Dynamic:
We have a dynamic process of interaction occurring within the structure of an organisation. The equilibrium of an organisation and its structure is itself dynamic or changing. The classical theory assumed static equilibrium.
Modern Management Thought: Characteristic # 3.
Multilevel and Multidimensional:
Systems approach points out wheels or complex multilevel and multidimensional character. We have both a micro and a macro approach. A company is micro (little world) within a business system. It is macro (the great world) with respect to its own internal units.
Within a company as a system we have:
(1) Production subsystem,
(2) Finance subsystem,
(3) Marketing subsystem,
(4) Personnel subsystem.
All parts or components are interrelated. Both parts as well as the whole are equally important. At all levels, organisations, interact in many ways.
Modern Management Thought: Characteristic # 4.
Multi-Motivated:
Classical theory assumed a single objective, for instance, profit. Systems approach recognises that there may be several motivations behind our actions and behaviour. Management has to compromise these multiple objectives, e.g., economic objectives and social objectives, i.e. productivity and satisfaction (shareholders, employees, customers, community and society).
Modern Management Thought: Characteristic # 5.
Multidisciplinary:
Systems approach integrates and uses with profit ideas emerging from different schools of thought. Management freely draws concepts and techniques from many fields of study such as psychology, social psychology sociology, ecology, economics, mathematics, operations research, systems analysis, etc.
Modern Management Thought: Characteristic # 6.
Multivariate:
It is assumed that there is no simple cause-effect phenomenon. An event may be the result of so many factors which themselves are interrelated and interdependent. Some factors are controllable, some uncontrollable. Intelligent planning and control are necessary to face these variable factors. We do not live in a vacuum. We live in a dynamic and complex macrocosm the great world system,
Modern Management Thought: Characteristic # 7.
Adaptive:
The survival and growth of an organisation in a dynamic environment demands an adaptive system which can continuously adjust to changing conditions. A viable organisation and its environment are in a dynamic equilibrium.
An organisation is an open system adapting itself through the process of feedback. We have a human or machine controller to provide necessary corrections on the basis of feedback of information to achieve the desired results.
Modern Management Thought: Characteristic # 8.
Probabilistic:
Management principles point out only probability and never the certainty of performance and the consequent results. We have to face so many variables simultaneously. How can we have absolute predictability of events? Our forecasts are mere tendencies. Of course, intelligent forecasting and planning can reduce the degree of uncertainty to a considerable extent.