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MGMT1 Lesson 4

The document discusses three modern approaches to understanding organizations: the systems approach, socio-technical theory, and the contingency or situational approach. The systems approach views an organization as a system composed of interconnected sub-systems. The socio-technical systems approach is based on the premise that every organization consists of people, the technical system, and the environment. The contingency approach suggests that different environments require different organizational relationships for optimum effectiveness.

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25 views

MGMT1 Lesson 4

The document discusses three modern approaches to understanding organizations: the systems approach, socio-technical theory, and the contingency or situational approach. The systems approach views an organization as a system composed of interconnected sub-systems. The socio-technical systems approach is based on the premise that every organization consists of people, the technical system, and the environment. The contingency approach suggests that different environments require different organizational relationships for optimum effectiveness.

Uploaded by

patriciaanngutierrez
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© © All Rights Reserved
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Course Code MGT 1

Description Principles of Management


Pre-Requisites none
Department: College of Business
Week 5
Administration
The systems approach and contingency. Module No. 4

Some of the notable characteristics of the modern approaches to the organization are:

· a systems viewpoint,
· a dynamic process of interaction,
· multi-leveled and multidimensional,
· multi-motivated,
· probabilistic,
· multidisciplinary,
· descriptive,
· multivariable, and
· adaptive.

Modern understandings of the organization can be broadly classified into:

· the systems approach,


· socio-technical theory, and
· a contingency or situational approach.

The systems approach

The systems approach views an organization as a system composed of interconnected - and


thus mutually dependent - sub-systems. These sub-systems can have their sub-sub-systems. A
system can be perceived as composed of some components, functions, and processes
(Albrecht, 1983). Thus, the organization consists of the following three basic elements (Bakke,
1959):

(i) Components There are five basic, interdependent parts of the organizing system, namely:

· the individual,
· the formal and informal organization,
· patterns of behavior emerging from role demands of the organization,
· role comprehension of the individual, and
· the physical environment in which individuals work.

(ii) Linking processes, The different components of an organization are required to operate in an
organized and correlated manner. The interaction between them is contingent upon the linking
processes, which consist of communication, balance, and decision-making.

· Communication is a means for eliciting action, exerting control, and effecting coordination to
link decision centers in the system in a composite form.

· Balance is the equilibrium between different parts of the system so that they keep a
harmoniously structured relationship with one another.

· Decision analysis is also considered to be a linking process in the systems approach. Decisions
may be to produce or participate in the system. The decision to produce depends upon the
attitude of the individual and the demands of the organization. The decision to participate
refers to the individual’s decision to engross themselves in the organization process. That
depends on what they get and what they are expected to do in participative decision-making.

(iii) Goals of organization- The goals of an organization may be growth, stability, and
interaction. Interaction implies how best the members of an organization can interact with one
another to their mutual advantage.

Socio-technical approach

It is not just job enlargement and enrichment which is important but also transforming
technology into a meaningful tool in the hands of the users. The socio-technical systems
approach is based on the premise that every organization consists of people, the technical
system, and the environment (Pasmore, 1988). People (the social system) use tools, techniques,
and knowledge (the technical system) to produce goods or services valued by consumers or
users (who are part of the organization’s external environment). Therefore, an equilibrium
between the social system, the technical system, and the environment is necessary to make the
organization more effective.

The contingency or situational approach

The situational approach (Selznick, 1949; Burns and Stalker, 1961; Woodward, 1965; Lawrence
and Lorsch, 1967) is based on the belief that there cannot be universal guidelines that are
suitable for all situations. Organizational systems are interrelated with the environment. The
contingency approach (Hellriegel and Slocum, 1973) suggests that different environments
require different organizational relationships for optimum effectiveness, taking into
consideration various social, legal, political, technical, and economic factors.

The contingency approach is a management theory that suggests the most appropriate style of
management is dependent on the context of the situation and that adopting a single, rigid style
is inefficient in the long term. Contingency managers typically pay attention to both the
situation and their styles and make efforts to ensure both interact efficiently.
The contingency approach contrasts with other forms of leadership, such as trait-based
management, whereby personality and individual make-up predict patterns of management
and responses to given situations over time. Another management approach is a style-based
app

Contingency theory is beneficial to organizations because of the potential for learning from
specific situations and using these lessons to influence future management of the same or
similar situations. The ability to adapt to external pressures and changes is also an advantage.
Contingency theory may also produce more well-rounded leaders who can develop their skills
in multiple areas.

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