about system approach to management

2. SYSTEM APPROACH
 A system approach is set of interrelated and inter
dependent parts arranged in a manner that produces a
unified whole.
 For Example
 The human body is a system with all the organs, muscles,
bones and conscious that likes all of its parts.
 In a company a group of division people working for a
common goal or success. So this system for mainly
approach to the management.

3. Finance Department
Human Resource
Department
Marketing
Department
Production
Department

4. FEATURES OF A SYSTEM
 A system is a combination of parts and sub system.
 Parts and sub parts of a system are mutually related to
each other.
 Arrangement in a system is more important.
 Prevalence of boundary.
 Closed and open system.
 System transforms inputs into outputs.

5. FEATURES OF MANAGEMENT
AS A SYSTEM
 Management as a social system
 Management as open system
 Adaptive
 Dynamic
 Probabilistic
 Multi level and multidimensional
 Multivariable
 An integrated approach

6. BASIC TYPES OF SYSTEMS
 Closed Systems
closed systems are not influenced by and not interact with their
environment
 Open Systems
dynamically interact to their environments by taking inputs and
transforming them into outputs that distributed into their
environments.

7. THE FOUR PARTS OF A
SYSTEM
 Inputs
from the external environment include people, capital, management &
technological skills etc. in short- man money material
 Outputs
include products, services, profit, loses, employee, satisfaction or
discontent, and the like that are produced by the organization.
 Transformation Process
the organization’s capabilities in management and technology that are
applied to converting inputs to outputs.
 Feedback
information about the reaction of the environment to the outputs that affects
the inputs.

8. THE ORGANIZATION AS AN
OPEN SYSTEM
Inputs
Raw materials
human resource
capital
technology
information
Transformation process
employees work
activities
management activities
technology and
operations methods
Outputs
products and services
financial Results
information
Human Results
Environment
Environment
System

9. ADVANTAGES OF THIS
THEORY
 Under system approach, manager have a good view of the
organization.
 It gives importance to interdependent of the different parts
of an organization and its environment.
 It forecast consequences and plans action.
 Goal oriented.

10. DISADVANTAGES OF THIS
THEORY
 Does not offer specific tools and techniques for practicing
manager.
 In smaller organization it is not relevant.
 Activity of any part affect activity of other parts.
.
 Unpractical: It cannot be easily and directly applied to
practical problem.

11.  System approach is very crucial for organizations for it’s
existence in business scenario and economic environment,
in order to face all cyclic circumstances and to move step
a head to achieve goals.