The systems

approach
 Systems:

 A system is a set of interrelated but separate

parts working towards a common purpose.

Example: An organization is also a system with parts such as employees,

assets, products, resources, and information that form a complex system.
 The systems
approach:

 They viewed organization as an organic and open system, which is

composed of interacting and interdependent parts, called subsystems.

 The system approach is top took upon management as a system or as “an

organized whole” made up of subsystems integrated into a unity or orderly
totality. The various subsystems should be studied in their inter-relationships
rather, than in isolation from each other.
 Key concepts:

 An organization is a dynamic system as it is responsive to its environment.

It is vulnerable to change in its environment. Hence, it has a boundary that
determines which parts are internal and which are external.

 Attention is paid towards the overall effectiveness of the system rather

than the effectiveness of the subsystems which is different departments,
products by not only the objectives and performances of them.
 Advantages:

 It could treat the various approaches such as the process of quantitative

and behavioral ones as sub-systems in an overall theory of management.

 It is useful to management because it aims at achieving the objectives and

it views organization in various functions like planning, organizing, directing
and controlling.
 It facilitates the interaction between organization and its environment. It
guide manager to avoid analyzing problems in isolation and to develop an
integrated approach.
 Disadvantages:

 The approach does not recognize the differences in systems because it

cannot be easily and directly applied to practical problems. Moreover, it
does not provide any tool and technique for managers for keeping a
balance between conflicting forces and events.

 The systems is too complex and over-conceptual because it does not

specify the nature of interactions and interdependencies. That means it
cannot be easily applied to large and complex organizations.
Example:
 Example:

 It is a management approach which enables the leadership to see the whole Lotte Mart
as a unified part or a major section of the larger outside corporate environment.
 Small activity in a section of Lottle Mart has a substantial effect on other sections of the
company.
 Input involves the raw materials, funds, technology, human works.
 The process of Lottle Mart refers to activities related to management, technology,
operations.
 Output are the products, services, feedbacks. It may enable the management to
efficiently determine the long-term goals of Lotte Mart.