The Contemporary Approaches Of Management

When manipulating a business’s strategy, it is important to focus on the external factors in the environment. An external analysis is where a business conducts environmental scanning that present a company with the key external forces influencing the organization. The facets of external forces examined are the business environment, remote environment, or the competitive environment. A business environment is all of the external factors in the general environment that a firm cannot control, but can affect their strategy. The remote environment is the forces that affect most firms. Lastly, a competitive environment is the firm’s specific industry and its entirety. The external analysis is pertinent to a company called Dick’s Drive- In; without it, Dick’s would not be a thriving popular business today.

Business environment is all about the combination of internal and external factors that may influence a business’ ways of operating such as: clients, suppliers, its competitors... stakeholders decide to start a business for many reasons: to pursue an interest or a hobby, mainly: to be their own boss. In other terms, people think that being your own boss, mainly as a sole trader gives you many opportunities although there are drawbacks as well. They also have interest in business they want to be successful.

The first approach to management would be the sociotechnical systems theory. Researchers believed that for an organization to be successful it would need the social system and the technical system to work together in harmony. The social system consists of the employees, their knowledge, skills, attitude and their understanding of their

There are two types of business environment - internal and external environment. As for internal environment, it includes some factors within the boundaries of the organization or specific decision unit that are taken directly into consideration in the decision-making behavior of individuals in that system.

Every organization has to analyze its business environment before making policies and strategies for its day to day operations, marketing and promotional efforts, and competing with the industry rivals (Loudon, Stevens, & Wrenn 2004). The key factors of the business environment that affect the business operations of a company include political, economic, technological, environmental, cultural, and demographical factors. In addition to these factors, an analysis of the competitive forces is also essential in order to assess the potential threats and intensity of rivalry present in the industry (Ritchie & Crouch 2003). If an organization does not give importance to the analysis of its business environment, it may not be able to compete in the industry for a long period of time (Hill & Jones 2007).

Sociotechnical systems theory is a contemporary approach to management that says that a proper combination of workers (the social system) and their knowledge, training and tools (the technical system) leads to organizational effectiveness in satisfying customers. Emphasis: Social + Technical

A business organization cannot survive in its industry if it does not keep an eye on what is happening in its internal and external business environment. The analysis of business sector or environment acquaints an organization with the issues, challenges, and external factors that have a direct or indirect impact on its business operations and profitability. On the basis of this analysis, the organization can formulate its future strategies and compete in the industry in a more effective and vigilant manner (Cadle, Paul & Turner 2010).

Organizations and businesses alike all have managers and management styles that they abide by. Some may be company policy; while others seem to be implemented by the manager’s themselves. In this paper, three different management styles are explained; Scientific, human relations, and systems management styles. All have been used in different organizations, and some are still used today. In order for a business to effectively succeed in their goals, a certain management style needs to be used.

Owning a business, or managing, within a business, can be a challenging process and ultimately effect the success, failure and bottom line. There are many external forces, or environments, that influence decisions that are ultimately made by Board of Directors, executives, supervisors and management teams. This can have an economic effect locally or ultimately have a global reach. Today’s focus is on the differences between the macro and competitive business environments (Jones et al., 2006).

A firms external environment is divided into two composites: the general environment and the industry environment. Fahey (1999) states that the general environment encompasses the broader society that influences an industry and the firms within it. The industry environment is the set of factors that directly influences a firm and its competitive actions and responses (Chen et al. 2010). Identifying opportunities and threats is an important objective of studying the general environment. Opportunities help companies achieve strategic competitiveness whilst threats may hinder a company's efforts to achieve strategic competitiveness (Gilad 2011). A firm will scan, monitor, forecast and assess the seven segments of the general environment to determine their effects on the firm. Firms identify early signals, detect meaning,develop projections, and determine the timing and importance of environmental changes and trends for firms' strategies and their management.

The twentieth century has brought in a number of management theories which have helped shaped our view of management in the present business environment. These emerging theories have enabled managers to appreciate new patterns of thinking, new ways of organising and new ways of managing organisations and people. Over the years these different theories have enabled the study

The external environment is crucial to any company or organization because it allows management to see and understand things outside of their daily routine. The societal environment might focuses on the influence the external environment might have on the company’s strategy. In the long run, it might be beneficial or perhaps unfavorable. The general five forces are economic, technological, political-legal sociocultural, and demographic forces.

Management theory has been a topical issue in several organizational fields for centuries. Both classic and modern styles organizations have reinforced management principles to fulfil goals efficiently and effectively. From the industrial to post-industrial evolution of organizations, the emergence of several management theories and their components have been infused in business polices, protocols and regulations that transfer onto the organisation’s operations (Aldrich, 2008). Today’s literature on such practices informs the existence of two major styles of management theories: classical and contemporary.

According to Nickels, McHugh, & McHugh (2016) “The business environment consists of the surrounding factors that either help or hinder the development of businesses” (p.12). This can only happen if the factors surrounding the environment are taken into consideration. The environmental factors, in general, are divided into two main groups, Task and General. (Bourgeoi, 1980). The global or general external business environment is more concerned with the long-term and can cause an only indirect effect on the organization. It usually is composed of technological, social, competitive, economic, and legal factors that can affect the business operations and performance. (Nickels, McHugh, & McHugh, 2016).

The history of management includes multiple theories and understanding them can help individuals identify the ideas their organization is built upon. Classical organizational theory encompasses several major approaches to management that continue to be influential even today. The early to mid-twentieth century included the introduction of many concepts of management theory such as scientific management, bureaucratic and administrative theory. Most of these early approaches revolved around control of employees and processes in order to achieve more