CONTEMPORARY THEORIES

In contemporary management theory, organisations are seen as a system.

The classical theorists tended to view organisations as mechanistic closed
system while the human relations approach focuses on human behaviour aspect
only and not looking into the entire organisation. These approaches disregarded
the differing organisational environments and nature of organisation’s
dependency on the environment. The approaches also led to placing
overemphasis on principles of internal organisational functioning at the
expense of understanding the processes of feedback which are essential for
organisational survival. The two current perspectives of approaches to the
study of public administration and management are:
i. Systems approach/theory
ii. Contingency approach/theory

SYSTEMS APPROACH

This approach looks at the organisation as a ‘whole’. It is a hypothesis that

challenged the human relations approach by stating that emphasis on
human behaviour failed to look into the entire organisation. A system is an
interrelated set of elements functioning as a whole; a set of components that
are related in the accomplishment of some purpose.
Theorists distinguish between closed and open systems.
Closed systems are self-sufficient entities and do not rely on the external
environment for survival. Open systems depend on the surrounding
environment for survival. The closedness and openness of an organisation is
dependent on the degree of interaction between the system and the
environment.

An open system is made up of interdependent parts with permeable

boundaries as it interacts with the environment by importing inputs while it
exports outputs in order to maintain itself in a permanent state of
equilibrium.

The basic elements of organisational systems

These include the following four elements:
i. Environment-where the inputs come from and where the outputs are
deposited.

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 ii. Inputs- these enter the system from the environment. The system
receives inputs or energy (people/labour, money, raw materials,
information, technical knowledge, labour, equipment and finances)
iii. Process- the transformation or combination of inputs through
managerial and technological direction into a process that results in
finished output. It is the conversion of the inputs into outputs
discharged into the environment.
iv. Output- these are results or products in form of goods and services,
ideas etc.
v. Feedback- reaction or response by the environment to the outputs
provided by the system.

A Public administration system is represented as receiving inputs from the

environment in form of ‘inputs’ into the ‘conversion processes’ for production
of ‘outputs’ and ‘feedback’ arising from outputs some new input is
generated.
1.) Environment- this includes the socio-cultural, economic and political
phenomenon which affect policy makers and implementers, clients
or beneficiaries, the market or private sector, interest groups and
political support.
2.) Inputs- these are transmission sent from the environment to the
conversion process. These include demands, resources, and support
or opposition.
 Demand is an analytical concept which not only describes
citizen-administration interaction but also routine requests
and statements of need.
 Resources include physical e.g. assets/raw materials,
equipment, skilled personnel, financial, information and time.
 Support and opposition- this is a manifestation of willingness
of the people to contribute e.g. pay market fees and taxes,
patience in the face of problems; opposition may manifest
itself in apathy or outright protests.
3.) Conversion Process: this may be within inputs and its features
include structure, control procedures, administrative mechanisms
for decision making; administrator’s values, personal experiences,
and predisposition.
4.) Outputs- these are outputs from the conversion process or
administrators and include services, tangible goods, ideas,
information, projects and regulations that satisfy material and
symbolic needs of citizens.
5.) Feedback- this refers to the influence of outputs upon demands,
resources, support and opposition and continuity of responses and
interaction with the environment.

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Major sub systems of an organisation

A sub system is a system within a system; subsystems are interdependent,
a change in one subsystem affects other subsystems as well. For example, a
physical organism is composed of circulatory, muscular, skeletal, and
nervous sub-system – all of which function together to sustain life. A car is a
system that consists of pistons, spark plugs, axles, wheels which work
together to propel a car. An organisation is a system composed of human
beings, money, materials, equipment etc. which are related in the
accomplishment of goals. Since both the material and financial resources are
scarce, the organisation operates through a system to ensure resource
availability (Daft, 2010: 145).
Organisations consist of a number of interrelated sub-systems e.g. in
university, faculties or departments may be viewed as sub systems. Each of
the subsystems has a purpose which if attained, aids the larger system in
reaching its overall goal. According to Katz and Kahn the major subsystems
of an organisation are the following:
i. Production/technical subsystems- concerned with the accomplishment
of basic tasks of the organisation, actual work and conversion of raw
material to final goods and services. For example, transporting,
marketing, manufacturing, teaching etc.
ii. Supportive subsystems- involved in the procurement of inputs and
disposal of outputs, output of the production subsystem; carries out
the environmental transaction of pouring inputs or disposing outputs.
For example, importing and exporting, buying and selling.
iii. Institutional subsystems- involved in doing the work of relating the
system to its larger social environment such as establishing external
links and ‘legitimation’ with its environment.
iv. Maintenance subsystems- concerned with the stability and
predictability of the organisation; it provides roles, rules and rewards
for people working in the organisation; the subsystem’s activities are
aimed at the equipment for getting the work done. The equipment
include resources such as people, raw materials, recruitment,
socialization, training etc.
v. Adaptive subsystems- concerned with what the organisation might
become; it is concerned with issues of change in the environment;
adaptation by the system to its changing environment-values and
norms of the external environment. For example, changes in the
market, prices, economic socio-cultural factors which reach the
organisation as ‘demands’ for the internal organisational environment
to change. The marketing and product research and development are
some of the key activities that are in the adaptive subsystem.

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vi. Administrative/Managerial subsystems- concerned with managerial
functions of planning, organizing, coordination and control of the total
system; organised activities.
Two major lessons for the manager contained in the systems theory
are:
First, most organisations are open systems as they do not exist in a vacuum.
Secondly, the approach stresses on the interrelatedness of the parts of the
organisation. A manager should not see organisational problems and
activities in isolation.