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System Approach

The document discusses the System Approach to management, which views organizations as unified systems composed of interrelated parts working towards common goals, emphasizing the importance of communication and interaction among departments. It also introduces the Contingency Approach, which asserts that managerial practices should be tailored to specific situations, highlighting the need for flexibility and adaptability in management. Both approaches have their advantages and disadvantages, with the System Approach focusing on integration and interaction, while the Contingency Approach emphasizes situational judgment and adaptability.

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Kamaldeep Kaur Grewal
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0 views

System Approach

The document discusses the System Approach to management, which views organizations as unified systems composed of interrelated parts working towards common goals, emphasizing the importance of communication and interaction among departments. It also introduces the Contingency Approach, which asserts that managerial practices should be tailored to specific situations, highlighting the need for flexibility and adaptability in management. Both approaches have their advantages and disadvantages, with the System Approach focusing on integration and interaction, while the Contingency Approach emphasizes situational judgment and adaptability.

Uploaded by

Kamaldeep Kaur Grewal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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System

Approach
System
• A system is a set of interrelated but
separate parts working towards a common
purpose.

• The arrangement must be orderly and


there must be proper communication
facilitating interaction between the
elements and finally this interaction should
lead to achieve a common goal.
System Approach
• System approach to management views
the organization as a unified, purposeful
system composed of interrelated parts

• This approach also gives the manager to


see the organization as a whole and as a
part of the larger external environment.
Contd…
• System oriented manager would make
decisions only after they have identified
impact of these decisions on all other
departments and the entire organization.

• They must intertwine their department with


the total organization and communicate
with all other departments, employees and
with each other.
Example

Finance
Department

Human
Production
Resource
Department
Department

Marketing
Department
Key Concepts
Open
Subsystem Synergy
System

Closed System Flows


System Boundary

Feedback
OPEN AND CLOSED SYSTEM
• Closed systems have no interaction with
environment
• Closed system are self contained and self
maintaining
• Closed systems are mechanical
• Closed systems are like closed loops
• Open systems have feedback mechanism
External Environment

Managerial
Knowledge, Goals,
Inputs
R C
E O
Planning
E M
N M
G Organizing U External

I N Environment:

N Staffing I Opportunities

E C Threats

E A
Leading
R T
I I
N Controlling O
G N

Output

External Environment
Characteristics
• Systems have structure, defined by parts and their
composition;

• Systems have behavior, which involves inputs,


processing and outputs of material, energy or information;

• Systems have interconnectivity : the various parts of a


system have functional as well as structural relationships
between each other.

• System(s) have by itself function(s) or group of functions .


Features of System approach

Dynamic

Interdepen Social
dent System

Features
Open
Integrated system

Multivariabl
e Adaptive
Advantages
• It aims at meaningful analysis of
organizations and their management.

• It facilitates the interaction between


organization and its environment.

• It guide manager to avoid analyzing


problems in isolation and to develop an
integrated approach.
Disadvantages
• The approach does not recognize the
differences in systems.
• Unpractical: It cannot be easily and directly
applied to practical problems.
• Lack of Universality
• Complex System
Contingency approach
to management
INTRODUCTION
 This contingency approach is modern
management theory
 This contingency approach is also known as
situational
 The Contingency Approach stresses that the
correctness of a managerial practice is
contingent on how it fits the particular situation.
Contingency Approach to Management

• Management is entirely situational.


• The management has to use the
measures/techniques as per the situation
from time to time.
• Management should match its approach as
per the requirements of the situation.
• The policies and practices used should be
suitable to environmental changes.
• The success of management depends on
its ability to cope up with its environment
Characteristics

The contingency approach is


based on
three characteristics they are..

 An open system perspective


 A research orientation
 A multivariable approach
Merits
 Contingency approach is pragmatic and open
minded It discounts preconceived notions, and
universal validity of principles
 It provides freedom/choice to manage to judge
the external environment and use the most
suitable management techniques.
 Here, importance is given to the judgment of the
situation and not the use of specific principles.
 The contingency approach has a wide-ranging
applicability and practical utility in, organization
and management.
Limitations
 lacks a theoretical base.
 Under contingency approach, a manager is
supposed to think through all possible alternatives
as he has no dried principles to act upon.
 The responsibility of a manager increases as
he has to analyze the situation, examine the
validity of different principles and techniques to the
situation at hand, make right choice by matching
the technique to the situation and finally execute
his choice

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