Social Systems Approach

Presented by
Nandini Borah Assistant Professor Royal Business School

 Introduced by Vilfredo Pareto, a sociologist

Later developed by Chester Barnard

Social systems approach

 an organization is essentially a cultural system composed of people who work in cooperation

Social systems approach

 Organization is a social system Relationship exist among the external as well as internal environment

Social systems approach

 Cooperation among group members is necessary Efforts should be made for establishing harmony between goals of organization and various groups therein

Social systems approach

 The Functions of the Executive most influential book on management He analyzed the nature of co-operative social system

Contributions of Barnard

Concept of organization Formal and informal organizations Elements of organization Authority Functions of the executive Motivation Executive effectiveness Organizational equilibrium

Contributions of Barnard

 Formal organization: system of consciously coordinated activities of two or more persons

Concept of organization

 There are persons able to communicate with each other They are willing to contribute to the action
They attempt to accomplish a common purpose

Conditions to be fulfilled for an organization to exist

Organization

Formal

Informal

Formal & Informal Organization

 Executive should encourage development of informal organization To serve as a means of communication To bring cohesion To protect the individual from dominance of the organization

Formal & Informal Organization

 Departmentation
System of effective and efficient incentives System of power System of logical decision making

Elements of organization

 Barnard does not agree with the classical view of authority Gave a new concept of authority acceptance theory of authority or bottom up authority

Authority

 Subordinates will accept a communication as being authoritative when 4 conditions are met:

Authority

 Can understand the communication Believes it is not inconsistent with the organizational purpose Believes it to be compatible with his personal interest as a whole He is mentally and physically able to comply with it

Authority

 Maintenance of organizational communication Securing of essential services from individuals in the organization Formulation and definition of organizational purpose

Functions of the executive

 Barnard suggested a number of non-financial techniques for motivating people

Motivation

 Opportunity of power and distinction

Pride of workmanship Pleasant organization

Motivation

 Participation Mutual supporting personal attitudes

Feeling of belongingness

Motivation

 High order of responsible leadership Cooperation is the creative process

Leadership is the indispensable fuel

Executive effectiveness

 Executive leadership demands

High caliber Technological competence Technical and social skills

Should not have preconceived notions and false ideologies

Executive effectiveness

 Likely to commit the following four errors:

Oversimplification of the organization life Disregarding the reality of informal organization Objective and subjective aspects of authority Confusion of morality and responsibility

Executive effectiveness

 Matching of individual efforts and organizational efforts Organization must afford satisfaction to its employees

Organizational equilibrium

 Equilibrium is dynamic and not static

Demands and aspirations of individuals change

Organization has to cope with it

Organizational equilibrium

 Equilibrium of the organization depends on:

Individuals Other organizations Society

Organizational equilibrium

 Has both logical and non-logical components

Both these factors need to be analyzed

Organizational equilibrium

THE End