International Management and Contemporary Issues, Part 3

Question 1: Explain the contingency approach to management.

Answer 1: The contingency approach to management is the view that best management practices can depend on (be contingent upon) circumstances. So, the contingency approach is in contrast to the view that there is a single right way of managing and that this way applies to all situations (this view is often associated with the classical school of management, including the scientific management school, the bureaucratic school, and the administrative school). The contingency approach, on the other hand, is associated with regarding companies as open systems, affected by factors outside the companies themselves. For instance, there are different approaches to decision-making, some more collaborative than others. According to the contingency approach, whether a more or less collaborative approach is best depends on the particular situation; even within the same company, it might be better to use a more collaborative approach in some situations and a less collaborative approach in others.

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Question 2: Define negative entropy, negative feedback, steady state, and homoeostasis as they relate to systems theory.

Answer 2: Negative entropy is the tendency of an organization to lose its energy and become less effective over time; managers need to take steps to avoid negative entropy, keeping a business fresh and energetic. To maintain homeostasis, it is necessary to combat negative entropy. Negative feedback is information relevant to the functioning of a business, crucial for making wise decisions about how a business can best use its resourcesSteady state is a condition of stability, which an organization should aspire to. Homeostasis is the effective and balanced interaction between the various environmental factors of a business, in addition to effective and balanced interaction between the parts of a business itself. Homeostasis and a steady state are closely related in the sense that homeostasis is necessary to achieve a steady state.

Question 3: Define differentiation, integration and coordination, and equifinality as they relate to systems theory.

Answer 3: Differentiation is the tendency of an organization to become more complex over time. For example, an organization might add additional departments or establish more precise job descriptions for its growing workforce as the organization develops. Integration happens when different parts of an organization work together rather than in isolation from each other. For example, different divisions within an organization—such as customer service and marketing—often need to work together, since what each division does affects the other.Coordination is closely related to integration. Different parts of an organization need to cooperate and coordinate with each other, such as through sharing information and overall goals.Equifinality is the principle that there are different but equally good ways of achieving the same goals.

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