Systems Approach to Management

By systems approach to management is meant the study of a firm in its totality so that the men and material resources of the firm can be organized to realize the firm's overall objectives as efficiently as possible. This approach is now becoming essential because of the growth of complexity of firms and the increasing potential of automatic computers. The systems approach to management implies that every manager should be much more precise about decision-making and information flow. For this to be effective, a company should have an overall system of corporate objectives. First a detailed systems study will be necessary to decide on the best objectives and then subsidiary systems must be set up to realize these objectives as efficiently as possible. How does the system approach view the organization? The system approach views the organization as a unified, purposeful system composed of interrelated parts. This way the manager can look at the organization as a whole or part of the larger outside environment. Activity of any part affects all other parts of the organization. A system can be biological, physical or social. What are the parts which make up the whole system? Parts which make up the whole system are called Subsystems. Each system is a subsystem of a larger system. Department Plant Company Industry Economy World economy

All other assessment of the work is done by this Feedback. they leave as goods or final products as outputs. the output will be more than the output by each department working alone separately. What is the feedback in a system? The information during the operation is fed to the concerned men or machines. After the operations in the organization. material and information enter as inputs. These inputs help in the correction of the procedures.What is meant by synergy? Synergy means that if all the parts are working together and with full cooperation. . Subsystems are performing for the entire system by the various procedures laid down by the system. This process is called flow in a system. What is a procedure in a system? The subsystems are connected to each other by Procedures. Closed system. The boundary in this system must be flexible. What is flow in a system? The human energy. organization which does not interact with environment. What do you understand with by Open and Closed system? Open system means the organization which interacts with the environment. The boundary in this system is very rigid.

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