System approach
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1) A system is made up of interrelated parts that work together as a unified whole. An organization is a system with subsystems and parts that are mutually dependent. 2) An organization can be viewed as an open system that interacts with its external environment by taking in inputs and transforming them into outputs. Key aspects of an open system include inputs, transformation processes, outputs, and feedback. 3) The seven factors model describes seven interrelated factors - strategy, structure, systems, style, staff, skills, and shared values - that determine how a corporation operates and should be considered by managers for successful implementation of strategies.
System approach
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- 2. System o A set of interrelated and interdependent parts arranged in a manner that produces a unified whole. o An organized or complex whole; an assemblage or combination of things or parts forming a complex unitary whole o A system is basically a combination of parts (subsystem). Each part may have various sub-parts. o An organization is a system of mutually dependent parts, each of which may include many subsystem.
- 3. Management as a Social System Management as Open System Adaptive Dynamic Probabilistic Multilevel and Multidimensional Multivariable An integral approach Multidisciplinary
- 4. Closed systems Are not influenced by and do not interact with their environment (all system input and output is internal). Open systems Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments.
- 5. 1. Inputs – are people, money, information, equipment, and materials required to produce and organization’s goods or services. 2. Output – the products, services, profits, loses, employee, satisfaction or discontent, and the like that are produced by the organization. 3. Transformation Process – the organization’s capabilities in management and technology that are applied to converting inputs into outputs. 4. Feedback – information about the reaction of the environment to the outputs that affects the inputs.
- 7. © 2007 Prentice Hall, Inc. All rights reserved. 2–7
- 8. It is a management model that describes 7 factors to organize a company in an holistic and effective way. Together these factors determine the way in which a corporation operates. Managers should take into account all seven of these factors, to be sure of successful implementation of a strategy. Large or small. They're all interdependent, so if you fail to pay proper attention to one of them, this may effect all others as well. On top of that, the relative importance of each factor may vary over time.
- 10. Hard Elements Strategy Structure Systems "Hard" elements are easier to define or identify and management can directly influence them: These are strategy statements; organization charts and reporting lines
- 11. Soft Elements Shared Values Skills Style Staff "Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful.
- 12. Strategy - Actions a company plans in response to or anticipation of changes in its external environment. It may also be seen as plans for allocation of resources to enable the company’s identified goals
- 13. Structure - Basis for specialization and coordination influenced primarily by strategy and by organizational size and diversity. This is also the way that different units in the firm relate to each other.
- 14. Systems - Formal and informal procedures that support the strategy and structure. Often internal systems are more powerful than they are given credit for. They are also the procedures and processes that characterize how the work should be done and internal systems used to accomplish the needed performance
- 15. Style - The culture of the organization, how key managers behave and what they do rather than what they say. It answers the questions: How do they spend their time? What are they focusing their attention on?
- 16. Staff - Human resource management, the processes and efforts used to develop managers, socialization, and the shaping of basic management values, It also includes ways of introducing young recruits to the company, and the support given to manage employees’ careers
- 17. Skills - These are the distinctive and core competencies of the company, They include the ways competencies are expanded or shifted. This can also be determined from the perspective of core competencies that exist and are developed in the firm.
- 18. Shared values -Also called super ordinate goals, these are the central believes and attitudes, guiding concepts, and fundamental ideas around which a business is built. Usually stated at the abstract level, they have great meaning inside the organization even though outsiders may not see or understand them. They can be summarized as what extent the company stands for and what it believes in.
- 19. These seven elements also help estimate the effectiveness of a firm. They are interrelated - - if one element changes, it will affect all the others.
- 20. It aims at meaningful analysis of organizations and their management. It facilitates the interaction between organization and its environment.It guides managers to avoid analysing problems in isolation and to develop an integrated approach.
- 21. Over-conceptual The approach does not recognize the differences in systems. Systems philosophy does not specify the nature of interactions and inter- dependencies. Unpractical: It cannot be easily and directly applied to practical problems.
- 22. Coordination of the organization’s parts is essential for proper functioning of the entire organization. Decisions and actions taken in one area of the organization will have an effect in other areas of the organization. Organizations are not self-contained and, therefore, must adapt to changes in their external environment.