Course work group One In a Laymans Language

Traditional style of management is more comparable to the military style of management - very hierarchical, organized, disciplined, and sort of - "I am the boss, I tell you, you do. No questions asked". Strictly follows the direct chain of command. The ability of management is derived from the power of the position (not much of a management, if you ask me). Not much, if any, of soft skills required either. In today's world of management, it is used in the military (of every country out there) and countries like India, China, Japan and some European companies. However, it only works (I mean really works) in the military. Most of the western world (outside the military) has moved away from it due to the long-term downsides to the business in the areas of workforce morale etc.

Modern style of management largely depends on soft skills - consensus building, relationships, listening, and understanding, taking the team along with you willingly than dragging them along with you. The "manager" in this case may or may not have any actual power to adversely affect his/her followers, if they do not follow. The power of a manager is derived from the people who the manager manages (the managed) - and the managed give that power willingly to the manager. It is more comparable in modern day to a matrix organization and pure project management at its best. In my opinion, this is the best form of management in the long run, because it builds moral, participation, and sense of ownership among the managed.

Technical language Over View

The literature distinguishes two ideal types of organizational management theory, and it appears that two corresponding types of organizations co-exist in practice: Organizations that choose for a traditional management approach and organizations that choose for a modern management approach. In this chapter these two management approaches will be explained using literature. 1. Management Perspective 2. Performance Horizon 3. Rewards and Sanctions 4. Coordination and Control 5. Attention Sphere 6. Managerial Qualities 7. Core Resources

A traditional management approach is an approach wherein an organization focuses on 1. perspective from demanding outside, 2. short term performance horizon,

3. extrinsic rewards and sanctions,

4. explicit coordination and control,

5. problem solving attention sphere, 6. explicit (push) managerial qualities 7. Seeing tangible and intangible assets as the organizations core resources.

A modern management approach is an approach wherein an organization focuses on

1. Perspective from the positive core,

2. long term performance horizon,

3. intrinsic rewards,
4. implicit coordination and control, 5. opportunity recognition attention sphere,

6. implicit (pull) managerial qualities 7. seeing social and psychological capital as the organizations core resources

What we need to answer.

We attempts to find out if there is indeed a significant difference between Traditional and Modern management approaches, and I explore how both approaches relate to each other and organizational performance QN1 . Is there a significant difference between Traditional Management Approaches and Modern Management Approaches? QN2 How do Traditional Management Approaches and Modern Management Approaches influence the performance of organizations?

Conclusion
The findings add to existing theory that Modern management approaches seem to be a crucial addition to Traditional management approaches with high effect on performance, especially focusing on internal motivation has a strong, positive effect. However, focusing short time horizon, although easy to measure, seems to have a negative effect on performance.

This thesis states that organizations should not only focus on one or two dimensions, but consider looking at Modern management approach as a whole factor. This research has been performed in 2010 in the Netherlands shows that Organizations that focused on Modern management performed better than their competitors, as an addition to Traditional management theory.