Brittney Hudson 6B-1 Ashley Levy 6B-3

Celine Stewart 6B-2

System Approach

Background of System Approach Theory?

System Approach Theory was developed during the Second World War. in the 1960, an approach to management appeared which try to unify the prior schools of thought. This approach is commonly known as ‘Systems Approach’. Its early contributors include Ludwing Von Bertalanfty, Lawrence J. Henderson, W.G. Scott, Deniel Katz, Robert L. Kahn, W. Buckley and J.D. Thompson.

What is System Approach theory?

A system is defined as a number of interdependent parts functioning as a whole for some purpose.

The system approach focused on organic solidarity which is social order built on the interdependence of people in society or an organization. The implementation of division of labor forced people to perform distinct, separate and specialized task. The employees of different department come to rely on others for to reach a common goal.

Components of System Approach

inputs transformation process outputs feedback the environment

Types of system Approach/Classification of systems

Open System

Closed System

Open System

An open system actively interacts with its environment. By interacting with other system ,it tries to establish and exchange relationships.

Closed System

A closed system is self contained and isolated from the environment. It is a non-adaptable system. It does not receive inputs often from other system and does not trade with the outside world. E.g. An automatic wrist watch.

GoalControll

er

Production Department

Marketing Department

Human Resource

Department

Finance Department

Communication between Departments.

Features of System Approach

A system consists of interacting elements. It is set of inter-related and inter-dependent parts arranged in a manner that produces a unified whole.

The various sub-systems should be studied in their inter-relationships rather, than in isolation from each other.

An organizational system has a boundary that determines which parts are internal and which are external.

Continued….Features of approach System

A system does not exist in a vacuum. It receives information, material and energy from other systems as inputs. These inputs undergo a transformation process within a system and leave the system as output to other systems. An organization is a dynamic system as it is responsive to its environment. It is vulnerable to change in its environment

Continued….

The systems approach assists in studying the functions of complex organizations and has been utilized as the base for the new kinds of organizations like project management organization. It is possible to bring out the inter-relations in various functions like planning, organizing, directing and controlling.

Managerial Knowledge, Goals,

Inputs

Planning

Organizing

Staffing

Leading

Controlling

Output

REENGINEER ING

COMMUNICAT ION

External Environment

External Environment

External

Environment:

Opportunities

Threats

Advantages of System Approach Theory.

It provides an orderly and efficient plan of action.

Integrated thinking: - Manager must make integrated thinking of organization. Instead of thinking separate activities, a manager can think as a while and make plan

It provides a good basis of control.

Interrelated and interdependent: - Subsystems are interrelated and interdependent. Manager can better understand how a disturbance in one part of organization affects other part of organization and how the whole organization is affected.

Disadvantages of System Approach

Systems philosophy does not specify the nature of interactions and interdependencies.

Unpractical: It cannot be easily and directly applied to practical problems.

Complex System: This approach is called abstract and vague. It cannot be easily applied to large and complex organizations.

It does not provide any tool and technique for practicing managers.

Businesses that use System Approach

Grace Lasco Camcorp Supreme Chemicals Limited

Conclusion

System Approach is very crucial for organisations for its existing in business scenario and economic environment in order to face cyclic circumstances and to move a step ahead to achieve goal.

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