Presentation

on

Contemporary approaches to
manage the business and its
effectiveness

PRESENTATION
BY

• MASUD HASAN(A90606417011)
OF
BBA4A
BATC H:2017-20
 What is business?

Business is the activity of making

Business activities have existed forever since the dawn of mankind. But business activities have come a
long way since its inception. From replacement of barter system with currency model to business emerging
as the backbone of the society supporting almost majority of the jobs that exist in the society. Businesses
have come a long from traders wandering and migrating to new locations in order to sell their products to
products directly reaching their customers using efficient supply chain management techniques. Businesses
have come a long way from being run by just an individual or a family to massive corporate houses that are
reaching new business heights with the passage of time.
Contemporary approaches to manage a business

Management has existed in every corner of the world and its action has engulfed mankind since
the emergence of civilisation. Modern management has been developed taking into consideration
social and scientific factors.

Under modern management there are three approaches:

(i) Quantitative or Mathematical Approach

(ii) Systems Approach.

(iii) Contingency Approach.

Quantitative Approach is a type scientific investigation of taking decision that focuses the
mathematical tools , statistical tools, quantitative modelling, systematic mathematical
techniques to solve the critical management problem ta the decision context . It is logical and
reasoning investigation of process to assist the manager about the complex issues.

Effectiveness
Despite its widespread use in the business world, its application is restricted in certain areas. All
managerial problems cannot be solved by mathematical models. Its application is restricted in areas
that deal with human behaviour. Human behaviour cannot be predicted through mathematical
equations. Use of behavioural techniques is more appropriate in such situations.
 Systems Approach

Systems approach is based on the generalization that everything is inter-related and inter-

dependent. A system is composed of related and dependent element which when in interaction,

form a unitary whole. A system is simply an assemblage or combination of things or parts

forming a complex whole.One its most important characteristic is that it is composed of hierarchy

of sub-systems. For example, the world can be considered-to be a system in which various

national economies are sub-systems.

Effectiveness

System approach fails to provide uniform approach to management. Management practices change with
changes in environmental variables. No standard set of principles apply to all types of
organisations.Critics of this theory claim this as a theoretical approach to management. The way an
organisation actually works and solves problems by applying different techniques and methods has no
appeal in the theory.
Contingency or Situational Approach
The ‘Contingency Approach to Management’ is relatively a new approach to management.The basic idea

of the contingency approach is that the organisation has to come up with different situations in different

ways.There is no single best way of management applicable to all situations.In order to be effective, the

internal functioning of an organisation must be consistent with the demand of the external environment.

The managers must keep the functioning of an organisation in harmony with the needs of its members

and the external forces.

Effectiveness

Despite the best that contingency theory offers to the management thought, it is not free from criticism. It
does not follow the concept of ‘universality of principles’. As there is no definite solution to a problem,
managers think of alternatives to arrive at the right choice. This is costly in terms of time and money. It
also does not provide theoretical foundation upon which management principles will be based
Contemporary approaches to business management in the light of the information
technology

A good management is possible with good information being provided. Information technology is aimed to increase the
performance of businesses in this context. The strategic role of information systems consists of use information systems and
technology to develop products, services and competencies providing businesses to gain advantage over competitors.

Here we will be discussing about Management information System(MIS) and Enterprise Resource Planning(ERP)
 Management Information Systems
MIS, a management information system, is a centralized database that stores
information about the company’s departments and allows managers to use this
information for managing workflow, making data-driven decisions, and generating
reports. The basic concept of MIS is to process data from an organization and present it
in form of a report in regular intervals.the main functions of MIS:

The main functions of MIS:Data capturing

• Data storage.
• Data processing.
• Information and data distribution.
• Prediction and forecasting.
• Planning.
• Control.
 ERP Systems
ERP means enterprise resource planning. It is a large system allowing companies to manage their information properly, facilitate
information sharing, business planning, etc.ERP system is a subset of MIS. Enterprise resource planning is a computer-based system
that unites various functions like inventory, accounting, inventory management, human resources, etc. the main functions of ERP
systems:
• Accounting. Accounting is one of the key functions of ERP software which is intended to manage receivable and payable
accounts, payroll, tax reports, and working time tracking. Accounting tools give employees a real-time look at their finance
system.
• Manufacturing. ERP provides a single interface for managing manufacturing processes like production, procurement,
budgeting, planning, and forecasting.
• Customer relationship management. Facilitates customer interaction and manages relationships with suppliers and vendors.
• Forces discipline and organization around the business.