Contemporary Theories of Management

The video tutorial discusses different management perspectives, including closed and open systems. The closed systems perspective focuses on internal functioning, likening a business to a clock. In contrast, the open systems perspective emphasizes interaction with the external environment, drawing parallels to biological systems. Businesses must adapt to external changes to succeed. The contingency approach is also introduced, highlighting that the best management practices depend on specific situations, challenging the notion of a one-size-fits-all solution.

What is the main idea behind the closed systems perspective in management?

• Innovation is the primary driver of success.

• Internal functioning is key to business success.

• Businesses should focus solely on external factors.

• Success is determined by customer satisfaction.

How does the open systems perspective view a business?

• As a purely profit-driven organization.

• As an entity interacting with its environment.

• As a self-sufficient system.

• As an isolated entity.

According to the open systems perspective, what must businesses do to succeed?

• Adapt to environmental changes and acquire resources.

• Rely solely on technology.

• Focus only on internal processes.

• Ignore external changes.

What does the contingency approach to management suggest?

• There is one best way to manage all situations.

• Management practices should be flexible and situational.

• Managers should ignore external factors.

• All businesses should follow the same management style.

Which management theory emphasizes that the best way to manage depends on the specific context?

• Closed systems perspective

• Scientific management

• Open systems perspective

• Contingency approach