2.1 The importance of the management environment & its impact on
managerial decision-making:
most business environments – complex & interdependent
changes in business environment more rapid, discontinuous & turbulent
threats & opportunities emerge managers need to consider
management mistakes increasingly costly
2.2 Management theories & the management environment:
CONTEMPORARY MANAGEMENT APPROACHES
= used to explain the complexity of the modern business organisation in relation to the environment
in which it functions.
These approaches are
1. the process approach,
2. the systems approach and
3. the contingency approach
ADMINISTRATIVE (OR PROCESS) MANAGEMENT
= the functions of managers within a framework of clear guideline or principles
Five activities (management functions) comprising the administrative role:
1. Planning/forecasting
2. Organising
3. Coordinating
4. Commanding
5. Controlling
PROCESS APPROACH TO MANAGEMENT
= performance of the planning, organising, leading & controlling functions within an org is circular &
continuous
SYSTEMS APPROACH
= asserts that the whole is greater than the sum of its individual parts
1
, SYSTEMS APPROACH TO MANAGEMENT
= a system is a set of interrelated parts arranged in a manner that produces a unified whole
Closed systems = don’t interact with environment
Open systems = interact with environment
Org in its own right = constant interaction with its environment &influenced by both industry-
specific & general environments
CONTINGENCY APPROACH
= this approach analysis the variations in orgs in a systematic way by considering the contingencies,
situational factors, for every org
CONTINGENCY APPROACH TO MANAGEMENT
= the application of management principles depends on the specific situation that managers face at a
given point in time
Based on systems approach
Approach acknowledge every org, department within same org is unique
Every org exists in a unique environment with unique goals & strategies
External environment
Organisation & its internal environment
Transformation
Org transforms
Input inputs to outputs Output
by means of
Org receives inputs Org makes
technology,
from environment outputs such as
operating-, admin-,
(human resources, services/products
control systems &
capital, technology , profits/losses,
the management
& info) jobs available to
process
environment
2
managerial decision-making:
most business environments – complex & interdependent
changes in business environment more rapid, discontinuous & turbulent
threats & opportunities emerge managers need to consider
management mistakes increasingly costly
2.2 Management theories & the management environment:
CONTEMPORARY MANAGEMENT APPROACHES
= used to explain the complexity of the modern business organisation in relation to the environment
in which it functions.
These approaches are
1. the process approach,
2. the systems approach and
3. the contingency approach
ADMINISTRATIVE (OR PROCESS) MANAGEMENT
= the functions of managers within a framework of clear guideline or principles
Five activities (management functions) comprising the administrative role:
1. Planning/forecasting
2. Organising
3. Coordinating
4. Commanding
5. Controlling
PROCESS APPROACH TO MANAGEMENT
= performance of the planning, organising, leading & controlling functions within an org is circular &
continuous
SYSTEMS APPROACH
= asserts that the whole is greater than the sum of its individual parts
1
, SYSTEMS APPROACH TO MANAGEMENT
= a system is a set of interrelated parts arranged in a manner that produces a unified whole
Closed systems = don’t interact with environment
Open systems = interact with environment
Org in its own right = constant interaction with its environment &influenced by both industry-
specific & general environments
CONTINGENCY APPROACH
= this approach analysis the variations in orgs in a systematic way by considering the contingencies,
situational factors, for every org
CONTINGENCY APPROACH TO MANAGEMENT
= the application of management principles depends on the specific situation that managers face at a
given point in time
Based on systems approach
Approach acknowledge every org, department within same org is unique
Every org exists in a unique environment with unique goals & strategies
External environment
Organisation & its internal environment
Transformation
Org transforms
Input inputs to outputs Output
by means of
Org receives inputs Org makes
technology,
from environment outputs such as
operating-, admin-,
(human resources, services/products
control systems &
capital, technology , profits/losses,
the management
& info) jobs available to
process
environment
2
