Page 51 - DMGT402_MANAGEMENT_PRACTICES_AND_ORGANIZATIONAL_BEHAVIOUR

Management Practices and Organisational Behaviour

Notes 2.3.4 Goals of a System

Every system including the organisational system has certain goals. Leaving apart certain specific
goals meant for a specific organisation or part, every organisation or system works towards the
attainment of common goals which necessitates interaction, ability, adaptability and growth.
Interaction takes place because parts are interdependent and interconnected. Stability is the
objective of every system. However, static structure and the simple dynamic of every system do
not seek adaptability and growth. The cybernetic system seeks adaptability but adaptability and
growth are the objective or characteristics of all open living systems.

2.3.5 Modern Organisational Theory: An Appraisal

The modern organisational theory has made valuable contributions in the development of the
organisational theories. The following are important:

1. The theory has an empirical and analytical base and looks at the organisations in system
perspective.
2. It seeks interrelationships and interconnections amongst various organisational parts and
seeks an answer to the question arising out of such interdependence.
3. It takes holistic view, i.e., a whole is not a sum of the parts. The system approach does not
approve the separate study of different parts and then integrating them to make a whole.
It opines that such integration is not possible and the total system should be studied as
whole and not in parts.

4. The concern of modern organisation theory is to study the interrelationships between
parts and to know how these parts respond to it. Thus, the system approach opened up vast
possibilities for the analysis of innumerable parts and sub-systems within an organisational
system and its interaction with its environment.
5. Unlike the classical or the behavioural approaches, modern theory adopts a realistic view
regarding the principles of the organisation. The theory suggests as the organisation is
composed of several sub-systems, it is quite impossible to prescribe certain principles
which are universally applicable or appropriate to all organisations. Such principles are
possible only when the system is stable, mechanistic, and effectively closed to intervening
external variables. But once we take the organisation as an open system with interactive
components, we can no longer think in simplistic and unidimensional terms.
6. The theory presents an open, organic and probabilistic system of the organisation as
opposed to traditional theory’s closed, mechanistic and deterministic view. Open system
refers to an exchange relationship of the organisation with the environment and its serious
dominating influence. Organisations are organic systems because they have adaptability
and flexibility to adapt themselves to the environmental situation. Organisations are
probabilistic systems because nothing is certain in an organisation, only a probability can
be forecasted.
7. The classical approach followed a macro approach and the behaviourists, a micro approach
but the modern organisation theory attempts a macro-micro-macro approach of the
organisation. Besides, this attempt to comprehend the impact on the organisation to
changes in environment has proved a new paradigm which is not merely an extension of
old, rather it constitutes a real revolution in theory. It helps us understand the
interrelationships between the major components of an organisation—its goals, technology,
structure and culture.

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