SYSTEM APPROACH

k.r.Pande
Background

 Classical and humanistic theories prescribe

organizational behavior, organizational
structure or managerial practice (prediction
and control). MACHINE
 Systems theory provides an analytical
framework for viewing an organization in
general (description and explanation).
ORGANISM
Background…

System approach:
 Doesn’t focus on specific task functions
 Doesn’t directly explore the impact of
interpersonal relationships and loyalty on
productivity
 Doesn’t provide for detailed focus
 Changes in environment directly affect the
structure and function of the organization.
Introduction

 System theory is a basic theory in the

physical sciences but had never been applied
to organized human efforts.
In 1938, Chester Barnard, a chief executive
of a company, wrote a book named ‘The
Functions of an Executive,’ that book
explained that an organization’s functions are
taken as cooperative system.

Introduction
 A system receives inputs form the environment and sends outputs
into the environment after the transformation process.

 A system also adjusts itself continuously to the requirements of the

environment. This is facilitated by the feedback mechanism.

 All modern organizational theories share a general descriptive

approach known as systems theory. In the context of modern
social science, a system refers to any organized collection of parts
united by prescribed interactions and designed [at least ideally] for
the accomplishment of a specific goal or general purpose.
Meaning
 A system is a interrelated and interdependent parts
arranged in a manner that produces a unified whole.

 A system is a concept that refers both to a complex

of interdependencies between parts, components
and processes that involves discernible regularities
of relationship and to a similar types of
interdependency between such a complex and its
surrounding environment. Talcott Parsons
Components of System

 The concept of system involves the study of

i) the parts of a system, ii) interactions
among such parts, and iii) interactions
between the system and its environment.
 A system consists of five basic parts, viz.
input, process, output, feedback and
environment
Fundamental Elements of System
The fundamental elements of the systems approach include as
following:
1. There are many variables within a system.
2. The parts of the system are interdependent (one part affects main
other parts and is affected by many in a complex way).
3. There are many subsystem contained within larger systems.
4. System generally require inputs, engage in some process, and
produce outputs.
5. The input-process-output mechanism is cyclical and self-sustaining
(it is ongoing, repetitive, and uses feedback to adjust itself)
6. System produce both positive and negative results.
7. System produce both intended and unintended consequences.
8. The consequences of systems may be short-term, mid-term, long-
term, or all.
Types of System
There are two types of system model, namely closed and open.
Closed systems are not influenced by and do not interact with
their environment, viz. mechanical and physical systems are
closed systems.
Open systems are influenced by and do interact with their
environment, viz. social and biological systems are open system.

When we describe organizations as system, we mean open systems.

Open system interacts with, and influence by their external
environment.
Components of System

 System
 Sub-system
 Super system
 Synergy: The whole is greater than the sum of its parts.
 Entropy: Entropy must increase to a maximum
Organizations as a System
 An organization as a social system consisting of various
sub-systems, viz. technical, supportive, maintenance
adaptive, psycho-social, structural and managerial.
These sub-systems of an organization are explained as
following:
i) Technical sub-system is concerned with mechanical
processed, that is, conversion of inputs into outputs.
ii) Supportive sub-system supports the organizational
activities like procurement of raw material,
advertisement, marketing, and so on.
iii) Maintenance sub-system ensures the necessary
inputs of human skills.
Organizations as …

iv) Adaptive sub-system helps the organization to respond

to environmental changes like planning units.
v) Psycho-social sub-system represents the dynamics of
human behavioral and interpersonal relations.
vi) Structural sub-system is concerned with the formal
relations in the orgnization, that is it defines jobs and
positions.
vii) Management sub-system integrates different sub-
system together to regulate internal as well as external
relations (with the environment).
Management as a System

 System approach has drawn attention to the following

five basic considerations with regard to the systems
approach to management as following:
a) The total objective of the system and the measure of
the system’s performance.
b) The system’s environment acting as a constraint.
c) The system’s resources that are put to use in
performance.
d) The system’s components (sub-systems) and their
goals and activities.
e) The management of the system (i.e. the regulating
Management as …

 A system approach implies that decisions and action in one

organizational areas will affect other areas. For example, if
the policy department doesn’t acquire the right quantity and
quality inputs, the enforcement department won’t be able to
do its job, viz. Parliament and Police.
 The system approach recognizes that organizations are not
self-contained. They relay on their environment for essential
inputs and as outlets to absorb their outputs.
 No organization can survive for long if it ignores
government regulations, citizens relations, or the varied
external constituencies on which it depends.
Classical vs. System Approach
Classical Approach: System Approach:

 Views organization as a closed

 Views an organization as an open system,
system. i.e. not influence by the i.e. influenced by the changes in the
changes in the environment in environment in which it is embedded.
which it is embedded. Thus, it Thus, it views organization in the adaptive
views organization in the non and ecological sense.
adaptive and non-ecological  Assumes people in the positive sense, i.e.
sense. Theory ‘y’.
 Assumes people in the negative  Emphasizes on the dynamic process of
sense, i.e. theory ‘x’. interaction in the organization.
 Emphasizes on the static  Considers all the dimensions of the
structure of the organization. organization.
 Considers mainly the formal  Favours a flexible-participative structure of
dimension of the organization. the organization.
 Favors a rigid-hierarchical  Explains human motivation in terms of
structure of the organization. several factors, i.e. economic, social,
 Explains human motivation only psychological, etc.
in terms of economic factors.
Classical vs. System…
Classical Approach: System approach:

 Views organizational order as a

 Views organizational order as situational phenomenon and not as
being imposed from the top. imposed from the top.
 Makes suggestions to improve  Only describes the organizational
organizational functioning, i.e. phenomena and does not suggest
scientific methods, bureaucratic any thing to improve its functioning.
elements, and principles. Thus Thus, it is descriptive.
it is prescriptive.  Tends to be probabilistic.
 Tends to be deterministic.  Assumes multi-factor causation.
 Assumes single-factor
causation.
Significance of System Approach

 It is integrated and synthesized the classical,

neo-classical and modern concepts
associated with organizational thought.
 Its conceptualization of organization-
environment interactions eventually became
the precursor of the ecological approach
expounded by F.W. Riggs.
 It has facilitated the ‘contingency approach.
Inputs Processes Outputs
• Employees’ work
• Raw Materials activities • Products and
• Human Resources • Management services
• Capital activities • Financial Results
• Technology • Technology and • Information
• Information Operational • Human Results
Methods
Critics of System Approach
 It is too abstract, over-conceptual and a vague approach
to the study of organization.
 There is no possible of direct application to practical
situations.
 It does not offer any technique or tools of analysis and
synthesis.
 System approach is neither recognizes the difference in
systems nor specifies the nature of interactions and inter-
dependences.
 Although the benefits of these methods are now well
established, administrators often fail to take full advantage
of them even today.
Chart of System

Environment

Proce
Input ss
Output

Feedback
Environment