2.

3 System Approach: System approach is based on the generalization that everything is inter-

related and inter-dependent. A system is composed of related and dependent elements which when in

interaction, forms a unitary whole. A system is simply an assemblage or combination of things or parts

forming a complex whole.

Its early contributors include Ludwing Von Bertalanfty, Lawrence J. Henderson, W.G. Scott, Deniel

Katz, Robert L. Kahn, W. Buckley and J.D. Thompson. 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 sub-

systems integrated into a unity or orderly totality.

Figure-2.3: System Approach Framework

2.3.1 Features of System Approach:

(i) A system consists of interacting elements. It is set of inter-related and inter-dependent parts arranged

in a manner that produces a unified whole.

(ii) The various sub-systems should be studied in their inter-relationships rather, than in isolation from

each other.
(iii) An organizational system has a boundary that determines which parts are internal and which are external.

(iv) A system does not exist in a vacuum. It receives information, material and energy from other systems as

inputs. These inputs undergo a transformation process within a system and leave the system as output to other

systems.

(v) An organization is a dynamic system as it is responsive to its environment. It is vulnerable to

change in its environment.

2.3.2 Evaluation of System Approach:

1. System approach provides a holistic view of the organizations and emphasizes on their

adaptive nature. It increases organization’s adaptability to environmental changes. The

organization is studied as a whole and not through its parts. This enables it to adapt to the needs

of the environment. Decisions are made keeping in mind organization-environment interface.

2. It analyses the system at different levels and inter-relates and integrates it into a unified set of

direction. Starting from individual goals, it focuses on overall organizational goals, synthesizes

the two and converges them into global economy.

3. System approach provides a framework for effective interaction of parts of the organization in

a specific arrangement for attainment of its goals. It does not focus on one part of the

organization.

4. It considers the impact of environment on the organization and vice versa. Interaction of

external environment with the internal environment is the most significant contribution of
 systems theory. System approach, thus, analyses the organization as an adaptive and dynamic

entity.

5. System approach synthesizes the classical and behavioral theories into a broader framework to

solve managerial problems.

It, thus, focuses on organizations as multi-dimensional in nature.

Reengineering: Reengineering is most commonly defined as the redesign of business processes—and the

associated systems and organizational structures—to achieve a dramatic improvement in business

performance.

The concept of reengineering traces its origins to management theories developed as early as the nineteenth

century. The purpose of reengineering is to make all processes the best possible.

Motivation for Reengineering:

 Reduce costs/expenses (the most cited business-driven reengineering project goal)

 Improve financial performance
 Reduce external competition pressure
 Reverse erosion of market share
 Respond to emerging market opportunities
 Improve customer satisfaction
 Enhance quality of products and services.

Reengineering seems largely incongruent with OD processes in some major ways. But it also appears to
have some congruency in terms of certain hoped-for outcomes. So how might OD and reengineering
become congruent?-
 1. If top management has bought into reengineering, OD and human resources people can argue
for making the process as human as possible.
2. Those who advocate OD type values and processes can look for avenues for meaningful
involvement of employees at all levels in any reengineering effort.
3. People with OD skills can help emerging new teams to be more effective than they otherwise
might be. Effective teams of various kind would seem to be important for successful
implementation of reengineering.
4. OD knowledge about how to design and implement parallel structures discussed earlier is
relevant to reengineering. Reengineering raises a major ethical issue for OD and human
resource management and development professionals if it results in large layoffs.

Another ethical issue of profound proportions is raised when management deceives employees into
believing that they have job security, ask for their cooperation and help in redesigning business
processes.

Survey Feedback: An important and widely used intervention for organization development rest on
the process of systematically collecting data about the system and feeding back the data for individuals
and groups at all levels of the organization to analyze, interpret meanings, and design corrective action
steps. These activities- which have two major components, the use of a climate or attitude survey and
the use of feedback workshops-are called Survey Feedback.

This approach is based on the systems. Survey feedback has shown to be an effective change
techniques in OD. A well designed survey helps organization members to develop valid models of how
organizations work and also provide feedback about progress towards goals.

Process of Survey Feedback:

Data Feedback of Follow-Up

Collection Information Action

Evaluation of Survey Feedback:

Survey feedback provides a base for many managerial actions which has been confirmed by various
research studies. In particular, survey feedback contributes in the following manner:

1. It is cost-effective means of implementing a comprehensive OD programmed making it a highly

desirable technique.
2. It generates great amount of information efficiently and quickly which can be used in solving
problems faced by the organization and its members.
3. Decision-making and problem-solving abilities of organization can be improved tremendously
because this approach applies the competence and knowledge throughout the organization and
the problems faced by it.

However, effectiveness of survey feedback depends on two factors. First, questionnaire used and
method adopted for its administration should be reliable and valid. If it is biased, all attempts to
diagnose the problems will be abortive and futile. Second, even if valid and reliable information is
collected, it is of no use unless follow-up action is taken based on the information.