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Management and Organization-Course 4

SYSTEM APPROACH

This approach, called the system approach or system analysis, is a modern management
technique based on the General System Theory proposed by the biologist Ludwig Van
Bertalanffy and accepted as the basis of philosophy of modern management theory. The
purpose of such an approach is to examine the relationship between the management event
and its units and the quality of these relations, to investigate the effects of developments in
a particular unit on other units; in short, to examine management events in relation to other
events and external environmental conditions.

The system is an organized and indivisible whole consisting of two or more parts and
subsystems that are interdependent, with a certain limit in terms of operation and
characteristics, and distinguished from other systems. There are elements that a system
must carry. These are: - Consists of certain parts. - There's a close relationship between
these parts. - These parts must also form a whole which is associated with the external
environment. When we say the system approach in management, it is understood the
approach that deals with management events and the units in which these events take place
in relation to each other.

BENEFITS OF USING THE SYSTEM APPROACH IN MANAGEMENT

- The administrator had to take into account other sub-systems and environmental
conditions to which his system was connected, narrowly avoiding his interpretation of his
function only.

- It gave the manager the opportunity to relate the objectives of his system to those of a
wider system.

- The manager has the opportunity to establish the organizational structure in accordance
with the objectives of the subsystems.

- When evaluating subsystems, the administrator has the opportunity to determine the
contribution of these systems to the main system.
- In order for the organization to survive and develop and to achieve a dynamic balance, the
manager must know, understand and evaluate all factors related to the organization.

- It is accepted that the subsystems that make up the system can consist of Production or
Technical subsystems, Supportive subsystems, Asset Protection subsystems, Adaptive
subsystems and Managerial subsystems.

- The production subsystem is also called the technical subsystem. They are the units directly
responsible for the production of goods or services for the purpose of establishment of the
organization.

- Support subsystems are systems that provide the technical subsystem with tools and
equipment for its operation.

- Asset Protection subsystems are directed to the device used to do the work, not the field of
activity to be studied. In most organizations, this apparatus consists of stereotyped human
behavior.

BASIC CONCEPTS RELATED TO SYSTEM APPROACH AND SYSTEM RELATED FEATURES

System and Subsystems: A system consists of several parts. These components are referred
to as subsystems. As each system consists of specific subsystems, each system is also a
subsystem of a larger and complex system. Closed and Open Systems: Each system operates
in a specific environment. If there is an exchange of energy, information and materials
between the system and the environment in which the system operates, such systems are
called open systems. If there is no such relationship between the system and the
environment, the system is a closed system. While biological and social systems are
accepted as open systems, mechanical systems are accepted as closed and open systems.

THE IMPORTANCE OF SYSTEM APPROACH IN MANAGEMENT

In the most general sense, management is the co-operation of at least two people to achieve
a common goal. Organizations consist of various units. It is accepted that the holistic nature
of the system approach provides an opportunity to look at the organization as a whole and
to determine the failures in the organization more accurately. Thus, any failure in any unit of
the organization will have an impact affecting the whole organization, and therefore, the
solution to be brought will need to be evaluated and determined in this respect. Thanks to
the system approach, organizations are not isolated assets from the environment, on the
contrary, they show a dynamic feature that has close relations with the environment.

THE CONTIGENCY APPROACH

The starting point of the contingency approach is the difficulties and pressures encountered
in practice. As a result of the inadequacy of the rules, assumptions and generalizations
brought by the classical approaches and the system approach to the problems faced by the
organizations or the problems arising from the relations between the organization-
environment, business-environment, the contingency approach came to the agenda.
The contingency approach claims that management is not universal. There is no “one good
way”, principles and methods that can be applied anywhere, anytime. “The strength of the
organization” and environmental conditions can lead to effective management. Increasing
the interaction between organization and environment and harmonizing the organization
with changing conditions are the basis of the contingency approach.

According to the contingency approach, the current situation and environmental conditions
affect the organization's management style and system in terms of quality and quantity.
Each organization will need to have a different management and organization, as the
conditions and environment in which it interacts are different from the others.
In the contingency approach, one of the main tasks determined for management is to
determine the most appropriate method to achieve the objective. This approach is to find
and implement the management style that best fits the objectives. In some cases, it can be
said that classical administration and autocratic leadership, in other cases, democratic
leadership, is the best government to achieve its aim. One example is the different
management style that managers will apply to inexperienced people and the management
style to apply to experienced people.

Characteristics of Contingency Approach

The main features of the contingency approach are as follows;

a- In the contingency approach which tries to minimize the complexity of decision-making

process in the management of organizations, pragmatism is emphasized more. He argues that
the best harmony between environmental conditions and managerial actions should be
ensured by opposing the notion of one single best, whereas the idea of relativity prevails in
this adaptation.

b- By encouraging managers to innovate, they attach importance to developing their skills to

select and implement strategies and concepts appropriate to the conditions of the situation in
which they operate.

c- It sees the organization as an open system and argues that the organizational and structural
arrangements created should have the flexibility to adapt to the conditions and possible
changes in the environment.

d- It denies the existence of absolute truths, and it is believed that very few usable absolute
dogmas may exist.

e- It is suggested that organizational and managerial problems may arise as a result of changes
in the relationships between a particular set of variables in the conditions.

TAVISTOCK INSTITUTE (BRITISH COAL MINING STUDY)

Eric Trist and K.W Bamford. II. The effects of the change in coal extraction technology after
the World War on the organizational structure and functioning of the coal were investigated.
Before the change, there are groups of 2-4 people in the mine, coal is first moved to a place
and then thrown out. Face-to-face contact between workers The amount of coal to be
released is determined by the workers. There is division of labor and cooperation among the
workers. The leadership remains in the group.

After technology used;

- Groups of 50 people were formed,

- Mass production technology was introduced,

- No need for digging,

- reduced face-to-face contact,

- Solidarity disappeared, close supervision began,

RESULT

- Workers reacted to the system, absenteeism increased.

IMPORTANCE

- To show the variables between technology which is an independent and environmental

variable and organizational structure which is a dependent administrative variable.

BURNS AND STALKER STUDY (TAVISTOCK INSTITUTE STUDY)

Mechanical Systems;

- Specialization in tasks, authority and responsibilities are certain,

- Authority, control, communication hierarchical structure,

- Communication and interaction between subordinates and superiors in a vertical direction,

- Activity and work behavior is governed by the instructions of the superiors and the
decisions they make,

- Technical knowledge and experience are more important than general culture and
environmental experiences,

- Membership in the organization is possible with ownership and commitment to superiors,

- Provides the connection and coordination of the manager's specialization and duty places,

- It is only the top management who have knowledge of the organization and its objectives.

- Management is perceived as a complex hierarchy.

Organic Systems;
- It is assumed that the knowledge and experience of individuals will contribute to the work,

- Horizontal communication is more important than vertical communication. Relations are in

the form of counseling rather than command.

- Communication is not only about giving orders and reports, but exchanging information.

- Instead of specialization in a specific subject, general business information, the ability to

establish and analyze the relationship between environmental variables are important.

- Individuals don’t do their work according to the rules, but do their work according to whole
organization by considering the reality and objectives.

- The top management is not seen as a person, who knows everything and is fully authorized
to make decisions.

- Organizations operating in a variable environment and adopting an organic structure are

becoming more successful.

LAWRENCE-LORSCH STUDY

- In 1966, Lawrence and Lorsch of Harvard University conducted research in 10

businesses in 3 different industries.

- It is based on two basic ideas;

- Different organizations can be successful in different technology and market conditions,

- Organizations operating in uncertain and turbulent environments should exhibit greater

internal differentiation than less complex and more stable organizations.

- Differentiation and integration concepts are emphasized.

- Differentiation, differences in cognitive and emotional orientations of managers in

different units

- Integration is defined as the quality of the cooperation of the departments that should
act according to the requirements of the environment.
 - Especially in the plastics industry examined, high environmental change rate, new
customers, new products important --- R & D important

- Food industry integration directs marketing, customer requests significant innovations

simple, R & D department less effective

- Results;

- Each sector has its own differentiation. As differentiation increases, integration becomes
more difficult.

- The degree of organism can be different even in the organizational subunit.