Contemporary/Modern Period:

2000s

what were the two theories during the contemporary period?

• systems theory

• contingency theory

- explains how interrelated parts operate together to achieve a common goal or purpose

Systems theory

• It defines an organization as a system that is composed of four elements: (input, process, output, feedback)

systems theory

• Systems theory - explains how interrelated parts operate together to achieve a common goal or purpose

  • It defines an organization as a system that is composed of four elements:

    • what are these four elements?

• Inputs (materials and human resources)

• Transformation process (technology/managerial operations)

• Outputs (products/services)

• Feedback (reactions from the environment)

Also called the Situational approach, has replaced the simplistic “one best” approach

contingency theory

contingency theory is also called

Situational approach

argues that universal theories cannot be applied to organizations because each organization has unique characteristics and is confronted by varied problems or challenges

Fred Fiedler in 1967

Emphasizes consistency in an organization and minimal to no errors or defects in production

Total quality management theory

This ensures quality products and services that result in high customer satisfaction and increased revenue

Total quality management theory

introduced TWM to japan leading to toyota

william edward deming

• • The theory espouses the idea of “a never-ending strive for perfection in everything you do.”

• Continuous improvement

the term - the seven wastes

Muda

What are the seven major wastes

• Transport

• Inventory

• Motion

• Waiting

• Overproduction

• Over-processing

defects

- the waste of unevenness

Mura

• Caused by unevenness or inconsistency in your process

• Is responsible for many of the 7 wastes of muda

• Stops your tasks from flowing smoothly across your work process, and therefore

mura

 the waste of overburden

muri

• Is a major problem for companies that apply push systems

• When you assign too much to your team, you place unnecessary stress on both your team and the process

muri