Name: Ahmed Hassan Hussein Ahmed

Mobile: 01001885484
Contemporary Management Assignment (6)
 You are kindly requested to apply the six foundation for continuing
developments in your organization, and show how each foundation
will help you in your organization.

1- Quantitative analysis and tools

Quantitative analysis is the process of collecting and evaluating
measurable and verifiable data such as revenues, market share,
and wages in order to understand the behavior and performance of a
business. In the past, business owners and company directors relied
heavily on their experience and instinct when making decisions.
However, with data technology, quantitative analysis is now considered
a better approach to making informed decisions.

A quantitative analyst’s main task is to present a given hypothetical

situation in terms of numerical values. Quantitative analysis helps in
evaluating performance, assessing financial instruments, and making
predictions. It encompasses three main techniques of measuring
data: regression analysis, linear programming, and data mining.

 Quantitative Analysis Techniques

1. Regression Analysis
Regression analysis is a common technique that is not only employed by
business owners but also by statisticians and economists. It involves
using statistical equations to predict or estimate the impact of one
variable on another. For instance, regression analysis can determine
how interest rates affect consumers’ behavior regarding asset
investment. One other core application of regression analysis is
establishing the effect of education and work experience on employees’
annual earnings.
In the business sector, owners can use regression analysis to determine
the impact of advertising expenses on business profits. Using this
approach, a business owner can establish a positive or negative
correlation between two variables.
 2. Linear Programming
Most companies occasionally encounter a shortage of resources such as
facility space, production machinery, and labor. In such situations,
company managers must find ways to allocate resources effectively.
Linear programming is a quantitative method that determines how to
achieve such an optimal solution. It is also used to determine how a
company can make optimal profits and reduce its operating costs,
subject to a given set of constraints, such as labor.

3. Data Mining
Data mining is a combination of computer programming skills and
statistical methods. The popularity of data mining continues to grow in
parallel with the increase in the quantity and size of available data sets.
Data mining techniques are used to evaluate very large sets of data to
find patterns or correlations concealed within them.

 Applications of Quantitative Analysis in the Business Sector

Business owners are often forced to make decisions under conditions of
uncertainty. Luckily, quantitative techniques enable them to make the
best estimates and thus minimize the risks associated with a particular
decision. Ideally, quantitative models provide company owners with a
better understanding of information to enable them to make the best
possible decisions.

1. Project Management
One area where quantitative analysis is considered an indispensable tool
is in project management. As mentioned earlier, quantitative methods
are used to find the best ways of allocating resources, especially if these
resources are scarce. Projects are then scheduled based on the
availability of certain resources.

2. Production Planning
Quantitative analysis also helps individuals to make informed product-
planning decisions. Let’s say a company finds it challenging to estimate
the size and location of a new production facility. Quantitative analysis
can be employed to assess different proposals for costs, timing, and
location. With effective product planning and scheduling, companies
will be more able to meet their customers’ needs while maximizing their
profits.

3. Marketing
Every business needs a proper marketing strategy. However, setting a
budget for the marketing department can be tricky, especially if its
objectives are not set. With the right quantitative method, marketers can
easily set the required budget and allocate media purchases. The
decisions can be based on data obtained from marketing campaigns.

4. Finance
The accounting department of a business also relies heavily on
quantitative analysis. Accounting personnel uses different quantitative
data and methods, such as the discounted cash flow model, to estimate
the value of an investment. Products can also be evaluated based on the
costs of producing them and the profits they generate.

5. Purchase and Inventory

One of the greatest challenges that businesses face is being able to
predict the demand for a product or service. However, with quantitative
techniques, companies can be guided on just how many materials they
need to purchase, the level of inventory to maintain, and the costs
they’re likely to incur when shipping and storing finished goods.

6. The Bottom Line

Quantitative analysis is the use of mathematical and statistical
techniques to assess the performance of a business. Before the advent of
quantitative analysis, many company directors based their decisions on
experience and gut. Business owners can now use quantitative methods
to predict trends, determine the allocation of resources, and manage
projects.
Quantitative techniques are also used to evaluate investments. In such a
way, organizations can determine the best assets to invest in and the best
time to do so. Some of the quantitative analysis methods include
regression analysis, linear programming, and data mining.

(https://corporatefinanceinstitute.com/resources/knowledge/finance/
quantitative-analysis/)

2- Systems view of organizations

The view of organizations as open social systems that must interact with
their environments in order to survive is known as the systems theory
approach. Organizations depend on their environments for several
essential resources: customers who purchase the product or service,
suppliers who provide materials, employees who provide labor or
management, shareholders who invest, and governments that regulate.
According to Cutlip, Center, and Broom, public relations’ essential role
is to help organizations adjust and adapt to changes in an organization’s
environment. Cutlip, Center, and Broom (2006).
The open-systems approach was first applied by Katz and Kahn, who
adapted General Systems Theory to organizational behavior.Katz and
Kahn (1966); Bertalanffy (1951), pp. 303–361. This approach identifies
organizational behavior by mapping the repeated cycles of input,
throughput, output, and feedback between an organization and its
external environment. Systems receive input from the environment
either as information or in the form of resources. The systems then
process the input internally, which is called throughput, and release
outputs into the environment in an attempt to restore equilibrium to the
environment. The system then seeks feedback to determine if the output
was effective in restoring equilibrium. As can be seen, the systems
approach focuses on the means used to maintain organizational survival
and emphasize long-term goals rather than the short-term goals of the
goal-attainment approach.
Theoretically, systems can be considered either open or closed. Open
organizations exchange information, energy, or resources with their
environments, whereas closed systems do not. In reality, because no
social systems can be completely closed or open, they are usually
identified as relatively closed or relatively open. The distinction between
closed and open systems is determined by the level of sensitivity to the
external environment. Closed systems are insensitive to environmental
deviations, whereas open systems are responsive to changes in the
environment.
(https://saylordotorg.github.io/text_mastering-public-relations/s07-02-
systems-theory-approach.html#:~:text=The%20view%20of
%20organizations%20as,environments%20in%20order%20to
%20survive.. )

Closed System
The system that cannot be interacted or influenced by the environment is
called the closed system.

Opened System

The system, which is dependent on the outer effects of the atmosphere,

is known as an open system.

Nowadays, Open System has been widely used across a great range of
organizations,. Since it is continuous interaction with the outer
environment. Actually, when the organization is connected with the
environment, then it helps in having a deep insight into needs,
approaches, manners and new trends of the environment. At some point,
these things help the organization build a new innovative goal that
would be beneficial for both, i.e. the organization and the environment.

System Views of Management Theory

The system views of management theory is a technique based upon the

idea that the organization is imagined as the systems of correlated parts.
Moreover subsystems to be operated as a whole for the achievement of
common and similar targets and goals.

 Major Components – System Views of Management

1. Inputs

Variety of manpower, raw material, equipment and information

resources required for production of goods and services.

2. Transformation Process

Technological and Managerial abilities of an organization, applied to

change input into the output is called the Transformation process.

3. Output
Final production and by-production results through the transformation
process in the form of product or services of the organization are called
Output.

4. Feedback

Feedback always determines the reaction of final users. Here the

feedback will be the response of final consumers of the products or
services.

5. Environment

Internal and external influences that affect the system are made up of
these components.

Characteristics of an Organizational System

Some of the major characteristics of organizational systems are given

below:

 Sub system
 Holism
 Synergy
 Open and Closed system
 System boundary

Open v/s Closed System – System Views of Management

The interaction of the system with its environment to a related degree is

indicated through these terms. There are only a few systems that are
completely open or completely closed ones. Open systems have
continuous interaction with its environment for feedback. However
closed systems have a very low degree of interaction regarding feedback
to its environment. Two major specifications of the open systems are
described as:

1. Negative Entropy
The ability of an open system that brings innovation and energy in the
way of feedback mechanism and input is called Negative Entropy.

2. Synergy

It is the ability of the organization that is the sum of all parts of working
areas.

Systems Viewpoint – System Views of Management

It provides the suggestion to the managers that they can be more

successful. Moreover, if they try to operate their units and areas under
the open systems than closed ones.

Advantages and Disadvantages

Some of the advantages include:

 It aids in the understanding of complicated organization functions

and is probabilistic rather than deterministic.
 That has been used as the foundation for new types of companies,
such as project management firms.
 In many functions such as planning, organizing, directing, and
controlling, it is appropriate to carry out the inter-relationships.

Moreover, there are some negative aspects too:

 This method is a little hazy and abstract.

 It might be challenging to implement in large, complicated
businesses.
 Also it does not offer managers with any tools or techniques.
 It is not a prescriptive management theory in the sense that it does
not provide tools and strategies for managers in the field.
 The nature of interactions and interdependencies is not specified.

(https://www.businessstudynotes.com/hrm/system-views-of-
management/ )
3- Contingency thinking
The contingency approach to management is based on the idea that
there is no single best way to manage. Contingency refers to the
immediate contingent circumstances. Effective organizations must
tailor their planning, organizing, leading, and controlling to their
particular circumstances. In other words, managers should identify
the conditions of a task, the requirements of the management job, and
people involved as parts of a complete management situation. The
leaders must then work to integrate all these facets into a solution that
is most appropriate for a specific circumstance.
The contingency approach to management assumes that there is no
universal answer to many questions because organizations, people,
and situations vary and change over time. Often there is no one right
answer when managers ask: “What is the right thing to do? Should we
have a mechanistic or an organic structure? A functional or divisional
structure? Wide or narrow spans of management? Tall or flat
organizational structures? Simple or complex control and
coordination mechanisms? Should we be centralized or decentralized?
Should we use task or people oriented leadership styles? What
motivational approaches and incentive programs should we
use?” Thus, the answer depends on a complex variety of critical
environmental and internal contingencies.
The contingency theory is similar to situation theory in that there is an
assumption that no simple way is always right. Situation theory,
however, focuses more on the behaviors that the leader should use.
The contingency theory takes a broader view that includes contingent
factors about leader capability and also includes other variables
within the situation.
Factors that influence the contingency theory are numerous. These
include the following:

 The size of the organization

 How the firm adapts itself to its environment
 Differences among resources and operations activities
  Assumption of managers about employees
 Strategies
 Technologies being used

Historical Overview
Classical management theorists such as Henri Fayol and Frederick
Taylor identified and emphasized management principles that they
believed would make companies more successful. However, the
classicists came under fire in the 1950s and 1960s from management
thinkers who believed that their approach was inflexible and did not
consider environmental contingencies. Taylor, however, emphasized
the importance of choosing the general type of management best
suited to a particular case. Fayol also found that there is nothing rigid
or absolute in management affairs. So while the criticisms were
largely invalid, they created the contingency school of management.
It is relevant to note here that similar ideas were expressed three
decades earlier. In the 1920s, Mary Parker Follett related individual
experience to general principles. Her concept of the “law of the
situation” referred to the necessity of acting in accordance with the
specific requirements of a given situation. She noted that
requirements were constantly changing and continuous efforts were
needed to maintain effective working relationships.
Nonetheless, research in the 1960s and 1970s focused on situational
factors that affected the appropriate structure of organizations and the
appropriate leadership styles for different situations. Although the
contingency
perspective purports to apply to all aspects of management, and not
just organizing and leading, there has been little development of
contingency approaches outside organization theory and leadership
theory. The following sections provide brief overviews of the
contingency perspective as relevant to organization theory and
leadership.
Contingency Perspective and Organization Theory
Environmental change and uncertainty, work technology, and the size
of a company are all identified as environmental factors impacting the
effectiveness of different organizational forms. According to the
contingency perspective, stable environments suggest mechanistic
structures that emphasize centralization, formalization,
standardization, and specialization to achieve efficiency and
consistency. Certainty and predictability permit the use of policies,
rules, and procedures to guide decision making for routine tasks and
problems. On the other hand, unstable environments suggest organic
structures that emphasize decentralization to achieve flexibility and
adaptability. Uncertainty and unpredictability require general problem
solving methods for nonroutine tasks and problems.
Paul Lawrence and Jay Lorsch suggest that organizations have
developed separate departments to confront differing environmental
segments. Organizational units operating in differing environments
develop different internal unit characteristics. The researchers say that
as internal difference become greater, additional coordination
between units is needed.
Joan Woodward found that financially successful manufacturing
organizations with different types of work technologies (such as unit
or small batch; large-batch or mass-production; or continuous-
process) differed in the number of management levels, span of
management, and the degree of worker specialization. She linked
differences in organization to firm performance and suggested that
certain organizational forms were appropriate for certain types of
work technologies.
For some time, there also existed a business myth that blue collar
workers should be able to do their jobs without thinking, thus taking
away the need for contingency management when dealing with assembly
line employees. However, theorists quickly recognized that there are
many very participative initiatives in manufacturing plants throughout
the world. For example, in Japan, manufacturing companies have had
great success engaging workers in shop-floor decision making, which
has resulted in large positive productivity and quality results.
Organizational size is another contingency variable thought to impact
the effectiveness of different organizational forms. Small
organizations can behave informally while larger organizations tend
 to become more formalized. The owner of a small organization may
directly control most things, but large organizations require more
complex and indirect control mechanisms. Large organizations can
have more specialized staff, units, and jobs. Hence, a divisional
structure is not appropriate for a small organization but may be for a
large organization.
In addition to the contingencies identified above, customer diversity
and the globalization of business may require product or service
diversity, employee diversity, and even the creation of special units or
divisions. Organizations operating within the United States may have to
adapt to variations in local, state, and federal laws and regulations.
Organizations operating internationally may have to adapt their
organizational structures, managerial practices, and products or
services to differing cultural values, expectations, and preferences.
The availability of support institutions and the availability and cost of
financial resources may influence an organization's decision to
produce or purchase new products. Economic conditions can affect an
organization's hiring and layoff practices as well as wage, salary, and
incentive structures.
Technological change can significantly affect an organization. The
use of robotics affects the level and types of skills needed in
employees. Modern information technology both permits and requires
changes in communication and interaction patterns within and
between organizations. For example, advanced information and
communication technologies have changed the way businesses
operate and conduct commerce. The more secure Internet and new
transmission standards make it easier and cheaper for businesses to
conduct inter-organizational commerce. Managers have implemented
new technologies such as Electronic Data Interchange (EDI) and
Web-based e-commerce to enhance communication exchanges
throughout the company.

Contingency Perspective and Leadership

Dissatisfaction with trait-based theories of leadership effectiveness
led to the development of contingency leadership theories. Fred
 Fiedler, in the 1960s and 1970s, was an early pioneer in this area.
Various aspects of the situation have been identified as impacting the
effectiveness of different leadership styles. For example, Fiedler
suggests that the degree to which subordinates like or trust the leader,
the degree to which the task is structured, and the formal authority
possessed by the leader are key determinants of the leadership
situation. Task-oriented or relationship oriented leadership should
each work if they fit the characteristics of the situation. Other
contingency leadership theories were developed as well. However,
empirical research has been mixed as to the validity of these theories.
Bibliography
Burns, Tom, and G.M. Stalker. The Management of Innovation.
London: Tavistock, 1961.
“Contingency Approach to Management.” Bizcovering 20 Mar 2007.
Available from:
http://www.bizcovering.com/Business-and-Society/Contingency-
Approach-to-Management.27102.
Contingency Theory. Available from:
http://www.faculty.babson.edu/krollag/org_site/encyclop/contingency
.html.
“Contingency Theory.” 12 Manage: The Executive Fast Track.
Available
from: http://www.12manage.com/methods_contingency_theory.html.
Fiedler, Fred E. A Theory of Leadership Effectiveness. New York:
McGraw-Hill, 1967.
Gresov, Christopher, and Robert Drazin. “Equifinality: Functional
Equivalence in Organizational Design.” Academy of Management
Review April 1997.
Khazanchi, Deepak. “Information Technology (IT)Appropriateness:
The Contingency Theory of Fit and Its Implementation in Small and
Medium Enterprises.” Journal of Computer Information
Systems April 2005. Available
from: http://www.iacis.org/jcis/index.htm.
Lawrence, Paul R., and Jay Lorsch. Organizations and Environment:
Managing Differentiation and Integration. Homewood: Irwin, 1967.
 Winfrey, Frank L., and James L. Budd. “Reframing Strategic
Risk.” SAM Advanced Management Journal Autumn 1997.
Woodward, Joan. Industrial Organization: Theory and Practice.
London: Oxford University Press, 1965.
Wren, Daniel A. The Evolution of Management Thought. 4th
ed. New York: Wiley & Sons, 1994.
(https://www.encyclopedia.com/management/encyclopedias-
almanacs-transcripts-and-maps/contingency-approach-management)

4- Commitment to quality and performance

 Commitment to quality
Management’s commitment to quality is very important because they
provide the resources for implementation and maintenance of the
management system which contains all the processes related to quality.
Their involvement and engagement is needed throughout the
organization in order to lead by example and to provide quality
processes for individuals to use.

The policies and objectives that management sets need to be meaningful

to the organization and not just set because of a requirement in a
standard but drive the business. They are also responsible for driving the
integration of the management system into business operations.

The standard requirements are not just an exercise in order to check all
the boxes, but an opportunity for management to show the importance of
quality and their commitment to quality.

Numerous ISO standards use the term “top management” to indicate the
highest level of management in the organization. When we think of top
management, we often think of senior managers (CEOS, VPs, Directors
of HR, etc.). In a laboratory, they may not necessarily have those roles.
You may just have a laboratory supervisor. In that case, top management
may be the laboratory manager.
  Commitment to performance

A distinguished theory in organizational commitment is the Three-

Component Model (TCM). According to this theory, there are three
distinct components of organizational commitment:

1. Affective commitment: This is the emotional attachment an employee

has towards the organization. This part of TCM says that an employee
has a high level of active commitment, then the chances of an
employee staying with the organization for long are high. Active
commitment also means, an employee is not only happy but also
engaged in the organizational activities like, participation in
discussions and meetings, giving valuable inputs or suggestions that
will help the organization, proactive work ethics, etc.
2. Continuance commitment: This is the level of commitment where
an employee would think that leaving an organization would be
costly. When an employee has a continuance in commitment level,
they want to stay in the organization for a longer period of time
because they feel they must stay because they have already invested
enough energy and feel attached to the organization – attachment that
is both mental and emotional. For example, a person over a period of
time tends to develop an attachment to his/her workplace and this
may be one of the reasons why an employee wouldn’t want to quit
because they are emotionally invested.
3. Normative commitment: This is the level of commitment where an
employee feels obligated to stay in the organization, where they feel,
staying in the organization is the right thing to do. What are the factors
that lead up to this type of commitment? Is it a moral obligation where
they want to stay because someone else believes in them? Or is it that
they feel that they have been treated fairly here and that they do not
wish to take the chance of leaving the organization and finding
themselves in between the devil and the deep sea? This is a situation
where they believe they ought to stay.
It is important to understand that the level of commitment depends on
multiple factors and can vary from one individual to another. For
example, hypothetically consider, an individual is working with a
lucrative market research firm and is being paid handsomely.

In this situation, there are chances that the individual would have
affective commitment where he/she is happy about staying in the
company, but can also have continuance commitment because he/she
doesn’t want to give up the pay and comfort that the job brings. Finally,
given the nature of the job the individual would feel the necessity to stay
in the job which would lead to normative commitment.

Key benefits and advantages of organizational commitment

Since organizational commitment determines how long employees will
stay with your organization, committed employees are any and every
organization’s assets. Some of the key benefits and advantages of
organizational commitment are as follows:

1. High employee productivity

Committed employees are highly productive. They believe in the

organization, its goals, vision, mission, and the leadership team. These
employees not only demonstrate high levels of productivity, but they
also ensure their colleagues and team members too display the same.

2. Reduced absenteeism

A committed and motivated staff will report much lesser absenteeism

than their peers. Committed employees look forward to going to work,
completing their work, helping out projects, and contributing toward
organizational goals.

3. Excellent team players

Since dedicated employees are heavily invested in the organization, and
it’s success, they are great at collaborating with, and working in teams.
They contribute significantly to boosting the team’s productivity.

4. Strong advocates

Dedicated and committed employees believe in their organization, and

hence, are effective and positive advocates of their employers. They are
strong believers and supporters of their employer’s products, services,
and policies.

How to improve organizational commitment?

High levels of organizational commitments are related to superior
business performance, increased profitability, improved
productivity, employee retention, customer satisfaction metrics,
reduced customer churn, and above all improving the workplace culture.
That’s the level of commitment an organization would expect from its
employees. But how do we get there?

Here are some tips to improve organizational commitment:

1. Create a strong teamwork culture

Building a strong teamwork culture facilitates a healthy work

environment. No two employees in an organization can be exactly the
same. When people come from different backgrounds, there will be
differences in the way they see and perceive things and the same holds
true when people work in a team. However, if an organization promotes
a culture of team building, employees will be motivated to work together
and achieve more. This will help boost their commitment levels and
create a long-term work culture harmony.

2. Communicate clear goals and expectation to the employees

Most employees want to be a part of an irresistible future, they want to
know what is most important in their job and how can they achieve
excellence in their job. For objectives to have meaning and be effective,
employees should be communicated clearly the goals and
expectations of the management. Employees, when they feel a sense of
ownership tend to stay longer with an organization.

3. Be transparent and encourage open communication

Let employees be participative in what is happening within the

organization, as well as how they can contribute more towards the
development of the organization. When an organization is transparent
with its employees and shares numbers and figures with them, they are
greater chances that employees feel valued and increased sense of
belonging. Thus, improving the performance of employees through
transparency.

4. Maintain work ethics

Employees would want to feel good about the organization they are
working with. Having high standards of work ethics makes employees
feel motivated and respectful towards the organization. When employees
know that an organization has high morals, they stay associated with the
organization. Good work ethics assures any employee, that they have an
equal playing field in the organization to perform and to grow their
careers.

5. Foster a positive work culture

Positive work culture is where employees feel happy to be a part of the

organization, where they feel motivated and encouraged to share new
ideas and facilitate communication with the management without having
the fear of being misunderstood. Encourage employees to find a personal
fit with the organization’s culture.

6. Develop trust
When employees start developing trust among themselves as well as
leadership, it is a positive sign of organizational development.
Employees constantly watch the organization’s leadership for motivation
and example, learn decision-making skills, and how it helps strategic
changes within the organization and if their behavior reflects what they
say.

7. Encourage innovation

Innovation is one of the bests ways of encouraging employees. When an

employee has an idea of doing things differently and in a better way, do
not discourage them, on the contrary, motivate them to come up with
more good ideas.

8. Provide constructive feedback and not criticism

Employees should be provided with constructive feedback whenever

needed. They should be appreciated for what they are doing good which
will help them raise their morale. Tell employees when they are wrong,
but do more- tell them why it’s wrong and above all- how to do better.
There is a difference between criticism and constructive feedback.
Criticism only tells what’s wrong, constructive feedback tells you what
is wrong, why is it wrong, and how to get it right!

9. Efficiently delegate tasks

An organization that functions efficiently knows the art of delegating

tasks. One should understand not all work can be done by one single
person, there are dedicated resources in an organization to carry out
particular tasks. When the work has efficiently distributed no one, in
particular, is burdened.

10. Offer incentives

When an employee performs exceptionally well, organizations need to

value his/her contribution. In such cases, it is a good idea to offer
incentives to the employee to recognize his/her good work and
dedication. If the organization wants employees to have sufficient work
commitments it is essential that management rewards them appropriately
as different things motivate different people.

Satisfied and engaged employees are an asset to any organization. It is

important to value people who show dedication and commitment to the
organization. Organizations need to dig deeper and find the root cause of
issues faced by their employees and take timely actions to
reduce employee turnover.

(https://www.questionpro.com/blog/organizational-commitment/ )

5- Knowledge management and learning organizations

knowledge management is the management of the processes of creation,
storage, access and dissemination of the intellectual resources of an
organization (Song, Nerur, & Teng, 2007). Knowledge management in
organizations, according to Garcia-Perez and Mitra (2008) is defined as
a set of four types of processes:

1. Acquisition of knowledge. Involves the processes of creation and

knowledge-building;
2. Conversion of knowledge. The storage of useful information in
repositories that facilitate access of individuals to the attention;
3. Application of knowledge. This is the way is explored and applied
knowledge;
4. Protection of knowledge (Garcia-Perez and Ayres, 2009, Garcia-
Perez and Ayres, 2015).

The individual perspective based on the investigation of individual

learning is developed by (Shrivastava, 1983). Several models have
emerged pointing the individual learning processes and transferred later
to the organizational learning. Fernandes (2007) considers two
perspectives can be identified in individual learning approach:
behaviorists theories and cognitive theories.
Argyris and Schon (1978) conclude that there is no organizational
learning without individual learning, whereas organizations only learn
thanks to the experiences and actions of individuals. However, it may be
that individuals learn and not an organization. Simon (1991) also
emphasized the individual role in the processes of knowledge, points out
that all the organizational learning this on “head of the individual” (Ipe,
2003, Simon, 1991).
(https://www.sciencedirect.com/science/article/pii/
S2444569X19300319)

6- Evidence-based management

Evidence-based management is the practice of making managerial and

people-related decisions with the use of critical thinking and the best
available evidence. Evidence-based practice has its origins in the field of
medicine, but it has quickly spread to other disciplines like education,
nursing, criminology and public policy.

Being organizational outcomes as profit, performance and reputation at

stake, along with the engagement, satisfaction and health of the
workforce, these decisions can make a huge difference in the life of a
company.
However so many of these decisions are still based on ‘Uncle
Barry’s advice’: a mix of biased personal opinions and experiences,
‘best practices’, and the advice of industry gurus.As Barends, Rousseau
and Briner once wrote, “the bottom line of this process is often bad
decisions, poor outcomes for the organization, along with a limited
understanding of why things went wrong. As a result, billions of dollars
are spent on management practices that are proven to be ineffective or
even harmful to organizations, their members and their clients”.

What does an evidence-based practitioner do?

An evidence-based practitioner instead, knows how to find the ‘best
available’ evidence and how to evaluate the this information.
Recently the Chartered Institute of Personnel and
Development (CIPD) published a positioning paper in collaboration with
the Center for Evidence-Based Management, that describes the six steps
that evidence-based practitioners follow:

Critical appraisal
If evidence-based management is about using the best available evidence
for managerial decisions, critical appraisal has a central role in
evaluating the quality, trustworthiness relevance of the evidence.
According to the Center for Evidence-Based Management (2014), this
can be done by asking some basic questions.

1. Where and how is the evidence gathered?

2. Is it the best available evidence?
3. Is there enough evidence to reach a conclusion?
4. Are there reasons why the evidence could be biased in a particular
direction?

Sources of evidence should be considered

Following the principles of evidence-based practice, these are the four
sources of evidence that should be considered before a major
management decision:

© CIPD and Center for Evidence-Based Management, 2016

To base your decisions on evidence will make your management

practice more effective and accountable, with great benefits for your
organizations and yourself.
References
Barends,E., Rousseau, D.M., & Briener, R.B. (2014) Evidence-Based
Management: The Basic Principles. Amsterdam: Center for Evidence-
Based Management.
(https://scienceforwork.com/blog/what-is-evidence-based-
management/ )