This document discusses the systems approach to management. It views management as an open system that interacts with its external environment. The manager's role is to transform various inputs like capital, skills and demands from stakeholders into outputs through key functions like planning, organizing, and controlling. Feedback from the environment and outputs that are reinvested into the system help reenergize the process. While this approach provides an integrated view of management, some argue it does not provide truly new insights and different authors have interpreted it in various ways.
This document discusses the systems approach to management. It views management as an open system that interacts with its external environment. The manager's role is to transform various inputs like capital, skills and demands from stakeholders into outputs through key functions like planning, organizing, and controlling. Feedback from the environment and outputs that are reinvested into the system help reenergize the process. While this approach provides an integrated view of management, some argue it does not provide truly new insights and different authors have interpreted it in various ways.
This document discusses the systems approach to management. It views management as an open system that interacts with its external environment. The manager's role is to transform various inputs like capital, skills and demands from stakeholders into outputs through key functions like planning, organizing, and controlling. Feedback from the environment and outputs that are reinvested into the system help reenergize the process. While this approach provides an integrated view of management, some argue it does not provide truly new insights and different authors have interpreted it in various ways.
This document discusses the systems approach to management. It views management as an open system that interacts with its external environment. The manager's role is to transform various inputs like capital, skills and demands from stakeholders into outputs through key functions like planning, organizing, and controlling. Feedback from the environment and outputs that are reinvested into the system help reenergize the process. While this approach provides an integrated view of management, some argue it does not provide truly new insights and different authors have interpreted it in various ways.
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Introduction
This approach is of recent origin.(developed in late 1950)
This approach considers management in totality. This approach defines system as : “An assemblage of things connected or interdependent so as to form a complex unity. A whole compose of parts held in orderly arrangement under some plan.” Under system approach management is regarded as system having many sub system & sub-sub- systems & so on. System Approach
• Concept of Sub Systems and Sub Sub
Systems Is Explained in Figure. • Trist Gave the Concept of Open and Closed System. • Management Is Neither an Mechanical System nor an Biological System. • Management Is an Social System • As a Social System It is an Open System. Management as an open system
• Management is an Open System. It has an
environment with which it interact. It is a part of larger economic system of society. • Enterprise receives inputs (resources) from the environment transform them into outputs. Output is exported back to the environment. MANAGEMENT AS AN OPEN SYSTEM
This Simplistic model explains Systems Approach.
However Transformation Process and the Systems Concept in
this model need further explanation and clarification. • This modified figure explain the systems approach in detail & shows that transformation takes place through managerial function of planning, organizing, staffing, leading & controlling. • The details in the figure are explained in the next slides. Inputs & Claimants
• Inputs from external environment include :
– People – Managerial Skills – Capital – Technical Knowledge & Skills • In addition various groups of people will makes various demands from the enterprise. E.g. – Employees want high pay, more benefits & job security. – Consumer want safe & reliable things at reasonable price. – Supplier wants assurance that product will be bought. – Stock holder want high return on investment. – Govt. wants taxes in time & compliance to its law. • Claimants include creditors, labor unions, trade union etc.
Manager’s job is to integrate all these things.
Managerial Transformational Process • Task of Manager to transform inputs into Output in an efficient & effective manner. • Transformation process includes the managerial functions of Planning, Organizing, Staffing, Leading and Controlling. • Best part of this approach is that it can include all other Managerial approaches. Different writers on management can look on the transformation process in terms of their particular approach to Management. – Human Behaviorist -- Can focus of Interpersonal relations – Social system Theorists- Concentrate on Social Interests – Decision Theorist- can see it as Set of Decisions. – Bureaucratic approach- can focus on rules,Procedures,Impersonal relations,rigid hierarchy of authority. – Admistrative Theory of Fayol-14 Principals of Management – Scientific Management focus on scientifically designing each task Communication System
• This approach emphasis on communication.
• Communication is essential to all phases of managerial process. • Communication helps us know whether events & performances are going as planned. • Communication is essential in Selection, appraisal and training of managers for their role in org structure. Objectives also need communication down the line. • Communication also required to Link with external Environment •Enterprise has to reach to its customers •Enterprise has to reach to its Claimants External Variables, Output, Goal Integration
External variable: This approach emphasizes on regular
Env. Scan by the managers to alter the pan and adjust their products accordingly. Output: The output will vary with the enterprise, they usually include,products, services, profits, Satisfaction and Integration of goals. Goal Integration: Different Claimants have divergent and very often directly opposing objectives.It is the task of managers to resolve conflicts and integrate these aims. Re-energizing System
Finally it is very important to note some of the Outputs become inputs
again. Thus : – The Satisfaction of Employees becomes an important input. – Profits are reinvested – Surplus Income Again Reinvested in the organization. (cash,capital goods like machinery & equipment). Thus we find that any of the outputs can re-energize the system provided they are siphoned back into the system. This can happen only if the organization run to the satisfaction to the claimants. Advantages of System Approach
• Integration of Various Approach: It can incorporate all the other
approaches into itself. Thus system approach is in tune with the “Spirit of the Age”.It has rather evolved out of earlier approaches. • Managerial Analysis attains new height in this approach. • Environmental Analysis :This is the first approach which emphasizes on environmental analysis. Internal functioning of the department must be in line with external environment & need of its member. This entire job is to be done by the manager. So it makes managerial jobs complicated . • This approach makes working in a complex environment easy. • This approach makes Decision Making Easy by crystallizing alternatives. Limitations of System Approach
• Not a Unify Body of Thought :- Every writer has his own
concept. Churchman says :“System approach like the story of a group of blind man who were assign the task of discovering an elephant.” • Many thinkers believe that system approach has nothing new to offer. It is like old wine in a new bottle.
Early Contributors Advocates of Systems theory : • Kenneth • Lawrence J Henderson • Boulding • W. G. Scott • Cast Rosen • D. Kantz • Johnson & Martin • J.D.Thomsons • Robert L. Kahni
