3. NO BUSINESS IN THE WORLD IS ABLE to
MAKE MORE PROFIT WITHOUT PROPER
MANAGEMENT SKILL.
4. SYSTEM APPROACH
A system is a set of different independent
parts working together in an inter related
manner to accomplish a set of objective.
5. Features of a system
A system is a combination of various parts i.e.
subsystems.
Each part may have various sub parts.
For example within a galaxy there is a solar system
and within solar system there are many planets.
6. Parts and sub parts of a system are mutually
related to each other. ----
A system is not merely the totality of parts. The
whole is greater than the sum of individual
parts(SYNERGY)
A system can be identified by its boundary.
The boundary of a system is classified into 2 parts
i)Close system
ii)Open system
7. Continuously interact
with its environment.
feedback collected
from other dept.
Little interaction with its
environment.
little/no feedback is
collected.
8. A system transform inputs into outputs.
inputs – man, money , material
Transformation processes involve production,
marketing , finance, HR dept.(which perform
planning, organizing , directing , controlling functions)
Output may be goods and services.
9. System approach to management
Every organization is a system.
Every manager should manage the
organization after considering all its
subsystems and external environment.
Manager should ensure that the output of
the organization should be more than the
combined output of its individual dept.
11. It suggest that the managers do
what the situation warrants or
managers action must be contingent
upon the organizational situation or
environment.
12. It is an extension of system
approach.
In the 1970s, it was felt that
none of the approaches to
management had all the
solutions to all the problems in
an organization.
13. According to this approach the task of
a manager is to identify which
technique will, in a particular situation,
under particular circumstances and at
the particular time best contribute to
attain the organizational goal.
14. Assumption of an contingency approach
• Each organization is unique.
• External environment of each organization is
different and unique.
• There can not be only one best way to doing a
task.
• Best approach to management is situational.
• Key to a manager success lies in his ability to
perceive and analysis every situation