Management Theories and Strategic Management FDSC 3060

Strategic Management Definition

Steering an organization through strategic change under conditions of complexity and uncertainty.

Five Stages of Strategic Management

1. Form strategic vision, 2. Set objectives, 3. Create strategic plan, 4. Implement and execute, 5. Initiate corrective adjustments.

Four Classifications of Management Theories

Classical, Human Relations, Management Science, and Modern/Systems Approach.

Classical Management Theory

A historical theory of management focusing on tasks, structure, and authority.

Unity of Command

The classical principle that each person should report to only one supervisor.

Basic Principles of Classical Theory

One best way to do each job, one best way to structure an organization, and a rational, impersonal arrangement.

Human Relations Theory

A historical theory viewing the organization as a social system that recognizes informal organization and employee social groups.

Benefits of Human Relations Theory

Greater employee commitment, harder work, higher engagement, and better retention.

Management Science / Operations Research

An approach emphasizing research on operations and quantitative techniques to aid decision-making.

Management Information Systems (MIS) Tools

Linear programming, queuing models, and simulation models.

PERT (Program Evaluation and Review Technique)

A management science tool used for effective planning and control functions.

Three Modern Management Theories

Systems approach, contingency theory, and chaos theory.

Systems Approach

A set of interdependent parts that work together to achieve a common goal.

Wholism in Systems Theory

The doctrine that the whole structure of an entity is more than the sum of its parts.

Contingency Approach

The belief that management activities and leadership behavior should be adjusted to fit the specific situation.

Determinants in Contingency Theory

Workforce characteristics, organization size/type, and goals determine the appropriate managerial approach.

Chaos Theory in Management

The view that organizational events are complex, unpredictable, rarely controlled, and messy.