SYSTEM APPROACH

ENVIRONMENT

ENVIRONMENT

InputTransformationOutPutRaw MaterialsHuman ResourcesCapitalTechnologyInformation

Employees work activityMGMT. ActivitiesTechnology &Operations Methods

Product & ServicesFinancial ResultsInformationHuman Results

Feed Back

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Takes holistic view of the organizationEach organization consists of a number of subsystems which when working together creates synergy

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Concepts:- Subsystems Synergy System Boundary Flow Feedback

A system is defined as an organised, whole composed of two or more interdependent parts, components, or subsystems and delineated by identifiable boundaries from its environmental suprasystem.DEFINITION OF SYSTEM

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The Contingency Approach

Every situation is UNIQUEBegin around early/ mid 1960sManagement technique has to changeSituational approach

What is the problem here?What should the Manager do here?What is the BEST action here?

There isNO BEST WAY IT DEPENDS!

Situational Approach

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MGMT is entirely situational & there is nothing universal principal of MGMT or one best way of doing things .MGMT depends upon the environment

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It is an extension of system approach .The basic idea of this approach, is that there cannot be a particular MGMT action which will suit all situation.

Where as contingency approach depending upon the interrelation between variables in a situation managerial

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IT DEPENDS ONSituations & variables

OrganizationalproblemExternal EnvironmentInternal EnvironmentEconomicalSocialPoliticalTechnologicalTechnological constraints(Technology used in production, interdependency of units , flexibility)Task constraints(nature of the task, procedures)Individual / people constraints(Competence level, psychological needs, skills and individual abilities)The Contingency Approach

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The contingent Variables are :-

Organizational Size

Technology

Environmental Uncertainty

Individual differences

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Decision-makingGrasp the situationIdentify the variables presentIdentify their interrelationshipsIdentify effective ways/ configurationsDecide on most appropriate oneThe Contingency Approach

Integrative Framework of MGMT. Perspective

System Perspective Recognition of internal interdependence Recognition of environmental forces

Contingency perspectivesClassical MGMT perspective Behavioral MGMT perspective Quantitative MGMT. Perspective Effective & efficient MGMT.

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Uncertainty

ProfessionalismResourcesScare

Dynamic environment?

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STRUCTURAL CONTIGENCY THEORY

Chapter1

MANAGEMENT Science OR Art ???ARTAS WELL ASSCIENCE

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MANAGERProfessionalScientificArtisticJUGGLER

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