{"id":493,"date":"2019-07-29T16:59:03","date_gmt":"2019-07-29T16:59:03","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/?post_type=chapter&#038;p=493"},"modified":"2024-04-24T23:20:47","modified_gmt":"2024-04-24T23:20:47","slug":"modern-management-theories","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/chapter\/modern-management-theories\/","title":{"raw":"Modern Management Theories","rendered":"Modern Management Theories"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Discuss modern management theories<\/li>\r\n<\/ul>\r\n<\/div>\r\n<img class=\"alignright wp-image-671\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/07\/05210056\/adeolu-eletu-lWVoW8LpcEQ-unsplash-1024x654.jpg\" alt=\"Businessman typing on a laptop\" width=\"350\" height=\"223\" \/>Current management thinking incorporates ideas from administrative, behavioral, and scientific management, factoring in operating realities and available technology and considering not only the worker but the organization and larger operating environment. Two schools of thought that are particularly relevant to our times are the <strong>learning organization<\/strong> and <strong>quantitative management<\/strong>.\r\n<h2>Learning Organizations<\/h2>\r\nAuthor, MIT professor, and learning systems theorist Donald Sch\u00f6n developed the conceptual framework for the learning organization, stating that:\r\n<blockquote>The loss of the stable state means that our society and all of its institutions are in continuous processes of transformation. We cannot expect new stable states that will endure for our own lifetimes. We must learn to understand, guide, influence and manage these transformations. We must make the capacity for undertaking them integral to ourselves and to our institutions. We must, in other words, become adept at learning. We must become able not only to transform our institutions, in response to changing situations and requirements; we must invent and develop institutions which are \"learning systems,\" that is to say, systems capable of bringing about their own continuing transformation.[footnote]\"<a href=\"http:\/\/infed.org\/mobi\/the-learning-organization\/\" target=\"_blank\" rel=\"noopener\">The Learning Organization: Principles, Theories, and Practice.<\/a>\" infed.org. Accessed July 29, 2019.[\/footnote]<\/blockquote>\r\nAuthor, systems scientist and MIT Sloan School of Management senior lecturer Dr. Peter Senge proposed his theory of the learning organization in his 1990 classic <em>The Fifth Discipline<\/em>, which Harvard Business Review cited as \u201cone of the seminal management books of the past 75 years.\u201d[footnote]\"<a href=\"http:\/\/infed.org\/mobi\/peter-senge-and-the-learning-organization\/\" target=\"_blank\" rel=\"noopener\">Peter Senge and the Learning Organization.<\/a>\" infed.org. Accessed July 29, 2019.[\/footnote] Senge\u2019s argument: \u201cin the long run the only sustainable competitive advantage is your organization\u2019s ability to learn faster than the competition.\u201d To be clear, learning is not only a leader\/manager priority; Senge states that \u201corganizations need to \u2018discover how to tap people\u2019s commitment and capacity to learn at all levels.\u2019\u201d[footnote]Ibid.[\/footnote]\r\n\r\nFor a brief synopsis of the book, watch Miles MacFarlane\u2019s 3-Minute summary of The Fifth Discipline:\r\n\r\n[embed]https:\/\/www.youtube.com\/watch?v=MQMRMAmT2gg[\/embed]\r\n\r\nYou can also <a href=\"https:\/\/course-building.s3-us-west-2.amazonaws.com\/HRManagement\/Transcripts\/Transcript_TheFifthDisciplineinThreeMinutes.txt\" target=\"_blank\" rel=\"noopener\">download a transcript of The Fifth Discipline in Three Minutes here.<\/a>\r\n<h2>Quantitative Management<\/h2>\r\nQuantitative Management is focused on data-driven decision making. Briefly, this school of thought views management as a problem to be solved through the application of analytical tools and techniques. Developed as a technique for improving military outcomes in World War II, quantitative management uses mathematical techniques and technology\u2014data analysis, information modeling, computer simulation\u2014to improve decision making. The benefit of using mathematical models is the ability to systematically analyze and reduce the complexity of problems. Quantitative techniques are generally developed and used to inform management rather than as a school of management thought per se. For example, quantitative analysis can be used to identify and quantify the factors that influence decisions, providing a more informed basis for action. We\u2019ll discuss this topic further in <a href=\"..\/chapter\/why-it-matters-people-analytics-and-human-capital-trends\/\" target=\"_blank\" rel=\"noopener\">Module 3: People Analytics and Human Capital Trends<\/a>.\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/0ab80180-9f0c-4cfe-8eaa-36637c874c85\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Discuss modern management theories<\/li>\n<\/ul>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-671\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/07\/05210056\/adeolu-eletu-lWVoW8LpcEQ-unsplash-1024x654.jpg\" alt=\"Businessman typing on a laptop\" width=\"350\" height=\"223\" \/>Current management thinking incorporates ideas from administrative, behavioral, and scientific management, factoring in operating realities and available technology and considering not only the worker but the organization and larger operating environment. Two schools of thought that are particularly relevant to our times are the <strong>learning organization<\/strong> and <strong>quantitative management<\/strong>.<\/p>\n<h2>Learning Organizations<\/h2>\n<p>Author, MIT professor, and learning systems theorist Donald Sch\u00f6n developed the conceptual framework for the learning organization, stating that:<\/p>\n<blockquote><p>The loss of the stable state means that our society and all of its institutions are in continuous processes of transformation. We cannot expect new stable states that will endure for our own lifetimes. We must learn to understand, guide, influence and manage these transformations. We must make the capacity for undertaking them integral to ourselves and to our institutions. We must, in other words, become adept at learning. We must become able not only to transform our institutions, in response to changing situations and requirements; we must invent and develop institutions which are &#8220;learning systems,&#8221; that is to say, systems capable of bringing about their own continuing transformation.<a class=\"footnote\" title=\"&quot;The Learning Organization: Principles, Theories, and Practice.&quot; infed.org. Accessed July 29, 2019.\" id=\"return-footnote-493-1\" href=\"#footnote-493-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a><\/p><\/blockquote>\n<p>Author, systems scientist and MIT Sloan School of Management senior lecturer Dr. Peter Senge proposed his theory of the learning organization in his 1990 classic <em>The Fifth Discipline<\/em>, which Harvard Business Review cited as \u201cone of the seminal management books of the past 75 years.\u201d<a class=\"footnote\" title=\"&quot;Peter Senge and the Learning Organization.&quot; infed.org. Accessed July 29, 2019.\" id=\"return-footnote-493-2\" href=\"#footnote-493-2\" aria-label=\"Footnote 2\"><sup class=\"footnote\">[2]<\/sup><\/a> Senge\u2019s argument: \u201cin the long run the only sustainable competitive advantage is your organization\u2019s ability to learn faster than the competition.\u201d To be clear, learning is not only a leader\/manager priority; Senge states that \u201corganizations need to \u2018discover how to tap people\u2019s commitment and capacity to learn at all levels.\u2019\u201d<a class=\"footnote\" title=\"Ibid.\" id=\"return-footnote-493-3\" href=\"#footnote-493-3\" aria-label=\"Footnote 3\"><sup class=\"footnote\">[3]<\/sup><\/a><\/p>\n<p>For a brief synopsis of the book, watch Miles MacFarlane\u2019s 3-Minute summary of The Fifth Discipline:<\/p>\n<p><iframe loading=\"lazy\" id=\"oembed-1\" title=\"The Fifth Discipline in Three Minutes\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/MQMRMAmT2gg?feature=oembed&#38;rel=0\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>You can also <a href=\"https:\/\/course-building.s3-us-west-2.amazonaws.com\/HRManagement\/Transcripts\/Transcript_TheFifthDisciplineinThreeMinutes.txt\" target=\"_blank\" rel=\"noopener\">download a transcript of The Fifth Discipline in Three Minutes here.<\/a><\/p>\n<h2>Quantitative Management<\/h2>\n<p>Quantitative Management is focused on data-driven decision making. Briefly, this school of thought views management as a problem to be solved through the application of analytical tools and techniques. Developed as a technique for improving military outcomes in World War II, quantitative management uses mathematical techniques and technology\u2014data analysis, information modeling, computer simulation\u2014to improve decision making. The benefit of using mathematical models is the ability to systematically analyze and reduce the complexity of problems. Quantitative techniques are generally developed and used to inform management rather than as a school of management thought per se. For example, quantitative analysis can be used to identify and quantify the factors that influence decisions, providing a more informed basis for action. We\u2019ll discuss this topic further in <a href=\"..\/chapter\/why-it-matters-people-analytics-and-human-capital-trends\/\" target=\"_blank\" rel=\"noopener\">Module 3: People Analytics and Human Capital Trends<\/a>.<\/p>\n<div class=\"textbox tryit\">\n<h3>Practice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_0ab80180-9f0c-4cfe-8eaa-36637c874c85\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/0ab80180-9f0c-4cfe-8eaa-36637c874c85?iframe_resize_id=assessment_practice_id_0ab80180-9f0c-4cfe-8eaa-36637c874c85\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-493\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Modern Management Theories. <strong>Authored by<\/strong>: Nina Burokas. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Specific attribution<\/div><ul class=\"citation-list\"><li>Businessman typing on a laptop. <strong>Authored by<\/strong>: Adeolu Eletu. <strong>Provided by<\/strong>: Unsplash. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/unsplash.com\/photos\/lWVoW8LpcEQ\">https:\/\/unsplash.com\/photos\/lWVoW8LpcEQ<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/cc0\">CC0: No Rights Reserved<\/a><\/em>. <strong>License Terms<\/strong>: Unsplash License<\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">All rights reserved content<\/div><ul class=\"citation-list\"><li>The Fifth Discipline in Three Minutes. <strong>Authored by<\/strong>: Miles MacFarlane. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/youtu.be\/MQMRMAmT2gg\">https:\/\/youtu.be\/MQMRMAmT2gg<\/a>. <strong>License<\/strong>: <em>All Rights Reserved<\/em>. <strong>License Terms<\/strong>: Standard YouTube License<\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section><hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-493-1\">\"<a href=\"http:\/\/infed.org\/mobi\/the-learning-organization\/\" target=\"_blank\" rel=\"noopener\">The Learning Organization: Principles, Theories, and Practice.<\/a>\" infed.org. Accessed July 29, 2019. <a href=\"#return-footnote-493-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><li id=\"footnote-493-2\">\"<a href=\"http:\/\/infed.org\/mobi\/peter-senge-and-the-learning-organization\/\" target=\"_blank\" rel=\"noopener\">Peter Senge and the Learning Organization.<\/a>\" infed.org. Accessed July 29, 2019. <a href=\"#return-footnote-493-2\" class=\"return-footnote\" aria-label=\"Return to footnote 2\">&crarr;<\/a><\/li><li id=\"footnote-493-3\">Ibid. <a href=\"#return-footnote-493-3\" class=\"return-footnote\" aria-label=\"Return to footnote 3\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":17,"menu_order":6,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Modern Management Theories\",\"author\":\"Nina Burokas\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc-attribution\",\"description\":\"Businessman typing on a laptop\",\"author\":\"Adeolu Eletu\",\"organization\":\"Unsplash\",\"url\":\"https:\/\/unsplash.com\/photos\/lWVoW8LpcEQ\",\"project\":\"\",\"license\":\"cc0\",\"license_terms\":\"Unsplash License\"},{\"type\":\"copyrighted_video\",\"description\":\"The Fifth Discipline in Three Minutes\",\"author\":\"Miles MacFarlane\",\"organization\":\"\",\"url\":\"https:\/\/youtu.be\/MQMRMAmT2gg\",\"project\":\"\",\"license\":\"arr\",\"license_terms\":\"Standard YouTube License\"}]","CANDELA_OUTCOMES_GUID":"fbcd5fb6-ba5b-48ba-bdf6-87918a25d261, 6601a1ed-001a-4691-a243-39913a7971c2","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-493","chapter","type-chapter","status-publish","hentry"],"part":482,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/493","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/users\/17"}],"version-history":[{"count":16,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/493\/revisions"}],"predecessor-version":[{"id":3296,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/493\/revisions\/3296"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/parts\/482"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/493\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/media?parent=493"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapter-type?post=493"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/contributor?post=493"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/license?post=493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}