Modern organizations in developed countries generally side with McGregor, in that they believe Theory Y is superior in getting positive results from employees (and subsequently job satisfaction for employees). However, both theories are still prominent in the workplace, where many managers treat their employees as if they are lazy and likely to perform poorly without stringent rules and supervision. In management, just as everywhere else, it is difficult to effect social change in the face of human nature, even when the benefits are established.
Systems ApproachAn approach to problem solving that views problems as part of an overall system. This is opposed to problem-solving strategies that only focus on specific parts or outcomes of a problem without considering the context, environment, and effects of similar problems.Systems thinking approaches problems as a set of habits or practices within a framework. It is based on the belief that the component parts of a system are best understood in the context of their relationships with each other rather than in isolation.General systems theory is an interdisciplinary area of study based on the assumption that everything is part of alarger, interdependent arrangement.Contingency Approach
An effort to determine through research which managerial practices and techniques are appropriatein specific situations. Generally, the term contingency refers to the choice of an alternative course of action. Some management scholars are attracted to contingency thinking because it is a workable compromise betweenthe systems approach and what can be called a purely situational perspective. The systems approach is often criticized for being too general and abstract, while the purely situational view, has been called hopelessly specific. Three characteristics of the contingency approach:AN OPEN-SYSTEM PERSPECTIVE. Open-system thinking is fundamental to the contingency view.Contingency theorists are not satisfied with focusing on just the internal workings of organizations. They see the need to understand how organizational subsystems combine to interact with outside social, cultural, political, and economic systems.A PRACTICAL RESEARCH ORIENTATION. Practical research is that which ultimately leads to more effective on-the-job management. Contingency researchers attempt to translate their findings into tools and situational refinements for more effective management.A MULTIVARIATE APPROACH. Multivariate analysis is a research technique used to determine how a number of variables.Lessons from the Contingency ApproachAlthough still not fully developed, the contingency approach is a helpful addition to management thought because it emphasizes situational appropriateness. In addition, contingency thinking is a practicalextension of the systems approach. Assuming that systems thinking is a unifying synthetic force in management thought, the contingency approach promises to add practical direction.
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