Page 49 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Unit 2: Evolution of Management Thought

Features of Systems Approach Notes

The systems approach is far more superior to classical and neo-classical approach because of the
following features:
1. Interdependent Sub-systems: An organisation is a system consisting of several sub-systems.
For example, in a business enterprise, production, sales and other departments and sub-
systems. All these sub-systems are functionally interacting and interdependent. They are
used together into an organic whole through goals, authority flows, resources flows and
so on.

Figure 2.1: Open System View of Organisation

Environment

Input The
Output
Organisation
Raw Goods and
Employees,
Material Services
Material and
Labour Managerial
Technology Processes
Feedback

2. Whole Organisation: The system approach provides a unified focus to organisational
efforts. It gives managers a way of looking at the organisation as a whole that is greater
than the sum of its parts. The stress is laid on integration of various sub-systems of the
organisation to ensure overall effectiveness of the system.

3. Synergy: The output of a system is always more than the combined output of its parts. This
is called the law if synergy. The parts of system become more productive when they
interact with each other than when they act in isolation.
4. Multi-disciplinary: Modern theory of management is enriched by contributions from
various disciplines like psychology, sociology, economics, anthropology, mathematics,
operations research and so on.

Appraisal of Systems Approach

The system approach is an attempt to design an overall theory of management. Interdependency
and inter-relationships between various sub-systems of the organisation is adequately
emphasized. A pressure for change in one sub-system generally has a direct or indirect influence
on the other sub-systems also. Thus, the systems approach acknowledges environmental influences
which were ignored by the classical theory.
The systems approach represents a balanced thinking on organisation and management.
It stresses that managers should avoid analyzing problems in isolation and rather develop the
ability for integrated thinking. It recognizes the interaction and interdependence among the
different variables of the environment. It provides clues to the to the complex behaviour of an
organisation. It warns against narrow fragmented and piecemeal approach to problems by
stressing inter-relationships.
The systems approach is criticized as being too abstract and vague. It cannot easily be applied to
practical problems. It does not offer specific tools and techniques for the practising manager.

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