Systems approach to management

SYSTEM APPROACH
 A system is set of interrelated and inter dependent parts
working towards a common purpose.

For Instance:
 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 mainly
approach to the management.

INPUTS
 Inputs from the external environment include people,
capital, managerial & technological skills etc`.
 In addition various groups of people make demands on
the enterprise.

For Instance:
 Employees want higher pay, more benefits and job
security on the other hand consumer demand safe
reliable products at reasonable prices.

 Suppliers want assurance that their products will be
bought.
 Stock holders want not only a high return on their
investment but also security for their money.
 Federal state and local government depends on taxes paid
by the enterprise, but they also expect the enterprise to
comply with their laws.

 Similarly the community demands that enterprise be “Good
Citizens” providing no of jobs with a minimum of pollution.

TRANSFORMATION
PROCESS
 It is the task of managers to transform the inputs in an
effective and efficient manner into outputs.

 The transformation process can be viewed from different
perspectives. Thus one can focus on such diverse
enterprise functions as finance, production, personal and
marketing.

 Writers on management look on the transformation
process in terms of their particular approaches for
management.

 Specifically writers belonging to the human behavior
school focus on interpersonal relationships.

 Social systems theorists analyze the transformation by
concentrating on social interactions and those
advocating decision theory see the transformation as
sets of decisions.

 The most comprehensive and useful approach for
discussing functions of planning, organizing, managerial
knowledge.

COMMUNICATION SYSTEM

 Communication is essential to all places of the
managerial process for two reasons.
First:
 The objectives set in planning are communicated.
So that appropriate organization structure can be
derived.
 Communication is essential in the selection,
appraisal and training of managers to fill the roles in
the structure.
 Through communication that one determines
whether events are perform conform to plan.

Second:
 Communication system is to link the enterprise with its
external environment constraints - Customer,
Businesses.
 It is through effective communication organization
becomes aware of competition, potential threats and
constraining factor.

External Variables:
 Effective manager will regularly scan the external
environment while it is true that manager may have little
or no power to change the external environment.

OUTPUTS:
 It is the task of the managers to secure and utilize inputs to
the enterprise, to transform them through the managerial
function with due consideration for external variables into
output.

 Outputs include products, services, profits, satisfaction and
integration of the goals of various claimants to the
enterprise.

 The organizations must indeed provide many “satisfaction” if
it hopes to retain and elicit contributions from its member.

 It must contribute to the satisfaction not only for
basic material needs (money, food, shelter & job
security) but also needs for affiliation,
acceptance, esteem and perhaps even self
actualization.

 So that one can use his or her potential and
work place.

REENERGIZING
 Finally, it is important to notice that in the systems model of
the management process some of the output becomes
inputs again.

 Thus the satisfaction and new knowledge or skills of
employees become important human inputs.

 Similarly profits, the surplus of income over costs are
reinvested in cash and capital goods. Such as machinery,
equipment, building and inventory.

FUNCTION OF MANAGERS

Planning:
 Planning involves selecting missions and
objectives and the actions to achieve them; It
requires decision making, which is choosing
future courses of action from alternatives.

Organizing:
 People working together in groups to achieve some goal
must have roles to play.
 The concept of role implies that what people do has a
definite purpose or objective; they know how their job
objectives fits into group effort, and they have the
necessary authority, tools and information to accomplish
the task.
 The purpose of organization structure is to help in
creating an environment for human performance

Staffing:
 Staffing involves filling and keeping filled, the positions in
the organization structure.
 This is done by identifying work force requirements,
recruiting, selecting, placing, promoting and appraising.
 So that tasks are accomplished effectively and
efficiently.

Leading:
 Leading is influencing people so that they will contribute
to the organization and group goals.

Controlling:
 Controlling is measuring and correcting
individual and organizational performance to
ensure that events conforms to plan.
 It involves measuring performance against goals
and plans, showing where deviations from
standard exist and helping to correct deviations
from standards.

Coordination:
 Some authorities consider coordination to be a
separate function of the manager.
 It seems more accurate, however, to regard it as
the essence of managership, for achieving
harmony among individual efforts toward the
accomplishment the group goals.

KEY CONCEPT OF SYSTEM
APPROACH

Open ended and Close ended systems.
Subsystem
Synergy
Defined Boundries
Feedback Mechanism
Multidisciplinary
Consideration of whole system
Input-Output system

FEATURES OF SYSTEMS APPROACH
• Dynamic
• Multilevel and Multidimensional
• Multimotivated
• Probabilitistic
• Multidisciplinary
• Descriptive
• Adaptive

1.Under systems approach, managers have a good view of the
organization.

2.It gives importance to interdependence of the different parts
of an organization and its environment.

3.It forecasts consequences and plans actions.

4.Systems thinking warns managers against adopting
piecemeal approach to the problem-solving.

5.Systems approach is applied in all organizations for instance
TQM(TOTAL QUALITY MANAGEMENT)

CONCLUSION
• 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.

Systems approach to management

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