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The systems approach views an organization as an open system made up of interrelated subsystems that interact with each other and the external environment. Some key aspects of the systems approach include: - Organizations comprise subsystems like production, marketing, finance, etc. Decisions in one area affect others. - Organizations receive inputs from the external environment, transform them via internal activities, and produce outputs that influence the external environment. - The organization and its subsystems are viewed holistically rather than individually to understand how they work together as a unified whole system. - Contributors to systems theory include Chester Barnard, Herbert Simon, and Ludwig von Bertalanffy, who introduced concepts like general systems theory

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104 views4 pages

Bc5 Research

The systems approach views an organization as an open system made up of interrelated subsystems that interact with each other and the external environment. Some key aspects of the systems approach include: - Organizations comprise subsystems like production, marketing, finance, etc. Decisions in one area affect others. - Organizations receive inputs from the external environment, transform them via internal activities, and produce outputs that influence the external environment. - The organization and its subsystems are viewed holistically rather than individually to understand how they work together as a unified whole system. - Contributors to systems theory include Chester Barnard, Herbert Simon, and Ludwig von Bertalanffy, who introduced concepts like general systems theory

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Batulanon, Roxine C.

BSMA-1

BC 5 ORGANIZATION AND MANAGEMENT

Make an online research for an example of a Systems Approach Management Theory. Give
details and acknowledge your source of information.

The system approach to management theory, commonly viewed as the foundation of


organizational development, views the organization as an open system made up of interrelated and
inter-dependent part that interact as sub-systems.

Thus, the organization comprises a unified singular system made up of these sub-systems. For
example, a firm is a system that may be composed of sub-systems such as production, marketing,
finance, accounting and so on. As such the various sub-systems should be studied in their inter-
relationships rather, than in isolation from each other.

The systems approach implies that decisions and actions in one organizational area will affect
other areas. For example, if the purchasing department does not acquire the right quantity and quality
of inputs, the production department won’t be able to do its job.

The system as a whole is affected by internal elements (aspects of the sub-units) and external
elements. It is responsive to forces from external environment.

The system is considered open, as organizations receive varied forms of inputs from other
systems. For example, a company receive supplies, information, raw material, etc. These inputs are
converted to outputs that affect other systems.

Generally, the systems approach assesses the overall effectiveness of the system rather than the
effectiveness of the subsystems. This allows for the application of system concepts, across
organizational levels in the organization- rather than only focusing upon the objectives and
performances of different departments(subsystems).

Organizational success depends upon interaction and interdependence between subsystems,


synergy between subsystems, and interaction between internal components (closed system) and
external components (internal system).

The system approach implies that decisions and actions in one organizational are will affect
other areas. For example, if the purchasing department does not acquire the right quantity and quality
inputs, the production department wont be able to do its job.

This approach recognizes that an organization relies on the environment for essential inputs.
Further, the environment serves as an outlet for its outputs.
What are the primary characteristics of an Organizational System?
the following are the chief characteristics of the system approach to management:

 Sub-systems – Each organization is a system made up of a combination of many sub-


systems. These sub-systems are interrelated.
 Holism – Each sub-system works together to make up a singe whole system. Decisions
made in any subsystem affect the entire system.
 Synergy – The collective output of the whole system is greater than the sum of the
output of its subsystems.
 Close and Open system – The whole organization is an open system made up of a
combination of open and close sub systems.
 System Boundary – the organization is separate from the external environment made up
of other systems.

What are the components of an Organizational System?

The system approach envisions the organizations as made up five components:

 Inputs- raw materials, human resources, capital information, technology\


 A transformational process- employee work activities, management activities, operation
methods
 Outputs- products or services, financial results, information, human results
 Feedback – results from output influence inputs.
 The environment – these components make up internal and external factors that affect the
system.

What are Close and Open Management Systems?

An organization is made up of close and open systems. Closed systems are the internal sub units of the
organization that do not interact with the external environment. Open systems are internal sub units
that interact with other systems (or sub units within the other systems0 that are outside of the
organization. In effect, all organizations are open systems.

What are general and specific management system?

The general systems approach to management is mainly concerned with the formal organizations and
the concepts are relating to technique of sociology, psychology and philosophy.

The specific management system includes the analysis of organizational structure, information, planning
and control mechanism and job design, etc.
Advantages and Disadvantages of a Systems Approach

The advantages of a systems approach

 It assists I studying the functions of complex organizations


 It is probabilistic than deterministic
 It 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.

Negative attributed of the systems approach include:

 This approach is somewhat abstract and vague.


 It can be difficult to apply to large and complex organizations.
 It does not provide any tool and technique for managers.
 It is no prescriptive management theory, as it does not specify tools and techniques for
practicing managers.
 It does not address power and social inequalities and their causes.
 It does not specify the nature of interactions and interdependencies.

Who are the Primary Contributors to System Theory?

 Chester Bernard introduced the concept of Cooperative systems in his book, Functions of an
Executive (1938).
 Economist, Herbert Simon, introduced in his book, Administrative Behavior (1947), the concepts
of systems process in decision making within the organizations. Notably, he introduced concepts
of bounded rationality and satisfying.
 Biologist, Ludwig von Bertalanffy, introduced the principles of General Systems Theory in 1950.
 Other contributors include: Lawrence J. Henderson, W.G. Scott, Deniel Katz, Robert L. Kahn, W.
Buckley and J.D. Thompson.

System theory is popularized by Ludwing Von Bertalanffy, Kenneth Boulding, NIE Weiner,
Fermoung E. Kast and James E. Rosenzwing.

The system is composed of a number of subsystems and all the sub-systems are related to each
other. The system of an organization can be classified as physical, biological, and mechanical and social.

The system theory also studied on the basis of input, processing and output components.

Component of System Theory

Goal oriented, Subsystems, Synergy, System boundary, Open and close system, Flow and
Feedback.
Contributions of System Approach to the Management

 It provides a conceptual framework for a meaningful analysis for organizations and


management.
 It emphasizes manager on the interdependence and interrelations of various parts of
organizations as well as between the organizations and their environment.
 It emphasizes managers to analyze and understand every element of a problem in
relation to another element.

Limitations of System Approach


 It is too abstract and can not be directly and easily applied to practical problems.
 It does not offer any tool or techniques of integration and the nature of interdependencies
between organizations and the environment.

System Approach (Theory) of Management - An Easy Guide (tyonote.com)

Systems Theory of Management - Explained - The Business Professor, LLC

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