Discuss how the following management theories apply to the present day business organization:systems theory,contingency theories and chaos theory
It must be clear how they apply to the present day business organization.
out of the three theories mentioned in the question - contingency theory, systems theory, and chaos theory - only the contingency theory is a management theories. The other three theories are much more general in nature, with applications extending far beyond the field of management and business.
Contingency theory states that there are no fixed right and wrong approaches to management. There are many alternative ways to manage a particular type of business function or to solve a business problems that are effective under different conditions. It is not possible, or advisable, to lay down fixed rules in advance for choosing the right solution or approach to a specific management situation. The right choice is contingent upon the the specific characteristic of each situation, and managers should pay close attention to these characteristics and take decisions accordingly.
Systems theory is concerned with understanding the nature of systems, which is defined very broadly as an integrated whole consisting of interrelated parts. As per this definition some thing as simple as a candle is also a system, and something as complicated as a human being is also a system. As a matter of fact the whole Universe is also a system as per the systems theory. The systems receive inputs from environment outside itself, process these within itself , and release outputs in the environment. The nature of outputs generated is dependent on the nature of inputs received and the nature of the systems itself.
The systems theory is used by managers to understand how business organizations, and businesses processes operate, and h\these can be made more effective. One major application of systems theory in business management is for Business Processes Re-engineering (BPR). Systems theory is also used extensively for development of all types of computer software including the ones for business management.
Chaos theory has its origin in the field of meteorology and is now developed in highly sophisticated branch of mathematics. Its application in management and business is more as a general principle that some minor variations in business can have major impact on the results. Based on this principle, it is argued that it is not possible to design organizations and systems taking into consideration all the different situation that the business may face. It is better to make organizations flexible and self-correcting that can respond effectively to specific situations as these arise.