SYSTEM

APPROACH
A system approach is set of interrelated and inter
dependent parts arranged in a manner that produces
a unified whole.
For Example
The human body is a system with all the organs,
muscles, bones and conscious that likes all of its parts.
In a company a group of division people working for
a common goal or success. So this system for mainly
approach to the management.
 Finance Department

Production Human Resource

Department Department

Marketing
Department
FEATURES OF A SYSTEM
A system is a combination of parts and sub system.
Parts and sub parts of a system are mutually related
to each other.
Arrangement in a system is more important.
Prevalence of boundary.
Closed and open system.
System transforms inputs into outputs.
FEATURES OF MANAGEMENT
AS A SYSTEM
Management as a social system
Management as open system
Adaptive
Dynamic
Probabilistic
Multi level and
multidimensional
Multivariable
An integrated approach
BASIC TYPES OF
SYSTEMS
Closed Systems
closed systems are not influenced by and not interact with
their environment

Open Systems
dynamically interact to their environments by taking inputs
and transforming them into outputs that distributed into their
environments.
THE FOUR PARTS OF
A SYSTEM
Inputs
from the external environment include people, capital, management
& technological skills etc. in short- man money material
Outputs
include products, services, profit, loses, employee, satisfaction or
discontent, and the like that are produced by the organization.
Transformation Process
the organization’s capabilities in management and technology that are
applied to converting inputs to outputs.
Feedback
information about the reaction of the environment to the outputs that
affects the inputs.
THE ORGANIZATION AS
AN OPEN SYSTEM
Environment
Syste
m
Inputs Transformation Outputs
Raw materials process products and
human employees work services financial
resource activities Results information
capital management Human Results
technology activities technology
information and operations
methods

Environment
ADVANTAGES OF
THIS THEORY
Under system approach, manager have a good view of
the organization.

It gives importance to interdependent of the different

parts of an organization and its environment.

 It forecast consequences and plans action.

Goal oriented.
DISADVANTAGES OF THIS
THEORY
Does not offer specific tools and techniques for
practicing manager.

In smaller organization it is not relevant.

Activity of any part affect activity of other parts.

.

Unpractical: It cannot be easily and directly applied

to practical problem.
System approach is very crucial for organizations for it’s
existence in business scenario and economic environment,
in order to face all cyclic circumstances and to move step
a head to achieve goals.