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The contemporary approaches to management of organizations are sociotechnical theory, organizational behavior, systems theory, and quantitative management. All of these have their own unique differences. For instance, sociotechnical theory evaluates the interaction between people and technology in a business. Compared to quantitative management, that deals with the mathematical and statistical analysis of decisions for an organization. On the other hand, there is organizational behavior that covers the behaviors and interactions of workers. The last approach is systems theory, this theory explains the business performance. Which is evaluating the goods and services. As I said before all of these approaches are needed in an organization.
An open system interacts with it’s environment through giving and receiving information (Crystal Vogt). Along with having contemporary approaches to an organization, there are also what’s called environments of the organization. Which includes internal, competitive, and macro environments. The internal environment focuses on employees, management and culture. In addition the competitive environment presents the challenges of the competition between other companies, as well as goods and services. Competitors present challenges as they vie for customers in a marketplace with similar products or services. The management of an organization should be prepared to respond to the competitor (Manasi Mishra,2013). The third environment would be macro environment, this environment influences the working, performance, decision making and strategy of all business groups at the same time (Surbhi. S,2015). These environments are also important to an organization, so that every task can be done in an organized way.
I believe that the contemporary approaches are relevant to the environmental approaches because in some way, shape or form they all bounce off of each other in an organization. Each contemporary approach has a different way of being relevant to the environmental approaches. For example, the systems theory is relevant to all three environmental approaches compared to organizational behavior is only relevant to the internal environment. Each environment has a unique way of being linked to a contemporary approach.
In conclusion, An organization needs a set of approaches, like the contemporary or environmental approaches to be managed sufficiently. None of these theories or environmental approaches are complete on their own. They all complement each other in some way. Keep in mind that the organizational behavior and quantitative management affect the internal business environment in most cases. If the management makes uninformed decisions the organization might end up suffering the consequences. It is the duty of the managers and executive to make an informed decision that motives the employees. If they fail to recognize the need, then the whole system might end up suffering.
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