IntroductionThe recent global competition has resulted to the use of contemporary management of organizations. The modern approaches to management include two approaches which is the systems theory and the contingency theory. Once these two approaches are combined, the outcome is the contemporary management. According to Head (2005) the systems theory was introduced by Churchman West and it is important since it enables managers to look as the organization at a larger view which included analyzing the external environment and the internal environment. This study discusses the importance of using the modern approach of management over the traditional approach which includes the human relations approach and scientific management and how they are applied in the modern world. There are four major components contained in the systems theory.
One of these is the inputs that every organization provides for the smooth running of the business. These inputs include the amount of labour for example the number of employees in the organization. The raw materials employed for the smooth running of the business are also included as inputs. Others include the amount of capital, machinery bought or hired and the necessary information collected before starting the business (Braverman 1998). There is also the transformation process which involves the transformation of inputs into useful products that have value attached to them.
According to Bloisi et al. (2004) the transformation process involves various aspects which include the planning process, organizing, and proper staffing which makes sure that the employees available are capable of producing the expected outcome. The process also involves proper leadership, control process and ensuring that technology is maintained. The third component involves the total output of the firm after all the processes.
Outputs include goods and services produced by the organization. It also includes the profits gained or the losses. Employee satisfaction is also included in the output stage. The final process is the feedback obtained from the consumers of the produced products. A positive feedback is obtained once all the above processes are well managed and when profits are achieved in the output stage. The systems theoryIn the systems theory of modern management, there are two systems used. One is the open system which shows total interruption between the system and the internal environment of the organization.
The other system is the closed system which does not interact with the organizational internal environment. Gershon (2001) has shown that the other theory applied in modern management includes the contingency theory or the situational theory. This theory was introduced by the managers, consultants and various researchers. The theory was then linked its concepts with real life situations. The theory was first introduced by Paul Hersey and Ken Blanchard who linked the theory to the importance of leadership in management.
This theory tends to show management that all management issues can not be managed using one situation therefore showing that many situations should be combined to achieve maximum goals. Management should therefore consider all the situational factors in order to come up with a particular business decision. Head (2005) argues that managers should therefore be very keen in evaluation the right situation that best contributes to achieving all the organizational goals. This will involve analyzing various techniques to several situations and under certain circumstances which involve time limit and level of management.